Oil falls 1.6% despite big draw in crude inventories, Mideast tensions

Oil prices fells on Wednesday, erasing earlier gains, despite the Energy Information Administration data showing a big draw in U.S. crude inventories. Brent crude futures fell 50 cents to $63.33 a barrel, while U.S. West Texas Intermediate crude fell 89 cents at $55.88 a barrel. U.S. crude failed to hold above $57.50 per barrel, a key technical level, before giving back its earlier gains, traders said. Sentiment in the oil market has darkened as investors worry about slowing global economic grow


Oil prices fells on Wednesday, erasing earlier gains, despite the Energy Information Administration data showing a big draw in U.S. crude inventories. Brent crude futures fell 50 cents to $63.33 a barrel, while U.S. West Texas Intermediate crude fell 89 cents at $55.88 a barrel. U.S. crude failed to hold above $57.50 per barrel, a key technical level, before giving back its earlier gains, traders said. Sentiment in the oil market has darkened as investors worry about slowing global economic grow
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Company: cnbc, Activity: cnbc, Date: 2019-07-24
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Oil falls 1.6% despite big draw in crude inventories, Mideast tensions

A Petrobras oil platform floats in the Atlantic Ocean near Guanabara Bay in Rio de Janeiro.

Oil prices fells on Wednesday, erasing earlier gains, despite the Energy Information Administration data showing a big draw in U.S. crude inventories.

Brent crude futures fell 50 cents to $63.33 a barrel, while U.S. West Texas Intermediate crude fell 89 cents at $55.88 a barrel.

U.S. crude failed to hold above $57.50 per barrel, a key technical level, before giving back its earlier gains, traders said.

Earlier in the session, the front-month Brent contract flipped to trade at a discount to the second-month contract, a market structure known as contango, for the first time since March. Sentiment in the oil market has darkened as investors worry about slowing global economic growth weakening demand for oil.

Yet the market was supported by a large drawdown in U.S. crude stockpiles earlier in the session. Crude inventories fell by 10.8 million barrels in the week to July 19, the Energy Information Administration said on Wednesday. Analysts expected a decrease of 4 million barrels.

“Hurricane Barry has shaken up the data for a second week, with lower production and stymied imports leading to a near-11 million barrel draw,” said Matt Smith, director of commodity research at ClipperData.

U.S. oil companies cut some production in the Gulf of Mexico ahead of Hurricane Barry, which came ashore in Louisiana earlier this month.

Meanwhile, some geopolitical risk premium from tensions in the Middle East also helped buoy prices.

A U.S. Navy ship took defensive action against a second Iranian drone in the Strait of Hormuz last week, but did not see the drone go into the water, the U.S. military said on Tuesday.

Iran’s president, Hassan Rouhani, said on Wednesday his country was ready for “just” negotiations but not if they meant surrender, without saying what talks he had in mind.

Also fueling tensions, Britain gained initial support from France, Italy and Denmark for its plan for a European-led naval mission to ensure safe shipping through the Strait of Hormuz following Iran’s capture of a British-flagged tanker.

The military adviser to Iran’s supreme leader was quoted on Wednesday as saying that any change in the status of the Strait of Hormuz, which Tehran says it protects, would open the door to a dangerous confrontation.


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Oil drops more than 3% after State Secretary Pompeo says Iran is ready to negotiate about its missile program

Oil prices turned lower on Tuesday, falling by about $2 a barrel as U.S. President Donald Trump said progress has been made with Iran, signaling tensions could ease in the Mideast. Brent crude futures were down $2.56 or 3.7% at $63.86 a barrel, after hitting a session high of $67.09. West Texas Intermediate crude futures fell by $2.46 or 4.2% to $57.09 a barrel. The U.S. benchmark hit a session high of $60.06 earlier in the day. Trump said on Tuesday a lot of progress had been made with Iran and


Oil prices turned lower on Tuesday, falling by about $2 a barrel as U.S. President Donald Trump said progress has been made with Iran, signaling tensions could ease in the Mideast. Brent crude futures were down $2.56 or 3.7% at $63.86 a barrel, after hitting a session high of $67.09. West Texas Intermediate crude futures fell by $2.46 or 4.2% to $57.09 a barrel. The U.S. benchmark hit a session high of $60.06 earlier in the day. Trump said on Tuesday a lot of progress had been made with Iran and
Oil drops more than 3% after State Secretary Pompeo says Iran is ready to negotiate about its missile program Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-16
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Oil drops more than 3% after State Secretary Pompeo says Iran is ready to negotiate about its missile program

Oil prices turned lower on Tuesday, falling by about $2 a barrel as U.S. President Donald Trump said progress has been made with Iran, signaling tensions could ease in the Mideast.

