US exports outpaced imports of oil products last week for second time

The U.S. is on the road to energy independence, exporting more oil and refined products than it imported last week for the second time. However, weather may have been a factor behind the fact that the U.S. exports outpaced imports, creating a deficit of 162,000 barrels. In government data from last week, there was a large drop in oil imports coming into the country, while exports or crude and other products remained high. Crude imports fell to 5.9 million barrels a day from 7.5 million bpd a wee


The U.S. is on the road to energy independence, exporting more oil and refined products than it imported last week for the second time. However, weather may have been a factor behind the fact that the U.S. exports outpaced imports, creating a deficit of 162,000 barrels. In government data from last week, there was a large drop in oil imports coming into the country, while exports or crude and other products remained high. Crude imports fell to 5.9 million barrels a day from 7.5 million bpd a wee
US exports outpaced imports of oil products last week for second time Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-27  Authors: patti domm, photo, james dillard
Keywords: news, cnbc, companies, imports, barrels, crude, oil, day, outpaced, products, million, week, second, exports, energy


US exports outpaced imports of oil products last week for second time

The U.S. is on the road to energy independence, exporting more oil and refined products than it imported last week for the second time.

However, weather may have been a factor behind the fact that the U.S. exports outpaced imports, creating a deficit of 162,000 barrels. In government data from last week, there was a large drop in oil imports coming into the country, while exports or crude and other products remained high.

“This happened because crude imports were down so far, primarily due to fog on the Gulf Coast,” said Andrew Lipow, president of Lipow Oil Associates. “Last week, the Houston ship channel closed due to fog for a significant period.”

Crude imports fell to 5.9 million barrels a day from 7.5 million bpd a week earlier. At the same time, there were 3.4 million barrels a day of crude exports from the U.S., down slightly from the record 3.6 million barrels per day, set the week earlier.

The decrease in imports added to the surprise decline in crude inventories, which fell by 8.65 million barrels a day, versus an expected build of 3 million barrels, according to the Energy Information Administration.

The U.S. exported 4.8 million barrels of refined products, like jet fuel, diesel and gasoline.

“There’s no doubt that crude oil exports were still at a very high level. I do expect we’re going to continue to see high levels of exports,” Lipow said. Energy analysts expect the U.S. to at some point become a net exporter of crude and refined products on a consistent basis, but not yet.

U.S. oil production continues to grow, rising to a record 12.1 million barrels a day last week, after crossing the 12 million barrels a day level for the first time the week before.

“North America, including the US, Canada, and Mexico, is becoming a new Middle East, in terms of size and growth of its liquids surplus,,” wrote Citigroup energy analysts.

A year ago, the U.S was producing about 10.3 million barrels a day.

U.S. government data only goes back to 1973, but according to other data, the U.S. was a net exporter 75 years ago. The U.S. was a net exporter of 211,000 barrels a day, in the week of Nov. 18.


Company: cnbc, Activity: cnbc, Date: 2019-02-27  Authors: patti domm, photo, james dillard
Keywords: news, cnbc, companies, imports, barrels, crude, oil, day, outpaced, products, million, week, second, exports, energy


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US crude oil exports hit a record last week at 3.6 million barrels a day

The United States exported a record amount of crude oil last week, as output from the nation’s shale fields continues to surge. That easily topped the previous all-time high of 3.2 million bpd set in November. Also last week, U.S. production hit a record 12 million bpd. On Tuesday, EIA forecast output from seven major U.S. shale fields will rise by 84,000 bpd next month to 8.4 million bpd. The U.S. will start consistently exporting more crude oil and petroleum products than it imports at the end


The United States exported a record amount of crude oil last week, as output from the nation’s shale fields continues to surge. That easily topped the previous all-time high of 3.2 million bpd set in November. Also last week, U.S. production hit a record 12 million bpd. On Tuesday, EIA forecast output from seven major U.S. shale fields will rise by 84,000 bpd next month to 8.4 million bpd. The U.S. will start consistently exporting more crude oil and petroleum products than it imports at the end
US crude oil exports hit a record last week at 3.6 million barrels a day Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: tom dichristopher, eddie seal, bloomberg, getty images
Keywords: news, cnbc, companies, fields, oil, exports, week, crude, weekly, million, shale, output, 36, bpd, day, record, barrels, hit


US crude oil exports hit a record last week at 3.6 million barrels a day

The United States exported a record amount of crude oil last week, as output from the nation’s shale fields continues to surge.

