Prepare for $80 oil this summer as ‘wounded bulls’ rise, RBC warns

International oil prices will average $75 a barrel in 2019, and consumers may find themselves contending with bouts of $80 crude this summer, RBC Capital Markets said. The global investment bank revised its oil price forecast higher Thursday, pointing to a cocktail of market conditions. The bank also boosted its outlook for U.S. West Texas Intermediate crude from $61.30 per barrel to $67 for 2019. The long-to-short ratio reached 13 times “at the peak of the oil price euphoria last fall” and aver


International oil prices will average $75 a barrel in 2019, and consumers may find themselves contending with bouts of $80 crude this summer, RBC Capital Markets said. The global investment bank revised its oil price forecast higher Thursday, pointing to a cocktail of market conditions. The bank also boosted its outlook for U.S. West Texas Intermediate crude from $61.30 per barrel to $67 for 2019. The long-to-short ratio reached 13 times “at the peak of the oil price euphoria last fall” and aver
Prepare for $80 oil this summer as ‘wounded bulls’ rise, RBC warns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: tom dichristopher, juan pelegrin, moment, getty images
Keywords: news, cnbc, companies, wti, 80, oil, times, price, prepare, crude, wounded, bank, warns, bulls, rbc, rise, prices, barrel, west, summer


Prepare for $80 oil this summer as 'wounded bulls' rise, RBC warns

International oil prices will average $75 a barrel in 2019, and consumers may find themselves contending with bouts of $80 crude this summer, RBC Capital Markets said.

The global investment bank revised its oil price forecast higher Thursday, pointing to a cocktail of market conditions. Those include steep OPEC supply cuts, robust demand, geopolitical risk and investor positioning that leaves crude futures with plenty of room to run.

RBC’s $75 call for international Brent crude is up from a previous 2019 forecast of $69.50 per barrel. The bank also boosted its outlook for U.S. West Texas Intermediate crude from $61.30 per barrel to $67 for 2019.

“We see price risk asymmetrically skewed to the upside spurred by geopolitically infused rallies that could shoot prices toward or even beyond our high-end, bull-case scenario and test the $80/bbl mark for intermittent periods this summer,” RBC strategists Michael Tran, Helima Croft and Christopher Louney said in a research note.

Brent hit $71.78 and WTI rose to $64.79 this week, the highest levels since early November.

While Brent and WTI have rallied 32% and 40.5%, respectively, this year, the oil trade is not as crowded as it was last year. There are currently about 4.5 times as many long positions in crude futures — bets that oil will rise — as there are short positions, or wagers that the commodity price will fall.

The long-to-short ratio reached 13 times “at the peak of the oil price euphoria last fall” and averaged 8.5 times in 2018, RBC notes.

“In short, there is room to run to the upside given that geopolitical hotspots are still a clear and present danger for the market, but many wounded bulls remain following the Q4’18 washout,” the analysts said, referring to the collapse in oil prices at the end of last year.

RBC expects the 14-nation OPEC producer group to extend its deal to cap output and boost oil prices, keeping the cost of crude near the $75-$80 range many nations need to balance their budgets.

The bank sees signs of strong demand in the Atlantic Basin, where bellwether barrels from the North Sea and West Africa are finding buyers.


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: tom dichristopher, juan pelegrin, moment, getty images
Keywords: news, cnbc, companies, wti, 80, oil, times, price, prepare, crude, wounded, bank, warns, bulls, rbc, rise, prices, barrel, west, summer


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Oil won’t be going back up to $80 levels, Goldman Sachs’ commodities head Jeff Currie says

DUBAI — Oil won’t be returning to the peak levels it saw last year when global benchmark Brent crude hit $86 a barrel, Goldman Sachs’ top commodities analyst said Monday. “We’ve had a really bad fourth quarter, so the question is ‘how much have we recouped thus far?'” Jeff Currie, Goldman Sachs’ head of commodities research, told CNBC’s Dan Murphy at the 27th Annual Middle East Petroleum and Gas Conference in Dubai. “Looking at oil more broadly… We don’t think you’re going to get back to those