Brent crude futures were down $2.56 or 3.7% at $63.86 a barrel, after hitting a session high of $67.09.

West Texas Intermediate crude futures fell by $2.46 or 4.2% to $57.09 a barrel. The U.S. benchmark hit a session high of $60.06 earlier in the day.

“What were tailwinds have become headwinds,” said Bob Yawger, director of energy futures at Mizuho in New York. He said the same tensions between the United States and Iran that had driven prices higher earlier in the session were putting a damper on the market after Trump’s comments.

Trump said on Tuesday a lot of progress had been made with Iran and that he was not looking for regime change in the country.


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US oil rises slightly amid worries over economic growth

U.S. West Texas Intermediate (WTI) gained 17 cents, or 0.3%, to settle at $57.51 a barrel. Both benchmarks were set to record weekly losses as concerns about a slowing global economy outweighed risks to supply. “We’ve got mixed data weak manufacturing data from around the globe, but then we have a strong job numbers in the U.S.,” said Phil Flynn, an analyst at Price Futures Group in Chicago. However, new orders for U.S. factory goods fell for a second straight month in May, government data showe


U.S. West Texas Intermediate (WTI) gained 17 cents, or 0.3%, to settle at $57.51 a barrel. Both benchmarks were set to record weekly losses as concerns about a slowing global economy outweighed risks to supply. “We’ve got mixed data weak manufacturing data from around the globe, but then we have a strong job numbers in the U.S.,” said Phil Flynn, an analyst at Price Futures Group in Chicago. However, new orders for U.S. factory goods fell for a second straight month in May, government data showe
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Company: cnbc, Activity: cnbc, Date: 2019-07-05
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US oil rises slightly amid worries over economic growth

Oil prices climbed on Friday, supported by tensions over Iran and a decision by OPEC and its allies to extend an output supply cut deal until next year, but mixed economic data limited the rally.

Brent was up 86 cents, or 1.4%, to $64.16 a barrel. U.S. West Texas Intermediate (WTI) gained 17 cents, or 0.3%, to settle at $57.51 a barrel. The U.S. market was closed on Thursday for a national holiday, and WTI trade volumes remained light on Friday.

Both benchmarks were set to record weekly losses as concerns about a slowing global economy outweighed risks to supply.

“We’ve got mixed data weak manufacturing data from around the globe, but then we have a strong job numbers in the U.S.,” said Phil Flynn, an analyst at Price Futures Group in Chicago.

German industrial orders fell far more than expected in May, and the Economy Ministry said this sector of Europe’s largest economy was likely to remain weak in coming months.

The U.S. Labor Department said nonfarm employers added 224,000 jobs last month, the most in five months, easing fears about weakening global demand for crude. However, new orders for U.S. factory goods fell for a second straight month in May, government data showed, stoking economic concerns.

The U.S. Energy Information Administration reported on Wednesday a weekly decline of 1.1 million barrels in crude stocks, smaller than the 5 million barrel draw reported by the American Petroleum Institute and less than analysts had forecast.

The Organization of the Petroleum Exporting Countries and other producers such as Russia, known as OPEC+, supported prices by extending their deal on supply cuts.

Tension in the Middle East also offered support, particularly to Brent. “Brent is pricing in more of the geopolitical risk than WTI,” Flynn said.

Iran threatened on Friday to capture a British ship after British forces seized an Iranian tanker in Gibraltar over accusations the ship was violating EU sanctions on Syria.

