Oil falls 1.5% after US fuel inventories build

Oil futures fell on Wednesday, extending a more than 3% drop in prices the previous session, after U.S. government data showed large builds in refined product stockpiles. U.S West Texas Intermediate (WTI) crude futures fell 84 cents to $56.78 a barrel. U.S. crude inventories fell 3.1 million barrels, EIA data showed, more than analysts’ forecasts for a decrease of 2.7 million barrels. Gasoline stocks rose 3.6 million barrels, compared with analysts’ expectations in a Reuters poll for a 925,000-b


Oil futures fell on Wednesday, extending a more than 3% drop in prices the previous session, after U.S. government data showed large builds in refined product stockpiles. U.S West Texas Intermediate (WTI) crude futures fell 84 cents to $56.78 a barrel. U.S. crude inventories fell 3.1 million barrels, EIA data showed, more than analysts’ forecasts for a decrease of 2.7 million barrels. Gasoline stocks rose 3.6 million barrels, compared with analysts’ expectations in a Reuters poll for a 925,000-b
Oil falls 1.5% after US fuel inventories build Cached Page below :
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Oil falls 1.5% after US fuel inventories build

Stacked rigs are seen along with other idled oil drilling equipment in Dickinson, North Dakota, June 26, 2015.

Oil futures fell on Wednesday, extending a more than 3% drop in prices the previous session, after U.S. government data showed large builds in refined product stockpiles.

Brent crude futures slipped 74 cents to $63.61 a barrel. U.S West Texas Intermediate (WTI) crude futures fell 84 cents to $56.78 a barrel. Both benchmarks shed more than 3% on Tuesday.

While data on Wednesday from the U.S. Energy Information Administration showed a larger-than-expected drawdown in crude stockpiles last week, large builds in refined product inventories kept prices lower.

U.S. crude inventories fell 3.1 million barrels, EIA data showed, more than analysts’ forecasts for a decrease of 2.7 million barrels.

Gasoline stocks rose 3.6 million barrels, compared with analysts’ expectations in a Reuters poll for a 925,000-barrel drop. Distillate stockpiles grew by 5.7 million barrels, much more than expectations for a 613,000-barrel increase, the EIA data showed.

“The focus this time of year is gasoline, and that data point was squarely bearish,” said John Kilduff, a partner at Again Capital Management in New York.

Some of the EIA data was affected by Storm Barry, which came ashore on Saturday in central Louisiana as a Category 1 hurricane. More than half of daily crude production in the Gulf of Mexico remained offline on Tuesday, the Bureau of Safety and Environmental Enforcement (BSEE) said, as most oil companies were re-staffing facilities to resume production.

The U.S. drilling regulator said 1.1 million barrels per day of oil, or 58% of the region’s total, remained shut.

Oil prices slumped on Tuesday on increased hopes for a return of Iranian crude to the global oil market after U.S. President Donald Trump said progress had been made with Tehran, signaling tensions could ease in the Middle East.

However, Iran later denied it was willing to negotiate over its ballistic missile program, contradicting a claim by U.S. Secretary of State Mike Pompeo, and appearing to undercut Trump’s statement.

“It is hard to believe that either the United States or the Iranian stance would change drastically, therefore yesterday’s sell-off might turn out to be an excellent buying opportunity,” PVM analysts wrote.

U.S. officials say they are unsure whether an oil tanker towed into Iranian waters was seized by Iran or rescued after facing mechanical faults as Tehran asserts, creating a mystery at sea at a time of high tension in the Gulf.


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

Oil prices turned lower on Tuesday, falling by about $2 a barrel as U.S. President Donald Trump said progress has been made with Iran, signaling tensions could ease in the Mideast. Brent crude futures were down $2.56 or 3.7% at $63.86 a barrel, after hitting a session high of $67.09. West Texas Intermediate crude futures fell by $2.46 or 4.2% to $57.09 a barrel. Tension between the United States and Iran over Tehran’s nuclear program have previously lent support to oil futures, given the potenti


