crude oil futures news

crude oil futures news

December 31st, 2018

Crude futures plunged to fresh 17-month lows Monday amid fears of a sell-off amid the dramatic fall in equity markets, along with a partial US government shutdown. The decline comes despite OPEC ministers reiterating that they are committed to production cuts which kick off in January.
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At 1505 GMT, ICE February Brent crude futures were down 86 cents/b from Friday’s settle at $52.96/b, while the NYMEX February light sweet crude contract was down $1.16 cents/b at $44.43/b.

The steady decline in oil prices over the past few weeks has caused concern to several OPEC ministers, with some reiterating that the group’s production cuts may even be extended from June next year, if needed.

The UAE energy minister Suhail al-Mazrouei told reporters on Sunday that if the OPEC and non-OPEC producers’ plan to take 1.2 million b/d off the market does not work, there is always an option to call an extraordinary meeting.

“If we are required to extend for [another] six months, we will do it … I can assure you an extension will not be a problem,” Mazrouei said.

Petromatrix analyst Olivier Jakob said that despite “repeated comments from OPEC members that they are serious about supply reduction, and that they can consider doing additional cuts if the market balance does not improve,” the market is expected to be locked in a bearish cycle.

Meanwhile on the supply side, Libyan crude production remained down by 400,000 b/d as the country’s largest field Sharara remains shut-in, according to the state-owned National Oil Corporation. This was despite assurances from the country’s UN-backed government that the site would reopen soon.

China released its recent oil data earlier in the day which showed that its overall crude supply in November surged 12% from a year ago to 426.17 million barrels, and rose 6% from October, led by a sharp increase in net crude imports, while domestic crude output was largely rangebound.

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Crude Oil 3December 3rd, 2018

Oil prices jumped by more than 5 percent on Monday after the United States and China agreed to a 90-day truce in a trade dispute, and ahead of a meeting this week of the producer club OPEC that is expected to cut supply.

U.S. light crude oil rose $2.92 a barrel to a high of $53.85, up 5.7 percent. The contract last traded $2.12, or 4.2 percent, higher at $53.05.

Brent crude rose 5.3 percent or $3.14 to a high of $62.60. It was up $2.36, or 4 percent at $61.71 shortly after 9 a.m. ET (1400 GMT).

China and the United States agreed during a weekend meeting in Argentina of the Group of 20 leading economies not to impose additional trade tariffs for at least 90 days while they hold talks to resolve existing disputes.

“From Argentina to Alberta, the oil market news is about supply curtailments,” said Norbert Rücker, head of commodity research at Swiss bank Julius Baer. “A brightening market mood will likely extend today’s price rally in the very near term.”

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Crude oil futures quotes

Crude oil futures quotes

November 29th, 2018

Crude oil futures prices underwent a selloff on Thursday with U.S. crude falling below the $50 a barrel level for the first time in more than a year amid persistent concerns about oversupply.

New York-traded West Texas Intermediate crude futures fell 47 cents, or 0.93%, at $49.82 a barrel by 4:45 AM ET (9:45 GMT). That was its lowest level since Oct. 9, 2017.

Brent crude futures, the benchmark for oil prices outside the U.S., traded down 74 cents, or 1.25%, to $58.35, after hitting its lowest level since Oct. 24, 2017.

Prices came under renewed selling pressure after data on Wednesday showing that U.S. crude inventories increased again last week, hitting their highest levels in more than a year. In its weekly report, the Energy Information Administration said oil stockpiles increased by 3.57 million barrels to 450 million barrels.

Prices also remained under pressure after Russian President Vladimir Putin indicated that he is comfortable with current levels, casting doubt on OPEC’s ability to move ahead with significant production cuts. Putin said Wednesday that prices of around $60 per barrel were “absolutely fine” as the Russian budget would be balanced at $40.

Saudi Arabia has been pushing OPEC and its non-OPEC allies, led by Russia, to agree to reduce production given the more than 30% decline in prices since last October.