The nation shipped out just over 3.6 million barrels a day in the week through Feb. 15, according to the U.S. Energy Information Administration. That easily topped the previous all-time high of 3.2 million bpd set in November.

Also last week, U.S. production hit a record 12 million bpd. The reading is subject to significant revision, but this is the first time EIA’s weekly report has shown American output hitting the threshold. The weekly reading has been hovering at 11.9 million bpd for the last five weeks.

Much of that growing output is coming from U.S. shale fields, where drillers use advanced methods to squeeze crude oil and natural gas from rock formations. On Tuesday, EIA forecast output from seven major U.S. shale fields will rise by 84,000 bpd next month to 8.4 million bpd.

The U.S. notched the new export record despite China halting imports of American crude in recent months amid a trade dispute with Washington. China had emerged as the biggest buyer of U.S. oil prior to that.

Shipping data indicates that China was scheduled to receive its first cargoes of crude oil from the U.S. in months around Feb. 17, but it was not immediately clear if those shipments were baked into last week’s figures.

To be sure, weekly U.S. exports rise and fall by wide margins from week to week.

The U.S. will start consistently exporting more crude oil and petroleum products than it imports at the end of next year, EIA recently forecast.


Company: cnbc, Activity: cnbc, Date: 2019-02-21  Authors: tom dichristopher, eddie seal, bloomberg, getty images
Keywords: news, cnbc, companies, fields, oil, exports, week, crude, weekly, million, shale, output, 36, bpd, day, record, barrels, hit


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OPEC cut production by nearly 800,000 barrels a day in January, pumping just above its oil target

The slight miss comes as the group once again cut its outlook for global oil demand in 2019. OPEC is partnering with 10 nonmember nations, including Russia, to keep 1.2 million bpd off the market. In January, OPEC managed to remove 797,000 barrels per day from the market by holding back supply. The group aimed to cut a combined 812,000 bpd in a bid to drain oversupply from the oil market. Total OPEC production stood at just over 30.8 million bpd in January, down from 31.6 million bpd in December


The slight miss comes as the group once again cut its outlook for global oil demand in 2019. OPEC is partnering with 10 nonmember nations, including Russia, to keep 1.2 million bpd off the market. In January, OPEC managed to remove 797,000 barrels per day from the market by holding back supply. The group aimed to cut a combined 812,000 bpd in a bid to drain oversupply from the oil market. Total OPEC production stood at just over 30.8 million bpd in January, down from 31.6 million bpd in December
OPEC cut production by nearly 800,000 barrels a day in January, pumping just above its oil target Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: tom dichristopher, yasser al-zayyat afp getty images
Keywords: news, cnbc, companies, million, market, bpd, barrels, waythe, nearly, supply, oil, cut, pumping, day, opec, 800000, target, production, group


OPEC cut production by nearly 800,000 barrels a day in January, pumping just above its oil target

OPEC fell just short of its production goal in January, as a fresh round of output cuts from the 14-nation producer group got under way.

The slight miss comes as the group once again cut its outlook for global oil demand in 2019. OPEC also slightly increased its forecast for supply from the United States and other non-OPEC nations.

OPEC is partnering with 10 nonmember nations, including Russia, to keep 1.2 million bpd off the market. The so-called OPEC+ alliance aims to prevent another price-crushing oil glut like the one that gripped the market between 2014 and 2016.

In January, OPEC managed to remove 797,000 barrels per day from the market by holding back supply. The group aimed to cut a combined 812,000 bpd in a bid to drain oversupply from the oil market.

