Crude Tumbles as Rising Supply Counters Bullish Demand Outlook

Futures in New York tumbled 1.7 percent Thursday. While Goldman Sachs Group Inc. forecasted strong global consumption growth, crude production and stockpiles in the U.S. climbed higher in the latest inventory report. A strengthening dollar also pushed crude lower.

The Organization of Petroleum Exporting Countries and its partners including Russia continue to trim output as promised. OPEC shipments will fall by 230,000 barrels a day in the four weeks to March 24, according to tanker-tracker Oil Movements. Saudi Minister of Energy and Industry Khalid Al-Falih said in a Bloomberg Television interview that the deal will evolve in 2019 and the group will do what it needs to in order to preserve oil market stability.

Yet, worries about growing U.S. shale output as West Texas Intermediate crude futures linger in the $60s puts a limit on prices rallying higher. Energy Information Administration data released Wednesday showed weekly nationwide crude output climbed to a fresh record last week, while crude inventories rose to the highest since December. Reports that data-provider Genscape Inc. posted a rise in inventories at the Cushing, Oklahoma storage hub last week also added to downward pressure.

The Bloomberg Dollar Spot Index climbed as much as 0.6 percent. A stronger U.S. currency reduces the appeal of dollar-denominated raw materials as an investment, pushing crude lower.
more at:  https://www.bloomberg.com/news/articles/2018-03-08/oil-halts-losses-after-u-s-stockpiles-gain-less-than-expected

Related Posts

Oil Holds Below $65 After Volatile Week Caused by Pipeline Woes

Futures rose 0.2 percent, leaving prices in London little changed on the week. They jumped above $65 for the first time since 2015 earlier on Tuesday after the Forties pipeline in the U.K. shut down because of a crack. Those gains were eroded as the International Energy Agency’s voiced doubts the market would fully rebalance in 2018, diverging from the view of OPEC. “It’s been volatile,” Torbjorn Kjus, analyst at DNB Bank ASA, said by phone. If the Forties pipeline is “out for a month, it should have a positive effect” on prices as 10 million barrels of oil supply could easily be lost to the market. Click Read More below for additional information.

Key Currency Exchange Rates for Friday, 2/25/22

American Dollar to Canadian Dollar = 0.783604; American Dollar to Chinese Yuan = 0.158366; American Dollar to Euro = 1.122623; American Dollar to Japanese Yen = 0.008653; American Dollar to Mexican Peso = 0.048975.

Oil Surges Above $49 as Supply Draw Shows Market in Better Shape

Futures climbed 0.6 percent in New York for a fourth day of gains. Kuwait joined the U.A.E. in promising to pump less oil after Saudi Arabia called on OPEC producers to cut more supply. U.S. crude inventories declined by 7.21 million barrels last week to the lowest level since early January, according to the Energy Information Administration. The market is digesting “very strong draws in inventories across the board,” Adam Wise, who runs a $8 billion oil and natural gas bond and private equity portfolio at John Hancock Financial Services Inc. in Boston, said by telephone. “We’ve also seen comments out of Saudi Arabia supporting prices in the form of export reduction. Sentiment is finally being forced to pay attention to the fundamentals.” Click Read More below for additional details.
Back To Top
×Close search
Search