DUBAI — Oil won’t be returning to the peak levels it saw last year when global benchmark Brent crude hit $86 a barrel, Goldman Sachs’ top commodities analyst said Monday. “We’ve had a really bad fourth quarter, so the question is ‘how much have we recouped thus far?'” Jeff Currie, Goldman Sachs’ head of commodities research, told CNBC’s Dan Murphy at the 27th Annual Middle East Petroleum and Gas Conference in Dubai. “Looking at oil more broadly… We don’t think you’re going to get back to those
Oil won’t be going back up to $80 levels, Goldman Sachs’ commodities head Jeff Currie says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-08  Authors: natasha turak
Keywords: news, cnbc, companies, head, levels, pushing, currie, sachs, upside, think, oil, barrel, saw, going, commodities, quarter, goldman, wont, jeff, end


Oil won't be going back up to $80 levels, Goldman Sachs' commodities head Jeff Currie says

DUBAI — Oil won’t be returning to the peak levels it saw last year when global benchmark Brent crude hit $86 a barrel, Goldman Sachs’ top commodities analyst said Monday.

“We’ve had a really bad fourth quarter, so the question is ‘how much have we recouped thus far?'” Jeff Currie, Goldman Sachs’ head of commodities research, told CNBC’s Dan Murphy at the 27th Annual Middle East Petroleum and Gas Conference in Dubai.

“Looking at oil more broadly… We don’t think you’re going to get back to those $80 levels again, so you’ve got some modest upside here.”

“It’s been a fundamental deficit, lower inventories pushing cash in physical prices higher,” Currie said. “This market is in a million barrel per day deficit right now, and we think upside price is $70 to $75 (per barrel), but the back end anchored around $60,” he said.”

That back end low, he explained, is based on three things: expansion of pipelines in Texas’s shale-rich Permian Basin in the third quarter of this year, OPEC potentially exiting its oil cut program because investments are likely to reach the five-year average sometime in May, and more supply coming in from non-OPEC members.

“That’s what is going to keep the back end under pressure, lower inventories pushing prices to $70, to $75, that’s where the investment opportunity is — but it’s not going to be like what we saw in quarters three or four of last year.”


Company: cnbc, Activity: cnbc, Date: 2019-04-08  Authors: natasha turak
Keywords: news, cnbc, companies, head, levels, pushing, currie, sachs, upside, think, oil, barrel, saw, going, commodities, quarter, goldman, wont, jeff, end


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Goldman Sachs believes oil prices are about to go on a wild ride in 2019

Brent crude oil could hit $75 a barrel in the coming months, but the return of the “New Oil Order” will soon push down prices, Goldman Sachs said on Monday. The warning comes less than two weeks after Goldman forecast Brent would peak around $67.50 a barrel in the second quarter. Since then, the international benchmark for oil prices has surged by nearly $5 a barrel, or 7.5 percent, topping out at $67.73 on Friday. Goldman based its earlier forecast on a fundamental reading of supply and demand


Brent crude oil could hit $75 a barrel in the coming months, but the return of the “New Oil Order” will soon push down prices, Goldman Sachs said on Monday. The warning comes less than two weeks after Goldman forecast Brent would peak around $67.50 a barrel in the second quarter. Since then, the international benchmark for oil prices has surged by nearly $5 a barrel, or 7.5 percent, topping out at $67.73 on Friday. Goldman based its earlier forecast on a fundamental reading of supply and demand
Goldman Sachs believes oil prices are about to go on a wild ride in 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-25  Authors: tom dichristopher, essam al-sudani
Keywords: news, cnbc, companies, order, rising, 2019, brent, russia, sachs, prices, crude, believes, ride, goldman, wild, oil, barrel, return


Goldman Sachs believes oil prices are about to go on a wild ride in 2019

Brent crude oil could hit $75 a barrel in the coming months, but the return of the “New Oil Order” will soon push down prices, Goldman Sachs said on Monday.

The warning comes less than two weeks after Goldman forecast Brent would peak around $67.50 a barrel in the second quarter. Since then, the international benchmark for oil prices has surged by nearly $5 a barrel, or 7.5 percent, topping out at $67.73 on Friday.