Total OPEC production stood at just over 30.8 million bpd in January, down from 31.6 million bpd in December, according to independent sources cited by the group in its monthly report.


Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: tom dichristopher, yasser al-zayyat afp getty images
Keywords: news, cnbc, companies, million, market, bpd, barrels, waythe, nearly, supply, oil, cut, pumping, day, opec, 800000, target, production, group


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$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


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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


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Oil ticks higher as investors remain worried over global economic outlook

Oil prices edged higher for the first time in three sessions on Wednesday, although concerns over the outlook for the global economy capped gains. International Brent crude oil futures were at $62.05 per barrel, up 7 cents, after closing down 0.8 percent in the previous session. Global economic worries have weighed on market sentiment in recent days, offsetting support from signs that global supplies are tightening. However, U.S. crude stocks rose last week even as refineries boosted output, whi


Oil prices edged higher for the first time in three sessions on Wednesday, although concerns over the outlook for the global economy capped gains. International Brent crude oil futures were at $62.05 per barrel, up 7 cents, after closing down 0.8 percent in the previous session. Global economic worries have weighed on market sentiment in recent days, offsetting support from signs that global supplies are tightening. However, U.S. crude stocks rose last week even as refineries boosted output, whi
Oil ticks higher as investors remain worried over global economic outlook Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: essam al-sudani
Keywords: news, cnbc, companies, economic, stocks, crude, outlook, ticks, barrels, oil, remain, prices, week, worried, million, higher, global, investors, market, rose


Oil ticks higher as investors remain worried over global economic outlook

Oil prices edged higher for the first time in three sessions on Wednesday, although concerns over the outlook for the global economy capped gains.

U.S. West Texas Intermediate (WTI) crude futures were at $53.74 per barrel at 0153 GMT, up 8 cents from their last settlement. They closed down 1.7 percent on Tuesday.

International Brent crude oil futures were at $62.05 per barrel, up 7 cents, after closing down 0.8 percent in the previous session.

Global economic worries have weighed on market sentiment in recent days, offsetting support from signs that global supplies are tightening.

With a nervous market, traders are focused on the U.S. State of the Union address by President Donald Trump.

“Anything out of the State of the Union that hints at the U.S.-China deal not working out, or more anti-trade rhetoric would be a negative for energy prices as demand would be lower if global growth keeps being downgraded,” said Alfonso Esparza senior market analyst, OANDA.

U.S. sanctions on Venezuela have been viewed as supportive for prices by helping tighten global supplies. A flotilla loaded with Venezuelan oil has formed in the Gulf of Mexico, some holding cargoes bought ahead of the latest U.S. sanctions on Venezuela and others whose buyers are weighing who to pay.

The Organization of the Petroleum Exporting Countries and its allies, including Russia, agreed to production cuts effective from last month to beat back supply growth.

However, U.S. crude stocks rose last week even as refineries boosted output, while gasoline and distillate stocks increased, data from industry group the American Petroleum Institute showed on Tuesday.

Crude inventories rose by 2.5 million barrels in the week ended Feb. 1 to 448.2 million, compared with analysts’ expectations for an increase of 2.2 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 889,000 barrels, API said.


Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: essam al-sudani
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US oil heads to China, but it’s too early to declare victory in the trade war

And the amount of U.S. oil being shipped to China is well below what it was a year ago, when the trade war erupted. Two ships, The Manifa and The Jag Lakshya, are estimated to arrive in China in the middle of February. The Almi Atlas was loaded with 2 million barrels at the Galveston offshore facility on Jan. 1 and is currently in the Indian Ocean. The Farhah was loaded with 2 million barrels at GOLA on Jan. 7 and rounded South Africa passing Capetown on Feb. 2 headed toward Asia. According to S


