Risks are rising for an oil price spike as tensions between the U.S. and Iran increase

If not for the trade war, both oil and gasoline prices could be much higher than they are now on rising tensions between the U.S. and Iran. “I think the real risk is Iran misreads [President Donald] Trump and Trump misreads Iran. The Houthi, operating from Yemen, have previously attempted attacks on Saudi oil infrastructure. “The two big reasons are the trade war, and its potential effect on economic activity and the huge growth in U.S. Saudi Arabia and OPEC, have been attempting to keep the oil


If not for the trade war, both oil and gasoline prices could be much higher than they are now on rising tensions between the U.S. and Iran. “I think the real risk is Iran misreads [President Donald] Trump and Trump misreads Iran. The Houthi, operating from Yemen, have previously attempted attacks on Saudi oil infrastructure. “The two big reasons are the trade war, and its potential effect on economic activity and the huge growth in U.S. Saudi Arabia and OPEC, have been attempting to keep the oil
Risks are rising for an oil price spike as tensions between the U.S. and Iran increase Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: patti domm
Keywords: news, cnbc, companies, higher, market, iran, risks, saudi, oil, trump, trade, war, increase, week, tensions, rising, barrels, spike, price


Risks are rising for an oil price spike as tensions between the U.S. and Iran increase

If not for the trade war, both oil and gasoline prices could be much higher than they are now on rising tensions between the U.S. and Iran.

Analysts say oil could be more than 10% higher, but if there is a resolution of trade issues, and the situation in the Middle East intensifies, there are risks of price spikes that take oil to as high as $100 a barrel this summer.

“If you do get a trade war resolution, a better economy coupled with Iran sanctions, that’s a recipe for higher oil,” said Francisco Blanch, head of global commodities and derivatives at Bank of America Merrill Lynch. Blanch said under that scenario, one incident could trigger a spike in Brent, the international benchmark, to $100 a barrel.

“I think the real risk is Iran misreads [President Donald] Trump and Trump misreads Iran. I do think the real risks are increasing for sure,” said Blanch. His forecast is for Brent to reach $82 per barrel during the summer.

West Texas Intermediate futures are flat this week at just around $62 per barrel and down 2.2% for the month so far, even though the U.S. has sent an aircraft carrier and bombers to the Gulf due to unspecified threats, which U.S. officials say are the work of Iran.

The U.S. Wednesday ordered all non-emergency diplomatic staff to leave Iraq, after two separate attacks in the region and as the U.S. responds to other nonspecific threats. This week, two Saudi tankers were among four ships attacked off the coast of the United Arab Emirates, and Houthi rebels, who have ties to Iran, claimed responsibility for a separate drone attack on a key Saudi Arabian pipeline.

While it’s not clear Iran was involved, analysts expect more such incidents.

“Senior Iranian officials have made veiled and not-so-veiled threats to obstruct the ability of its regional rivals to export oil and exponentially raise the economic costs of remaining on the current policy course. They have also warned of ‘planned accidents’ which could lead to direct confrontation,” notes Helima Croft, global head of commodities strategy at RBC.

The Houthi, operating from Yemen, have previously attempted attacks on Saudi oil infrastructure. Saudi Arabia and Iran are engaged in a proxy war in Yemen. Iran also provides funding for Hezbollah, a Lebanon based group designated as terrorists by the U.S.

The Saudi Aramco oil pipeline was temporarily closed after the drone incident. It is a 1,200 mile oil artery the Saudis built to bypass the Straits of Hormuz during the Iran-Iraq war.

Croft said the presence of the U.S. Fifth Fleet in Bahrain would likely discourage Iran from trying to close the Straits of Hormuz, though it could could use its proxies and stage one-off attacks on ships.

“It is important to note that these are not the only flash points in the region, and while an off-ramp may yet emerge, the hawks appear in ascendancy, which leaves oil’s risk premium set to take center stage,” she noted.

Croft said while the Trump administration has not blamed Iran in the attacks this week, they are “under a very heavy cloud of suspicion and there is growing concern that the region’s long simmering cold war may be poised to become a hot one.”