Goldman based its earlier forecast on a fundamental reading of supply and demand in the oil market. But the investment bank now says crude prices have gained technical support after rising to three-month highs, and a number of bullish factors will likely boost the commodity in March and April.

“While prices could easily trade in a $70-$75/bbl trading range, we believe such an environment would likely prove fleeting,” according to Goldman’s global head of commodities research Jeffrey Currie and senior commodity strategist Damien Courvalin.

“As a result, we would view near-term strength as a window of opportunity for producers to sell forward prices to create earnings security before the return of the New Oil Order later this year,” the analysts wrote in a research note.

That new order is marked by surging U.S. oil production from the nation’s shale fields and rising low-cost output from OPEC and its allies, including Russia. That will ultimately keep Brent and U.S. crude on track for Goldman’s year-end targets of $60 and $55, respectively, the analysts say.

But in the near-term, the so-called OPEC+ alliance is taking a “shock and awe” approach to cutting production, Goldman says. Saudi Arabia is leading this rapid pullback with plans to pump 500,000 barrels per day below its quota in March. Meanwhile Russia has signaled it will deepen cuts over the next two months.


Company: cnbc, Activity: cnbc, Date: 2019-02-25  Authors: tom dichristopher, essam al-sudani
Keywords: news, cnbc, companies, order, rising, 2019, brent, russia, sachs, prices, crude, believes, ride, goldman, wild, oil, barrel, return


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

$60 to $70 is a fair price for a barrel of oil, Egypt’s petroleum minister says

There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla. “It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy. If we see prices go down below a certain price then we will see a slowdown in investments,” he


There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla. “It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy. If we see prices go down below a certain price then we will see a slowdown in investments,” he
$60 to $70 is a fair price for a barrel of oil, Egypt’s petroleum minister says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: holly ellyatt, mohd jailanee othman, eyeem, getty images
Keywords: news, cnbc, companies, barrels, production, fair, million, egypts, barrel, minister, 60, prices, producers, day, petroleum, opec, oil, price, 70


$60 to $70 is a fair price for a barrel of oil, Egypt's petroleum minister says

There is a fair price for a barrel of oil and OPEC and its non-OPEC partners are close to achieving it through their deal to cut production, according to Egypt’s Petroleum Minister Tarek El-Molla.

“It is in the range between $60 and $70 a barrel … somewhere in this bracket of price,” El Molla told CNBC on Sunday when asked if oil prices were at an acceptable level to keep producers and consumers happy.

“If prices of crude increase significantly we would start to see inflation and an exaggeration in the slowdown in consumption from the other side. If we see prices go down below a certain price then we will see a slowdown in investments,” he said.

“So, actually, the fair equation is to have a balanced price between the producers and the consumers whereby each party is happy and to continue the growth of the global economy.”

Egypt is a significant oil and natural gas producer in the Middle East although it’s not a member of OPEC and its output is dwarfed by members of the oil producing group and other non-OPEC producers like Russia.

Egypt is aiming to boost production modestly in 2019, to 670,000 barrels a day, although its output still trails that of others in the region. The latest figures from OPEC’s monthly report in January showed that Egypt’s oil producing neighbors to the west, Libya and Algeria, produced 928,000 barrels a day and a million barrels a day respectively in December. OPEC lynchpin Saudi Arabia produced 10.5 million barrels a day.

OPEC and non-OPEC producers including Russia (collectively known as ‘OPEC plus’) have collaborated in recent years on cutting or increasing their oil production in a bid to stabilize oil prices which have been volatile since 2014.

They last agreed in December to cut oil production by 1.2 million barrels a day in order to put a floor under prices, which have fallen due to rising oil supply and lackluster demand amid an uncertain global growth outlook.

On Monday morning, Brent crude futures were trading at $61.87 a barrel while West Texas Intermediate (WTI) crude futures was trading at $52.25 a barrel. Prices took a dip in the early trading session on Monday after data showed drilling activity in the U.S., now the world’s largest oil producer, had increased again, pointing higher production.