And the amount of U.S. oil being shipped to China is well below what it was a year ago, when the trade war erupted. Two ships, The Manifa and The Jag Lakshya, are estimated to arrive in China in the middle of February. The Almi Atlas was loaded with 2 million barrels at the Galveston offshore facility on Jan. 1 and is currently in the Indian Ocean. The Farhah was loaded with 2 million barrels at GOLA on Jan. 7 and rounded South Africa passing Capetown on Feb. 2 headed toward Asia. According to S
US oil heads to China, but it’s too early to declare victory in the trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: lori ann larocco, eddie seal, bloomberg, getty images
Keywords: news, cnbc, companies, trade, vessels, victory, war, oil, early, loaded, heads, barrels, ships, china, million, arrive, declare, texas


US oil heads to China, but it's too early to declare victory in the trade war

The first U.S. oil shipments to China in months will reach their destinations just days from now, punctuating a pledge by President Donald Trump in December that China would begin buying more American products despite an ongoing trade battle.

The shipments, which left ports in Texas in late December, are not a clear sign of U.S. victory, however. They are among a handful bound for China or points near it currently as a March negotiating deadline on a new trade deal draws near. And the amount of U.S. oil being shipped to China is well below what it was a year ago, when the trade war erupted.

The U.S. sent the equivalent of 500,000 barrels per day to China in 20 shipments during the months of February, March and April, according to data from Genscape, the world’s largest vessel monitoring company. There was only one shipment from the U.S. to China last fall before the two that left in December. Those final two held an average shipment equivalent to 100,000 barrels a day, about one-fifth the size of the spring peak.

“So while the oil deliveries are promising, the fact no subsequent ships are set to arrive after the tariff deadline shows you the pace of the trade discussions,” said Hillary Stevenson, director of oil markets and business development at Genscape. “We just have to wait and see. China is buying U.S. crude again but not at its old pace.”

Two ships, The Manifa and The Jag Lakshya, are estimated to arrive in China in the middle of February. Genscape can track their movement across the ocean using marine radar technology that shippers use to avoid running into each other on the open water. The journey from Texas to Asia takes about a month and a half, and ships often mark their destination as Singapore when they are really only refueling there before traveling another five days to China.

Source: Genscape

According to the data for Manifa’s voyage, the vessel was partially loaded with 2 million barrels of crude at the Seaway Texas City, Texas, dock and finished loading at the Galveston Offshore Lightering Area (GOLA) on Dec. 31, 2018. The vessel is expected to arrive in China around Feb. 17, though is still marked as headed for Singapore, according to Amir Bornaee, a market analyst at Genscape.

The other vessel, the Jag Lakshya, was loaded fully with 1 million barrels at Energy Transfer’s Nederland, Texas, dock on Dec. 16 with a final destination of Qingdao, China. It left Sinapore Feb. 3 headed to China, Genscape said.

Source: Genscape

Stevenson tells CNBC that there are three additional vessels currently listing “Singapore” as their destinations, but that could later change to China. These ships are The Almi Atlas, the Farhah and the C. Freedom.

The Almi Atlas was loaded with 2 million barrels at the Galveston offshore facility on Jan. 1 and is currently in the Indian Ocean. The Farhah was loaded with 2 million barrels at GOLA on Jan. 7 and rounded South Africa passing Capetown on Feb. 2 headed toward Asia. The C. Freedom was loaded with 2 million barrels at GOLA on Jan. 9 and was off the coast of Madagascar on Feb. 4 headed toward Asia.

According to Stevenson, if the vessels did change their final destinations to China, the oil would arrive before the tariff talk deadline.

Stevenson said while the shipments of oil are a promising sign China is starting to purchase U.S. products again, she noted it is not an all-out trade war victory for the U.S. For one thing, there aren’t any ships currently leaving U.S. ports bound to China, where they would arrive after the March negotiating deadline.

Peter Mabson, CEO of the satellite maritime tracking service exactEarth, told CNBC that having vessels in route to a country with no trade agreement settled and a looming tariff deadline is too risky to plan ahead.

“The industry does not like uncertainty so it makes sense there are no additional vessels heading to China post tariff,” he said. “It costs money to divert vessels. It’s an expense the industry tries to avoid.”


