|Day's Range||36.80 - 37.88|
Washington has imposed sanctions on Venezuela to starve President Nicolas Maduro of oil revenues - the OPEC nation's main source of foreign income - and break his grip on power. The measures have reduced exports and deepened the country's economic crisis but Maduro has held on, which U.S. officials say privately is a source of frustration for President Donald Trump.
Global stocks and oil prices jumped as hopes for a swift global economic recovery from the coronavirus pandemic and further central bank support helped offset rising geopolitical risks. In early Asia-Pacific trading on Wednesday, Japan’s benchmark Topix index rose 0.6 per cent, Hong Kong’s Hang Seng added 1.2 per cent and South Korea’s Kospi rallied 2.5 per cent. Oil climbed back above $40 for the first time in almost three months on optimism crude producers will extend output cuts. Investors were also focusing on the possibility of additional economic support measures when the European Central Bank meets later this week.
(Bloomberg) -- Brent oil rose above $40 a barrel for the first time in almost three months on signs that OPEC+ producers are close to agreeing on a short extension of their historic deal to cut output.Futures in London climbed around 1% after closing at their highest level since March 6, the day the OPEC+ alliance broke down. Russia and several other nations in the group favor extending the production cuts that are set to ease from July by one month, according to people familiar with the situation. That’s within the range of Saudi Arabia’s call for a one to three-month elongation.In more evidence the oil market is rebalancing, the American Petroleum Institute reported that stockpiles at the storage hub at Cushing, Oklahoma fell by 2.2 million barrels last week. That would mark the fourth straight weekly decline if confirmed by U.S. government data due later on Wednesday.While the global benchmark crude has now doubled from its low in mid-April, the path back to pre-virus levels of oil demand still looks uncertain. The civil strife rocking the U.S. increases the risk of a second wave of infections there, while international travel could be impacted for years to come. The rally may also be blunted by the return of American shale production.“The market is much closer to re-balancing, with demand trends showing this and countries already opening up,” said Suvro Sarkar, vice president of group research at DBS Bank Ltd. However, the impact of the upcoming OPEC+ meeting has been largely priced in, so there’s limited upside from here, he said.Brent for August delivery rose 1.2% to $40.06 a barrel on the ICE Futures Europe exchange as of 11:09 a.m. in Singapore after closing up 3.3% on Tuesday. Contangoes for the grade’s three- and six-month timespreads narrowed further, indicating concerns over a supply glut have eased.West Texas Intermediate for July climbed 2.1% to $37.58 on the New York Mercantile Exchange following a 3.9% increase in the previous session. The American benchmark has almost doubled since the end of April.Forecasts RaisedAs recently as last week, Moscow’s stance was that it didn’t want to extend the OPEC+ cuts and favored sticking to the original agreement. It’s not unusual for Russia and Saudi Arabia to hold different positions before OPEC+ talks. On most occasions the two producers have eventually found a compromise.DBS said Brent will average $42 to $47 a barrel this year, $5 higher than its previous estimate. The easing of lockdown restrictions in some parts of the world ahead of infection rates peaking means the demand recovery could be faster than previously anticipated, the Singaporean bank said in a note. Morgan Stanley and Fitch Solutions have also raised their forecasts in the past week.The API reported overall U.S. crude stockpiles fell 483,000 barrels last week, according to people familiar with the data. Meanwhile, crude exports from OPEC’s Middle East exporters dropped by the most on record last month as the output-cut agreement kicked in and Russia came close to its reduction target.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Oil rose on Wednesday, with Brent at $40 for the first time since March, as optimism mounted that major producers will extend production cuts and a recovery from the coronavirus pandemic will spur fuel demand. U.S. West Texas Intermediate (WTI) crude futures <CLc1> gained 68 cents, or 1.9%, at $37.49 a barrel. The Organization of the Petroleum Exporting Countries (OPEC) and other major producers including Russia, a group known as OPEC+, may extend production cuts of 9.7 million barrels per day (bpd), or about 10% of global output, into July or August, sources told Reuters.
The Trump administration believes ahead of an expected OPEC+ meeting this week that major oil producers such as Saudi Arabia and Russia will honor their pledges to cut crude production and will not damage the global economy by changing course, a senior official said on Tuesday. "We trust that other major oil producers will not revert to policies that impede an orderly and swift recovery from these unprecedented global economic conditions," a senior administration official told Reuters in response to a question about the administration's approach to global oil producers ahead of the OPEC+ meeting expected on Thursday.