“It is just another sign that the market sentiment is not strong enough to react to those headlines and events, which is quite unusual,” Petromatrix oil analyst Olivier Jakob said.

A Reuters survey found OPEC oil output sank to a new five-year low in June, as a rise in Saudi supply did not offset losses in Iran and Venezuela due to U.S. sanctions and other outages elsewhere in the group.


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Oil prices steady as U.S. crude stockpiles drop less than expected

Prices rose early, then pared most gains after data showed U.S. crude inventories fell by 1.1 million barrels in the latest week, a much smaller decline than the 3 million barrel decrease analysts had expected. Globally, the market is concerned about oil demand growth potential,” Olivier Jakob of Petromatrix consultancy said. The OPEC+ agreement should draw down oil inventories in the second half, boosting oil prices, analysts from Citi Research said in a note. Barclays expects oil demand to gro


Prices rose early, then pared most gains after data showed U.S. crude inventories fell by 1.1 million barrels in the latest week, a much smaller decline than the 3 million barrel decrease analysts had expected. Globally, the market is concerned about oil demand growth potential,” Olivier Jakob of Petromatrix consultancy said. The OPEC+ agreement should draw down oil inventories in the second half, boosting oil prices, analysts from Citi Research said in a note. Barclays expects oil demand to gro
Oil prices steady as U.S. crude stockpiles drop less than expected Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-03
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Oil prices steady as U.S. crude stockpiles drop less than expected

A pump jack operates at a well site leased by Devon Energy Production Co. near Guthrie, Oklahoma.

Oil prices were steady on Wednesday ahead of a U.S. holiday, after a steep fall the previous session when worries about a slowing global economy outweighed a decision by OPEC and allies to extend crude output cuts.

Prices rose early, then pared most gains after data showed U.S. crude inventories fell by 1.1 million barrels in the latest week, a much smaller decline than the 3 million barrel decrease analysts had expected.

“The market is disappointed by a very small crude oil inventory draw … the only sign of strength in the market is the continued modest decline of gasoline inventories” said Andrew Lipow, president at Lipow Oil Associates in Houston.

U.S. crude imports rebounded while exports fell sharply from a record 3.8 million barrels per day (bpd) a week earlier, analysts said.

September Brent crude futures were up 65 cents, or 1%, at $63.05 a barrel by 11:57 a.m. ET (1557 GMT).

U.S. crude futures for August delivery were up 24 cents, or 0.4% at $56.49 a barrel. On Tuesday, both benchmarks fell more than 4% on worries about a global economic slowdown.

U.S. gasoline futures led the energy complex, rising about 1.5 percent to $1.8974 a gallon.

“We had a pretty sharp correction yesterday so after that, a little rebound is expected. Globally, the market is concerned about oil demand growth potential,” Olivier Jakob of Petromatrix consultancy said.

Trading volumes were subdued ahead of the U.S. Fourth of July holiday on Thursday. Some 450,892 lots of the front-month U.S. crude futures contract were traded, about half of the previous session’s volume.

On Tuesday, the Organization of the Petroleum Exporting Countries and other producers such as Russia, a group known as OPEC+, agreed to extend oil supply cuts until March 2020.

“Extending the cut by six or nine months, it doesn’t really matter if the level stays the same,” Jakob said. “If you (OPEC) really wanted to target stock levels, you would need deeper cuts but Saudi Arabia has already gone beyond its cut target.”

The OPEC+ agreement should draw down oil inventories in the second half, boosting oil prices, analysts from Citi Research said in a note.

“Keeping cuts through the end of 1Q aims to avoid putting oil into the market during a seasonal low for demand and refinery runs,” they said.

Still, signs of a global economic slowdown hitting oil demand worried investors after global manufacturing indicators disappointed and the United States threatened Europe with more tariffs.

The U.S. trade deficit jumped to a five-month high in May and the ADP National Employment Report showed private payrolls increased far less than economists had expected.

Barclays expects oil demand to grow at its slowest pace since 2011. Morgan Stanley lowered its long-term Brent price forecast to $60 per barrel from $65 per barrel, and said the oil market is broadly balanced.

