Tag: brent oil

Oil steady on China demand concerns with US inflation in focus

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Oil prices steadied on Tuesday as Chinese inflation data pointed to persistently weak demand but a softer dollar and hopes that the Federal Reserve might ease up on its policy tightening after a key U.S. inflation report this week provided support.

Brent crude futures slipped 18 cents, or 0.2 percent, to $84 a barrel by 1102 GMT, while U.S. West Texas Intermediate futures eased 12 cents, or 0.1 percent, to $79.62 a barrel. Both benchmarks had risen nearly $1 in earlier trading.

Data from China showed consumer inflation in March rising at its slowest pace since September 2021, suggesting demand weakness persists amid an uneven economic recovery, which spurred some expectations that Beijing could take steps to boost growth.

Also read: World stocks cling to upbeat mood, dollar stalls

“China’s March CPI is lower than expected, which may promote the Chinese government to further stimulate the economy,” said Tina Teng, an analyst at CMC Markets.

Crude futures also climbed as the dollar eased on hopes that the U.S. Federal Reserve is getting closer to ending its rate hike cycle. A weaker greenback makes oil cheaper for those holding other currencies.

“With more central banks pausing rate hikes, such as the Reserve Bank of Australia, Bank of Korea … the expectation for the Fed to further scale back its tightening policy has been strengthened,” Teng added.

A U.S. inflation report to be released on Wednesday could help investors gauge the near-term trajectory for interest rates.

“The short-term crude demand outlook will soon be clearer. This week, we will find out if the U.S. economy is taking steps into the recession pool or if it is going to do a cannonball into it,” said Edward Moya, senior analyst with OANDA.

“Wall Street should have a strong handle on the trajectory of the economy after it gets a pivotal inflation report.”

Oil futures have climbed more than 5 percent since the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia surprised the market last week with a new round of production cuts starting in May.

On the U.S. supply front, industry data on U.S. crude stockpiles is due on Tuesday. Five analysts polled by Reuters estimated on average that crude inventories fell by about 1.3 million barrels in the week to April 7.

Also read: This market watcher believes that the risk-reward is now favourable for long-term investors

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oil prices climb on uncertainty over Keystone pipeline restart, Russian supplies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Oil prices rose more than one percent in early Asian trade on Monday as a key Canada-United States crude pipeline stayed shut while Russian President Vladimir Putin threatened to cut production in retaliation against a Western price cap on Russian oil exports.

Brent crude futures climbed 83 cents, or 1.1 percent, to $76.93 a barrel by 0020 GMT US West Texas Intermediate crude was at $71.92 a barrel, up 90 cents, or 1.3 percent.

code of global guest:

On Sunday, Canada’s TC Energy said it has not yet determined the cause of the Keystone oil pipeline leak last week in the United States, while also not giving a timeline as to when the pipeline will resume operations.

The 622,000 barrel-per-day Keystone line is a critical artery shipping heavy Canadian crude from Alberta to refiners in the US Midwest and the Gulf Coast and for exports.

Also Read: Wall Street falls as US inflation slows but remains hot

Meanwhile Russia’s Putin said on Friday that his country, the world’s biggest exporter of energy, could cut oil production and will refuse to sell oil to any country that imposes a “stupid” price cap on Russian agreed by G7 nations.

While the uncertainty surrounding European Union sanctions on Russian oil and the related price cap kept volatility high on prices, the sanctions had limited impact on global markets so far, ANZ analysts said in a note.

Last week, Brent and WTI posted their biggest weekly losses in months and touched lows not seen since December 2021 as concerns over global recession and impact on oil demand weighed.

Catch latest market updates with CNBC-TV18.com’s blog

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oil climbs on expectations of tight supply as Russia sanctions loom

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Oil rose in early Asian trade on Monday as expectations of tighter supplies globally ahead of European Union sanctions on Russian oil underpinned prices.

Brent crude futures climbed 54 cents, or 0.6%, to $94.04 a barrel by 0125 GMT while U.S. West Texas Intermediate crude was at $85.56 a barrel, up 51 cents, or 0.6%.

Brent posted a 2% gain last week on a weaker dollar and on hopes of easing COVID-19 restrictions in China that would allow demand at the world’s No. 2 consumer to rebound.

