Oil Rises Above $50 as OPEC Trims Exports, Sets Meeting on Cuts

Futures rose 0.9 percent in a last-minute surge, extending gains from the biggest weekly rally this year. OPEC will meet with allies in Abu Dhabi next week to discuss compliance with their output-cut accord. U.S. crude imports from member countries slipped 2.6 percent in May, and some of the group’s leading exporters have pledged to reduce shipments next month.

“There’s been some constructive developments coming out of OPEC,” Tamar Essner, an energy analyst at Nasdaq Inc. in New York, said by telephone. “The data out of OPEC has been bearish.”

Oil has rebounded on growing signs that the market is coming back into balance, with futures climbing above the 200-day moving average last week for the first time since May.  Members of the Organization of Petroleum Exporting Countries such as Saudi Arabia and Kuwait promised to reduce crude exports. U.S. crude stockpiles have been on a steady decline and are estimated to have dropped further last week.

The market resisted $50 for most of the morning, but a last-minute jump might have been driven by short-sellers pulling out, John Macaluso, a trader at Tyche Capital Advisors LLC in New York, said by telephone.

“Whatever shorts that were trying to play that $50 a barrel level were just taking trades off at the end of the day,” he said. A lot of investors reconsider “their convictions, especially when you get to the tipping point of $50.”
more at:  https://www.bloomberg.com/news/articles/2017-07-31/oil-rises-above-50-before-opec-meet-to-discuss-cut-compliance

Related Posts

Oil Set for Weekly Gain on Rebalancing Signs From U.S. to China

Futures added 1.5 percent in New York. China’s crude imports last month jumped to the second-highest on record, customs data show, while U.S. government data on Thursday showed crude inventories fell by 2.75 million barrels last week. OPEC is said to expect a global oil glut will be gone a year from now. President Donald Trump is expected on Friday to disavow a deal with Iran that helped revive its oil exports, while stopping short of abandoning it. Oil has rebounded from the biggest weekly loss since May on signs that output cuts led by the Organization of Petroleum Exporting Countries are draining a surplus. OPEC expects the effort to succeed by the end of the third quarter of next year, said people familiar with the group’s internal forecasts. The prediction assumes that production in Libya and Nigeria will remain at current levels and U.S. shale output will expand by no more than 500,000 barrels a day next year, two people familiar with the matter said. Click Read More below for additional information.

ATA Truck Tonnage Index Increased 2.4% in September

American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index increased 2.4% in September after rising 0.3% in August. In September, the index equaled 112.9 (2015=100) compared with 110.2 in August. “September’s sequential gain was the largest in 2021,” said ATA Chief Economist Bob Costello. “It is good that tonnage rose in September, but it is important to note that this is happening because each truck is hauling more, not from an increase in the amount of equipment operated as contract carriers in the for-hire truckload market continue to shrink from the lack of new trucks and drivers. “The drivers of truck freight, including retail, construction, and manufacturing, plus a surge in imports, are helping keep demand high for trucking services,” he said.
Back To Top
×Close search
Search