The OPEC-Plus deal has not yet been realized fully with Russia slower to meet the desired output cut. Once the 1.2 million barrel a day cut was reached, El Molla said “I think it will adjust, and reach, the desired outcome of price.”

Speaking to CNBC’s Dan Murphy at the Egypt Petroleum Show, ‘EGYPS, ‘taking place in Cairo, El Molla said oil markets were “somehow close” to a price that can keep both oil producers happy because although oil prices have fallen from peaks of around $114 a barrel in mid-2014, production costs have also fallen with technological advances.

“With the advancement of technology, new ways of producing oil have added new volumes to the market and this technology means you’re reducing the cost per barrel, and what might have been accepted a few years ago back when we were talking about $100, or $90 or $80, a barrel oil wouldn’t be accepted now.”


Company: cnbc, Activity: cnbc, Date: 2019-02-11  Authors: holly ellyatt, mohd jailanee othman, eyeem, getty images
Keywords: news, cnbc, companies, barrels, production, fair, million, egypts, barrel, minister, 60, prices, producers, day, petroleum, opec, oil, price, 70


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Oil falls as US maintains record output, inventories climb

Oil prices fell on Thursday after U.S. crude inventories rose and as production levels in the country held at record levels, but OPEC-led supply cuts and Washington’s sanctions against Venezuela supported markets. U.S. West Texas Intermediate (WTI) crude futures were at $53.84 per barrel at 0247 GMT, down 17 cents, or 0.3 percent, from their last settlement. International Brent crude oil futures were down by 26 cents, or 0.4 percent, at $62.43 per barrel. U.S. crude oil inventories climbed by 1.


Oil prices fell on Thursday after U.S. crude inventories rose and as production levels in the country held at record levels, but OPEC-led supply cuts and Washington’s sanctions against Venezuela supported markets. U.S. West Texas Intermediate (WTI) crude futures were at $53.84 per barrel at 0247 GMT, down 17 cents, or 0.3 percent, from their last settlement. International Brent crude oil futures were down by 26 cents, or 0.4 percent, at $62.43 per barrel. U.S. crude oil inventories climbed by 1.
Oil falls as US maintains record output, inventories climb Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: getty images
Keywords: news, cnbc, companies, falls, cuts, supply, maintains, barrels, barrel, sanctions, output, inventories, climb, record, million, futures, crude, oil


Oil falls as US maintains record output, inventories climb

Oil prices fell on Thursday after U.S. crude inventories rose and as production levels in the country held at record levels, but OPEC-led supply cuts and Washington’s sanctions against Venezuela supported markets.

U.S. West Texas Intermediate (WTI) crude futures were at $53.84 per barrel at 0247 GMT, down 17 cents, or 0.3 percent, from their last settlement.

International Brent crude oil futures were down by 26 cents, or 0.4 percent, at $62.43 per barrel.

U.S. crude oil inventories climbed by 1.3 million barrels in the week that ended Feb. 1 to 447.21 million barrels, data from the Energy Information Administration (EIA) showed on Wednesday.

Meanwhile, average weekly U.S. crude oil production remained at the record 11.9 million barrels per day (bpd) it reached in late 2018. The United States is currently the world’s largest oil producer, ahead of traditional top suppliers Russia and Saudi Arabia.

Countering the rising U.S. crude output and inventories are voluntary supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) aimed at tightening the market and propping up prices.

Meanwhile, U.S. sanctions against Venezuela’s oil industry are expected to freeze the sales proceeds of 500,000 bpd of crude exports.

“The cumulative effect of OPEC-led output cuts along with additional U.S. sanctions on Venezuela’s state oil company … bolstered market sentiment,” said Benjamin Lu of Singapore-based brokerage Phillip Futures in a note on Thursday.

French Bank BNP Paribas cut its estimated average of 2019 prices for Brent to $68 per barrel and for WTI to $61 per barrel, both down by $8 from its previous outlook.

“We expect the oil price to rise in the first-half of 2019 on tightening supply conditions and decline in the second-half on weakening economic activity and an increase in U.S. crude exports to international markets,” said French bank BNP Paribas.