Oil prices turned lower on Tuesday, falling by about $2 a barrel as U.S. President Donald Trump said progress has been made with Iran, signaling tensions could ease in the Mideast. Brent crude futures were down $2.56 or 3.7% at $63.86 a barrel, after hitting a session high of $67.09. West Texas Intermediate crude futures fell by $2.46 or 4.2% to $57.09 a barrel. Tension between the United States and Iran over Tehran’s nuclear program have previously lent support to oil futures, given the potenti
Oil drops more than 3% after State Secretary Pompeo says Iran is ready to negotiate about its missile program Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-16
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Oil drops more than 3% after State Secretary Pompeo says Iran is ready to negotiate about its missile program

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

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

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

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

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

Trump, who made the remarks at a Cabinet meeting in the White House, did not give details about the progress, but U.S. Secretary of State Mike Pompeo said at the meeting Iran had said it was prepared to negotiate about its missile program.

Tension between the United States and Iran over Tehran’s nuclear program have previously lent support to oil futures, given the potential for a price spike should the situation deteriorate.

Uncertainty about China’s economic prospects also pressured prices lower after data on Monday showed that growth in the country slowed to 6.2% from a year earlier, the weakest pace in at least 27 years.

Additionally, U.S. oil companies on Monday began restoring some of the nearly 74% of production that was shut at platforms in the Gulf of Mexico because of Hurricane Barry.

Workers were returning to the more than 280 production platforms that had been evacuated. It can take several days for full production to resume.

The storm will probably result in a noticeable decline in U.S. crude oil stocks this week, analysts at Commerzbank said.

Inventory data will be published by the American Petroleum Institute on Tuesday evening, and by the U.S. Department of Energy on Wednesday.

However, some say the bullish inventory data is structural, and not attributable only to the storm.

“Beyond the storm we feel we’re in a tightening inventory mode through August,” said Phil Flynn, an analyst with Price Futures Group in Chicago.


Company: cnbc, Activity: cnbc, Date: 2019-07-16
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Oil drops more than 3% after State Secretary Pompeo says Iran is ready to negotiate about its missile program

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


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


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

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

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

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

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

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


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Oil rises nearly 5% for the week on tropical storm and geopolitical tensions

Oil prices posted strong weekly gains on Friday as U.S. Gulf of Mexico crude output was halved by disruptions caused by a tropical storm, but concerns over a global crude surplus in the months ahead limited gains. West Texas Intermediate futures rose nearly 5% this week while Brent climbed more than 4%. Tropical Storm Barry, which is expected to become a hurricane just before making landfall this weekend, boosted crude futures as oil companies in the Gulf of Mexico sliced production. The Interna


Oil prices posted strong weekly gains on Friday as U.S. Gulf of Mexico crude output was halved by disruptions caused by a tropical storm, but concerns over a global crude surplus in the months ahead limited gains. West Texas Intermediate futures rose nearly 5% this week while Brent climbed more than 4%. Tropical Storm Barry, which is expected to become a hurricane just before making landfall this weekend, boosted crude futures as oil companies in the Gulf of Mexico sliced production. The Interna
Oil rises nearly 5% for the week on tropical storm and geopolitical tensions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12
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Oil rises nearly 5% for the week on tropical storm and geopolitical tensions

Oil prices posted strong weekly gains on Friday as U.S. Gulf of Mexico crude output was halved by disruptions caused by a tropical storm, but concerns over a global crude surplus in the months ahead limited gains.

West Texas Intermediate futures rose nearly 5% this week while Brent climbed more than 4%. On Friday, however, U.S. crude gained just 1 cent to settle at $60.21 per barrel while Brent gained 25 cents to trade at $66.77 per barrel.

Tropical Storm Barry, which is expected to become a hurricane just before making landfall this weekend, boosted crude futures as oil companies in the Gulf of Mexico sliced production.

“The crude oil market is being supported by the Gulf of Mexico production shut-in… it is going to look to see if Tropical Storm Barry becomes a major flooding event that impacts the refining sector in Louisiana and impacts gas and diesel,” said Andy Lipow, president of Lipow Oil Associates in Houston.

Companies cut more than 1 million barrels per day (bpd) of output, or 53% of the region’s production, as the storm headed for possible landfall on the Louisiana coast on Saturday.

The International Energy Agency (IEA) forecast surging U.S. oil output will outpace sluggish global demand and lead to a large inventory build around the world in the next nine months.

