Oil rises 1.8% as OPEC pledges decision on supply

Journalists gather next to a damaged installation in Saudi Arabia’s Abqaiq oil processing plant on September 20, 2019. Oil prices rose on Thursday as OPEC indicated that all options were on the table to balance oil markets and that it would take a decision in December on supply for next year. Separately, Saudi Arabia told OPEC its monthly oil output fell by 660,000 bpd in September after major attacks on its energy facilities, while OPEC lowered its 2020 forecast for non-OPEC supply growth. Thos


Journalists gather next to a damaged installation in Saudi Arabia’s Abqaiq oil processing plant on September 20, 2019. Oil prices rose on Thursday as OPEC indicated that all options were on the table to balance oil markets and that it would take a decision in December on supply for next year. Separately, Saudi Arabia told OPEC its monthly oil output fell by 660,000 bpd in September after major attacks on its energy facilities, while OPEC lowered its 2020 forecast for non-OPEC supply growth. Thos
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Oil rises 1.8% as OPEC pledges decision on supply

Journalists gather next to a damaged installation in Saudi Arabia’s Abqaiq oil processing plant on September 20, 2019.

Oil prices rose on Thursday as OPEC indicated that all options were on the table to balance oil markets and that it would take a decision in December on supply for next year.

Mohammad Barkindo, leader of the exporter group, did not specify if the move would mean extending a pact to rein in production to stabilize prices, but the comments appeared to nudge the market out of pessimism over U.S.-China trade talks.

Global benchmark Brent crude futures rose by 90 cents, or 1.5%, to $59.21 a barrel. U.S. West Texas Intermediate (WTI) futures settled 96 cents higher, or 1.8% at $53.55 per barrel.

A December meeting between the Organization of the Petroleum Exporting Countries plus allies including Russia would take “decisions that will set us on the path of heightened and sustained stability for 2020”, Barkindo said on Thursday.

“Barkindo’s comment reminds markets that if oil prices do not fall off a cliff over demand concerns, we could very see OPEC+ extend their production cuts throughout the majority of 2020,” said Edward Moya, senior market analyst at OANDA in New York.

Separately, Saudi Arabia told OPEC its monthly oil output fell by 660,000 bpd in September after major attacks on its energy facilities, while OPEC lowered its 2020 forecast for non-OPEC supply growth.

Those signals from OPEC suggested a tighter global oil supply picture, but elsewhere abundance reigned.

Price gains were curbed by a report of rising stockpiles in the United States, currently the world’s biggest oil producer.

U.S. crude stocks rose by 2.9 million barrels in the week to Oct. 4, the Energy Information Administration (EIA) said on Wednesday, more than double analyst expectations.

Additionally, OPEC member Nigeria secured a higher production target from the organization and a force majeure over exports from the key Bonny Light stream was lifted.

Venezuela will also increase its exports despite U.S. economic sanctions that have curtailed shipments as Indian refiner Reliance Industries plans to start loading Venezuelan crude after a four-month pause.

Uncertainty over U.S.-China trade talks resuming on Thursday had previously weighed heavily on the market.

Still, there has not been a sustained rally or fall in prices in recent months, though both oil benchmarks are down more than 20% from April peaks.

“The oil market is neither bullish nor bearish. It is not trending. It has no reason or excuse to trend,” said Tamas Varga of oil brokerage PVM.

“It would be stretching it to say that the market is paralysed, but it is in a stalemate. No one is willing to commit to either direction.”


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Oil prices rise after surprise fall in US crude stocks

ShellNo flotilla participants float near the Polar Pioneer oil drilling rig on May 16, 2015 in Seattle, Washington. Oil rebounded from several days of falling prices after industry data showed a surprise drop in U.S. crude inventories, offsetting weak economic readings in the United States that have depressed global stock markets. The Energy Information Administration’s weekly oil inventories report is due at 10:30 a.m. EDT (1430 GMT) on Wednesday. Oil prices are now below levels from before the


ShellNo flotilla participants float near the Polar Pioneer oil drilling rig on May 16, 2015 in Seattle, Washington. Oil rebounded from several days of falling prices after industry data showed a surprise drop in U.S. crude inventories, offsetting weak economic readings in the United States that have depressed global stock markets. The Energy Information Administration’s weekly oil inventories report is due at 10:30 a.m. EDT (1430 GMT) on Wednesday. Oil prices are now below levels from before the
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Oil prices rise after surprise fall in US crude stocks

ShellNo flotilla participants float near the Polar Pioneer oil drilling rig on May 16, 2015 in Seattle, Washington.