Stock futures kicked off the overnight session hugging the flat line Tuesday evening, as investors set their sights on more major cities’ plans to reopen businesses in the near-term as the coronavirus pandemic eased.
As prices creep closer to $40, some U.S. oil producers that had cut back might resume production. And that presents a dilemma for OPEC+ countries.
The American Petroleum Institute reported late Tuesday that U.S. crude supplies fell by 483,000 barrels for the week ended May 29, according to sources. The API data also reportedly showed gasoline stockpiles edged up by 1.7 million barrels, while distillate inventories climbed by 5.9 million barrels. Crude stocks at the Cushing, Okla., storage hub, meanwhile, fell by 2.2 million barrels for the week, sources said. Inventory data from the Energy Information Administration will be released Wednesday. The EIA data are expected to show crude inventories rose by 3.5 million barrels last week, according to analysts polled by S&P Global Platts. They also forecast a supply decline of 300,000 barrels for gasoline and a stockpile increase of 2.8 million barrels for distillates. July West Texas Intermediate crude was at $36.94 a barrel in electronic trading. It was up from its settlement at $36.81 Tuesday on the New York Mercantile Exchange.
Stocks rose, tracking advances in global equities as investors eyed stabilizing economic data alongside ongoing protests across the country, which spurred some concerns of a ramp-up in coronavirus cases following a deescalation in the outbreak.
(Bloomberg) -- As OPEC+ producers head toward a consensus on extending output curbs, oil’s rally is prompting some U.S. producers to open their taps once again.Futures settled at their highest since March 6 on Tuesday, the day the Saudi-Russian alliance broke down just as a global pandemic dimmed the outlook for demand. Oil’s rebound over the past month brings back concerns that Russia could again hesitate to extend output cuts, with rival shale producers signaling they are ready to re-open wells that were shut during the market’s collapse.Further evidence of that threat emerged this week, when U.S. driller Parsley Energy Inc. said it’s turning oil wells back on just weeks after shutting them off, illustrating the shale industry’s agility in responding to rising crude prices.Also read: Early Signs Show Shale Oil Production Bouncing Back With Prices“If everybody magically decides to turn the taps back on and lets the oil back to the surface, now you’ve got 1.5 million to 2 million barrels a day that needs to find a home,” said Stewart Glickman, an energy analyst at CFRA Research.On Tuesday, OPEC members were still wrangling over when to hold their next meeting, against what’s still an uncertain demand backdrop. For now, Russia and several other OPEC+ nations are said to favor extending their current output cuts by a month.It’s unclear if a month’s extension of curbs is enough for Saudi Arabia -- the biggest producer in the Organization of Petroleum Exporting Countries -- though the proposal is within the range of the kingdom’s own call for a one- to three-month elongation.“It will be a question of how much price gains do you really want with the risk of the return of U.S. shale oil?” said Olivier Jakob, managing director of Petromatrix GmbH.The industry-funded American Petroleum Institute reported that supplies in Cushing, Oklahoma, fell by 2.2 million barrels last week. That would mark the fourth straight weekly decline if U.S. government data confirms the draw on Wednesday. U.S. crude stockpiles fell 483,000 barrels, according to the report. North American oil production shut-ins peaked in May, and June curtailments should be “a fraction of the previously announced levels,” Bank of America analysts wrote in a Monday note.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Oil futures climb on Tuesday to log their highest settlement in about three months, supported by reports that major crude producers may agree to extend output cuts that terminate at the end of June to further steady oil prices.
U.S. shale oil producers are beginning to reverse production cuts as prices recover from historic lows, underscoring shale's ability to quickly adjust to pricing and posing a challenge to OPEC as it considers extending production curbs. U.S. producers slashed output in April and May as oil prices collapsed due to a supply glut and as restrictions on populations worldwide to slow the COVID-19 pandemic destroyed fuel demand. Shale producers Parsley Energy Inc <PE.N> and EOG Resources Inc <EOG.N> on Tuesday disclosed plans to restore some or all of their output cuts.
Brent oil is nearing the $40 mark as rumors that the OPEC+ production cuts will be extended gain momentum
Crude prices continued a recent rebound as analysts anticipate that oil producers led by Saudi Arabia and Russia will extend supply curbs in response to the energy industry’s crisis.