Crude prices also were pressured by signs of a recovery in oil exports from Venezuela in June and growth in oil production in Argentina in May.

“That’s a bad combination for US inventories. It’s bearish,” said John Kilduff of Again Capital.

The Organization of the Petroleum Exporting Countries and other producers such as Russia, a group known as OPEC+, agreed on Tuesday to extend oil supply cuts until March 2020 as members overcame differences to try to prop up prices.

“We had a pretty sharp correction yesterday so after that, a little rebound is expected. Globally, the market is concerned about oil demand growth potential,” Olivier Jakob of Petromatrix consultancy said.

“Extending the cut by six or nine months, it doesn’t really matter if the level stays the same. If you (OPEC) really wanted to target stock levels, you would need deeper cuts but Saudi Arabia has already gone beyond its cut target.”

Ahead of government data due later on Wednesday, industry group the American Petroleum Institute (API) said that U.S. crude inventories fell by 5 million barrels last week, more than the expected decrease of 3 million barrels.

The OPEC+ agreement to extend oil output cuts for nine months should draw down oil inventories in the second half of this year, boosting oil prices, analysts from Citi Research said in a note.

“Keeping cuts through the end of 1Q aims to avoid putting oil into the market during a seasonal low for demand and refinery runs,” they said.

Still, signs of a global economic slowdown hitting oil demand growth worried investors after global manufacturing indicators disappointed and the United States opened another trade front after threatening the EU with more tariffs.

Barclays expects demand to grow at its slowest pace since 2011, gaining less than 1 million barrels per day year-on-year this year.

Morgan Stanley, meanwhile, lowered its long-term Brent price forecast on Tuesday to $60 per barrel from $65 per barrel, and said the oil market is broadly balanced in 2019.

Crude prices were also capped by signs of a recovery in oil exports from Venezuela in June and growth in oil production in Argentina in May.

Both benchmarks fell more than 4% on Tuesday as worries about a slowing global economy.

The Organization of the Petroleum Exporting Countries and other producers such as Russia, a group known as OPEC+, agreed on Tuesday to extend oil supply cuts until March 2020 as members overcame differences to try to prop up prices.

“We had a pretty sharp correction yesterday so after that, a little rebound is expected. Globally, the market is concerned about oil demand growth potential,” Olivier Jakob of Petromatrix consultancy said.

“Extending the cut by six or nine months, it doesn’t really matter if the level stays the same. If you (OPEC) really wanted to target stock levels, you would need deeper cuts but Saudi Arabia has already gone beyond its cut target.”

Ahead of government data due later on Wednesday, industry group the American Petroleum Institute (API) said that U.S. crude inventories fell by 5 million barrels last week, more than the expected decrease of 3 million barrels.

The OPEC+ agreement to extend oil output cuts for nine months should draw down oil inventories in the second half of this year, boosting oil prices, analysts from Citi Research said in a note.

“Keeping cuts through the end of 1Q aims to avoid putting oil into the market during a seasonal low for demand and refinery runs,” they said.

Still, signs of a global economic slowdown hitting oil demand growth worried investors after global manufacturing indicators disappointed and the United States opened another trade front after threatening the EU with more tariffs.

Barclays expects demand to grow at its slowest pace since 2011, gaining less than 1 million barrels per day year-on-year this year.

Morgan Stanley, meanwhile, lowered its long-term Brent price forecast on Tuesday to $60 per barrel from $65 per barrel, and said the oil market is broadly balanced in 2019.

Crude prices were also capped by signs of a recovery in oil exports from Venezuela in June and growth in oil production in Argentina in May.