Oil rebounded from several days of falling prices after industry data showed a surprise drop in U.S. crude inventories, offsetting weak economic readings in the United States that have depressed global stock markets.

Brent crude rose 43 cents, or 0.7%, to $59.32 a barrel by 0437 GMT, claiming back some of the ground lost over the past three sessions. U.S. West Texas Intermediate crude was at $54.23 a barrel, up 61 cents or 1.1%.

Front-month WTI prices settled down for a sixth straight session on Tuesday, their longest losing streak this year, after U.S. manufacturing activity dived to a 10-year low as U.S.-China trade tensions weighed on exports.

“Brent and WTI have erased those (Tuesday) losses in early trade respectively,” Jeffrey Halley, a senior market analyst at OANDA in Singapore said, although the trading volume was low because of regional holidays.

“We would expect the rallies to quickly run out of steam as we approach $61.00 and $55.00 a barrel,” he added.

Oil pared some losses in post-settlement trade on Tuesday after American Petroleum Institute (API) data showed U.S. crude stocks fell last week by 5.9 million barrels, against expectations for an increase of 1.6 million barrels.

The Energy Information Administration’s weekly oil inventories report is due at 10:30 a.m. EDT (1430 GMT) on Wednesday.

Oil prices are now below levels from before the Sept. 14 attacks on Saudi oil facilities as the world’s largest oil exporter has restored its full oil production and capacity.

“That means the market is not pricing in any risk premium from further potential attacks,” said Howie Lee, economist at Singapore’s OCBC bank.

Separately, Ecuador, one of the smallest members of the Organization of the Petroleum Exporting Countries (OPEC), said on Tuesday it will leave the 14-nation bloc from Jan. 1 due to fiscal problems. The South American oil producer will be the second to withdraw from OPEC in the last year after the departure of Qatar.


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Oil slides 1.8% as US inventories build, weak economic data weighs

Oil prices fell on Wednesday after official data showed a rise in U.S. crude inventories, adding to worries about an oversupplied market as weak economic readings in the United States depressed global markets. U.S. West Texas Intermediate (WTI) crude futures fell 1.8% to $52.64 a barrel. Crude stocks at the Cushing, Oklahoma, delivery hub for WTI fell by 201,000 barrels, EIA said. Tensions between the two countries flared after Saudi Arabia blamed Iran for an attack on Saudi oil facilities on Se


Oil prices fell on Wednesday after official data showed a rise in U.S. crude inventories, adding to worries about an oversupplied market as weak economic readings in the United States depressed global markets. U.S. West Texas Intermediate (WTI) crude futures fell 1.8% to $52.64 a barrel. Crude stocks at the Cushing, Oklahoma, delivery hub for WTI fell by 201,000 barrels, EIA said. Tensions between the two countries flared after Saudi Arabia blamed Iran for an attack on Saudi oil facilities on Se
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Oil slides 1.8% as US inventories build, weak economic data weighs

A oil rigger at the Schlumberger field prepares pipes in Midland, Texas on December 16, 2008.

Oil prices fell on Wednesday after official data showed a rise in U.S. crude inventories, adding to worries about an oversupplied market as weak economic readings in the United States depressed global markets.

Brent crude futures were down 2.3% at $57.51 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell 1.8% to $52.64 a barrel.

Wall Street fell more than 1% for the second straight session, with stocks hitting a fresh one-month low, as September’s weak private payrolls report added to concerns of a slowdown in the world’s largest economy.

U.S. crude inventories rose by 3.1 million barrels last week, the Energy Information Administration said, compared with analyst expectations for an increase of 1.6 million barrels.

Crude stocks at the Cushing, Oklahoma, delivery hub for WTI fell by 201,000 barrels, EIA said.

“I think you’re continuing to get signs that demand growth is the primary drag on the market, with the disappointing manufacturing number that came out yesterday,” said Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.

Front-month WTI prices settled down for a sixth straight session on Tuesday, their longest losing streak this year, after U.S. manufacturing activity dropped to a 10-year low as U.S.-China trade tensions weighed on exports.

“Even with 12 days and counting of bearish trading action on WTI futures, that market is now only starting to reach oversold territory. $50.50 remains a key support level,” said David Thompson, executive vice president at Powerhouse, an energy-specialized commodities broker in Washington.

Signs of easing geopolitical tensions in the Middle East also weighed on prices, traders said. Tensions between the two countries flared after Saudi Arabia blamed Iran for an attack on Saudi oil facilities on Sept. 14., a charge Tehran denies.

Iran’s Oil Minister Bijan Zanganeh sought to defuse tensions with Saudi Arabia, calling his counterpart in Riyadh “a friend” and saying Tehran was committed to stability in the region.