Company: cnbc, Activity: cnbc, Date: 2019-02-06  Authors: lori ann larocco, eddie seal, bloomberg, getty images
Keywords: news, cnbc, companies, trade, vessels, victory, war, oil, early, loaded, heads, barrels, ships, china, million, arrive, declare, texas


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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
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Oil prices fall on worries fuel demand to stall amid slowing global growth

Oil prices declined on Thursday amid lingering concerns over slowing global economic growth that may limit fuel demand and after a surprise build in U.S. crude inventories. U.S. West Texas Intermediate (WTI) crude futures were at $52.40 per barrel, 22 cents lower from their last settlement. “Crude oil came under further pressure as concerns of faltering global growth remained at the forefront in investor’s minds,” ANZ Bank said. The prospects of future oil demand are getting clouded by the globa


Oil prices declined on Thursday amid lingering concerns over slowing global economic growth that may limit fuel demand and after a surprise build in U.S. crude inventories. U.S. West Texas Intermediate (WTI) crude futures were at $52.40 per barrel, 22 cents lower from their last settlement. “Crude oil came under further pressure as concerns of faltering global growth remained at the forefront in investor’s minds,” ANZ Bank said. The prospects of future oil demand are getting clouded by the globa
Oil prices fall on worries fuel demand to stall amid slowing global growth Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: jean-paul pelissier
Keywords: news, cnbc, companies, week, economic, global, prices, fuel, stall, futures, world, barrels, oil, worries, growth, slowing, crude, fall, demand


Oil prices fall on worries fuel demand to stall amid slowing global growth

Oil prices declined on Thursday amid lingering concerns over slowing global economic growth that may limit fuel demand and after a surprise build in U.S. crude inventories.

International Brent crude oil futures were at $60.89 a barrel at 0352 GMT, down 25 cents, or 0.4 percent, from their last settlement, having closed down 0.6 percent in the previous session.

U.S. West Texas Intermediate (WTI) crude futures were at $52.40 per barrel, 22 cents lower from their last settlement.

“Crude oil came under further pressure as concerns of faltering global growth remained at the forefront in investor’s minds,” ANZ Bank said.

The prospects of future oil demand are getting clouded by the global growth worries, analysts said.

“With the IMF downgrading 2019/20 and the continued rhetoric from Davos reiterating that they expect global growth to slow down over the next two years, is providing selling pressure in oil,” said Hue Frame, portfolio manager at Frame Funds in Sydney.

Earlier this week, the International Monetary Fund (IMF) cut its world economic growth forecasts for 2019 and 2020, due to weakness in Europe and some emerging markets.

Meanwhile, world leaders and top executives are meeting in Davos, Switzerland, this week to discuss how to steer policy amid worries of slowing economic growth, damaging trade wars and Brexit.

Oil market sentiment was also weakened by an increase in U.S. crude inventories after refineries cut output, data from industry group the American Petroleum Institute showed on Wednesday.

Crude inventories rose by 6.6 million barrels in the week ended Jan. 18 to 443.6 million, compared with analysts’ expectations for a decrease of 42,000 barrels, the API said. Refinery runs fell by 152,000 barrels per day.

“Sharp production cuts by OPEC+ have kept crude oil futures supported however as market reports indicate for a marked output reduction in Dec 2018,” said Benjamin Lu, analyst at Phillip Futures.

“Though oil prices have demonstrated for higher upside potential in the first quarter of 2019, mounting economic challenges will continue to impede exponential gains in the longer term,” Lu added.


Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: jean-paul pelissier
Keywords: news, cnbc, companies, week, economic, global, prices, fuel, stall, futures, world, barrels, oil, worries, growth, slowing, crude, fall, demand


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Venezuelan government could topple on its own, even without new U.S. sanctions, economists say

Threatened U.S. sanctions on Venezuelan oil could further destabilize the beleaguered country, but some economists say there’s already a good chance the Latin American country could collapse on its own. The Trump administration this week threw its support behind National Assembly President Juan Guaidó, who declared himself interim president. The U.S. also could cut off the export of diluents, a diluting agent Venezuela needs to thin down its heavy fuel. What’s left of Venezuela’s oil industry co