Analysts believe that the group will announce a reduction of 1.1 million barrels per day when they meet in Vienna on Dec. 6-7.

With the U.S. and Saudi Arabia producing at record levels and rising inventories in the U.S., investors have been concerned that OPEC will be unable to counteract increasing supply.

Traders will keep an eye on this weekend’s G20 summit where Putin is expected to meet on the sidelines with Saudi Arabia’s Crown Prince to discuss plans for output.

“We are now in contact with OPEC and if needed, we will continue this joint work,” Putin said referring to the current agreement to help stabilize markets.

- Investing.com.

crude oil futures quotes

crude oil futures quotes

November 20th, 2018

Crude oil futures plummeted around 4% on Tuesday, falling deeper into a bear market, as markets became increasingly worried that supply will outstrip waning demand and OPEC reportedly remained undecided on the size of A production cut.

New York-traded West Texas Intermediate crude futures slumped $2.36, or 4.13%, at $54.84 a barrel by 11:02 AM ET (16:02 GMT).

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., sank $2.62, or 3.92%, to $64.17.

With Tuesday’s decline, U.S. crude hit its lowest level since October 2017 and has fallen nearly 30% from the four-year high reached this year on Oct. 3.

Investors remain concerned that a global economic slowdown will dampen demand even as key producers — mainly the U.S., Saudi Arabia and Russia — continue to ramp up production.

According to the oilfield services firm Baker Hughes, the U.S. rig count rose by 2 to 888 last week, the highest level since March 2015.

The latest data from the U.S. Energy Information Administration showed that U.S. crude production hit a record 11.7 million barrels per day (bpd), marking an increase of more than 20% since a year earlier.

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crude oil futures 101

crude oil futures 101

November 1st, 2018

Investors are growing increasingly pessimistic about the direction that the oil market is heading in, and their negative outlook is helping to drag down crude oil prices.

Hedge funds and other money managers continue to slash their bullish bets on oil futures, a trend that has led to a dramatic reshuffling in the makeup of investor positioning. For the week ending on October 23, long-to-short bets fell to a 4:1 ratio, a sharp reduction from the nearly 26:1 makeup in July, according to the Wall Street Journal.

The liquidation of bullish bets shows a sharp reversal in market sentiment. Over the summer, sanctions on Iran combined with the temporary outage in Libya led to fears of a supply shortage, pushing investors to stake out ever-increasing volume of bullish bets on crude futures. That sentiment stalled in August as Turkey’s currency crisis exploded, and a range of other emerging markets saw their economies hit the skids.

Bullish sentiment renewed in September as Iran sanctions loomed, and the disruptions to Iran’s oil exports proved to be worse than previously expected. However, a month later, the global economy is showing some worrying signs of a slowdown, while Saudi Arabia has pledged to increase production to cover for any shortfall left over by Iran.

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crude oil futures 101

crude oil futures 101

August 2nd, 2018

Oil prices dropped Thursday, extending losses that came in the wake of fresh U.S. government data showing mounting petroleum stockpiles.

Brent crude LCOV8, -0.35%  , the global benchmark, was down 0.6% at $71.94 a barrel on London’s Intercontinental Exchange. On the New York Mercantile Exchange, West Texas Intermediate futures CLU8, -0.40%  were trading down 0.9% at $67.05 a barrel.

The U.S. Energy Information Administration said late Wednesday that U.S. crude oil inventories increased by 3.8 million barrels last week, to stand at 409 million barrels. Traders and analysts surveyed by The Wall Street Journal had predicted an average weekly decline of 2.2 million barrels.

Prices fell to their lowest level in almost six weeks after the data came out Wednesday.

“The build was driven by lower crude oil exports, which fell by 1.37 million barrels a day week-on-week,” according to analysts at ING Bank.

Tamas Varga, an analyst at brokerage PVM Oil Associates, noted that total U.S. commercial oil inventories, including refined products, increased by more than 10 million barrels last week.