Both oil ministers from Iran and Saudi Arabia, which have repeatedly clashed at OPEC meetings over output policies, were attending a top Russian energy conference chaired by President Vladimir Putin.

Putin said Russia would continue to be a responsible player in the alliance between the Organization of the Petroleum Exporting Countries and non-OPEC oil-producing nations, known as OPEC+, which has since Jan. 1 implemented a deal to cut output by 1.2 million barrels per day until March 2020.

The Russian president said it was important to use all available tools to balance the energy markets.

Iran’s oil minister also said he expected a slight surplus on the oil supply side next year.

The United Arab Emirates’ Minister of Energy and Industry Suhail al-Mazrouei said OPEC and its allies were monitoring global oil markets, and that conformity levels were the same as previously announced at the last OPEC+ joint ministerial monitoring committee meeting.

Meanwhile, Ecuador, one of the smallest members of the Organization of the Petroleum Exporting Countries, said it would leave the 14-nation bloc from Jan. 1 due to fiscal problems. Ecuador will be the second country to withdraw from OPEC in the last year after the departure of Qatar.


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Oil drops 3.3% on Chinese data, Saudi output recovery

The oil tanker ‘Devon’ prepares to transfer crude oil from Kharg Island oil terminal to India in the Persian Gulf, Iran, on March 23, 2018. Both benchmarks were on track for little price changes in September after volatile month where prices spike nearly 20% after the attacks halved Saudi Arabia’s output, but have pared nearly all those gains as output has been quickly restored. U.S. West Texas Intermediate (WTI) crude futures fell $1.84, or 3.3%, to settle at $54.07. The concern is oil demand i


The oil tanker ‘Devon’ prepares to transfer crude oil from Kharg Island oil terminal to India in the Persian Gulf, Iran, on March 23, 2018. Both benchmarks were on track for little price changes in September after volatile month where prices spike nearly 20% after the attacks halved Saudi Arabia’s output, but have pared nearly all those gains as output has been quickly restored. U.S. West Texas Intermediate (WTI) crude futures fell $1.84, or 3.3%, to settle at $54.07. The concern is oil demand i
Oil drops 3.3% on Chinese data, Saudi output recovery Cached Page below :
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Keywords: news, cnbc, companies, drops, attacks, output, oil, data, saudi, states, chinese, united, crude, prices, china, recovery, restored


Oil drops 3.3% on Chinese data, Saudi output recovery

The oil tanker ‘Devon’ prepares to transfer crude oil from Kharg Island oil terminal to India in the Persian Gulf, Iran, on March 23, 2018.

Both benchmarks were on track for little price changes in September after volatile month where prices spike nearly 20% after the attacks halved Saudi Arabia’s output, but have pared nearly all those gains as output has been quickly restored.

Brent crude futures were down $1.16, or 1.9%, at $60.75 a barrel. U.S. West Texas Intermediate (WTI) crude futures fell $1.84, or 3.3%, to settle at $54.07.

Oil fell on Monday as China’s economic outlook remained weak amid an ongoing trade war with the United States and market fears of supply shortfalls and conflicts in the Middle East after the Sept. 14 attack on Saudi Arabia faded.

For the quarter, however, global benchmark Brent was set for a 8.6% loss, while WTI was down about 6.1%, as concerns that the trade war between the United States and China has plunged global economic growth to its lowest levels in a decade weighed on oil demand growth.

China’s official Purchasing Managers’ Index (PMI) was slightly improved this month, increasing from 49.5 in August to 49.8 in September, but remained below the 50-point mark that separates expansion from contraction on a monthly basis, data from the National Bureau of Statistics showed.

China, the world’s largest crude importer, warned of instability in international markets from any “decoupling” of China and the United States, after sources said U.S. President Donald Trump’s administration was considering delisting Chinese companies from U.S. stock exchanges.

“The U.S. and China are still far from any type of agreement. The concern is oil demand is not going to be there,” said Kyle Cooper, an oil analyst at IAF Advisors.

Saudi Aramco last week restored full capacity to the level before the attacks on its oil facilities, Ibrahim Al-Buainain, chief executive officer of its trading arm, said on Monday at a conference in the United Arab Emirates.

The world’s top oil exporter Saudi Arabia has restored capacity to 11.3 million barrels per day (bpd) after the attack knocked out 5.7 million bpd of the kingdom’s output, sources told Reuters last week, though Saudi Aramco has yet to confirm its operations have been restored fully.