John Kilduff of Again Capital, said that scenario is one side of the tug of war on oil prices.

“The battle in the oil market is the geopolitical premium versus the slowing global economy, which is the fallout from the trade war,” said John Kilduff of Again Capital “WTI would be pressing $70, and Brent would probably push on $80 to $85.” Brent futures were just under $72 per barrel.

But those prices have not moved much higher in last few weeks, even as it became clear the U.S. would play hardball with Iran and pressure its oil sales to zero. It’s been a year since the U.S. dropped out of the agreement between Iran and six nations, which prohibited Iran from working on its nuclear program in exchange for a lifting of sanctions. The U.S. is the only nation to break from the agreement.

Iran has threatened to restart elements of its nuclear program, unless the European signatories of the accord help allow it to make oil sales.

“Historically, with this kind of tension in the Gulf, there would definitely be a security premium in the price. We haven’t seen it this time—so far,” said Daniel Yergin, vice chairman of IHS Markit. “The two big reasons are the trade war, and its potential effect on economic activity and the huge growth in U.S. supply.”

Yergin said U.S. Secretary of State Mike Pompeo has made it clear when speaking to oil industry leaders that the boom in U.S. oil production has helped give the U.S. flexibility.

“This is a case study of how the growth in shale, and the change in the U.S. position affects perceptions about security,” said Yergin. In the past year, the U.S. has surged past Russia to be the world’s largest oil producer. Last week, U.S. oil production was at 12.1 million barrels a day, while exports surged to 3.3 million barrels a day.

“You have this firewall of U.S. output,” said Kilduff. “The Saudis can really turn the spigot on at will. There’s a lot of cushion as we go into this situation with Iran.” Saudi Arabia and OPEC, have been attempting to keep the oil market in balance under an agreement with Russia and other non-OPEC producers. The joint monitoring committee for that group meets this week.

“There was chatter in the market that this weekend, they could agree to raise the production cap to respond to the loss of Iranian crude,” he said. Analyst said Iran exports have already fallen below 1 million barrels a day and it could drop more, to as little as 200,000 barrels a day.

Analysts say the potential for more incidents in the Gulf is increasing, as Iran gets more desperate and its economy gets weaker under U.S. sanctions.

President Donald Trump this week denied reports that the U.S. was considering sending as many 120,000 troops to the Middle East to deal with Iran. But he added if troops were necessary, he’d send “a hell of a lot more.” Trump’s advisers, however, are seen as more hawkish than the president, and it was his national security adviser John Bolton, former U.N. Ambassador, who advised President George W. Bush in the war against Iraq.

“It’s a flammable situation and with lots of room for miscues and miscalculations,” said Yergin.

Blanch said Iran has several options, including dropping out of the nuclear agreement, but the most likely is that Iran will take indirect actions through proxies.

“There’s no sense they’re going to come back to the negotiating table,” said Blanch. “Iran could see being more proactive against U.S. aggression, for the home audience. At the end of the day, the loss of market share for Iran is a gain for the rest of the region. Other than letting others pocket money for the barrels you no longer can sell, you could target those barrels and maybe in the process push the price up and put some pressure on the Trump administration which doesn’t want to see higher gasoline prices. It’s a fine line to walk.”

Kilduff said the market is more on edge, even if prices aren’t rising.

“Because of the maximum pressure campaign the U.S. is putting on Iran, there’s little doubt the Iranians will try to act out through proxies in the areas. We’re tripping into conflict. That’s the sense in the market,” said Kilduff.


Company: cnbc, Activity: cnbc, Date: 2019-05-15  Authors: patti domm
Keywords: news, cnbc, companies, higher, market, iran, risks, saudi, oil, trump, trade, war, increase, week, tensions, rising, barrels, spike, price


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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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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
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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
Keywords: news, cnbc, companies, economic, stocks, crude, outlook, ticks, barrels, oil, remain, prices, week, worried, million, higher, global, investors, market, rose


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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
Keywords: news, cnbc, companies, barrels, venezuelas, crude, oil, venezuela, threatens, sanctions, week, prices, united, rose, barrel, jump, million


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