Oil Prices Hit 1990s Low
Oil prices slumped again on Wednesday, with Brent falling to the lowest since 1999, as the market struggled with a massive crude glut amid a collapse in demand for everything from gasoline to jet fuel caused by the coronavirus outbreak.Brent crude, which fell 24% in the previous session, touched $15.98 a barrel, its lowest since June 1999. It was trading down $2.37, or 12%, at $16.96 at 0511 GMT.West Texas Intermediate was down 51 cents, or 4.4%, at $11.06 a barrel.The falls follow two of the wildest days in the history of oil trading…
US Crude Futures Plunge to Lowest on Record
U.S. crude oil futures collapsed below $0 on Monday for the first time in history, amid a coronavirus-induced supply glut, ending the day at a stunning minus $37.63 a barrel as desperate traders paid to get rid of oil.Brent crude, the international benchmark, also slumped, but that contract was nowhere near as weak because more storage is available worldwide.While U.S. oil prices are trading in negative territory for the first time ever, it is unclear whether that will trickle down to consumers…
Brent's Fall Creates Steepest Contango in 11 Years
The discount on front-month Brent crude oil futures to later contracts increased to an 11 year high on Thursday, as the coronavirus pandemic continued to cause an unprecedented slump in global demand. The spread on the May to November contracts had widened to as much as minus $10.31 per barrel at 1004 GMT, a level not seen since January 2009. The so-called contango market structure implies traders expect oil prices to be higher in the future, in this case when the virus pandemic has hopefully passed, leading them to store crude onshore or in some cases at sea.
China's Crude Oil Futures Boom Amid Looming Iran Sanctions
A U.S. decision to reimpose sanctions on Iran is supporting China's newly established crude oil futures, and may spur efforts to start trading oil in yuan rather than dollars, traders and analysts said.Since launching in March, Shanghai crude oil futures have seen a steady pick-up in daily trading, while open interest - the number of outstanding longer-term positions and a gauge of institutional interest - has also surged.Traded daily volumes hit a record 250,000 lots last Wednesday…
US Crude Stocks up, Product Inventories Fall -EIA
U.S. crude oil stocks unexpectedly rose last week, while gasoline and distillate product inventories dropped, the U.S. Energy Information Administration said on Thursday. Crude inventories were up 614,000 barrels in the week to Dec. 23, compared with expectations for a decrease of 2.1 million barrels. Oil prices were little changed on the news after a bit of volatility immediately following the release. U.S. crude oil futures were up 1 cent to $54.08 a barrel at 11:38 a.m. EST (1638 GMT), leaving the benchmark just shy of the year high of $54.51 reached on Dec. 12. "What seems to be giving this report kind of a bullish tilt is the fact that we saw pretty a good drawdown in both gasoline and distillate inventories," said Phil Flynn, trader at Price Futures Group in Chicago.
Oil Steady, Supply Outlook Unclear
Oil prices were little changed on Monday, with little news to influence a market waiting to see whether U.S. production from shale fields will grow enough to offset planned output cuts by OPEC, Russia and other producers next year. Brent futures for February delivery were down 24 cents, or 0.4 percent, at $54.97 a barrel by 11:43 a.m. EST (1643 GMT). U.S. West Texas Intermediate crude for January rose 6 cents, or 0.1 percent, to $51.96 per barrel on its last day as the front-month. "Implied U.S. output increases...will offset a significant portion of the planned OPEC production cuts especially since we don't anticipate sustained strong compliance," Jim Ritterbusch, president of Chicago-based energy advisory firm Ritterbusch & Associates, said in a note.
Crude Prices Firm Ahead of US Data
U.S. payroll, jobs data may support oil prices; demand outlook improving. Crude oil futures edged up on Friday, building on the week's gains, as traders and analysts eyed U.S. jobs data which could give further momentum to rising prices. Brent futures rose 19 cents to $37.26 a barrel as of 1203 GMT, after settling 14 cents higher in the previous session. The crude benchmark is set to end the week with a gain of more than 5 percent. U.S. crude futures traded up 13 cents to $34.70 a barrel, having settled down 9 cents in the previous session. While U.S. crude inventories rose to a new record of 517.98 million barrels last week, output fell for a sixth straight week to 9.08 million barrels a day, according to the U.S. government's Energy Information Administration. Cuts in U.S.
US Crude Falls as Market Braces for More Iranian Oil
U.S. crude oil futures fell in early Asian trade, heading lower after posting the first significant gains for 2016 in the previous session, as the prospect of additional Iranian supply looms over the market. West Texas Intermediate (WTI) was down 33 cents at $30.87 a barrel at 0103 GMT. On Thursday the contract rose 72 cents, or 2.4 percent, to settle at $31.20. It hit a 12-year low of $29.93 earlier this week. WTI is on track to post a third consecutive weekly loss, down more than 6 percent. The contract is down nearly 18 percent from a 2016 high on January 4. Brent crude was yet to trade. The global benchmark settled up 72 cents, or 2.4 percent, at $31.03 a barrel on Thursday. Earlier in the session, it rose to $31.23 after falling to $29.73, its weakest since February 2004.