The “much quicker than expected return of Saudi oil (supply) as we go into refinery maintenance season” was weighing on prices, said Andy Lipow, president of Lipow Oil Associates in Houston.

Market fears of broader escalating tensions in the Middle East after Saudi Arabia and the United States blamed the attacks on Iran, have also faded somewhat, easing upward pressure on prices, analysts said.

Saudi Arabia’s Crown Prince Mohammed bin Salman, often referred to as MBS, said in an interview broadcast on Sunday he would prefer a political solution to a military one in response to attacks.


Company: cnbc, Activity: cnbc, Date: 2019-09-30
Keywords: news, cnbc, companies, drops, attacks, output, oil, data, saudi, states, chinese, united, crude, prices, china, recovery, restored


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Oil prices head for big weekly loss as supply fears wane

The International Energy Agency (IEA) said on Friday that it might cut its estimates for global oil demand for 2019 and 2020 should the global economy weaken further. “If the global economy weakens, for which there are already some signs, we may lower oil demand expectations,” IEA Executive Director Fatih Birol told Reuters. In China, the world’s second-largest economy and biggest importer of crude oil, industrial companies reported a contraction in profits in August. The International Energy Ag


The International Energy Agency (IEA) said on Friday that it might cut its estimates for global oil demand for 2019 and 2020 should the global economy weaken further. “If the global economy weakens, for which there are already some signs, we may lower oil demand expectations,” IEA Executive Director Fatih Birol told Reuters. In China, the world’s second-largest economy and biggest importer of crude oil, industrial companies reported a contraction in profits in August. The International Energy Ag
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Oil prices head for big weekly loss as supply fears wane

A damaged installation in Saudi Arabia’s Abqaiq oil processing plant is pictured on September 20, 2019.

Oil prices fell on Friday and were heading for a weekly loss on a faster than expected recovery in Saudi output while slowing Chinese economic growth dampens the demand outlook.

Brent fell 93 cents to $61.81 a barrel, while U.S. crude slipped by 65 cents to $55.76. Both were down almost 4% over the week, representing WTI’s biggest weekly loss in 10 weeks and Brent’s biggest in seven.

Brent and WTI were also hit by a Wall Street Journal report citing unnamed sources saying that Saudi Arabia had agreed a partial ceasefire in Yemen, said analysts in the Reuters Global Oil Forum.

Brent is just above its level before attacks on Saudi facilities on Sept 14, which initially halved the kingdom’s production.

Sources told Reuters this week that Saudi Arabia had restored capacity to 11.3 million barrels per day. Saudi Aramco has yet to confirm it is fully back online.

“The risk premium is deflating further,” said Saxo Bank’s Ole Hansen.

The International Energy Agency (IEA) said on Friday that it might cut its estimates for global oil demand for 2019 and 2020 should the global economy weaken further.

“If the global economy weakens, for which there are already some signs, we may lower oil demand expectations,” IEA Executive Director Fatih Birol told Reuters.

In China, the world’s second-largest economy and biggest importer of crude oil, industrial companies reported a contraction in profits in August.

A surprise 2.4 million-barrel build in U.S. crude inventories last week also weighed on prices.

Key oil freight rates from the Middle East to Asia rocketed as much as 28% on Friday in the global oil shipping market, spooked by U.S. sanctions on units of China’s COSCO for alleged involvement in ferrying crude out of Iran.

The COSCO vessels are equal to about 7.5% of the world’s fleet of supertankers, Refinitiv data showed.

Emerging details connected to the impeachment inquiry into U.S. President Donald Trump also helped to dent demand sentiment, analysts said.

Brent, which is on course for its biggest weekly loss in seven weeks, is just above its level before Sept. 14 attacks on Saudi facilities that initially halved the kingdom’s production.

Sources told Reuters this week that Saudi Arabia had restored capacity to 11.3 million barrels per day. Saudi Aramco has yet to confirm it is fully back online.

“The political risk premium in crude prices has largely evaporated,” Jefferies analysts said in a note.

The International Energy Agency (IEA) said on Friday it might cut its growth estimates for global oil demand for 2019 and 2020 should the global economy weaken further.

“It will depend on the global economy. If the global economy weakens, for which there are already some signs, we may lower oil demand expectations,” IEA Executive Director Fatih Birol told Reuters.

In China, the world’s second largest economy and top importer of crude, industrial firms reported a contraction in profits in August.

A surprise 2.4 million-barrel build in U.S. crude inventories last week also weighed on prices.

Key oil freight rates from the Middle East to Asia rocketed as much as 28% on Friday in the global oil shipping market, spooked by U.S. sanctions on units of Chinese giant COSCO for alleged involvement in ferrying crude out of Iran.

