Connect with us

Commodities

Oil prices ease, focus shifts to next OPEC+ move

Published

on

Oil prices ease, focus shifts to next OPEC+ move
© Reuters. FILE PHOTO: The Bryan Mound Strategic Petroleum Reserve, an oil storage facility, is seen in this aerial photograph over Freeport, Texas, U.S., April 27, 2020. REUTERS/Adrees Latif/File Photo

By Ahmad Ghaddar

LONDON (Reuters) -Brent crude futures snapped a three-day rally on Friday in light trading before the Christmas holidays but the benchmark was still headed for a weekly gain, with the market focusing on next steps by OPEC+ and the impact of the Omicron variant.

futures fell 75 cents, or 1%, to $76.10 a barrel by 1121 GMT, following a 2.1% gain in the previous session. The benchmark was still on track for a weekly gain of about 3.5%.

U.S. markets are closed on Friday for the Christmas holiday.

Oil prices have recovered this week as fears over the impact of the highly infectious Omicron variant on the global economy receded, with early data suggesting it causes a milder level of illness.

“The omicron-is-mild rally could well continue into January now, but reality will bite in February I believe, as the end of the Fed taper moves into sight,” OANDA analyst Jeffrey Halley said.

The U.S. Federal Reserve said last week it would end its pandemic-era bond purchases in March, paving the way for three interest rate increases that most Fed policymakers now believe will be needed next year.

The Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, will meet on 4 January to decide whether to go ahead with a 400,000 barrels per day (bpd) production increase in February.

Russia believes oil prices are unlikely to change significantly next year with demand recovering to pre-pandemic levels only by the end of 2022, Deputy Prime Minister Alexander Novak said on Friday.

Some investors remained cautious amid surging infection cases.

Omicron advanced across the world on Thursday, with health experts warning the battle against the COVID-19 variant was far from over despite two drugmakers saying their vaccines protected against it and despite signs it carried a lower risk of hospitalisation.

Coronavirus infections have soared wherever the variant has spread, triggering new restrictions in many countries, including Italy and Greece, and record numbers of new cases.

Global oil demand roared back in 2021 as the world began to recover from the coronavirus pandemic, and overall world consumption potentially could hit a new record in 2022 – despite efforts to bring down fossil fuel consumption to mitigate climate change.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Commodities

Oil Up as Economic Growth Worries Continue

Published

on


© Reuters.

By Gina Lee

Investing.com – Oil was up on Thursday morning in Asia, recovering from early losses as concerns over tight global supplies outweighed fears over slower economic growth.

Brent oil futures jumped 1.45% to $110.69 by 12:58 AM ET (5:58 AM GMT), after falling by more than $1 earlier in the session. WTI futures rose 1.07% to $108.18 recovering from an earlier loss of more than $2 and were up 56 cents, or 0.5%, at $107.60 a barrel for July 2022.

Both Brent and WTI benchmarks fell about 2.5% on Wednesday.

“A slump in Wall Street soured sentiment in early trade as it underlined concerns over weakening consumption and fuel demand,” Rakuten Securities commodity analyst Satoru Yoshida told Reuters.

Asian stocks on Thursday followed a steep Wall Street selloff, as rising global inflation, China’s zero-COVID policy, and the Ukraine war led to fears of an economic recession.

“Still, oil markets are keeping a bullish trend as a pending import ban by the European Union on Russian crude is expected to further tighten global supply,” said Yoshida.

The European Union earlier in the month proposed a new package of sanctions against Russia for its invasion of Ukraine on Feb. 24. The package includes a total ban on Russian oil imports in six months’ time, but the measures have not yet been adopted amid continued resistance to the plan from member countries including Hungary.

On Wednesday, the European Commission unveiled a €210 billion ($220.65 billion) plan for Europe to end its reliance on Russian fossil fuels by 2027.

Meanwhile, Wednesday’s U.S. crude oil supply data from the U.S. Energy Information Administration showed a draw of 3.394 million barrels for the week to May 13. Forecasts prepared by Investing.com predicted a build of 1.383 million barrels, while an 8.487-million-barrel build was reported during the previous week.