Company: cnbc, Activity: cnbc, Date: 2019-02-07  Authors: getty images
Keywords: news, cnbc, companies, falls, cuts, supply, maintains, barrels, barrel, sanctions, output, inventories, climb, record, million, futures, crude, oil


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Oil prices: BP CEO Bob Dudley sees crude futures firming this year

BP planning for oil price of $50 to $65 a barrel, CEO says 10 Hours Ago | 02:30Oil market conditions should improve over the coming months, BP CEO Bob Dudley told CNBC on Tuesday. His comments come at a time when energy market participants expect U.S. sanctions on crisis-stricken Venezuela, as well as OPEC-led production cuts, to offset a potential supply glut this year. “As we look it, it feels like the markets will be firmer,” Dudley said, when asked for his energy market forecast for 2019. “I


BP planning for oil price of $50 to $65 a barrel, CEO says 10 Hours Ago | 02:30Oil market conditions should improve over the coming months, BP CEO Bob Dudley told CNBC on Tuesday. His comments come at a time when energy market participants expect U.S. sanctions on crisis-stricken Venezuela, as well as OPEC-led production cuts, to offset a potential supply glut this year. “As we look it, it feels like the markets will be firmer,” Dudley said, when asked for his energy market forecast for 2019. “I
Oil prices: BP CEO Bob Dudley sees crude futures firming this year Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-05  Authors: sam meredith, stefan wermuth, bloomberg via getty images
Keywords: news, cnbc, companies, 65, ceo, oil, sees, prices, bob, barrel, crude, dudley, market, energy, planning, futures, price, firming, bp


Oil prices: BP CEO Bob Dudley sees crude futures firming this year

BP planning for oil price of $50 to $65 a barrel, CEO says 10 Hours Ago | 02:30

Oil market conditions should improve over the coming months, BP CEO Bob Dudley told CNBC on Tuesday.

His comments come at a time when energy market participants expect U.S. sanctions on crisis-stricken Venezuela, as well as OPEC-led production cuts, to offset a potential supply glut this year.

“As we look it, it feels like the markets will be firmer,” Dudley said, when asked for his energy market forecast for 2019.

“I couldn’t predict the oil price but we are planning BP between $50 and $65,” he added.

Brent crude, the international benchmark for oil prices, was trading at $62.22 a barrel Tuesday afternoon, down 0.4 percent, while West Texas Intermediate (WTI) stood at $54.30, down 0.5 percent.


Company: cnbc, Activity: cnbc, Date: 2019-02-05  Authors: sam meredith, stefan wermuth, bloomberg via getty images
Keywords: news, cnbc, companies, 65, ceo, oil, sees, prices, bob, barrel, crude, dudley, market, energy, planning, futures, price, firming, bp


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Oil prices jump as US threatens sanctions against Venezuela

Oil prices rose by more than one percent on Friday as turmoil in Venezuela triggered concerns that its oil exports could soon be disrupted. Washington on Thursday signaled it could impose sanctions on Venezuela’s crude exports as Caracas descends further into political and economic turmoil. International Brent crude oil futures were at $61.89 a barrel at 0246 GMT, 80 cents, or 1.3 percent, above their last close. The bank cut its 2019 average Brent crude oil forecast to $70 a barrel, down from $


Oil prices rose by more than one percent on Friday as turmoil in Venezuela triggered concerns that its oil exports could soon be disrupted. Washington on Thursday signaled it could impose sanctions on Venezuela’s crude exports as Caracas descends further into political and economic turmoil. International Brent crude oil futures were at $61.89 a barrel at 0246 GMT, 80 cents, or 1.3 percent, above their last close. The bank cut its 2019 average Brent crude oil forecast to $70 a barrel, down from $
Oil prices jump as US threatens sanctions against Venezuela Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-25  Authors: andrew burton, getty images
Keywords: news, cnbc, companies, barrels, venezuelas, crude, oil, venezuela, threatens, sanctions, week, prices, united, rose, barrel, jump, million


Oil prices jump as US threatens sanctions against Venezuela

Oil prices rose by more than one percent on Friday as turmoil in Venezuela triggered concerns that its oil exports could soon be disrupted.