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US oil settles 0.1% higher at $57.83 a barrel ahead of crude stock data

Oil pumpjacks in the Permian Basin oil field are getting to work as crude oil prices gain. Oil prices rose slightly on Tuesday ahead of U.S. data expected to show crude stocks declining there, outweighing investors’ concerns that U.S.-China trade tensions could weigh on fuel demand. Sending a bullish signal, a preliminary Reuters poll showed on Monday that U.S. crude oil inventories likely fell for a second consecutive week last week. But concerns over U.S.-China trade tensions and global growth


Oil pumpjacks in the Permian Basin oil field are getting to work as crude oil prices gain. Oil prices rose slightly on Tuesday ahead of U.S. data expected to show crude stocks declining there, outweighing investors’ concerns that U.S.-China trade tensions could weigh on fuel demand. Sending a bullish signal, a preliminary Reuters poll showed on Monday that U.S. crude oil inventories likely fell for a second consecutive week last week. But concerns over U.S.-China trade tensions and global growth
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US oil settles 0.1% higher at $57.83 a barrel ahead of crude stock data

Oil pumpjacks in the Permian Basin oil field are getting to work as crude oil prices gain.

Oil prices rose slightly on Tuesday ahead of U.S. data expected to show crude stocks declining there, outweighing investors’ concerns that U.S.-China trade tensions could weigh on fuel demand.

Benchmark Brent crude futures were up 32 cents at $65.18 a barrel.

U.S. crude futures rose 18 cents to $58.09 a barrel.

Investors shrugged off U.S. President Donald Trump’s comments on Tuesday that the United States would obliterate parts of Iran if it attacked “anything American.”

Oil-market jitters over the escalating tension between the United States and Iran have eased after Trump targeted Supreme Leader Ayatollah Ali Khamenei and other top Iranian officials with sanctions on Monday, after calling off a retaliatory air strike, analysts said.

Sending a bullish signal, a preliminary Reuters poll showed on Monday that U.S. crude oil inventories likely fell for a second consecutive week last week.

The numbers came ahead of crude stock data from the American Petroleum Institute (API), an industry group, at 3:30 p.m. CST (2030 GMT) on Tuesday, and the Energy Information Administration (EIA), an agency of the U.S. Department of Energy, due on Wednesday.

But concerns over U.S.-China trade tensions and global growth still were pressuring prices, analysts said.

“You’re going to see oil have trouble picking a direction over the next couple days,” said Josh Graves, senior market strategist at RJO Futures in Chicago. “There’s a tug-of-war between bullish and bearish factors.”

Weighing on prices, hopes for progress in the trade war between China and the United States during this week’s G20 meeting were dampened by a senior U.S. official saying President Donald Trump was “comfortable with any outcome” from the talks.

“The U.S.-China meeting on the side of G20 could signal further rapprochement on trade, but the market needs something it can sink it’s teeth into,” said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.

“We’ve been going back and forth on U.S.-China trade disputes for over a year now,” McGillian added.

Demand concerns were briefly overcome last week when Brent climbed 5% and U.S. crude surged almost 10%, its strongest week since 2016, after Iran shot down a U.S. drone, adding to tensions stoked by previous attacks on oil tankers in the area.

Washington has blamed the tanker attacks on Iran, which denies any role.

The Organization of the Petroleum Exporting Countries and its allies including Russia appear likely to extend a deal on curbing output when they meet on July 1-2.

Russian Energy Minister Alexander Novak said international cooperation on crude production had helped stabilize oil markets and was more important than ever. He also voiced concerns about demand.

The chief executive of Saudi Aramco, the state oil firm of OPEC’s de facto leader, said its spare capacity of 12 million barrels per day (bpd) was sufficient and that it would meet its customers’ needs.

U.S. sanctions on Iran and Venezuela have cut oil exports from the two OPEC members, but U.S. production has been rising.


Company: cnbc, Activity: cnbc, Date: 2019-06-25
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US crude falls 1.4% in delayed settle amid uncertainty on supply cuts, US-China tariffs

Front-month Brent crude futures, the international benchmark for oil prices, fell $1 per barrel, or 1.6%, to $62.29. Moscow is considering whether further cuts could allow the United States to take Russian market share and has yet to signal whether it will continue to curb its supply. Novak said he could not rule out a drop in oil prices to $30 per barrel if the global deal was not extended. But analysts said there were still concerns about the health of the global economy with no signs of an en


Front-month Brent crude futures, the international benchmark for oil prices, fell $1 per barrel, or 1.6%, to $62.29. Moscow is considering whether further cuts could allow the United States to take Russian market share and has yet to signal whether it will continue to curb its supply. Novak said he could not rule out a drop in oil prices to $30 per barrel if the global deal was not extended. But analysts said there were still concerns about the health of the global economy with no signs of an en
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US crude falls 1.4% in delayed settle amid uncertainty on supply cuts, US-China tariffs

Oil prices settled lower after a choppy trading session on Monday, as major producers Saudi Arabia and Russia had yet to agree on extending an output-cutting deal and U.S.-China trade tensions continued to threaten demand for crude.