Crude oil supply data from the American Petroleum Institute released the day before, showed a draw of 2.445 million barrels. Capacity use on both the East Coast and Gulf Coast was above 95%, with those refineries near their highest possible running rates.

 

Continue Reading

Commodities

Oil prices recoup early losses on China hopes, global supply fears

Published

on


© Reuters. FILE PHOTO: Workers walk as oil pumps are seen in the background in the Uzen oil and gas field in the Mangistau Region of Kazakhstan November 13, 2021. REUTERS/Pavel Mikheyev

By Yuka Obayashi and Florence Tan

TOKYO (Reuters) -Oil prices rose on Thursday, recovering from early losses, on hopes that planned easing of restrictions in Shanghai could improve fuel demand while lingering concerns over tight global supplies outweighed fears of slower economic growth.

Brent crude futures for July were up $1.53, or 1.4%, at $110.64 a barrel at 0447 GMT, after falling by more than $1 earlier in the session.

U.S. West Texas Intermediate (WTI) crude futures for June rose 93 cents, or 0.8%, to $110.52 a barrel, recovering from an early loss of more than $2. WTI for July was up $1.57, or 1.5%, at $108.50 a barrel.

Both benchmark prices fell about 2.5% on Wednesday.

“A slump in Wall Street soured sentiment in early trade as it underlined concerns over weakening consumption and fuel demand,” said Satoru Yoshida, a commodity analyst with Rakuten Securities. [MKTS/GLOB]

Asian shares on Thursday tracked a steep Wall Street selloff as investors fretted over rising global inflation, China’s zero-COVID policy and the Ukraine war. [MKTS/GLOB]

“Still, oil markets are keeping a bullish trend as a pending import ban by the European Union on Russian crude is expected to further tighten global supply,” Yoshida said.

The European Union this month proposed a new package of sanctions against Russia for its invasion of Ukraine. This would include a total ban on oil imports in six months’ time, but the measures have not yet been adopted, with Hungary being among the most vocal critics of the plan.

The European Commission unveiled on Wednesday a 210 billion euro ($220 billion) plan for Europe to end its reliance on Russian fossil fuels by 2027, and to use the pivot away from Moscow to quicken its transition to green energy.

Also, U.S. crude inventories fell last week, an unexpected drawdown, as refiners ramped up output in response to tight product inventories and near-record exports that have forced U.S. diesel and gasoline prices to record levels. [EIA/S]

Capacity use on both the East Coast and Gulf Coast was above 95%, putting those refineries close to their highest possible running rates.

In China, investors are closely watching plans in the country’s most populous city, Shanghai, to ease restrictions from June 1, which could lead to a rebound in oil demand at the world’s top crude importer.

Stephen Innes from SPI Asset Management said news that Shanghai planned to gradually resume inter-district public transport from May 22 was positive for risk and supporting oil prices.

($1 = 0.9537 euros)

Continue Reading

Commodities

Oil falls 2% on Powell comments, hopes for Venezuela supply

Published

on


© Reuters. FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS/Agustin Marcarian

By Stephanie Kelly

NEW YORK (Reuters) – After hitting seven-week highs, oil prices slumped 2% on Tuesday as Reuters reported that the United States could ease some restrictions on Venezuela’s government, raising hopes that the market could see some additional supplies.

Prices also fell after Federal Reserve Chairman Jerome Powell warned the economy could be hurt by attempts to reduce inflation.

Brent crude fell $2.31, or 2%, to settle at $111.93 a barrel, and U.S. West Texas Intermediate (WTI) crude fell $1.8, or 1.6%, to settle at $112.40 a barrel.

Powell suggested there could be some economic pain involved in bringing inflation down. The U.S. central bank will “keep pushing” to tighten U.S. monetary policy until it is clear that inflation is declining, he said.

“Some of those comments tempered buying enthusiasm on the oil side,” said Phil Flynn, an analyst at Price Futures Group.

U.S. President Joe Biden’s administration will authorize U.S. oil company Chevron Corp (NYSE:CVX) to negotiate with Venezuelan President Nicolas Maduro’s government as soon as Tuesday, Reuters reported, citing sources. There is no final U.S. decision yet on renewing Chevron’s current limited license to operate in Venezuela, the source said.