Washington on Thursday signaled it could impose sanctions on Venezuela’s crude exports as Caracas descends further into political and economic turmoil.

International Brent crude oil futures were at $61.89 a barrel at 0246 GMT, 80 cents, or 1.3 percent, above their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $53.90 per barrel, up 77 cents, or 1.5 percent.

Amid violent street protests, Venezuela’s opposition leader Juan Guaido declared himself interim president earlier this week, winning backing from Washington and large parts of Latin America, prompting Nicolas Maduro, the country’s leader since 2013, to break relations with the United States.

Fundamentally, however, global oil markets are still well supplied, thanks in part to surging output in the United States, where crude production rose by more than 2 million barrels per day (bpd) last year to a record 11.9 million bpd.

Record U.S. production would likely offset any short-term disruptions to enezuelan supply due to possible U.S. sanctions, Britain’s Barclays on Thursday said in a note. The bank cut its 2019 average Brent crude oil forecast to $70 a barrel, down from $72 previously.

The surge in U.S. output has resulted in swelling U.S. fuel inventories.

Gasoline stocks rose for an eighth consecutive week in the week to Jan. 18, by 4.1 million barrels to a record 259.6 million barrels, the U.S. Energy Information Administration (EIA) said in a weekly report on Thursday.

Crude inventories rose by 8 million barrels.


Company: cnbc, Activity: cnbc, Date: 2019-01-25  Authors: andrew burton, getty images
Keywords: news, cnbc, companies, barrels, venezuelas, crude, oil, venezuela, threatens, sanctions, week, prices, united, rose, barrel, jump, million


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Oil firms as China’s economic slowdown was not as big as some expected

Oil prices firmed on Monday after data showed China’s economic slowdown was not as big as some analysts had expected, with supply cuts led by the Organization of the Petroleum Exporting Countries also offering support. International Brent crude oil futures were at $62.83 per barrel at 0259, up 13 cents, or 0.2 percent, from their last close. Both oil price benchmarks had dipped into the red earlier in the session on fears that China’s 2018 economic growth figures would be weaker. China’s Septemb


Oil prices firmed on Monday after data showed China’s economic slowdown was not as big as some analysts had expected, with supply cuts led by the Organization of the Petroleum Exporting Countries also offering support. International Brent crude oil futures were at $62.83 per barrel at 0259, up 13 cents, or 0.2 percent, from their last close. Both oil price benchmarks had dipped into the red earlier in the session on fears that China’s 2018 economic growth figures would be weaker. China’s Septemb
Oil firms as China’s economic slowdown was not as big as some expected Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: jean-paul pelissier
Keywords: news, cnbc, companies, chinas, firms, slowdown, economic, oil, expected, supply, analysts, big, 2018, growth, barrel, crude, opec, prices


Oil firms as China's economic slowdown was not as big as some expected

Oil prices firmed on Monday after data showed China’s economic slowdown was not as big as some analysts had expected, with supply cuts led by the Organization of the Petroleum Exporting Countries also offering support.

International Brent crude oil futures were at $62.83 per barrel at 0259, up 13 cents, or 0.2 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $53.92 a barrel, up 12 cents, or 0.2 percent.

Both oil price benchmarks had dipped into the red earlier in the session on fears that China’s 2018 economic growth figures would be weaker.

In an expected cooling, China’s economy grew by 6.6 percent in 2018, its slowest expansion in 28 years and down from a revised 6.8 percent in 2017, official data showed on Monday. China’s September-December 2018 growth was at 6.4 percent, down from 6.5 percent in the previous quarter.

Although the slowdown was in line with expectations and not as sharp as some analysts had expected, the cooling of the world’s number two economy casts a shadow over global growth.

“The global outlook remains murky, despite emerging positives from a dovish Fed (now boosting U.S. mortgage applications), faster China easing (China credit growth stabilizing) and a more durable U.S.-China truce,” U.S. bank J.P. Morgan said in a note.