The COSCO vessels are equal to about 7.5% of the world’s fleet of supertankers, Refinitiv data showed.

Emerging details connected to the impeachment inquiry into U.S. President Donald Trump also helped dent demand sentiment, analysts said.


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Oil edges lower to $56.41 as supply concerns weigh on crude

Photo taken August 19, 2013 shows a worker checking oil tanks at an oil well near Tioga, North Dakota. Brent crude futures ticked up 40 cents, or 0.6%, to $62.79 a barrel while U.S. West Texas Intermediate (WTI) crude settled down 8 cents, or 0.1%, to $56.41 a barrel. “Crude futures now appear to be discounting normalization of output by next week,” said Jim Ritterbusch, of Ritterbusch and Associates. “The oil market has seemingly returned to business as usual,” said Norbert Ruecker, head of eco


Photo taken August 19, 2013 shows a worker checking oil tanks at an oil well near Tioga, North Dakota. Brent crude futures ticked up 40 cents, or 0.6%, to $62.79 a barrel while U.S. West Texas Intermediate (WTI) crude settled down 8 cents, or 0.1%, to $56.41 a barrel. “Crude futures now appear to be discounting normalization of output by next week,” said Jim Ritterbusch, of Ritterbusch and Associates. “The oil market has seemingly returned to business as usual,” said Norbert Ruecker, head of eco
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Oil edges lower to $56.41 as supply concerns weigh on crude

Photo taken August 19, 2013 shows a worker checking oil tanks at an oil well near Tioga, North Dakota.

Oil slipped on Thursday as new details connected to the impeachment inquiry into U.S. President Donald Trump weakened demand sentiment while moves to quickly restore Saudi output after attacks on its oil infrastructure promised more oil supply.

The U.S. House Intelligence Committee released a declassified version of a whistleblower report alleging Trump used his office to solicit interference in the 2020 presidential election from a foreign country.

“When the odds of impeachment go down, the market goes up. When the odds of impeachment go up, it goes down,” said Phil Flynn, an analyst with Price Futures Group in Chicago. “The market doesn’t like the prospect of impeachment – that’s going to be a negative for the U.S. economy, it’s going to be a negative on U.S.-China trade.”

Brent crude futures ticked up 40 cents, or 0.6%, to $62.79 a barrel while U.S. West Texas Intermediate (WTI) crude settled down 8 cents, or 0.1%, to $56.41 a barrel.

Prices have been weighed down by the faster-than-expected recovery of Saudi output after the drone and missile strikes on two of its oil-processing plants, as well as a surprise 2.4-million-barrel build in U.S. crude inventories last week.

“Crude futures now appear to be discounting normalization of output by next week,” said Jim Ritterbusch, of Ritterbusch and Associates.

Saudi Arabia, the world’s top oil exporter, has restored its production capacity to 11.3 million barrels per day, sources briefed on state oil company Saudi Aramco’s operations told Reuters.

Comments by Trump on Wednesday, which signalled that a resolution to the U.S. trade dispute with China might be near, helped limit losses.

A day after delivering a stinging rebuke to China over its trade policies, Trump said Beijing wanted to make a deal and it “could happen sooner than you think.”

Trump and Japanese Prime Minister Shinzo Abe also signed a limited trade deal that would open Japanese markets to $7 billion of U.S. products annually.

“The oil market has seemingly returned to business as usual,” said Norbert Ruecker, head of economics and next-generation research at Julius Baer.

“Instead of the attack-related fallout including disruption and geopolitical risks, the soft economy and stagnant oil demand are back in focus.”

Crude futures were pressured by sluggish economic data in leading European economies and Japan.

“There’s not too much to be cheery about on oil markets today,” said Jeffrey Halley, senior market analyst for Asia Pacific at OANDA.


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Oil falls 1.4% on surprise US crude build, Trump’s China trade comments

Oil prices dropped about 2% on Wednesday, logging a second straight day of losses after U.S. crude inventories unexpectedly rose and on worries that demand could fall after U.S. President Donald Trump’s comments about trade talks with China. Brent crude futures shed 1.03%, to $62.45 a barrel, while U.S. West Texas Intermediate crude fell 1.4%, to $56.49 a barrel. Global markets had weakened on Tuesday after Trump criticized China’s trade practices at the United Nations General Assembly and said


Oil prices dropped about 2% on Wednesday, logging a second straight day of losses after U.S. crude inventories unexpectedly rose and on worries that demand could fall after U.S. President Donald Trump’s comments about trade talks with China. Brent crude futures shed 1.03%, to $62.45 a barrel, while U.S. West Texas Intermediate crude fell 1.4%, to $56.49 a barrel. Global markets had weakened on Tuesday after Trump criticized China’s trade practices at the United Nations General Assembly and said
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Oil falls 1.4% on surprise US crude build, Trump's China trade comments

Oil prices dropped about 2% on Wednesday, logging a second straight day of losses after U.S. crude inventories unexpectedly rose and on worries that demand could fall after U.S. President Donald Trump’s comments about trade talks with China.