US Oil Drillers Cut Rigs for 14th Week in 15
U.S. energy firms this week cut oil rigs for a 14th week in the last 15, data showed on Friday, a sign drillers were still waiting for higher prices before returning to the well pad. Drillers removed 21 oil rigs in the week ended Dec. 11, bringing the total rig count down to 524, the least since April 2010, oil services company Baker Hughes Inc said in its closely followed report. The decline was the sharpest since October. That decrease brings the total rig count down to about a third of the 1,546 oil rigs operating in same week a year ago. Since the end of the summer, drillers have cut 130 oil rigs. U.S. crude oil futures averaged $37 a barrel so far this week, down from $41 last week. On Friday, U.S.
Commodity Surge Boosts World Equities; Dollar Falls
Major world stock markets were poised for their biggest weekly advance since 2011 on Friday, as greater investor appetite for riskier assets propelled gains in equities and a surge in commodities and crude oil prices. Declines in the dollar, a bullish oil forecast and giant miner Glencore's pledge Friday to slash world zinc output by 4 percent have lifted beaten-down commodities, with Brent crude oil headed for its biggest weekly rise since March 2009. The U.S. dollar hit a three-week low against the euro as minutes from the Federal Reserve's September policy meeting showed the Fed in no rush to raise interest rates. The MSCI all-country world equity index climbed 0.6 percent, for its eighth daily gain. It was up 4.3 percent for the week, its biggest weekly advance since 2011.
Brent Edges Up off Six-Month Low
Chinese exports tumble 8.3 pct, biggest fall in 4 months; Chinese crude oil imports up 4.1 pct in July. OPEC has no plans to hold emergency meeting. Crude oil futures touched multi-month lows on Monday after a weekend of mixed data from China showing higher oil imports in July but weaker trade figures overall. Brent then edged up 24 cents to $48.85 a barrel at 1105 GMT, after dipping to $48.24 earlier in the session, the lowest in over six months. U.S. crude was down 2 cents at $43.85 after hitting an intraday low of $43.35 in Asian trading. Both benchmarks have been falling for six weeks, hampered by a supply glut. "The market remains in a battle between the bearish current fundamentals and the perception that the market will begin to rebalance in the not too distant future…
Brent Oil Rises as Euro Gains Against Dollar
Brent oil prices rose on Wednesday as the euro strengthened against the dollar following a boost in business morale in the euro zone's top two economies. The euro was up 0.6 percent against the dollar, the currency in which crude oil futures trade. The dollar lost 0.5 percent against a basket of currencies, making dollar-traded commodities more attractive for holders of other currencies. Brent crude oil was up 74 cents at $55.85 a barrel by 1236 GMT. U.S. light crude oil was up 35 cents at $47.86 per barrel. Germany, Europe's largest economy, saw business morale rise for the fifth month in a row in March, hitting its highest since July 2014, Ifo's business climate index showed. Business morale also rose in France to its highest for nearly three years. U.S.
N. Sea Forties Echo Platform Shut after Collision
The Forties Echo platform in the North Sea has been shut after being hit by a supply vessel, a spokesman for operator Apache North Sea said on Monday. Fifteen workers were taken off the platform and transferred to the nearby Forties Bravo platform following the collision, which happened at about 0840 GMT on Monday morning, the spokesman said. Another 15 remain on the platform. The spokesman also confirmed there had been no leak of hydrocarbons, but was unable to give a restart date for production. Apache North Sea, part of Apache Corp, is investigating the extent of any damage but there was no structural risk to the rig, he added. "An…
Oil Near $59 on High Dollar, Inventory
Dollar hits fresh 11-year high against currency basket. U.S. oil inventories at record high. Brent crude oil fell towards $59 a barrel on Monday as the dollar strengthened and a supply glut pushed global oil inventories to record highs. The dollar hit a more than 11-year high against a basket of currencies after the U.S. unemployment rate in February fell to its lowest level since May 2008, making commodities priced in the greenback more expensive for holders of other currencies. Oil inventories are rising across the world as production outstrips demand, offsetting tensions in the Middle East and the risk of output cuts in Libya and Iraq. Brent was down 35 cents at $59.38 a barrel by 1130 GMT.
Brent up to $61, First Monthly Gain Since July
Brent premium over U.S. crude widens to $12; China's implied oil demand set to grow 3 percent this year. Crude oil futures rebounded on Friday and Brent headed for its first monthly gain since July, helped by strong investor inflows, an improving demand outlook and supply outages. At 1148 GMT, Brent crude futures were up 92 cents at $60.97 a barrel, off an earlier high of $61.75. U.S. crude was up 78 cents at $48.95 a barrel. Both contracts tumbled on Thursday, with U.S. crude falling hardest. Brent is trading at a premium of about $12 to U.S. crude, which remains hamstrung by massive inventory builds. This is the widest spread since January 2014. "The main event this week has been the widening of the spread between Brent and WTI (U.S.
