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

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 news

crude oil futures news

May 19th, 2016

Crude oil prices tumbled in North American trade on Thursday, adding to sharp overnight losses, as a surging U.S. dollar and an unexpected rise in U.S. crude inventories triggered selling.

The U.S. dollar surged to seven-week highs in early trade after the minutes of the Federal Reserve’s latest policy meeting rekindled expectations for a June interest rate hike.

Dollar-denominated oil futures contracts tend to fall when the dollar rises, as this makes oil more expensive for buyers in other currencies.

Crude oil for June delivery on the New York Mercantile Exchange sank $1.03, or 2.14%, to trade at $47.18 a barrel by 13:50GMT, or 9:50AM ET.

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Crude Oil Futures Swing to Green

On April 7, 2015, in Crude Oil Futures News Report, by Infinity Trading
crude oil futures quotes

crude oil futures quotes

April 7th, 2015

Brent crude prices fell almost $1 a barrel on Tuesday, with an Iranian delegation in Beijing this week to push for more oil sales.

Oil markets were also pressured as Goldman Sachs <GS.N> said prices needed to remain low for months to achieve a slowdown in U.S. output growth.

China is Iran’s largest trade partner and also its largest oil client, having bought roughly half of Iran’s total crude exports since 2012, when sanctions against Iran were tightened.

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Crude Oil Prices Higher After Heavy Losses

On February 5, 2015, in Crude Oil Futures News Report, by Infinity Trading

 

crude oil futures options

crude oil futures options

February 5th, 2015

Crude oil futures prices climbed higher on Thursday supported by a weaker dollar following heavy losses in the previous session as U.S. supplies continued to add to the global oil glut.

Data on Wednesday showed that U.S. crude supplies had climbed to their highest level in 80 years sending oil prices down by almost 9% for the day.

On Thursday, Brent crude rose 2.2% to $55.35 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, light, sweet crude futures traded at $49.25 a barrel, up $0.80 from Wednesday’s settlement.

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crude oil futures news

crude oil futures news

February 2nd, 2015

Crude oil markets rallied Monday morning, shrugging off news of U.S. refinery strikes and sluggish Chinese manufacturing, as traders continued Friday’s run to close out bearish bets, traders and analysts said.
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Light, sweet crude for March delivery was recently up 32 cents, or 0.7%, at $48.56 a barrel on the New York Mercantile Exchange. Brent crude for March delivery recently traded up 44 cents, or 0.8%, to $53.43 a barrel on the ICE Futures Europe exchange.

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Crude Oil Futures Trade Near Week-Low

On July 28, 2014, in Crude Oil Futures News Report, by Infinity Trading
brent oil futures

brent oil futures

July 28th, 2014

West Texas Intermediate crude dropped for the fourth time in five days as economic data may signal slowing growth in the U.S., the world’s biggest oil consumer. Brent declined in London.

Crude oil futures fell as much as 0.8 percent to $101.27 a barrel in New York, extending a drop of 1 percent last week. A preliminary index of U.S. service industries is forecast to drop to 59.8 for July, a Bloomberg News survey showed before a report from Markit Economics today. The Federal Reserve is scheduled to review monetary policy at a two-day meeting starting tomorrow.

“Demand expectations are likely to remain weak and exert downward pressure in what is a big week for U.S. data,” said Michael Hewson, market analyst at London-based CMC Markets Plc. “Markets are expecting much more positive news out of the U.S. than is likely and this could well see U.S. prices slip back towards $100.”

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Ankur Varma, third officer on the oil tanker M/V Cotton, opened his cabin door at five minutes to midnight on July 14 to find two men pointing AK-47s at him.

“They just pushed me into the cabin with the guns in my chest and they told me to stay silent,” Varma said in a phone interview from India. “They were threatening, they were showing the guns, pointing at us. They took everything — everything that we had — including clothes, toiletries, electronics.”

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November 28th, 2012

Oil dropped to the lowest level in more than a week as concern mounted that negotiations to address the U.S. budget deficit will fail.

Oil futures decreased as much as 2.1 percent after U.S. Senate Majority Leader Harry Reid said yesterday he was disappointed with progress made during talks over $607 billion in tax gains and spending cuts, the so-called fiscal cliff, set to begin in January. Crude rebounded from the day’s lows after an Energy Department report showed supplies unexpectedly fell last week.

“Economic and political concerns are dominating market sentiment right now,” said Adam Wise, who helps manage a $9 billion natural-resource bond portfolio as senior managing director at Manulife Asset Management in Boston. “The failure to reach an efficient resolution to the fiscal-cliff issue is raising concern about the economy.”

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November 19th, 2012

Oil futures rose to the highest level in four weeks amid concern that Middle East unrest will disrupt supply and on growing confidence that a deal can be reached to avoid automatic U.S. spending cuts and tax increases.

Oil prices advanced for a second day as Israeli ground forces were poised to invade the Gaza Strip for the first time in almost four years if cease-fire efforts fail. President Barack Obama is “confident” of an agreement to avert the so-called fiscal cliff, he said in Bangkok yesterday.

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