A rally in the dollar, which moves inversely with oil, also weighed on oil as a Democratic-led chamber was launching an official presidential impeachment inquiry.

Brent crude futures shed 1.03%, to $62.45 a barrel, while U.S. West Texas Intermediate crude fell 1.4%, to $56.49 a barrel.

“The complex is seeing significant downside pressure today off further reduction in risk appetite related to lack of progress on the U.S.-China trade front as well as the impeachment inquiry that appears poised to reduce appeal for risky assets,” said Jim Ritterbusch, president of Ritterbusch and Associates. “Adding to the mix was some bearish … data featured by a counter seasonal U.S. crude build.”

U.S. crude inventories unexpectedly rose 2.4 million barrels last week, the Energy Information Administration said, instead of declining 249,000 barrels as analysts forecast.

Trump said on Wednesday that a deal to end a nearly 15-month trade war with China could happen sooner than people think.

Global markets had weakened on Tuesday after Trump criticized China’s trade practices at the United Nations General Assembly and said he would not accept a “bad deal” in U.S.-China trade negotiations.

China is the world’s largest oil importer and is second-largest crude consumer after the United States.

Trump also said he saw a path to peace with Iran, cooling other risk premiums built into oil prices, particularly after the Sept. 14 attack on Saudi Arabia’s oil facilities that halved its output. Both the kingdom and the United States have blamed Iran for the attack.

“The geopolitical risk premium has all but vanished and bullish catalysts suddenly appear in short supply across the oil market,” said PVM analyst Stephen Brennock.

OCBC economist Howie Lee said prices could still receive a boost should buyers of Saudi crude have to look for supplies in the spot market if Saudi stocks ran out.

“The market is very concerned about the demand side of the equation, but I would caution against being complacent about what’s happening in the Middle East,” Lee said.

Commerzbank’s Carsten Fritsch said the dip in prices was premature. “It is reasonable to doubt that Saudi Aramco has already made good the outages in the affected facilities almost completely,” he said.

Sources told Reuters that Saudi Arabia has restored production capacity to 11.3 million barrels per day, a quicker recovery than expected.


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Saudis are exporting less crude to the world market, shipping data shows

That could speed up a tightening of global oil supplies, even though the U.S., Brazil and other countries are expected to continue to add oil to the global market. The attack, believed to be the work of Iran, knocked out about 5.7 million barrels a day of Saudi production. Kpler said Saudi’s domestic inventories have fallen by 10 million barrels to 56 million barrels since the beginning of September. “They have just over 55 million barrels left..They could go another four or five weeks realistic


That could speed up a tightening of global oil supplies, even though the U.S., Brazil and other countries are expected to continue to add oil to the global market. The attack, believed to be the work of Iran, knocked out about 5.7 million barrels a day of Saudi production. Kpler said Saudi’s domestic inventories have fallen by 10 million barrels to 56 million barrels since the beginning of September. “They have just over 55 million barrels left..They could go another four or five weeks realistic
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Saudis are exporting less crude to the world market, shipping data shows

Saudi Arabia’s oil exports are down by about as much as an average 1.5 million barrels a day since its state run oil company was attacked Sept. 14, researchers who track shipping said.

That could speed up a tightening of global oil supplies, even though the U.S., Brazil and other countries are expected to continue to add oil to the global market.

Saudi Aramco’s trading arm has been buying crude from neighboring countries, including Kuwait and United Arab Emirates, among others, to fulfill its commitments, according to Reuters. S&P Global Platts reports that the kingdom is buying diesel fuel from India and the UAE, and is also looking for jet fuel and naphtha.

The attack, believed to be the work of Iran, knocked out about 5.7 million barrels a day of Saudi production. Saudi Aramco is working to bring back the operations which Saudi officials say they hope to have completely restored by the end of the month.

“The jury is out as to whether or not they are going to get back to full strength as quickly as they claim. If they are able to, we won’t have a problem. If they aren’t, the problems start now,” said John Kilduff of Again Capital. “If they can’t get back to normal rapidly, we’ll approach shortages particularly in refined products.”