Despite this, analysts said supply cuts led by OPEC would likely support crude oil prices.

“Brent can remain above $60 per barrel on OPEC+ compliance, expiry of Iran waivers and slower U.S. output growth,” J.P. Morgan said.

It recommended investors should “stay long” crude oil.

Researchers at Bernstein Energy said the supply cuts led by OPEC “will move the market back into supply deficit” for most of 2019 and that “this should allow oil prices to rise to U.S. $70 per barrel before year-end from current levels of U.S.$60 per barrel.”

In the United States, energy firms cut 21 oil rigs in the week to Jan. 18, taking the total count down to 852, the lowest since May 2018, energy services firm Baker Hughes said in a weekly report on Friday.

It was biggest decline since February 2016, as drillers reacted to the 40 percent plunge in U.S. crude prices late last year.

However, U.S. crude oil production still rose by more than 2 million barrels per day (bpd) in 2018, to a record 11.9 million bpd.

With the rig count stalling, last year’s growth rate is unlikely to be repeated in 2019, although most analysts expect annual production to average well over 12 million bpd, making the United States the world’s biggest oil producer ahead of Russia and Saudi Arabia.


Company: cnbc, Activity: cnbc, Date: 2019-01-21  Authors: jean-paul pelissier
Keywords: news, cnbc, companies, chinas, firms, slowdown, economic, oil, expected, supply, analysts, big, 2018, growth, barrel, crude, opec, prices


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Oil rises 1 percent on supply cuts, but economic slowdown weighs on outlook

Oil prices rose 1 percent on Tuesday amid supply cuts led by producer club OPEC and Russia, although a darkening economic outlook capped gains. International Brent crude oil futures were at $59.64 per barrel at 0257 GMT, up 65 cents, or 1.1 percent, from their last close. Although Washington granted sanctions waivers to Iran’s biggest oil customers, mostly in Asia, the Middle Eastern country’s exports have plummeted since. While OPEC and Russia cut supply and Iran is restrained by sanctions, cru


Oil prices rose 1 percent on Tuesday amid supply cuts led by producer club OPEC and Russia, although a darkening economic outlook capped gains. International Brent crude oil futures were at $59.64 per barrel at 0257 GMT, up 65 cents, or 1.1 percent, from their last close. Although Washington granted sanctions waivers to Iran’s biggest oil customers, mostly in Asia, the Middle Eastern country’s exports have plummeted since. While OPEC and Russia cut supply and Iran is restrained by sanctions, cru
Oil rises 1 percent on supply cuts, but economic slowdown weighs on outlook Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-15  Authors: essam al-sudani
Keywords: news, cnbc, companies, slowdown, sanctions, late, barrel, cuts, million, russia, rises, outlook, supply, crude, production, weighs, oil, economic, opec


Oil rises 1 percent on supply cuts, but economic slowdown weighs on outlook

Oil prices rose 1 percent on Tuesday amid supply cuts led by producer club OPEC and Russia, although a darkening economic outlook capped gains.

International Brent crude oil futures were at $59.64 per barrel at 0257 GMT, up 65 cents, or 1.1 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $51.09 per barrel, up 58 cents, or 1.2 percent.

“The impact of OPEC+ (OPEC and others including Russia) cuts, Iran sanctions and lower month-on-month growth in U.S. production should help to support oil prices from current levels,” U.S. bank J.P. Morgan said in a note.

The Middle East-dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC allies, including Russia, agreed in late 2018 to cut supply to rein in a global glut.

Meanwhile, the United States last November re-imposed sanctions against Iran’s oil exports. Although Washington granted sanctions waivers to Iran’s biggest oil customers, mostly in Asia, the Middle Eastern country’s exports have plummeted since.

“Iranian exports have already fallen sharply and are likely to remain at around 1.3 million barrels per day (bpd) in 2019, 1.3 million bpd down vs their 1H18 average,” HSBC said in its 2019 oil market outlook.

While OPEC and Russia cut supply and Iran is restrained by sanctions, crude oil production in the United States hit a record 11.7 million bpd late last year.