U.S. West Texas Intermediate crude futures settled 73 cents lower at at $53.26 per barrel, falling 1.4% on the day and settling later than usual on Monday.

Front-month Brent crude futures, the international benchmark for oil prices, fell $1 per barrel, or 1.6%, to $62.29.

Saudi Energy Minister Khalid al-Falih said on Monday that Russia was the only oil exporter still undecided on the need to extend the output deal agreed by top producers.

OPEC and some non-members, including Russia, have withheld supplies since the start of the year to prop up prices.

Moscow is considering whether further cuts could allow the United States to take Russian market share and has yet to signal whether it will continue to curb its supply.

Yet Russian energy minister Alexander Novak said there is a still a risk that oil producers pump out too much crude and prices fall sharply. Novak said he could not rule out a drop in oil prices to $30 per barrel if the global deal was not extended.

“Indeed, there are big risks of over-production. But on the whole … we need to analyze deeper and look at how the events will develop in June in order to take a balanced decision at the joint OPEC+ meeting in July.”

Many oil exporting countries have confirmed they are prepared to hold a policy meeting with OPEC in Vienna over July 2-4, instead of the scheduled date later this month, Novak said.

A deal between the United States and Mexico to combat illegal migration from Central America late last week removed the threat of U.S. tariffs on goods imported from Mexico, buoying markets on Monday.

But analysts said there were still concerns about the health of the global economy with no signs of an end in sight to the United States’ trade war with China.

U.S. President Donald Trump said additional tariffs on Chinese goods were ready to kick in after the G20 summit this month if no trade deal is reached with China.


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US oil drops 3.8% to $56.59 per barrel on small supply decline, trade war worries

Oil prices fell sharply on Thursday on a smaller-than-expected decline in U.S. crude inventories and fears of a global economic slowdown due to the U.S.-China trade war. U.S. West Texas Intermediate (WTI) crude settles down 3.8%, at $56.59 per barrel. “An escalating U.S.-China trade war represents a risk to oil markets,” Bernstein Energy said in a note. Bernstein Energy said under “a full-blown trade war scenario,” global oil demand would grow by just 0.7% this year, half of current estimates. S


Oil prices fell sharply on Thursday on a smaller-than-expected decline in U.S. crude inventories and fears of a global economic slowdown due to the U.S.-China trade war. U.S. West Texas Intermediate (WTI) crude settles down 3.8%, at $56.59 per barrel. “An escalating U.S.-China trade war represents a risk to oil markets,” Bernstein Energy said in a note. Bernstein Energy said under “a full-blown trade war scenario,” global oil demand would grow by just 0.7% this year, half of current estimates. S
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US oil drops 3.8% to $56.59 per barrel on small supply decline, trade war worries

A gas flare on an oil production platform is seen alongside an Iranian flag in the Gulf.

Oil prices fell sharply on Thursday on a smaller-than-expected decline in U.S. crude inventories and fears of a global economic slowdown due to the U.S.-China trade war.

The U.S. Energy Information Administration (EIA) said crude stockpiles fell nearly 300,000 barrels last week, less than the 900,000-barrel decline analysts forecast in a Reuters poll and well below the 5.3 million-barrel drawdown the American Petroleum Institute (API) reported late Wednesday.

The decline last week reduced crude stocks from their highest since July 2017 seen the previous week, but at 476.5 million barrels, they were still about 5% above the five-year average for this time of year.

“The oil inventories report has added to the bearish sentiment prevailing in today’s trading session,” said Abhishek Kumar, head of analytics at Interfax Energy in London, noting “Demand-side concerns emerging from the ongoing U.S.-China trade war are expected to remain the key driver weighing on oil prices.”