Both Kpler and ClipperData report that Saudi Arabia has seen a significant drop in its exports. Kpler said Saudi’s domestic inventories have fallen by 10 million barrels to 56 million barrels since the beginning of September. However, Saudi Arabia also has oil in storage in Rotterdam and Egypt.

Source: Kpler

“[Saudi Exports] should be closer to 7 million barrels per day, and we’re seeing it verge on 5.5 million since the attack,” said Matt Smith, director of commodity research at ClipperData. “It does include the 15th when there was just one loading.”

Kpler’s Reid I’Anson said he believes Saudi is down about 1 million barrels a day, but the amount of exports fluctuate daily.

“They have just over 55 million barrels left..They could go another four or five weeks realistically from the rates we’re seeing. That could change based on the internal situation, if they are able to get some of this back on line,” said I’Anson, global energy economist at Kpler. I’Anson said it is unclear how much oil is being stored in Rotterdam or Egypt, and even Japan.

“We have seen them purchasing petroleum products in order to lower runs through their domestic refineries,” he said.

I’Anson said the market that could be impacted is Asia, since China and East Asia are the biggest buyers of crude from Saudi Arabia, which has filled the gap for Iran.

The U.S. could be sending barrels to cover the lower Saudi exports, and the U.S. is expected to export about 3 million barrels a day. That amount could increase as more pipeline capacity comes on line this year, to bring more crude from the Permian Basin in Texas to the Gulf of Mexico.

“If it persists, the curve ball to watch out for is you could see a decided spike higher in U.S. crude exports in the next couple of weeks,” said Kilduff. There were seven empty ships that were hanging in the Gulf of Mexico over the last couple of weeks. I could see 4 million barrels per day export weeks very shortly.”


Company: cnbc, Activity: cnbc, Date: 2019-09-24  Authors: patti domm
Keywords: news, cnbc, companies, market, day, shipping, kpler, world, saudis, exporting, data, crude, million, oil, shows, saudi, weeks, global, barrels, exports


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Oil hits six-week high on hopes of extended OPEC output cuts

Oil futures hit a six-week high on Tuesday, rising for a fifth day on optimism that OPEC and other countries may agree to extend production cuts in a bid to support prices. He added that the so-called OPEC+ alliance, made up of OPEC and non-OPEC countries including Russia, would be in place for the long term. A meeting of OPEC and OPEC+ countries in Abu Dhabi this week “is stirring up hopes for additional supply cuts,” said Stephen Innes, Asia Pacific market strategist at AxiTrader. Still, Russi


Oil futures hit a six-week high on Tuesday, rising for a fifth day on optimism that OPEC and other countries may agree to extend production cuts in a bid to support prices. He added that the so-called OPEC+ alliance, made up of OPEC and non-OPEC countries including Russia, would be in place for the long term. A meeting of OPEC and OPEC+ countries in Abu Dhabi this week “is stirring up hopes for additional supply cuts,” said Stephen Innes, Asia Pacific market strategist at AxiTrader. Still, Russi
Oil hits six-week high on hopes of extended OPEC output cuts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-09-10
Keywords: news, cnbc, companies, oil, saudi, market, countries, output, hopes, crude, sixweek, extended, production, opec, hits, higher, cuts, week, day, high


Oil hits six-week high on hopes of extended OPEC output cuts

Oil futures hit a six-week high on Tuesday, rising for a fifth day on optimism that OPEC and other countries may agree to extend production cuts in a bid to support prices.

Brent was up 26 cents, or 0.4%, at $62.85 a barrel by 0349 GMT, while U.S. crude was 27 cents, or 0.5%, higher at $58.12 a barrel. Brent touched its highest since Aug. 1, while U.S. crude rose to the highest since July 31.

U.S. oil gained more than 2% on Monday, while Brent finished the day 1.7% higher as the market reacted to the appointment by Saudi Arabia’s king of his son, Prince Abdulaziz bin Salman, as energy minister on Sunday.

Prince Abdulaziz, a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), said the pillars of Saudi Arabia’s policy would not change and a global deal to cut oil production by 1.2 million barrels per day would be maintained.

He added that the so-called OPEC+ alliance, made up of OPEC and non-OPEC countries including Russia, would be in place for the long term.

A meeting of OPEC and OPEC+ countries in Abu Dhabi this week “is stirring up hopes for additional supply cuts,” said Stephen Innes, Asia Pacific market strategist at AxiTrader.

Still, Russia’s oil output in August exceeded its quota under the OPEC+ agreements.

“Markets will need to see concrete progress on the production front, even as the world’s economy slows, to sustain gains,” said Jeffrey Halley, senior market analyst at OANDA.