U.S. oil futures climbed Tuesday to settle at their highest since early March, buoyed by reports that major oil producers plan to extend their current production cuts beyond the end of June. The Organization of the Petroleum Exporting Countries and its allies were nearing an agreement to extend collective production cuts through Sept. 1, and planned to discuss output curbs during a meeting via conference call on Thursday, The Wall Street Journal reported Monday, citing comments from delegates. Thursday's call would bring forward a meeting that the OPEC website still has scheduled for June 9-10. July West Texas Intermediate oil rose $1.37, or 3.9%, to settle at $36.81 a barrel on the New York Mercantile Exchange. That was the highest finish for a front-month contract since March 6, according to Dow Jones Market Data.
Exchange-traded funds that track energy companies charged higher Tuesday on the heels of a 3% bounce in the price of crude amid reports that major producers may agree to extend caps on output that terminate at the end of June for one or two more months. The Energy Select Sector SPDR Fund rose 2.6%, making it the biggest gainer among the S&P 500 sectors midday. The Vanguard Energy ETF was also up 2.6%, and the SPDR S&P Oil & Gas Exploration & Production Fund popped 3.3%. XLE, the largest fund tracking the energy sector, is up nearly 13% over the past month, but has still lost about one-third of its value in the year to date. XOP, a popular way to play exploration bets, is up 10% in the past month, but has still lost about 42% of its value throughout 2020.
Marshall Islands-based Afranav Maritime Ltd, Adamant Maritime Ltd and Sanibel Shiptrade Ltd, as well as Greece-based Seacomber Ltd, all own tankers that lifted Venezuelan oil between February and April of this year, the Treasury Department said. "These companies are transporting oil that was effectively stolen from the Venezuelan people," Secretary of State Mike Pompeo said in a statement.
Silver met resistance below $18.50 but stays above $18.00.
Investors need to pay close attention to Whiting Petroleum (WLL) stock based on the movements in the options market lately.
Investors need to pay close attention to Callon Petroleum (CPE) stock based on the movements in the options market lately.
China's state planner has given the initial go-ahead for a $20 billion refinery and petrochemical project to be built on the country's east coast in Shandong province.What Happened The Shandong provincial government has got the initial approval from China's National Development & Reform Commission (NDRC) to commence planning a 400,000 barrel-per-day (bpd) refinery along with a 3 million tonne-per-year ethylene plant in Yantai, two sources revealed to Reuters.Why It Matters The demand for oil in China has almost rebounded to pre-pandemic levels, reported Business Insider.Consumption reached 13 million barrels per day in May, whereas in December it was 13.7 million barrels. Gasoline and diesel are spurring the high demand, while demand for jet fuel remains sluggish.China's independent refiners are called "teapots." They have raised crude processing capacity to 75% in 2020 compared with 60% a year ago.The robust demand for oil in China is bolstering oil prices, which had turned negative in April, with Brent crude futures for June trading at $16.78, the lowest levels since 1999.Price Action WTI Crude July futures traded 0.82% higher at $35.73, while Brent Crude August futures traded 1.17% higher at $39.31 on Tuesday at press time.Image Credit: Wikimedia.See more from Benzinga * TikTok Issues Apology After Being Accused Of Censoring Black Users, Calls It 'Technical Glitch' * Sony Delays PlayStation 5 Event Due To Protests, Says It Wants To 'Allow More Important Voices To Be Heard' * Trump Threatens Military Deployment As Protests Rage Across The Country(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The world's biggest oil producers are close to extending output cuts as part of a battle to shore up prices following a collapse in demand. Russia and Saudi Arabia are inching closer to a deal which will keep production low as much of the world slowly emerges from lockdown. Talks between the two sides sent the Brent crude benchmark rallying to almost $40 a barrel, its highest since early March. Oil prices rise if less of the fossil fuel is being sold on the market because buyers are forced to outbid each other. A conference call between Moscow and nations in the Saudi-led Opec cartel which was originally planned for June 9 has been brought forward to this Thursday in a bid to secure agreement. Riyadh is said to be pushing for bigger production cuts to support oil prices, but other nations are keen to increase output to bring in more revenue. Under the current deal, agreed in April, a reduction of 9.7m barrels a day - about a tenth of global production - will fall to 8m from July 1. Friction has emerged between Russia and Saudi Arabia, the two countries responsible for triggering a price war in March that along with the pandemic sent oil prices crashing. They were later the driving force behind the cuts as part of a bid to repair relations. The Saudis are keen to maintain the current level of cuts until the end of the year, while Russia is said to be pushing for gradual output hikes. The pair are discussing a compromise that would see cuts maintained until September 1.
Crude oil markets continue to grind higher during the trading session on Tuesday, as we look likely to try to fill the gap above.