Angola Crude Exports Set to Rise in January
Angola is set to export 1.77 million barrels per day of crude oil in January, up from 1.60 mln bpd in December, a provisional shipping list showed on Tuesday. The oil from the OPEC member, and Africa's second largest exporter, will be shipped on 57 vessels, the shipping list showed. Exports of Cabinda, Girassol, Palanca, Saturno, Hungo, and Plutonio were set to be higher in January than December, while Dalia exports were lower. Stronger supply of West African crude oil will put further pressure on crude oil futures prices at a time of ample global supply and fragile demand growth. Traders are awaiting Nigerian crude oil exports lists for January, expected to start emerging this week.
Floating Storage at Sea Stalls Despite Falling Oil Prices
Despite falling oil prices, traders in recent weeks have booked just a few tankers to store cargoes at sea as higher freight costs outweigh any profit play for now. This is partly due to expectation among tanker owners for higher rates in the final quarter of the year. That means oil traders will have to pay a premium to lease vessels for longer periods as shipping firms remain reluctant to tie up vessels given the potential for quicker earnings. "Owners will not do storage and miss out on the spot rallies to come," a tanker market source said. "There is not much incentive for owners. For the first time in several years, the price curve for Brent crude oil futures is now fully in "contango", meaning that every ICE futures month is trading below the subsequent month.
Oil Falls As Weak U.S. Jobs Data Adds to Demand Worries
Crude oil futures fell on Friday and ended the week more than 2 percent lower as disappointing jobs data from the United States cast doubt about the strength of economic growth in the world's biggest oil-consuming economy. U.S. jobs figures showed nonfarm payrolls increased by just 142,000 in August, well below forecasts of 225,000 and the smallest rise eight months. "U.S. economic growth was supposed to counter the slowing in China and Europe and the payrolls report threw a little cold water on that idea," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut. Brent crude for October delivery fell $1.01 to settle at $100.82 a barrel, having dropped to $100.35 intraday. The last time Brent was priced under $100 was in June 2013. U.S.
Brent Crude Slips Towards US$102
Brent crude fell towards $102 a barrel on Tuesday on concerns of slowing oil demand growth due to weak economic recoveries in China and Europe, although new unrest in OPEC oil producer Libya kept losses in check. Euro zone manufacturing growth slowed slightly more than initially thought in August, while growth in China's factory sector slipped to a three-month low last month, adding to concerns about oil demand. Brent prices have trended higher since mid-August as speculators have come back into the market following a drop of nearly $15 to around $101 a barrel over the previous two months.
Europe Gasoline Cracks Strong on US Demand
Gasoline prompt cracks in northwest Europe slipped on Monday but remained at eight-month-highs supported by strong demand from the United States, where inventories are low and refinery maintenance has curbed supply. Stocks on the U.S. East Coast, a major export destination for European gasoline, fell more than expected last week while demand in West Africa and the Mediterranean is strong. Maintenance at Canadian refineries that normally supply the U.S. East Coast also helped tighten the market as summer, the peak season for gasoline demand in the United States, looms. "The Irving refinery restart has been supposedly delayed, and the Montreal and Quebec refineries are both down for work so the East Coast is really tight," an industry source said.
Europe Gasoline Stronger, Exports Brisk
Gasoline barge prices in northwest Europe rose on Friday, boosted by brisk cargo exports as demand builds ahead of the peak summer driving season. "Things are perking up," said one trader. "Big slugs of reformate are heading to Asia again. There is good demand in the east still. West Africa blends are still taking place... Reuters shipping data showed a flurry of new vessels booked to carry gasoline or its components, which include reformates. Cargill booked a tanker to carry gasoline across the Atlantic and Valero booked another for the east coast of Canada, the data showed. BP fixed two vessels to carry gasoline to West Africa and PMI fixed three tankers to Mexico.
W.Africa Crude-Traders on Sidelines
West African oil differentials were unchanged on Friday, with traders on the sidelines as they assessed the impact of lower North Sea supply and awaited a clearer outlook for Libyan exports. The supply of North Sea crude that underpins the Brent benchmark will average 774,000 barrels per day (bpd) in May, according to loading schedules provided by trade sources on Friday, down from April. This was seen putting upward pressure on Nigerian differentials because oil from the two regions competes for customers. "We're waiting to see what the offers on the North Sea are like," a trader said. Crude oil futures prices fell earlier this week on hopes that Libyan supply would return. This would pressure West African grades because they are of a similar light, low-sulphur composition.
N.Sea Oilfield Plans 25 Days Maintenance
Reuters - Britain's biggest oilfield Buzzard will undergo 25 days of planned maintenance starting in late July, its operator Nexen confirmed on Friday. During this period production will be offline but the outage coincides with the planned 14-day shutdown of the Forties Pipeline System (FPS), which is scheduled to begin at the end of July, Nexen said. Buzzard is the largest single contributor to the Forties crude stream, which is one of the four benchmark crudes underpinning the price of dated Brent and Brent crude oil futures. Previously Suncor Energy, which has a 29.9 percent stake in the Buzzard field, indicated that Buzzard would also undergo maintenance in May and September. Nexen said some of this information was "incorrect".