Threatened U.S. sanctions on Venezuelan oil could further destabilize the beleaguered country, but some economists say there’s already a good chance the Latin American country could collapse on its own. The Trump administration this week threw its support behind National Assembly President Juan Guaidó, who declared himself interim president. The U.S. also could cut off the export of diluents, a diluting agent Venezuela needs to thin down its heavy fuel. What’s left of Venezuela’s oil industry co
Venezuelan government could topple on its own, even without new U.S. sanctions, economists say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: patti domm, roman camacho, sopa images, lightrocket, getty images
Keywords: news, cnbc, companies, barrels, support, economists, oil, country, glossop, venezuelan, topple, sanctions, hyperinflation, say, venezuelas, venezuela, capital, president


Venezuelan government could topple on its own, even without new U.S. sanctions, economists say

Threatened U.S. sanctions on Venezuelan oil could further destabilize the beleaguered country, but some economists say there’s already a good chance the Latin American country could collapse on its own.

Venezuela’s 14 months of hyperinflation is among the worst in recent history, and that could be its undoing, according to Edward Glossop, Latin American economist at Capital Economics. “It’s difficult for countries to withstand hyperinflation for more than one or two years at the most,” said Glossop, in an interview, noting its inflation rate has been put at over 1 million percent.

Capital Economics studied hyperinflation in 16 other economies, and found that “history suggests that some form of political transition seems likely over the next year or so…First, countries typically do not usually remain in hyperinflation for much longer than two years,” Glossop noted.

The Trump administration this week threw its support behind National Assembly President Juan Guaidó, who declared himself interim president. Thousands of Venezuelans took to the streets in support of the new government, and Vice President Mike Pence vowed U.S. support for Venezuelans and called President Nicolas Maduro, who remains in power, a dictator with no legitimate claim.

If the U.S. were to cut off oil imports from Venezuela, it would do further damage to an already waning industry and push Venezuela’s economy into a deeper crisis.

Venezuela has the world’s richest oil reserves, just topping 300 billion barrels, but corruption and a lack of capital have left its one time crown jewel PDVSA a shadow of its former self with deteriorating facilities and an inability to maintain production levels.

Source: RBC

Venezuela’s oil exports are about half of what they were at its peak, and RBC expects a further decline of about 300,000 to 500,000 barrels a day this year, and several hundred thousand more with sanctions.

The U.S. also could cut off the export of diluents, a diluting agent Venezuela needs to thin down its heavy fuel.

As of 2018, the U.S. Gulf Coast refiners were importing some 500,000 barrels a day of Venezuelan heavy crude, about half of the country’s exports, and down from more than 900,000 barrels a day.

At the same time, Venezuela’s GDP has shrunk dramatically and a staggering esimated 3 million of its citizens have migrated, creating a huge loss of economic and brain power. According to Capital Economics, GDP per capita is half of what it was in 2012 and at the same level it was in the 1950s.

While Venezuela has seen hyperinflation for just over a year, it has been in a much longer economic crisis that was exasperated by the sharp drop in oil prices in 2014. Its budget deficit has been in the double digits for the past decade, reaching about a third of GDP last year.

What’s left of Venezuela’s oil industry continues to decline, with the country unable to import the basic capital equipment and materials needed to maintain it, according to Glossop. While it’s unclear what will happen in Venezuela, so far, Maduro appears to be supported by senior military leaders. Glossop said he does not see a long drawn out civil war as a base case.

“Tn terms of prospects for civil war, it would depend on whether you get a big splinter in the military,” he said. “At the moment the army has stuck together…It’s the question of where the country would get the resources to last through a civil war.”

“Hyperinflation should do the work I think. I think the U.S. will watch how things will pan out in the next few months and protests could gather momentum, and things will happen internally,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-01-24  Authors: patti domm, roman camacho, sopa images, lightrocket, getty images
Keywords: news, cnbc, companies, barrels, support, economists, oil, country, glossop, venezuelan, topple, sanctions, hyperinflation, say, venezuelas, venezuela, capital, president


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