Oil Retreats on Speculation Syria Intervention Will Be Limited

Futures slipped as much as 1.9 percent in New York. President Donald Trump declared “mission accomplished” a day after the U.S., France and the U.K. launched military strikes in response to Syrian leader Bashar al-Assad’s suspected chemical attack on civilians. British Foreign Secretary Boris Johnson insisted that the hit was a one-time move. The number of rigs drilling for crude in the U.S. rose to a three-year high, signaling production may rise from record levels.

Oil last week rose to levels last seen in 2014 amid growing geopolitical risks, with investors anticipating that retaliation against Assad would threaten production in the region, while tensions between Saudi Arabia and Iran-backed rebels in Yemen also added to concerns. Still, surging U.S. output continues to weigh on investor sentiment even as the International Energy Agency says the Organization of Petroleum Exporting Countries is close to reaching its target of eliminating a global crude glut.

Meanwhile, in the U.S., working oil rigs rose by seven last week to 815, the highest since March 2015, according to data from Baker Hughes. The rig fleet has expanded in 10 of the past 12 weeks. The expansion came after the Energy Information Administration data showed that American oil production rose to a fresh record of 10.5 million barrels a day.
more at:  https://www.bloomberg.com/news/articles/2018-04-16/oil-halts-gain-near-67-as-u-s-rig-rise-counters-mideast-clash

Related Posts

Parts and Labor Costs Dropped in the Second Quarter of 2023

American Trucking Associations’ Technology & Maintenance Council and Decisiv Inc., said parts and labor expenses dropped during the second quarter of 2023, according to data released in the latest Decisiv/TMC North American Service Event Benchmark Report. “With rising build rates for new equipment and less mileage reducing the need to operate aging trucks, fleets are finally seeing a definite improvement in parts and labor costs,” said Decisiv President and CEO Dick Hyatt. “The data that Decisiv collects and analyzes for TMC on Vehicle Maintenance Reporting Standard system level codes points to a return to normalized trade cycles and more predictable service and repair costs. Along with greater stability, the highly detailed data and reporting enabled by Decisiv SRM allows fleets and service providers to focus on ways to continue to drive down expenses.”

Oil Drops Most in Three Weeks Amid Falling Equities, Output Jump

Futures in New York slid 2.3 percent. Declines in the equity market, a rising dollar and concern that Trump’s tariff threats will spark a trade war acted as a downward force on crude oil. And at the same time, the Energy Information Administration reported American crude inventories rose by 2.41 million barrels last week, while production jumped to a fresh record. The EIA report also showed gasoline supplies declined for the first time since January and distillate inventories fell for a fourth straight week. Stockpiles at the key U.S. storage hub in Cushing, Oklahoma tumbled for an 11th week to the lowest since 2014. Crude inventories rose by 2.41 million barrels, lower than expectations. Click Read More below for additional information.

Oil Halts Slide Near $48 on Signs U.S. Stockpiles Extended Drop

Futures rose 0.5 percent in New York after slipping a second session Tuesday. Inventories dropped by 9.2 million barrels last week, the American Petroleum Institute was said to report. If that is replicated in government data Wednesday, it would be the largest drop in almost a year. Output from Libya is rebounding as its biggest field boosts production and a port reopens. OPEC won’t clear the global glut any time soon since any increase in price continues to bolster rival production from U.S. shale, according to the International Energy Agency. Click Read More below for additional detail.
Back To Top
×Close search
Search