Oil Falls as Talk of Libya, Nigeria Caps Can’t Dispel OPEC Doubt

Futures were down 1 percent in New York, extending last week’s 3.9 percent drop. The two African producers, who were exempt from supply cuts because of internal strife but are now recovering, have been invited to a July 24 meeting in Russia to discuss whether their production has stabilized, Kuwait’s Oil Minister Issam Almarzooq said in Istanbul. BNP Paribas SA sharply reduced its price forecasts for this year and next because supply growth elsewhere is diluting the impact of the OPEC-led curbs.

Oil in New York and London remains in a bear market amid concerns elevated global oil inventories and rising supply will offset curbs by the Organization of Petroleum Exporting Countries and its partners including Russia. Libya and Nigeria together added 440,000 barrels a day of production in May and June as fields restarted, according to data compiled by Bloomberg. It’s premature to talk about deepening output cuts, OPEC Secretary-General Mohammad Barkindo said in Istanbul.

“Sentiment in the oil market is still negative,” Giovanni Staunovo, an analyst at UBS Group AG said. “In order to change that, a series of large inventory drawdowns in the U.S. is probably needed.”

West Texas Intermediate for August delivery was down 46 cents or 1 percent at $43.77 a barrel as of 6:52 a.m. New York time. Total volume traded was about 20 percent above the 100-day average. Prices fell $1.29, or 2.8 percent, to $44.23 on Friday.

Brent for September settlement fell 48 cents to $46.23 a barrel on the London-based ICE Futures Europe exchange. Prices slid 2.5 percent last week. The global benchmark crude traded at a premium of $2.28 to September WTI.
more at:  https://www.bloomberg.com/news/articles/2017-07-09/oil-gains-after-weekly-loss-as-libya-may-be-asked-to-cap-output

Related Posts

ATA Truck Tonnage Index Jumped 7.4% in December

American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index increased 7.4% in December after rising 3.2% in November. In December, the index equaled 120 (2015=100) compared with 111.7 in November. “Tonnage ended last year on a high note,” said ATA Chief Economist Bob Costello. “The index not only registered the largest monthly gain since June, but it also had the first year-over-year increase since March. Freight continues to be helped by strong consumption, a retail inventory restocking, and robust single-family home construction. With the stimulus checks recently issued and with a strong possibility of more in the near future, I would expect truck freight to continue rising.” November’s gain was revised down slightly to 3.2% from our December 22 press release. Compared with December 2019, the SA index rose 2.3%. For all of 2020, compared with the same 12-month period in 2019, tonnage was down 3.3%. 2019 had an annual increase of 3.3%.

Key Currency Exchange Rates for Friday, 3/9/18

American Dollar to Canadian Dollar = 0.776647; American Dollar to Chinese Yuan = 0.157816; American Dollar to Euro = 1.229703; American Dollar to Japanese Yen = 0.009631; American Dollar to Mexican Peso = 0.053737.

Oil Set for Best Weekly Run in Year as Saudi Tumult Roils Market

Oil is heading for the longest run of weekly gains since October 2016 as global supplies tighten and on signs the Organization of Petroleum Exporting Countries will extend output curbs past the end of March. Saudi Arabia on Thursday advised its nationals to leave Lebanon, fueling fears of a confrontation with Iran in a country long known for being a battleground for proxy wars in the Middle East. “Geopolitical risks have taken center stage in the oil market again,” said Jens Naervig Pedersen, senior analyst at Danske Bank A/S in Copenhagen. “The rising tensions between Saudi Arabia and Iran have raised concerns in the oil market of an imminent supply disruption.” Saudi Arabia said it plans to cut crude exports to all the regions it ships to next month. Shipments will fall by 120,000 barrels a day in December from November, a spokesman for the Energy Ministry said, without specifying what those levels would be. Bloomberg calculations from vessel-tracking data estimated flows in October at 6.989 million a day. Click Read More below for additional information.
Back To Top
×Close search
Search