Disruptions to global oil supplies are expected when the EU’s ban on Russian imports goes into effect on Dec. 5. The group also plans to block imports of Russian oil products in February.

Sentiment is building within the Federal Reserve to possibly scale back the pace or size of future interest rate hikes even as it is poised to raise rates in early November.

A slowdown in Fed rate hikes could ease the U.S. dollar’s strength which has weighed on prices of commodities. A weaker dollar makes dollar-denominated commodities such as oil more affordable to holders of other currencies.

On Sunday, China’s Xi Jinping secured a precedent-breaking third leadership term on Sunday, cementing his place as the country’s most powerful ruler since Mao Zedong.

However, analysts are not expecting any significant change in policy direction, including Xi’s zero-COVID strategy.

Brent rose last week despite U.S. President Joe Biden announcing the sale of a remaining 15 million barrels of oil from the U.S. Strategic Petroleum Reserves. The sale is part of a record 180 million-barrel release that began in May. Biden added that his aim would be to replenish stocks when U.S. crude is around $70 a barrel.

“The market was more interested in the guidelines for refilling the reserve,” ANZ analysts said in a note.

“Biden’s comments that the U.S. will only buy crude once prices hit USD70/bbl provides a strong support level.”

Last week, U.S. energy firms added oil and natural gas rigs for the second week in a row as relatively high oil prices encourage firms to drill more, energy services firm Baker Hughes Co said in a report on Friday.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Brent falls as recession fears deepen demand concerns

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Brent oil slipped on Tuesday as concerns of a possible global recession curtailing demand outweighed supply disruption fears, highlighted by an expected production cut in Norway.

Brent crude was $1.33, or 1.2 percent, lower at $112.17 a barrel by 1231 GMT, while U.S. West Texas Intermediate (WTI) crude rose 30 cents, or 0.3 percent, to $108.73 a barrel from Friday’s close. There was no settlement for WTI on Monday because of the U.S. Independence Day public holiday.

Investors are becoming more concerned as the latest surge in gas and fuel prices adds to worries about recession.

Also read: Bottomline: Of windfall cess, and the oil mess

“Oil is still struggling to break out from its current recessionary malaise as the market pivots away from inflation to economic despair,” Stephen Innes of SPI Asset Management wrote.

In the euro zone, data showed business growth across the bloc slowed further last month, with forward-looking indicators suggesting the region could slip into decline this quarter as the cost of living crisis keeps consumers wary.

And in South Korea, inflation hit a near 24-year high in June, adding to concerns of slowing economic growth and oil demand.

Yet supply concerns still linger and earlier in the session WTI rose more than $3 and Brent more than $1 on potential output disruption in Norway, where offshore workers began a strike that will hit output.

The strike is expected to reduce oil and gas output by 89,000 barrels of oil equivalent per day (boepd), of which gas output makes up 27,500 boepd, Norwegian producer Equinor has said.

Also read: Home-grown nano urea set to save India Rs 40000 crore in fertiliser imports per year

“Oil prices are … benefiting from the strike in Norway, so far impacting only modest volumes, and the sharp increase in Saudi official selling prices for August, suggesting that Saudi exports might not increase that much next month,” UBS analyst Giovanni Staunovo said.

Saudi Arabia, the world’s top oil exporter, raised August crude oil prices for Asian buyers to near record levels amid tight supply and robust demand.

Meanwhile, Russia’s former president Dmitry Medvedev said on Tuesday a reported proposal from Japan to cap the price of Russian oil at around half its current level would lead to significantly less oil on the market and could push prices above $300-$400 a barrel.

G7 leaders agreed last week to explore the feasibility of introducing temporary import price caps on Russian fossil fuels, including oil, in an attempt to limit resources to finance Moscow’s “special military operation” in Ukraine.

Also read: Former finance secretary doesn’t expect new windfall tax to go away anytime soon

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Brent oil prices rise on supply concerns as Ukraine crisis deepens

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Oil prices rose on Monday as concerns grew about tighter global supply, with the deepening crisis in Ukraine raising the prospect of heavier sanctions by the West on top exporter Russia.