Brent futures fell $2.88, or 3.9%, to $66.54 a barrel. U.S. West Texas Intermediate (WTI) crude settles down 3.8%, at $56.59 per barrel.

If the contracts close at their current levels, it would be the lowest settle for Brent since March 22 and WTI since March 12.

The bigger decline in Brent cut the global benchmark’s premium over WTI to around $10 per barrel, down from a more than four-year high of $11.59 on Wednesday.

“An escalating U.S.-China trade war represents a risk to oil markets,” Bernstein Energy said in a note.

A senior Chinese diplomat compared trade actions from Washington to “naked economic terrorism.”

Bernstein Energy said under “a full-blown trade war scenario,” global oil demand would grow by just 0.7% this year, half of current estimates.

Because of weakening demand, Bernstein said any upside for oil markets was capped despite relatively tight supply.

Oil prices have been supported this year by output cuts from the Organization of the Petroleum Exporting Countries and other major producers, as well as by falling supplies from OPEC members Iran and Venezuela due to U.S. sanctions.

Iranian May crude exports dropped to less than half of April levels at around 400,000 barrels per day (bpd) after the United States tightened sanctions on Tehran’s main source of income. Iran needs to export at least 1.5-2.0 million bpd of crude to balance its books.

“We see an abundance of escalation risks in large part because the U.S. sanctions are subjecting Iran to almost unprecedented economic pain,” said Helima Croft, managing director of RBC Capital Markets.

Arab leaders gather in Saudi Arabia on Thursday for emergency summits that Riyadh hopes will deliver a strong message to Iran that regional powers will defend their interests against any threat following attacks on Gulf oil assets this month.

As Arab leaders gathered in Saudi Arabia, the U.S. Iran envoy said the United States will respond with military force if its interests are attacked by Iran.

Many analysts also expect OPEC-led supply cuts to be extended until the end of 2019 as the group wants to prevent oil prices from falling back to levels seen in late 2018 when Brent slumped to $50 per barrel.

Since OPEC and its allies started withholding supply in January, oil prices have risen by about 30%.


Company: cnbc, Activity: cnbc, Date: 2019-05-30
Keywords: news, cnbc, companies, wti, crude, oil, week, 5659, supply, barrel, war, prices, worries, small, iran, energy, decline, drops, trade


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Oil drops 1.4% to 5-week low, settling at $61.40, as US-China trade war intensifies

Flames emerge from a pipeline at the oil fields in Basra, southeast of Baghdad, Iraq, October 14, 2016. Oil prices tumbled on Tuesday as renewed doubts over U.S.-China trade talks stoked concerns over global growth, but U.S. sanctions on Iran and Venezuela tightened supply and helped to stem losses. U.S. President Donald Trump on Sunday said he would raise tariffs on $200 billion worth of Chinese goods from 10-25% by Friday. U.S. West Texas Intermediate crude futures settled 85 cents lower at $6


Flames emerge from a pipeline at the oil fields in Basra, southeast of Baghdad, Iraq, October 14, 2016. Oil prices tumbled on Tuesday as renewed doubts over U.S.-China trade talks stoked concerns over global growth, but U.S. sanctions on Iran and Venezuela tightened supply and helped to stem losses. U.S. President Donald Trump on Sunday said he would raise tariffs on $200 billion worth of Chinese goods from 10-25% by Friday. U.S. West Texas Intermediate crude futures settled 85 cents lower at $6
Oil drops 1.4% to 5-week low, settling at $61.40, as US-China trade war intensifies Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-07
Keywords: news, cnbc, companies, 14, trade, 6140, low, worth, weakest, futures, west, settling, barrel, venezuela, crude, oil, 5week, war, uschina, intensifies, drops


Oil drops 1.4% to 5-week low, settling at $61.40, as US-China trade war intensifies

Flames emerge from a pipeline at the oil fields in Basra, southeast of Baghdad, Iraq, October 14, 2016.

Oil prices tumbled on Tuesday as renewed doubts over U.S.-China trade talks stoked concerns over global growth, but U.S. sanctions on Iran and Venezuela tightened supply and helped to stem losses.