The surging output increasingly allows U.S. oil producers to export crude, including to top importer China.

Three cargoes of U.S. crude are currently heading to China from the U.S.

Gulf Coast, the first departures since late September and a 90-day pause in the two countries’ trade war that began last month.

The tankers are scheduled to arrive at Chinese ports between late January and early March, according to shipbrokers and vessel tracking data.

Looming over oil and financial markets, however, is an economic slowdown.

Tuesday’s oil price increases came after crude futures fell by more than 2 percent the previous session, dragged down by weak Chinese trade data which pointed to a global economic slowdown.

“The outlook for the global economy continues to be highly uncertain,” HSBC said.

The bank said it had cut its average 2019 Brent crude oil price forecast by $16 per barrel, to $64 per barrel, citing surging U.S. production and an “increasingly uncertain demand backdrop”.


Company: cnbc, Activity: cnbc, Date: 2019-01-15  Authors: essam al-sudani
Keywords: news, cnbc, companies, slowdown, sanctions, late, barrel, cuts, million, russia, rises, outlook, supply, crude, production, weighs, oil, economic, opec


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Brent crude prices fall below $60 on weak China trade data

Brent crude oil prices fell below $60 per barrel on Monday after Chinese data showed weakening imports and exports in the world’s biggest trading nation. International Brent crude oil futures were at $59.78 per barrel at 0312 GMT, down 70 cents, or 1.2 percent from their last close. U.S. West Texas Intermediate (WTI) crude futures were down 63 cents, or 1.2 percent, $50.96 a barrel. China’s December exports fell by 4.4 percent from a year earlier, the biggest monthly drop in two years, official


Brent crude oil prices fell below $60 per barrel on Monday after Chinese data showed weakening imports and exports in the world’s biggest trading nation. International Brent crude oil futures were at $59.78 per barrel at 0312 GMT, down 70 cents, or 1.2 percent from their last close. U.S. West Texas Intermediate (WTI) crude futures were down 63 cents, or 1.2 percent, $50.96 a barrel. China’s December exports fell by 4.4 percent from a year earlier, the biggest monthly drop in two years, official
Brent crude prices fall below $60 on weak China trade data Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-14
Keywords: news, cnbc, companies, crude, china, oil, data, brent, futures, biggest, weak, barrel, trade, showed, fall, weakening, prices, worlds, 60


Brent crude prices fall below $60 on weak China trade data

Brent crude oil prices fell below $60 per barrel on Monday after Chinese data showed weakening imports and exports in the world’s biggest trading nation.

International Brent crude oil futures were at $59.78 per barrel at 0312 GMT, down 70 cents, or 1.2 percent from their last close.

U.S. West Texas Intermediate (WTI) crude futures were down 63 cents, or 1.2 percent, $50.96 a barrel.

China’s December exports fell by 4.4 percent from a year earlier, the biggest monthly drop in two years, official data showed on Monday, pointing to further weakening in the world’s second-largest economy. Imports also contracted, falling 7.6 percent, the biggest decline since July 2016.

Traders said the data pulled down crude oil futures and Asian stock markets alike, which had both posted modest gains earlier on Monday.

Economic research firm TS Lombard said oil prices were capped as “the world economy is now slowing … limiting the scope for positive surprises in oil demand and hampering inventory reduction.”

Ole Hansen, head of commodity strategy at Denmark’s Saxo Bank, said “the deterioration seen recently in forward-looking economic data from the U.S. to Europe and China” meant that the upside for crude oil futures was likely limited to $64 per barrel for Brent and for $55 for WTI.

The weak Chinese data countered general support that oil markets have been receiving since the start of the year from supply cuts from the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC allies, including Russia.

In the United States, drillers cut four oil rigs in the week to Jan. 11, bringing the total count down to 873, energy services firm Baker Hughes said in a weekly report on Friday.


Company: cnbc, Activity: cnbc, Date: 2019-01-14
Keywords: news, cnbc, companies, crude, china, oil, data, brent, futures, biggest, weak, barrel, trade, showed, fall, weakening, prices, worlds, 60


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post