The world energy watchdog’s report came a day after the Organization of the Petroleum Exporting Countries predicted a crude glut next year despite an OPEC-led pact to restrain supplies.

“The IEA report laid bare what the market is staring down and what OPEC is staring down next year, and really for the balance for this year, and that will continue to be a headwind,” said John Kilduff, a partner at Again Capital LLC in New York.

The weekly U.S. oil rig count, an indicator of future production, fell for the second straight week, General Electric Co’s Baker Hughes energy services firm said. 1/8RIG/U 3/8 Drillers cut four oil rigs in the week to July 12, reducing the total to 784, the lowest since February 2018.

The market remained on edge as tensions intensified between Iran and the West. Tehran on Friday said Britain was playing a “dangerous game” after last week’s seizure of an Iranian tanker on suspicion it was breaking European sanctions by taking oil to Syria.

“Only time will tell whether this turns out to be a case of wishful thinking but one thing is clear: geopolitical risks are here to stay,” said Stephen Brennock, analyst at PVM Oil Associates.


Company: cnbc, Activity: cnbc, Date: 2019-07-12
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Energy industry braces for first 2019 hurricane as Barry approaches

“As far as energy is concerned, I don’t think we’re talking about major damage, but you could certainly have some flooding at oil refineries. “We’re seeing 4 million barrels of non U.S. crude that could face delays getting into the south because of Barry. Clipperdata estimates 2.3 million barrels a day has been on ships in the Gulf in July, down from 14.7 million barrels last year. Last week, the gulf coast reported imports of 1.9 million barrels and that could increase by 71,000 barrels a day t


“As far as energy is concerned, I don’t think we’re talking about major damage, but you could certainly have some flooding at oil refineries. “We’re seeing 4 million barrels of non U.S. crude that could face delays getting into the south because of Barry. Clipperdata estimates 2.3 million barrels a day has been on ships in the Gulf in July, down from 14.7 million barrels last year. Last week, the gulf coast reported imports of 1.9 million barrels and that could increase by 71,000 barrels a day t
Energy industry braces for first 2019 hurricane as Barry approaches Cached Page below :
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Energy industry braces for first 2019 hurricane as Barry approaches

St. Bernard Parish Sheriff’s Office inmate workers move free sandbags for residents in Chalmette, La., Thursday, July 11, 2019. The Mississippi Emergency Management Agency is telling people in the southern part of the state to be prepared for heavy rain from Tropical Storm Barry as it pushes northward through the Gulf of Mexico.

The energy industry shut down nearly 60% of oil production and half of natural gas out in the Gulf of Mexico, but heavy rains from Tropical Storm Barry make Louisiana’s refineries the most vulnerable energy assets in the storm.

The U.S. Coast Guard was closing the Port of New Orleans and lower Mississippi River as of 5 p.m. CDT Friday, officially stopping all commercial shipping ahead of the arrival of the storm. A Coast Guard spokeswoman said shipping activity has been mostly curtailed, but it was keeping the port open as long as possible to allow shippers to complete storm preparations.

Barry’s winds began buffeting the Louisiana coast Friday morning. The National Weather Service is warning of storm surge and heavy rains from the storm, which has the potential to become the first hurricane of the season.

“It is starting to get stronger as it moves toward the coast, as we expected. It’s going to make landfall [Saturday] along the central Louisiana coastline and can very well reach Category 1 hurricane strength as it reaches shore,” said Bespoke Weather chief meteorologist Brian Lovern.

Barry’s sustained winds were measured at a maximum 65 miles per hour early Friday, and the National Hurricane Center said it would likely strengthen to a hurricane with winds of at least 74 miles per hour by the time it makes landfall Saturday.

“Rain fall is still the big story as far as the potential for some really serious flooding across parts of Louisiana, especially the areas where the Mississippi River was already high, from Baton Rouge to New Orleans. The river is high in advance of the storm just because of all the rains we’ve seen in the Midwest,” said Lovern.

Barry is expected to bring six to 12 inches of rain across Louisiana and up to 18 inches or more in some areas, he said.

“As far as energy is concerned, I don’t think we’re talking about major damage, but you could certainly have some flooding at oil refineries. It’s not going to get strong enough where we’re talking about significant damage that’s going to be a long-term issue,” said Lovern.

If Barry becomes a hurricane, it mostly likely will be a Category 1 storm, with much less wind damage potential than other storms that have hit the area. But Barry is expected to bring a large amount of rain, and refineries in its path could be vulnerable to both storm surge and other flooding, which could keep personnel from reporting to work.

Source: NOAA

Just one refinery, Phillip 66’s 253,600 barrel Alliance, La. refinery, was fully shutdown ahead of the storm because it was located in an area under mandatory evacuation. There are three refineries in Lake Charles, La. and another 10 in New Orleans and Baton Rouge. Several refineries that were not shutting down were expected to cutback on operations.

“Most of the refineries are rated for a Cat 3 and have come through Cat 4 and 5 storms pretty well,” said John Kilduff, partner with Again Capital. “I’m more concerned about the flooding of the Mississippi down by its mouth because of all the water that was already coming down. I’m more worried about the shipping interests, and what it would do to both imports and exports and movement of supply.”

The oil industry has been moving tankers out of the area and shut down more than half the Gulf of Mexico’s oil production. The government estimates that as of Friday morning, 59% of current production, or 1.1 million barrels of oil per day, had been curtailed, as the industry evacuated workers in the Gulf. About 49% of all natural gas production had also been shut-in.

Analysts said the big impacts from Barry could be from rain, and if there is flooding from the heavy rainfalls that could impact pumping stations and potentially some refining operations.

“It’s all about logistics on this one and since we’re doing a lot more importing and exporting, that’s really the crux of the issue this time around,” said Kilduff.

The U.S. has become the world’s largest oil producer in the last year, producing 12.3 million barrels a day, 1.8 million barrels of that from the gulf. As a result of this boom, the U.S. is now a major exporter, and shipped 3 million barrels a day of U.S. crude last week, while importing 7 million barrels a day.

“We’re seeing 4 million barrels of non U.S. crude that could face delays getting into the south because of Barry. There were a couple of vessels, one called ‘Dubai Glamour’ that was carrying crude from Latin America, that showed a clear diversion this morning. It made a 180 (degree turn) to clear that path,” said Daniel Graeber, chief editor of Clipperdata. The ship was carrying about 500,000 barrels of crude from Columbia to the U.S. gulf coast, he said.

Graeber said Barry has arrived as fewer ships and much less oil are sitting in “floating storage” on the Gulf, compared to last year. Clipperdata estimates 2.3 million barrels a day has been on ships in the Gulf in July, down from 14.7 million barrels last year.

“I would just say the U.S. is not really drawing in as much foreign oil as it had been,” he said.

Graeber said Clipperdata expects the federal government to report total U.S. crude exports of 2.3 million barrels a day in its weekly data Wednesday, 729,000 barrels less than last week due to the impact of Barry.

Graeber said he also expects the gulf coast area to report slightly more crude imports, and most of those barrels would be unloaded in Texas, away from the storm zone. Last week, the gulf coast reported imports of 1.9 million barrels and that could increase by 71,000 barrels a day this week.

Mike Bradley, energy strategist with Tudor, Pickering, Holt said the burgeoning U.S. crude export business should see just a slight disruption. Of the industry’s 5 million barrels a day export capacity, just 700,000 barrels are in Louisiana with the bulk in Texas.

“I would say we’re not expecting more than 1 million barrels (of crude) to be affected,” said Bradley. He expects about the same amount of imports to be impacted, or delayed by Barry.

“The refineries that are going down are not going to take crude. The ships are going to be sitting in the Gulf and hovering around until the refiners take shipments. The imports could be affected by several days, a week at most,” he said.

Bradley said he expects the industry to return personnel to offshore rigs as soon as it is safe.

“They’ll probably be out there in the next 24 to 48 hours, putting crews back,” he said, noting the loss of oil output is not huge. “It’s a blip unless there’s damage.”

The industry is not anticipating longer term disruptions from Tropical Storm Barry, but the amount of flooding that comes with the storm could be the wild card, with some forecasts for 20 inches of rain in some spots.

Tom Kloza, head of global energy analysis at Oil Price Information Service, said refineries were all running at high summertime rates.

Kloza said the refineries have extensive plans for storm-related outages, but they do not include them in any preset schedule. They do plan for seasonal maintenance which is done twice a year before and after summer gasoline production. “They don’t plan to go down in the middle of the season,” he said.

Most refining operations in the area are expected to remain running. Reuters reported that Royal Dutch Shell’s refineries in Norco and Convent, La. plan to remain open, and Exxon was taking steps to minimize the risk of heavy rains for its workers and equipment.

While some refiners were cutting back on operations, the process of actually shutting down is much more involved and would take several days to resume if any others have to close.

“They have product on hand, but they have to take the refinery down very carefully and they have to take it back up very carefully. It might be a week before they’re back to normal,” Kloza said.

Kloza said he is watching for possible announcements from two other refineries in Lake Charles. One is owned by Citgo, the other by Phillips 66.

Paul Sankey of Mizuho notes there are refineries with capacity totaling 1.8 million barrels a day in the potential path.

Like other analysts, Kloza said the storm may not damage much energy infrastructure but it will wreak havoc with the government’s weekly oil market report, watched by the market globally for its supply/demand data. The next report is due Wednesday at 10:30 a.m., and the data could be skewed by the storm. The data could be impacted both by the storm disrupting exports and imports. The industry may also not be as focused on supplying the data in the New Orleans area as it normally would be.

“It really screws up EIA reports next week and perhaps the week after that. We’re going to get some screwed up data. Also, we could get sweet crude go up in price at the Gulf Coast but Cushing doesn’t match it,” he said, suggesting the spot market on the coast could get bid higher than the price of crude at Cushing, the US storage hub.

Reuters contributed to this story


Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: patti domm
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Oil prices steady as U.S. crude stockpiles drop less than expected

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


Company: cnbc, Activity: cnbc, Date: 2019-07-03
Keywords: news, cnbc, companies, prices, market, oil, global, million, crude, expected, stockpiles, opec, demand, barrel, cuts, inventories, steady, drop


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Oil prices ease as demand worries counter OPEC supply cut extension

“After 2-1/2 years of production cuts, the effects of rolling over production cuts is losing steam,” said Edward Moya, senior market analyst at OANDA in New York, adding that markets remained nervous about demand. However, the decision to extend production curbs would continue to support oil prices, as OPEC looked to maintain market equilibrium, he said. The Organization of the Petroleum Exporting Countries (OPEC) agreed on Monday to extend oil supply cuts until March 2020 as the group’s members


“After 2-1/2 years of production cuts, the effects of rolling over production cuts is losing steam,” said Edward Moya, senior market analyst at OANDA in New York, adding that markets remained nervous about demand. However, the decision to extend production curbs would continue to support oil prices, as OPEC looked to maintain market equilibrium, he said. The Organization of the Petroleum Exporting Countries (OPEC) agreed on Monday to extend oil supply cuts until March 2020 as the group’s members
Oil prices ease as demand worries counter OPEC supply cut extension Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-02
Keywords: news, cnbc, companies, extend, worries, supply, counter, market, cut, ease, cuts, agreed, demand, extension, prices, oil, production, global, opec, crude


Oil prices ease as demand worries counter OPEC supply cut extension

An Iraqi worker gauges gas emissions from an oil pipe at the Daura oil refiner

Oil prices drifted lower on Tuesday, as weak global data raised concerns about future demand for the commodity despite a positive boost from OPEC’s decision to extend supply cuts until next March.

Brent crude futures for September delivery were trading down 15 cents, or 0.2%, at $64.91 a barrel by 0311 GMT after dipping to $64.66 earlier.

Brent climbed more than $2 a barrel on Monday before paring gains later in the day.

U.S. crude futures for August were down 25 cents, or 0.4%, at $58.84 a barrel, after touching their highest in over five weeks on Monday.

“After 2-1/2 years of production cuts, the effects of rolling over production cuts is losing steam,” said Edward Moya, senior market analyst at OANDA in New York, adding that markets remained nervous about demand.

“The trade war is not likely to get resolved any time soon and while central banks globally are expected to deliver fresh stimulus in the coming months, economic activity is continuing to trend lower.”

While the U.S. and China agreed at a recent Group of 20 leaders summit to restart trade talks, indications that factory activity shrank across much of Europe and Asia in June while growth in manufacturing cooled in the United States weighed on oil prices.

“The weaker PMI prints killed sentiment overnight, and the market started to factor in the realm of the unknown around shale (oil), so (investors) were worried about the fear of oversupply in the face of weaker demand,” said Stephen Innes, managing partner at Vanguard Markets in Bangkok.

However, the decision to extend production curbs would continue to support oil prices, as OPEC looked to maintain market equilibrium, he said.

The Organization of the Petroleum Exporting Countries (OPEC) agreed on Monday to extend oil supply cuts until March 2020 as the group’s members overcame their differences in order to try to prop up the price of crude.

OPEC is slated to meet with Russia and other producers, an alliance known as OPEC+, later on Tuesday to discuss supply cuts amid surging U.S. output.

Russian President Vladimir Putin said on Saturday he had agreed with Saudi Arabia to extend global output cuts until December 2019 or March 2020.

Russia reduced oil production in June by more than the amount agreed in a global deal to cut output, the energy minister and industry sources said on Monday, as the sector felt the impact of a contaminated crude crisis that crippled exports.

Meanwhile, U.S. producers hit a monthly record of 12.16 million barrels per day (bpd) in April, data showed, though new U.S. shale oil production is expected to slip this year from last year, according to a survey of major forecasters.


Company: cnbc, Activity: cnbc, Date: 2019-07-02
Keywords: news, cnbc, companies, extend, worries, supply, counter, market, cut, ease, cuts, agreed, demand, extension, prices, oil, production, global, opec, crude


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OPEC allies agree to extend supply cuts in a bid to support oil prices

Secretary General of OPEC, Mohammed Barkindo (R), Russia Energy Minister Alexander Novak (L), Saudi Arabia’s Minister of Energy, Industry and Mineral Resources, Khalid Al-Falih (C) hold a joint press conference during the 173rd Ordinary Meeting of the Organisation of Petroleum Exporting Countries (OPEC) in Vienna, Austria on November 30, 2017. Russia and nine other non-OPEC producers agreed to a nine-month rollover of supply cuts on Tuesday, ratifying a policy designed to prop up oil prices amid


Secretary General of OPEC, Mohammed Barkindo (R), Russia Energy Minister Alexander Novak (L), Saudi Arabia’s Minister of Energy, Industry and Mineral Resources, Khalid Al-Falih (C) hold a joint press conference during the 173rd Ordinary Meeting of the Organisation of Petroleum Exporting Countries (OPEC) in Vienna, Austria on November 30, 2017. Russia and nine other non-OPEC producers agreed to a nine-month rollover of supply cuts on Tuesday, ratifying a policy designed to prop up oil prices amid
OPEC allies agree to extend supply cuts in a bid to support oil prices Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-02  Authors: sam meredith
Keywords: news, cnbc, companies, agree, minister, allies, deal, cuts, worlds, bid, opec, extend, energy, global, crude, prices, hours, oil, support, supply, wti


OPEC allies agree to extend supply cuts in a bid to support oil prices

Secretary General of OPEC, Mohammed Barkindo (R), Russia Energy Minister Alexander Novak (L), Saudi Arabia’s Minister of Energy, Industry and Mineral Resources, Khalid Al-Falih (C) hold a joint press conference during the 173rd Ordinary Meeting of the Organisation of Petroleum Exporting Countries (OPEC) in Vienna, Austria on November 30, 2017.

Russia and nine other non-OPEC producers agreed to a nine-month rollover of supply cuts on Tuesday, ratifying a policy designed to prop up oil prices amid a weakening global economy.

It comes less than 24 hours after energy ministers from the world’s most powerful oil-producing nations thrashed out a deal to restrict the amount of crude flowing into the global market.

OPEC reached a deal to extend production cuts until March 2020 on Monday. The Middle East-dominated producer group was able to overcome their differences after five hours of negotiating in Vienna.

International benchmark Brent crude traded at $64.82 Tuesday lunchtime, down around 0.4%, while U.S. West Texas Intermediate (WTI) stood at $58.86, approximately 0.3% lower.


Company: cnbc, Activity: cnbc, Date: 2019-07-02  Authors: sam meredith
Keywords: news, cnbc, companies, agree, minister, allies, deal, cuts, worlds, bid, opec, extend, energy, global, crude, prices, hours, oil, support, supply, wti


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US oil surges above $60 as OPEC+ poised to extend supply cut

Oil prices surged on Monday as OPEC and its allies looked on track to extend supply cuts until at least the end of 2019 at their meeting in Vienna this week. The group has been reducing oil output since 2017 to prevent prices from sliding amid a weakening global economy and soaring U.S. production. “If Russia, Saudi Arabia and the other key OPEC members keep production at the levels they produced in H1-19 they will ensure that the global oil market is not flowing over. Oil prices have come under


Oil prices surged on Monday as OPEC and its allies looked on track to extend supply cuts until at least the end of 2019 at their meeting in Vienna this week. The group has been reducing oil output since 2017 to prevent prices from sliding amid a weakening global economy and soaring U.S. production. “If Russia, Saudi Arabia and the other key OPEC members keep production at the levels they produced in H1-19 they will ensure that the global oil market is not flowing over. Oil prices have come under
US oil surges above $60 as OPEC+ poised to extend supply cut Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-01
Keywords: news, cnbc, companies, oil, opec, supply, global, prices, cuts, extend, cut, russia, 60, surges, saudi, arabia, poised, output, crude


US oil surges above $60 as OPEC+ poised to extend supply cut

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

Oil prices surged on Monday as OPEC and its allies looked on track to extend supply cuts until at least the end of 2019 at their meeting in Vienna this week.

U.S. crude futures for August climbed $1.65, or 2.8% to $60.12 a barrel, after earlier hitting their highest in over five weeks at $60.28.

Iran – under U.S. sanctions alongside OPEC ally Venezuela – on Monday joined top producers Saudi Arabia, Iraq and Russia in supporting a policy aimed at propping up the price of crude amid a weakening global economy.

The Organization of the Petroleum Exporting Countries, Russia and other producers, an alliance known as OPEC+, meet on Monday and Tuesday to discuss supply cuts. The group has been reducing oil output since 2017 to prevent prices from sliding amid a weakening global economy and soaring U.S. production.

Russian President Vladimir Putin said on Sunday he had agreed with Saudi Arabia to extend existing output cuts of 1.2 million barrels per day (bpd) by six to nine months.

Saudi Energy Minister Khalid al-Falih said the deal would most likely be extended by nine months and no deeper reductions were needed.

“If Russia, Saudi Arabia and the other key OPEC members keep production at the levels they produced in H1-19 they will ensure that the global oil market is not flowing over. They will only have to pay a small restraint while reaping a nice oil price of $60-70 a barrel,” said SEB’s Bjarne Schieldrop.

“OPEC as a whole is losing market share. But this burden is not evenly distributed as it is Venezuela and Iran who are taking almost all the pain.”

Oil prices have come under renewed pressure in recent months from rising U.S. supplies and a slowing global economy.

U.S. crude oil output in April rose to a fresh monthly record of 12.16 million bpd, according to the U.S. Energy Information Administration, even though shale production growth likely peaked last year.

Meanwhile, financial markets were buoyed by a thawing of U.S.-China relations after leaders of the world’s two largest economies agreed on Saturday to restart trade talks.

However, Citi analysts viewed the announcements as a temporary truce to de-escalate the trade and tariff war, and were sceptical that both sides can reach a deal soon.


Company: cnbc, Activity: cnbc, Date: 2019-07-01
Keywords: news, cnbc, companies, oil, opec, supply, global, prices, cuts, extend, cut, russia, 60, surges, saudi, arabia, poised, output, crude


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Oil falls after parties to nuclear agreement vow to intensify efforts to normalize trade with Iran

Oil prices fell just before the settlement on Friday after the remaining parties to the Iran nuclear deal vowed to help normalize trade with the Middle Eastern nation. European parties to the Iran nuclear deal have been trying to rescue the accord and are trying to keep Iran from violating the deal. OPEC+ members agreed to curb oil output by 1.2 million barrels per day from Jan. 1. Record U.S. crude production has also capped oil prices. U.S. crude output in April rose to a fresh monthly record,


Oil prices fell just before the settlement on Friday after the remaining parties to the Iran nuclear deal vowed to help normalize trade with the Middle Eastern nation. European parties to the Iran nuclear deal have been trying to rescue the accord and are trying to keep Iran from violating the deal. OPEC+ members agreed to curb oil output by 1.2 million barrels per day from Jan. 1. Record U.S. crude production has also capped oil prices. U.S. crude output in April rose to a fresh monthly record,
Oil falls after parties to nuclear agreement vow to intensify efforts to normalize trade with Iran Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-28
Keywords: news, cnbc, companies, intensify, oil, opec, nuclear, normalize, iran, prices, output, president, parties, efforts, falls, vow, crude, week, trade


Oil falls after parties to nuclear agreement vow to intensify efforts to normalize trade with Iran

Oil prices fell just before the settlement on Friday after the remaining parties to the Iran nuclear deal vowed to help normalize trade with the Middle Eastern nation.

U.S. West Texas Intermediate (WTI) crude futures settled down 96 cents, or 1.6%, at $58.47 a barrel after trading in a narrow range for most of the session.

European parties to the Iran nuclear deal have been trying to rescue the accord and are trying to keep Iran from violating the deal.

Crude futures were little changed for most of Friday ahead of talks over the trade dispute between the U.S. and Chinese presidents this weekend and on production cuts from OPEC on Monday.

Tensions between the United Sates and Iran have also been keeping markets on edge.

A week after President Donald Trump called off air strikes on Iran at the last minute, the prospect that Tehran could soon violate its nuclear commitments has created additional diplomatic urgency to find a way out of the crisis.

The leaders of the G20 countries meet on Friday and Saturday in Osaka, Japan, but the most anticipated meeting is between Trump and Chinese President Xi Jinping on Saturday.

A trade war between the world’s two biggest economies has weighed on prices, fanning fears that slowing economic growth could dent demand for oil.

Trump said he hoped for productive talks with the Chinese president, but said he had not made any promises about a reprieve from escalating tariffs.

“Since we don’t anticipate significant progress out of tomorrow’s Trump-Xi discussions, we are not ruling out some reduction in risk appetite next week with U.S. equities relinquishing a sizable portion of this week’s gains,” Jim Ritterbusch of Ritterbusch and Associates said in a note.

“Furthermore, we are not looking for any surprises out of the Monday-Tuesday OPEC+ meeting as a simple rollover of the existing agreement through the rest of this year would appear to be the most probable outcome.”

The Organization of the Petroleum Exporting Countries and some non-members including Russia, known as OPEC+, will hold meetings on July 1-2 in Vienna to decide whether to extend their supply cuts.

Russia is cutting its oil output in June by slightly more than envisaged in the OPEC+ deal, RIA news agency cited Russian Energy Minister Alexander Novak as saying.

“The market sentiment is that OPEC+ will agree to extend cuts, but after all what matters is how deep the cuts will be and how much Saudi Arabia and Russia will curb,” said Kim Kwang-rae, a commodity analyst at Samsung Futures in Seoul.

OPEC+ members agreed to curb oil output by 1.2 million barrels per day from Jan. 1.

Oil prices could stall as a slowing global economy squeezes demand and U.S. crude floods the market, a Reuters poll of analysts found, despite an expected extension by OPEC and its allies of their output-cutting pact.

The survey of 42 economists and analysts forecast Brent crude would average $67.59 a barrel in 2019, down from the $68.84 estimate in May.

Record U.S. crude production has also capped oil prices. U.S. crude output in April rose to a fresh monthly record, surpassing 12 million barrels per day, according to a government report on Friday.

U.S. energy firms this week increased the number of oil rigs operating for a second week in a row, bringing the total count to 793, General Electric Co’s Baker Hughes energy services firm said in its closely followed report.


Company: cnbc, Activity: cnbc, Date: 2019-06-28
Keywords: news, cnbc, companies, intensify, oil, opec, nuclear, normalize, iran, prices, output, president, parties, efforts, falls, vow, crude, week, trade


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