Should oil end Tuesday higher it will be the longest run of gains since late July but headwinds remain as the U.S.-China trade war rumbles on.

Executives at the annual Asia Pacific Petroleum Conference said on Monday they expect oil prices this year to be pressured by uncertainties surrounding the global economy, the U.S.-China trade war and increasing U.S. supplies.

In the United States, crude stockpiles are likely to have fallen for a fourth consecutive week last week, a preliminary Reuters poll showed on Monday.

Five analysts polled by Reuters estimated, on average, that crude inventories fell 2.6 million barrels in the week to Sept 6.


Company: cnbc, Activity: cnbc, Date: 2019-09-10
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Oil jumps 2.4% as new Saudi minister commits to output cuts, Netanyahu calls for action against Iran

Oil prices rose more than 2% on Monday after the new Saudi energy minister, Prince Abdulaziz bin Salman, confirmed expectations that he would stick with his country’s policy of limiting crude output to support prices. “The move is bullish for oil prices,” Phil Flynn, an analyst at Price Futures Group in Chicago, said in a note. “Prince Abdulaziz bin Salman is known as an oil production cutter. Crude prices were also supported by comments made by Israeli Prime Minister Benjamin Netanyahu. OPEC oi


Oil prices rose more than 2% on Monday after the new Saudi energy minister, Prince Abdulaziz bin Salman, confirmed expectations that he would stick with his country’s policy of limiting crude output to support prices. “The move is bullish for oil prices,” Phil Flynn, an analyst at Price Futures Group in Chicago, said in a note. “Prince Abdulaziz bin Salman is known as an oil production cutter. Crude prices were also supported by comments made by Israeli Prime Minister Benjamin Netanyahu. OPEC oi
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Oil jumps 2.4% as new Saudi minister commits to output cuts, Netanyahu calls for action against Iran

Oil prices rose more than 2% on Monday after the new Saudi energy minister, Prince Abdulaziz bin Salman, confirmed expectations that he would stick with his country’s policy of limiting crude output to support prices.

Prince Abdulaziz, son of Saudi King Salman and a long-time member of the Saudi delegation to the Organization of the Petroleum Exporting Countries (OPEC), replaced Khalid al-Falih on Sunday.

“The move is bullish for oil prices,” Phil Flynn, an analyst at Price Futures Group in Chicago, said in a note. “Prince Abdulaziz bin Salman is known as an oil production cutter. He has been instrumental in securing production cuts in the past.”

Crude prices were also supported by comments made by Israeli Prime Minister Benjamin Netanyahu. He said Monday that Iran has a secret nuclear facility and called for action against the Middle Eastern nation.

Brent crude futures gained $1.31, or 2.3%, to $62.58 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose $1.33, or 2.4%, to $57.85 a barrel.

Prince Abdulaziz said the pillars of Saudi Arabia’s policy would not change and a global deal to cut oil production by 1.2 million barrels per day would survive.

He added that the so-called OPEC+ alliance between OPEC and non-member countries including Russia was staying for the long term.

Russia’s oil output in August exceeded its quota under the OPEC+ agreements.

OPEC oil output in August rose for the first month this year as higher supply from Iraq and Nigeria outweighed restraint by Saudi Arabia and losses caused by U.S. sanctions on Iran.

On Sunday, the United Arab Emirates’ energy minister Suhail al-Mazrouei said OPEC and non-OPEC producers were “committed” to achieving oil market balance.

The OPEC+ deal’s joint ministerial monitoring committee meets on Thursday in Abu Dhabi.

Trade and geopolitical tensions are affecting the market, Mazrouei said.

Executives at the annual Asia Pacific Petroleum Conference said on Monday they expect oil prices this year to be pressured by uncertainties surrounding the global economy, the U.S.-China trade war and increasing U.S. supplies.

Elsewhere, China’s crude oil imports gained about 3% in August from a month earlier, customs data showed on Sunday, buoyed by a recovery in refining margins despite a persistent surplus of oil products and tepid demand.

The United States is “very concerned” about China’s purchases of Iranian oil, Dan Brouillette, deputy secretary of the U.S. Department of Energy, said on Monday.

The United States last year withdrew from a nuclear deal that world powers had done with Iran in 2015, and reimposed sanctions to strangle Iran’s vital oil trade.


Company: cnbc, Activity: cnbc, Date: 2019-09-09
Keywords: news, cnbc, companies, saudi, oil, rose, output, jumps, commits, united, crude, abdulaziz, iran, production, opec, prices, salman, minister, netanyahu, cuts, calls


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