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crude oil futures 101

crude oil futures 101

June 12th, 2018

Crude Oil futures prices were slightly higher on Tuesday despite an increase in production from OPEC.

Crude oil futures increased 0.51% to $66.44 a barrel as of 11:13 AM ET (15:13 GMT) after falling to a low of $64.92 earlier in the session. Meanwhile Brent crude futures, the benchmark for oil prices outside the U.S., rose 0.05% to $76.50.

Total production of the Organization of the Petroleum Exporting Countries and Russia countries rose by 35,000 barrels per day (bpd) in May to 31.87 million bpd, according to its monthly report.

However the higher production in Saudi Arabia, Algeria and Iraq was offset by decreased production in Venezuela, Libya and Nigeria, the firm said.

The organization remained cautious however, as there is “pronounced uncertainty” about the oil market outlook for the rest of the year.

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crude oil futures quotes

crude oil futures quotes

November 14th, 2017

Crude oil futures were under pressure on Tuesday, as market players awaited weekly data from the U.S. on stockpiles of crude and refined products to gauge the strength of demand in the world’s largest energy consumer.

Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (2130GMT), amid forecasts for an oil-stock drop of around 2.8 million barrels.

Market sentiment was dampened after the International Energy Agency cut its global oil-demand forecasts, in contrast to a more bullish outlook from OPEC released a day earlier.

In a monthly report, the Paris-based agency cut its oil demand forecast by 100,000 barrels per day (bpd) for this year and next, to an estimated 1.5 million bpd in 2017 and 1.3 million bpd in 2018.

The IEA said warmer temperatures could cut consumption, while sharply rising production from outside OPEC might mean the global market tilts back into surplus in the first half of 2018.

U.S. West Texas Intermediate (WTI) crude futures shed 24 cents, or about 0.4%, to $56.52 a barrel by 8:40AM ET (1340GMT). It reached its best level since July 2015 at $57.92 last week.

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Crude oil futures quotes

Crude oil futures quotes

November 13th, 2017

OPEC on Monday forecast higher demand for its oil in 2018 and said its production-cutting deal with rival producers was reducing excess oil in storage, pointing to an even tighter global market next year.

In a monthly report, the Organization of the Petroleum Exporting Countries said the world would need 33.42 million barrels per day (bpd) of OPEC crude next year, up 360,000 bpd from its previous forecast.

The 14-country producer group also said its oil output in October, as assessed by secondary sources, came in below the 2018 demand forecast at 32.59 million bpd, a drop of about 150,000 bpd from September.

The report points to a supply deficit next year if OPEC keeps pumping at October’s rate.

Investing.com.

crude oil futures news

crude oil futures news

November 6th, 2017

Crude oil prices remained near two-year highs on Monday, still boosted by expectations that oil producing countries will agree to extend an output cut at their meeting at the end of this month.

The U.S. West Texas Intermediate crude December contract was up20cents or about 0.36% at $55.80a barrel by 09:55 a.m. ET (13:55 GMT),just off a two-year high of $56.24 hit overnight.

Elsewhere, Brent oil for January delivery on the ICE Futures Exchange in London was up 37 cents or about 0.60% at $62.45 a barrel, off a two-year high of $62.87 hit earlier in the day.

Under the original terms of the deal, OPEC and 10 other non-OPEC countries led by Russia agreed to cut production by 1.8 million barrels a day (bpd) for six months. The agreement was extended in May of this year for a period of nine more months until March 2018 in a bid to reduce global oil inventories and support oil prices.

Discussions are continuing in the run-up to the Nov. 30 meeting, which oil ministers from OPEC and the participating non-OPEC countries will attend.

Prices received another boost as a sizable weekly drop in active U.S. oil rigs to the lowest level since May fed expectations for a slowdown in domestic crude output growth.

Oilfield services firm Baker Hughes reported that the number of active U.S. rigs drilling for oil fell by eight to 729 last week. That was the fourth weekly decline in five.

The weekly rig count is an important barometer for the drilling industry and serves as a proxy for domestic oil production.

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