Brent futures were up $1.50, or 1.3 percent, at $113.20 a barrel at 0030 GMT, and US West Texas Intermediate futures rose 98 cents, or 0.9 percent, to $107.93 a barrel.

Ahead of Easter weekend holidays, both contracts gained more than 2.5 percent on Thursday on news that the European Union might phase in a ban on Russian oil imports.

EU governments said last week the bloc’s executive was drafting proposals to ban Russian crude, but diplomats said Germany was not actively supporting an immediate embargo.

Those comments came before tensions grew in the Ukraine crisis over the weekend, with Ukrainian soldiers resisting a Russian ultimatum to lay down arms on Sunday in the pulverised port of Mariupol. Moscow, which calls its actions in Ukraine a “special operation”, said its forces had almost completely seized the city, providing no signs of a ceasefire.

The International Energy Agency had warned that roughly 3 million barrels per day (bpd) of Russian oil could be shut in from May onwards due to sanctions, or buyers voluntarily shunning Russian cargoes.

Russian oil production has continued to slide in April, declining by 7.5 percent in the first half of the month from March, the Interfax news agency reported on Friday.

“The oil market will likely stay on a bullish trend this week with limited additional supply coming from major oil producers to offset a reduced flow from Russia,” said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd.

“Soaring US heating oil prices were also behind the recent rally as expectations grew that the US petroleum market would get tighter due to increasing demand to export to Europe.”

The Organization of the Petroleum Exporting Countries (OPEC) and its allies in a grouping known as OPEC+, which includes Russia, have rebuffed Western pressure to raise output at a faster pace under a previously agreed deal to boost supply.

An OPEC report last week showed OPEC output in March rose by just 57,000 bpd to 28.56 million bpd, lagging the 253,000 bpd rise that OPEC is allowed under the OPEC+ deal.

Adding to pressure, Libya halted oil production from its El Feel oilfield on Sunday and two sources at Zueitina oil port said exports there had been suspended after protesters calling for Tripoli-based Prime Minister Abdulhamid al-Dbeibah to resign took over the sites.

US oil production forecasts, however, are being revised upwards despite labour and supply chain constraints, as higher prices spur more drilling and well completion activity, according to industry experts.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oil falls for second day as India’s COVID-19 surge to dent fuel demand

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Oil prices fell for a second day on Wednesday on concerns that soaring COVID-19 cases in India will drive down fuel demand in the world’s third-biggest oil importer.

Brent crude futures for June fell 52 cents, or 0.8 percent, to $66.05 a barrel at 0157 GMT, after dropping 48 cents on Tuesday.

US West Texas Intermediate (WTI) crude futures for June fell 56 cents, or 0.9 percent, to $62.11 a barrel. The May contract expired on Tuesday down 1.5 percent at $62.44.

“You’ve seen refiners there (in India) scale back runs because demand has fallen with the spread of lockdowns. That’s clearly weighing on the market and sentiment,” said Lachlan Shaw, head of commodity research at National Australia Bank.

India, also the world’s third-largest oil user, on Tuesday reported its worst daily death toll from COVID-19 and is facing an oxygen supply crisis to treat patients. Large parts of the country are now under lockdown due to a huge second wave of the pandemic.

Further weighing on the market, data from the American Petroleum Institute (API) industry group showed US crude oil and distillate stocks rose in the week ended April 16, according to two market sources, compared with analysts’ forecasts for declines in crude and distillate inventories.

Crude stocks rose by 436,000 barrels, API reported, according to the sources. Analysts polled by Reuters had expected a 3 million bbl drawdown in crude stocks.

Distillate stocks, which include diesel, heating oil and jet fuel, rose by 655,000 barrels, compared with analysts’ forecasts for a 1 million barrel decline.

The US Energy Information Administration will release its inventory data for last week later on Wednesday.

Analysts said despite the pandemic hotspots in places like India and growing concerns in Japan, the world’s fourth-biggest oil user, signs are still positive for a fuel demand recovery in the United States, UK and Europe.

“Driving is soaring in the UK as the vaccine rollout accelerates. Such is also the case in the US, where drivers consume over 10% of the world’s oil,” ANZ analysts said in a note.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow