Brent Oil Rises Back Above US$110

Posted by George Backwell
Thursday, May 29, 2014
File image

Brent crude rose back above $110 a barrel on Thursday on signs of stronger demand from top oil consumer the United States, with a sharp drop in its gasoline stocks adding to recent data showing a strengthening economy.

The brighter demand outlook underpinned prices already boosted by concerns about the loss of most supply from Libya and a widening rift between the West and Russia, the world's second largest oil exporter, over Ukraine.

Still, some investors looking at price charts saw the market as prone to a correction as it has risen close to the top of the narrow price band it has traded in for much of this year.

Brent crude traded up 23 cents at $110.04 a barrel by 0759 GMT, after losing 21 cents on Wednesday.

U.S. crude oil gained 10 cents to $102.82, after ending Wednesday down $1.39 as traders booked profits ahead of a government report that is expected to show a build in overall crude stocks.

"Fundamentals haven't changed drastically, we know there are still issues in Libya and Ukraine," said Ken Hasegawa, a commodity sales manager at Newedge Japan.

The U.S. benchmark fell more sharply than Brent overnight because it failed to breach key resistance at $105 a barrel, Hasegawa said.

Brent has recovered nearly 3 percent from a low of $106.85 touched on May 1, while the U.S. benchmark has gained more than 4 percent over the same period.

Crude stocks in Cushing, Oklahoma, the delivery point for the U.S. benchmark, fell by 1.5 million barrels, data from industry group the American Petroleum Institute showed. But overall inventories rose by 3.5 million barrels in the week to May 23 to 383.9 million, compared with analysts' expectations for an increase of 483,000 barrels.

In addition, gasoline stocks fell by 1.4 million barrels, compared to expectations for a 283,000-barrel gain.

Oil traders waited for the more closely-watched data from the U.S. government's Energy Information Administration (EIA) due 1500 GMT.

In Libya, acting prime minister, Abdullah Al-Thinni, refused to hand over power to a newly elected premier after questioning his legitimacy in a deepening confrontation among the OPEC nation's rival factions.

Oil traders also watched the situation in Ukraine, where relative calm returned to the streets of Donetsk after the biggest battle of the pro-Russian separatist uprising in eastern Ukraine.

(By David Sheppard)
 

Maritime Reporter June 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

SUNY Maritime College Names ABS Chairs

The State University of New York (SUNY) Maritime College has selected Dr. Richard Burke and Dr. Christopher Clott as its inaugural ABS chairs following a comprehensive

Austal Starts Next US Littoral Combat Ship

Austal and the U.S. Navy held a keel-laying ceremony today for the future USS Manchester (LCS 14), marking the first significant milestone in its construction.

Conference to Delve into Hybrid Power & Propulsion

The first international Hybrid Marine Power & Propulsion Conference will be held at the RNLI Lifeboat College, Poole UK from October 6-8, 2015.   Shock Mitigation

Finance

Multimodal Freight Bill Introduced in US Senate

Cantwell, Booker, Murray, Markey introduce freight investment legislation aiming to eliminate chokepoints at critical highway, rail, port and intermodal facilities to support economic growth,

Crowley Acquires 4,300 Pieces of Liner Equipment

In response to continuing high customer demand, Crowley Maritime Corporation’s liner services group has placed orders for additional equipment, including hundreds

DPE is New Majority Shareholder in INTERSCHALT

Deutsche Private Equity GmbH (DPE) is set to become the new majority shareholder in INTERSCHALT maritime systems AG, the maritime software and services provider

Energy

Canada Slaps Sanctions on Russia Energy Firms

Canada slaps sanctions on Gazprom, other Russia energy firms   Canada is imposing economic sanctions against Russian energy firms such as natural gas producer

FUGRO, Cross Group Awarded Multi Well GoM Contract

Fugro’s dynamically positioned multi-purpose drilling, well intervention and geotechnical vessel, Fugro Synergy, will showcase her capabilities on a multi well

Baltic Exchange Eyes Move into Commodities

Baltex reaches breakeven level since start of 2015; Baltic previously faced broker opposition over platform. London's Baltic Exchange is studying a potential

Fuels & Lubes

Danish Investors Sue Bankrupt OW Bunker

A group of Danish investors have sued OW Bunker for 800 million Danish crowns ($120 million) for misleading them in its initial public offer (IPO), after the ship

PPG Unveils NOVAGUARD 810

Solvent-free product offers a single-coat solution for rapid cure and return to service, suitable for a wide range of oil products and chemical cargoes.  PPG

U.S. West Coast Refiners Snap up Russian Crude

Move comes amid worries of seasonal dent in Alaskan supply; gap between U.S., international crude prices narrows. Refiners on the U.S. West Coast and Hawaii

 
 
Maritime Careers / Shipboard Positions Maritime Security Offshore Oil Pod Propulsion Salvage Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2306 sec (4 req/sec)