U.S. President Donald Trump on Sunday said he would raise tariffs on $200 billion worth of Chinese goods from 10-25% by Friday. The comments dragged on both Asian and U.S. stock markets.

U.S. West Texas Intermediate crude futures settled 85 cents lower at $61.40 per barrel, dropping 1.4% to the weakest closing price since March 29.

Brent crude oil futures fell $1.31, or 1.8%, $69.93 per barrel around 2:30 p.m. ET (1830 GMT), on pace for the lowest settle since April 4.


Company: cnbc, Activity: cnbc, Date: 2019-05-07
Keywords: news, cnbc, companies, 14, trade, 6140, low, worth, weakest, futures, west, settling, barrel, venezuela, crude, oil, 5week, war, uschina, intensifies, drops


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Oil traders eye Saudi Arabia’s response in a critical juncture for crude

A gas flame is seen in the desert near the Khurais oilfield, near Riyadh, Saudi Arabia. Global oil markets sit at a critical juncture, with risks to supply being balanced against rising prices and questions over whether major producers will now turn on the taps. “This is definitely something we have to monitor,” UBS APAC Chief Investment Officer Adrian Zuercher told CNBC’s “Squawk Box Asia.” The decision to end the waivers could remove 1.3 million barrels per day of Iranian exports, according to


A gas flame is seen in the desert near the Khurais oilfield, near Riyadh, Saudi Arabia. Global oil markets sit at a critical juncture, with risks to supply being balanced against rising prices and questions over whether major producers will now turn on the taps. “This is definitely something we have to monitor,” UBS APAC Chief Investment Officer Adrian Zuercher told CNBC’s “Squawk Box Asia.” The decision to end the waivers could remove 1.3 million barrels per day of Iranian exports, according to
Oil traders eye Saudi Arabia’s response in a critical juncture for crude Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: dan murphy
Keywords: news, cnbc, companies, oil, week, arabias, opec, million, near, major, crude, barrel, day, critical, saudi, juncture, response, iranian, traders, barrels, eye


Oil traders eye Saudi Arabia's response in a critical juncture for crude

A gas flame is seen in the desert near the Khurais oilfield, near Riyadh, Saudi Arabia.

Global oil markets sit at a critical juncture, with risks to supply being balanced against rising prices and questions over whether major producers will now turn on the taps.

Brent crude touched $75 per barrel last week for the first time this year, helping the benchmark to log a fifth positive week in a row and add to the year’s near 40% gain.

“This is definitely something we have to monitor,” UBS APAC Chief Investment Officer Adrian Zuercher told CNBC’s “Squawk Box Asia.”

“It will remain volatile,” he added. “We expect Brent to remain between 70 and 80 U.S. dollars at this point.”

WTI also moved above $65 a barrel, even as rising U.S stockpiles and surging U.S production slowed some of the recent price momentum.

Renewed U.S. efforts to curb Iranian output, escalating tensions in Libya, supply outages in Nigeria and the ongoing crisis in Venezuela have created a complex and uncertain outlook for crude.

The week ahead will be another major test, with Iranian sanction waivers officially expiring in early May, and the U.S decision to cancel all concessions raising new questions about how Saudi Arabia and other major producers will respond.

“We now know that OPEC has that spare capacity,” Goldman Sachs’ Head of Commodities Research Jeff Currie told CNBCs “Power Lunch,” reiterating his Brent forecast of $70-75 barrel for the second quarter of 2019.

“They ramped it up, they took it back down, and we think the (Iran) shock is roughly 900,000 barrels per day, and we just saw OPEC, at least core OPEC, taking 1.8 million barrels per day off the market,” Currie added.

The decision to end the waivers could remove 1.3 million barrels per day of Iranian exports, according to S&P Global Platts. OPEC has about 3.3 million barrels per day of spare production capacity, according to the International Energy Agency, of which about 2.2 million barrels per day is held by Saudi Arabia.


Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: dan murphy
Keywords: news, cnbc, companies, oil, week, arabias, opec, million, near, major, crude, barrel, day, critical, saudi, juncture, response, iranian, traders, barrels, eye


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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


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