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Tag: Oil rises

  • Oil rises as OPEC holds off cuts decision

    Oil prices were slightly up early yesterday as the market was assessing the news that a panel of the OPEC allies is recommending that partners cancel a scheduled extraordinary meeting in mid-April, leaving the decision for the cuts extension for a meeting at the end of June instead.

    WTI Crude rose 0.07 per cent at $58.56, while Brent Crude was traded up 0.24 at $67.32, with both benchmarks recovering from losses earlier in the day.

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    “In consideration that market fundamentals are unlikely to materially change in the next two months, the JMMC adopted a recommendation to forego the full Ministerial Meeting in April and instead schedule a JMMC meeting in May ahead of the OPEC Conference meeting on 25 June, during which a decision will be taken on the production target for the second half of 2019,” the Joint Ministerial Monitoring Committee (JMMC) said at the end of a meeting in Baku, Azerbaijan.

     

  • Oil rises above Budget 2019 benchmark

    Brent crude oil price has risen above the Federal Government’s 2019 budget benchmark of $60 per barrel. Brent crude traded at the future market for $62 per barrel giving hope that the 2019 draft budget under consideration by the National Assembly could be sustained if the price remains stable.

    Crude oil prices rose for a third day yesterday pushed up by lower imports into the United States (U.S) amid the Organisation of Petroleum Exporting Countries (OPEC) efforts to tighten the market as well as Venezuela struggles to keep up its crude exports after Washington imposed sanctions on the nation.

    U.S. West Texas Intermediate (WTI) crude futures were at $54.47 per barrel up 24 cents or 0.4 per cent from their last settlement.

    International Brent crude oil futures were up 36 cents or 0.6 per cent at $62.01 per barrel. The price rise came after a report from the U.S. Energy Information Administration (EIA) on Wednesday showed a drop in Saudi crude supply to the United States. “Crude oil prices were stronger after signs emerged that OPEC cuts are impacting trade. EIA’s weekly report showed that U.S. imports from Saudi Arabia fell by more than half from the previous week to 442,000 barrels per day (bpd).

    “This is the second lowest level in weekly data going back to 2010,” ANZ bank said.

    Saudi Arabia is the de-facto leader of OPEC which together with some non-OPEC producers  including Russia announced supply cuts late last year aimed at tightening the market and propping up prices. U.S. sanctions imposed on state-oil firm Petroleos de Venezuela SA (PDVSA) this week is also causing some supply disruptions. Venezuela’s oil inventories have started to build up at the country’s ports and terminals as PDVSA is finding it cannot export crude at its usual rate due to U.S. sanctions imposed earlier this week.

    As of Wednesday, Venezuela had 25 tankers with nearly 18 million barrels of crude – representing about two weeks of the country’s production – either waiting to load or expecting authorisation to set sail, shipping data showed.

     

     

     

     

  • Oil rises two per cent on US, China trade truce

    Oil prices jumped yesterday after the United States (U.S.) and China agreed a 90-day truce in a trade dispute, Canada’s Alberta province ordered a production cut, and as exporter group Organisation of Petroleum Exporting Countries (OPEC) looked set to reduce supply.

    U.S. light crude oil last traded $1.31, or 2.6 per cent, higher at $52.24. Brent crude was up $1.36, or 2.3 per cent at $60.82.

    Both benchmarks surged by more than five per cent earlier in the session.

    China and the U.S. agreed during a weekend meeting in Argentina of the Group of 20 leading economies not to impose additional trade tariffs for at least 90 days while they hold talks to resolve existing dispute.

    The trade war between the world’s two biggest economies has weighed heavily on global trade, sparking concerns of an economic slowdown.

    Crude oil has not been included in the list of products facing import tariffs, but traders said the positive sentiment of the truce was also driving crude markets.

    Oil also received support from an announcement by the Canadian province of Alberta that it would force producers to cut output by 8.7 per cent, or 325,000 barrels per day (bpd), to deal with a pipeline bottleneck that has led to crude building up in storage.

    “From Argentina to Alberta, the oil market news is about supply curtailments. A brightening market mood will likely extend today’s price rally in the very near term,” said Norbert Rücker, head of commodity research at Swiss bank Julius Baer.

    OPEC meets on Dec. 6 to decide output policy. The group, along with non-OPEC member Russia, is expected to announce cuts aimed at reining in a production surplus that has pulled down crude prices by around a third since October.

    “Markets are expecting to see a substantial production cut after Russian President Vladimir Putin said his country’s cooperation on oil supplies with Saudi Arabia would continue,” said Hussein Sayed, chief market strategist at brokerage FXTM.

    Within OPEC, Qatar said yesterday it would leave the producer club in January.

    Qatar’s oil production is only around 600,000 bpd, but it is the world’s biggest exporter of liquefied natural gas (LNG).

     

  • Oil rises to two-week high on OPEC supply cuts

    Oil price reached a two-week high as Organisation of Petroleum Exporting Countries (OPEC) and its allies’ output curbs  continued to deplete the remnants of global supply surplus.

    OPEC and its partners that are cutting output to ease the global glut still expect markets to balance by about the third quarter, according to people familiar with the matter. Speculation is also growing that United States (US) President Donald Trump may deploy sanctions in Iran and Venezuela that will curb oil output, according to PVM Oil Associates.

    Oil has swung around this month after registering its worst February decline in half a decade. While the OPEC is showing confidence that it will eradicate the global glut this year, US production record and rising American stockpiles have prompted speculation that the cartel will have to extend its supply curbs into 2019 to reach the goal of reducing inventories to the five-year average.

    “The oil market is in reasonably good health,” said Ole Sloth Hansen, an analyst at Saxo Bank A/S in Copenhagen. “Oil is settling into a wide range between $60 and $70. Storm clouds could emerge if global demand growth begins to be called into question.”

    West Texas Intermediate (WTI) for April delivery, which expires onTuesday, climbed as much as $1.24 to $63.30 a barrel on the New York Mercantile Exchange, the highest intra-day level since February 28.

  • Oil rises to $62.33

    Oil rises to $62.33

    Oil prices hit their highest since July 2015 yesterday as Saudi Arabia’s crown prince cemented his power over the weekend through an anti-corruption crackdown, while markets continued to tighten.

    Brent crude futures were trading 26 cents higher at $62.33 a barrel. U.S. West Texas Intermediate (WTI) crude rose 25 cents to $55.89 a barrel, breaking above $56 for the first time since July 2015.

    Saudi Crown Prince Mohammed bin Salman tightened his grip with the arrest of royals, ministers and investors, including prominent billionaire Alwaleed bin Talal and the powerful head of the National Guard, Prince Miteb bin Abdullah.

    Analysts for now do not see Saudi Arabia, the world’s largest oil exporter, changing its policy of boosting crude prices.

    Prince Mohammed’s reforms include a plan to list parts of state-owned oil company Saudi Aramco next year, and a higher oil price is seen as beneficial for its market capitalisation.

    “We believe the kingdom will stick to the OPEC deal and continue to focus on reducing global oil inventories,” UBS oil analyst Giovanni Staunovo said.

    Saudi Energy Minister Khalid al-Falih said while there is “satisfaction” with a production-cutting deal between the OPEC and other producers led by Russia, the “job is not done yet”.

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