Oil prices have generally been rising as Russian supply is squeezed by bans from several countries and an economic downturn due to broad sanctions on Moscow imposed by the United States and allies.

Russia’s production dropped by 9% in April, and the country, part of the OPEC+ group, produced far below levels required under a deal to gradually ease record output cuts made during the worst of the pandemic in 2020.

This month, non-Russian deliveries into the Polish port of Gdansk hit the highest in at least seven years, as refiners in eastern Germany and Poland switched.

“Ultimately, this is a supply-side story,” said Fawad Razaqzada, analyst at City Index. “Unless OPEC and its allies ramp up production and fast, it is difficult to see how prices can go down meaningfully.”

EU foreign ministers failed on Monday in their effort to pressure Hungary to lift its veto on the proposed oil embargo. But some diplomats now point to a May 30-31 summit as the moment for agreement on a phased ban on Russian oil.

U.S. crude and gasoline stocks fell last week, according to market sources citing American Petroleum Institute figures on Tuesday. U.S. government data is due on Wednesday. [API/S] [EIA/S]

(The story corrects to remove bullet and paragraph on Brent discount to WTI as first-month Brent crude futures are for July while first-month WTI futures are for June.)

Continue Reading

News

Coronavirus22 mins ago

Some in Shanghai allowed out to shop; end of COVID lockdown in sight

4/4 © Reuters. Customers wearing face masks use self-checkout counters at a reopened Carrefour supermarket amid the coronavirus disease (COVID-19)...

Cryptocurrency22 mins ago

Analysts assess the aftermath of the Terra (LUNA) collapse | Cointelegraph interview

Analysts assess the aftermath of the Terra (LUNA) collapse | Cointelegraph interview Financial commentator Frances Coppola is convinced that algorithmic...

Stock Markets23 mins ago

Rogue trader, euro zone crisis and war, Socgen’s CEO ends ‘bumpy’ ride at top

2/2 © Reuters. FILE PHOTO: French bank Societe Generale Chief Executive Officer Frederic Oudea attends a news conference to present...

Commodities23 mins ago

Oil Up as Economic Growth Worries Continue

© Reuters. By Gina Lee Investing.com – Oil was up on Thursday morning in Asia, recovering from early losses as...

Economy23 mins ago

Investors jolted as U.S. retailers show inflation hitting consumers

© Reuters. FILE PHOTO: Shoppers are seen wearing masks while shopping at a Walmart store, in North Brunswick, New Jersey,...

Commodities23 mins ago

Oil prices recoup early losses on China hopes, global supply fears

© Reuters. FILE PHOTO: Workers walk as oil pumps are seen in the background in the Uzen oil and gas...

Economic Indicators23 mins ago

Money for Ukraine to top G7 agenda; inflation, food a concern

© Reuters. FILE PHOTO: Service members of pro-Russian troops wait before the expected evacuation of wounded Ukrainian soldiers from the...

Economy23 mins ago

Aussie jumps, safe-haven dollar and yen ease amid Shanghai reopening signs

2/2 © Reuters. FILE PHOTO: U.S. one dollar banknotes are seen in this illustration taken February 8, 2021. REUTERS/Dado Ruvic/Illustration//File...

Economy23 mins ago

Deutsche Bank enters new era as chairman’s rocky decade ends

2/2 © Reuters. FILE PHOTO: Chairman of the board Paul Achleitner delivers his speech during the annual shareholder meeting of...

World23 mins ago

More Ukraine fighters surrender in Mariupol, Russia says

© Reuters. Buses carrying service members of Ukrainian forces who have surrendered after weeks holed up at Azovstal steel works...

Economy52 mins ago

A manual for grief: How to handle loss at work

© Reuters. FILE PHOTO: Buddhist monks from Dieu Ngu Temple in Westminster, California, chant during a candlelight vigil to mark...

Cryptocurrency52 mins ago

Russia will inevitably legalize crypto payments says trade minister

Russia will inevitably legalize crypto payments says trade minister Russia will legalize crypto payments “sooner or later” according to the...

Stock Markets53 mins ago

Citi promotes Asia-based banker Valderrabano as global wealth COO

© Reuters. FILE PHOTO: The Citigroup Inc (Citi) in Toronto, Ontario, Canada October 19, 2017. Picture taken October 19, 2017....

Coronavirus53 mins ago

North Korea weapons threat casts shadow on Biden visit

© Reuters. FILE PHOTO: Hwasong-17 intercontinental ballistic missiles take part in a nighttime military parade to mark the 90th anniversary...

Economy53 mins ago

China’s zero-COVID policy dashes global hopes for quick economic return to normal

© Reuters. FILE PHOTO: A worker in a protective suit walks on a closed bridge during lockdown, amid the coronavirus...

Stock Markets53 mins ago

Analysis-Rare double whammy hits investors: steep slumps for both stocks and bonds

© Reuters. FILE PHOTO: A Wall Street sign outside the New York Stock Exchange in New York City, New York,...

Stock Markets53 mins ago

Woodside shareholders approve BHP petroleum merger

© Reuters. FILE PHOTO: The logo for Woodside Petroleum, Australia’s top independent oil and gas company, adorns a promotional poster...

Forex1 hour ago

Dollar Down, but Investor Sentiment Remains Fragile Over Recession Fears

© Reuters. By Gina Lee Investing.com – The dollar was down on Thursday morning in Asia. Safe-haven currencies pressed paused...

Stock Markets1 hour ago

Singapore Airlines sees no big growth risk from Boeing 777X delays

© Reuters. FILE PHOTO: A woman walks past a Singapore Airlines (SIA) logo at a ticketing booth at Changi airport...

Stock Markets1 hour ago

Guatemalan congress approves $500 million loan from World Bank

© Reuters. GUATEMALA CITY (Reuters) – Guatemala’s congress approved on Wednesday a $500 million loan from the World Bank that...

Cryptocurrency1 hour ago

‘Grim Reapers’ financial crimes unit revived to investigate Terra collapse

‘Grim Reapers’ financial crimes unit revived to investigate Terra collapse Legal troubles are mounting for the co-founder of failed Terra...

Coronavirus1 hour ago

Biden visits Japan, South Korea carrying warning to China

© Reuters. FILE PHOTO: Japan’s Prime Minister Fumio Kishida attends a virtual meeting with the U.S. President Joe Biden at...

Cryptocurrency2 hours ago

$3B flows to Metaverse and Web3 gaming this month as A16z’s tips in $600M

$3B flows to Metaverse and Web3 gaming this month as A16z’s tips in $600M Venture capital firm Andreessen Horowitz (a16z)...

Cryptocurrency2 hours ago

Novogratz says LUNA tattoo is a constant reminder investing ‘requires humility’

Novogratz says LUNA tattoo is a constant reminder investing ‘requires humility’ Mike Novogratz, the billionaire founder of crypto asset management...

World2 hours ago

More work to resume in Shanghai’s zero-COVID areas from June

2/2 © Reuters. Women carry boxes of food on a street during lockdown, amid the coronavirus disease (COVID-19) outbreak, in...

World2 hours ago

U.S. Senate confirms Biden nominee to be Ukraine ambassador

© Reuters. FILE PHOTO: Bridget Brink, nominated to be U.S. ambassador to Ukraine, testifies at her Senate Foreign Relations Committee...

Commodities2 hours ago

Oil falls 2% on Powell comments, hopes for Venezuela supply

© Reuters. FILE PHOTO: Oil pump jacks are seen at the Vaca Muerta shale oil and gas deposit in the...

Economy2 hours ago

New Zealand government forecasts narrower deficit for 2021/22

© Reuters. FILE PHOTO – Cranes located on construction sites are seen in central Auckland, New Zealand, June 25, 2017....

Stock Markets2 hours ago

U.S. files third labor complaint in Mexico, on behalf of Panasonic workers

© Reuters. FILE PHOTO: A logo of Panasonic Corp is pictured at the CEATEC JAPAN 2017 (Combined Exhibition of Advanced...

Economic Indicators3 hours ago

Australia boasts lowest unemployment since 1974 in nod for rate hikes

© Reuters. FILE PHOTO – A worker pushes a trolley loaded with goods past a construction site in the central...

Trending