Tag: Oil

Oil heads for quarterly advance as OPEC+ holds the line on cuts

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

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Oil climbed to head for a solid quarterly gain on expectations OPEC+ supply cuts would tighten the global market.

West Texas Intermediate futures rose toward $82 a barrel after a modest two-day drop, with Brent crude above $86. The US crude benchmark has risen 14% this year, with key timespreads swinging from contango — a bearish pattern — to the opposite backwardated structure in that span.

OPEC+’s cuts of 2 million barrels a day have been extended to the end of June, underpinning expectations that global stockpiles will shrink. Ahead of a review meeting next week, delegates saw no need to recommend any changes as quotas were proving effective, according to several officials.

Crude’s revival in the first quarter has also been aided by Ukraine’s drone strikes on Russian energy infrastructure, geopolitical tensions in the Middle East, and demand growth in Asian economies including India. Still, an increase in US nationwide crude and gasoline stockpiles in data this week has undercut some of the tightness, with non-OPEC+ oil supply continuing to expand.

The bullish backdrop has spurred some banks to warn there’s scope for higher prices, depending on how events pan out. While sticking with existing forecasts, JP Morgan Chase & Co. said this week there’s a path for Brent to hit triple-digits by September if the impact of Russia’s production cuts isn’t balanced out by other counter-measures.

Also Read: Treasuries decline, Asian stocks fall on Japan

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 declines as industry report shows sizable US stockpile build

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

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Oil extended a modest decline after an industry report pointed to a sizable build in US inventories, and wider markets struck a weaker tone ahead of the end of the quarter.

Brent crude fell below $86 a barrel after a 0.6% decline on Tuesday, while West Texas Intermediate was near $81. The industry-funded American Petroleum Institute said nationwide stockpiles expanded by 9.3 million barrels last week, according to people familiar with the data. The API also reported a 2.4 million barrel increase in crude volumes at the key hub at Cushing, Oklahoma, although gasoline stockpiles shrank.

If confirmed by government data due later Wednesday, levels of crude at Cushing would have posted the biggest weekly gain in barrel terms since January 2023. Meanwhile, gasoline inventories would have fallen for an eighth week, the longest run of declines in almost a year.

Broader financial markets were weaker, weighing on crude and other commodities. Equity markets in Asia were set for a muted open after US benchmarks wiped out gains in the final half hour of trading as investors rebalanced their portfolios.

Oil has risen after breaking out from a tight range that held for the year’s first couple of months. Geopolitical uncertainty amid Ukrainian drone attacks on Russian oil infrastructure and OPEC+ supply cutbacks have buoyed prices, although a challenging economic outlook in China and robust non-OPEC supply growth remain headwinds.

Also Read: Asian stocks tick higher after Wall Street decline

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

Indian refiners buy more US crude as Russia sanctions tighten

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

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More than 250,000 barrels per day of US crude is set to arrive in India next month, the highest in more than a year, ship tracking data showed, amid tighter enforcement of sanctions on Russian crude.

India, the world’s third-biggest oil importer and consumer, is looking to diversify its oil supplies as fresh US sanctions on Moscow threaten to dent Russian oil sales to India, the biggest buyer of Russian seaborne crude.

About 7.6 million barrels of oil, or 256,000 barrels per day (bpd), were headed to India on three very large crude carriers and three Suezmax vessels, according to ship tracking firm Kpler.

The ships, which were largely headed to India’s west coast, were chartered by Reliance Industries, Vitol, Equinor and Sinokor, among others, according to data from financial firm LSEG.

India was the top buyer of Russian oil last year after other groups retreated from purchases following Western sanctions on Moscow for its invasion on Ukraine in February 2022.

Last month, the U.S. tightened efforts to reduce Russia’s oil trade adding sanctions on state-owned shipping firm Sovcomflot and 14 crude oil tankers involved in Russian oil transportation.

India’s Reliance, operator of the world’s biggest refining complex, will not buy Russian oil loaded on tankers operated by Sovcomflot after recent U.S. sanctions, sources told Reuters last week.

More Indian refiners plan to shun Sovcomflot vessels, which may weigh on imports of Russian oil and leave Russia with fewer outlets for its flagship product, sources said.

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 holds advance with OPEC+ cutbacks and geopolitics in focus

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

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Oil held the biggest gain in a week, with OPEC+ set to affirm its policy of production cuts amid tensions in the Middle East and Russia.

Global benchmark Brent traded near $87 a barrel after gaining 1.6% on Monday, while West Texas Intermediate was above $82. OPEC+ delegates weren’t seeing a need to change supply policy at a review meeting next week, with quotas in place until June proving effective. In the Middle East, meanwhile, the Houthis renewed threats against Saudi Arabia if it supported US strikes.

Crude is headed for a surge of almost 13% this quarter after breaking out of a tight range that dominated the year’s opening weeks. Attacks by Ukraine on Russian refineries have aided gains, together with signs of strength in some product markets including gasoline. The positive overall market outlook has spurred hedge funds to increase their bullish bets on Brent.

Signs of a shift in monetary policy have also supported the mood. The US Federal Reserve has signaled a willingness to cut interest rates later this year, buoying appetite for risk assets.

Technicals are positive, too, with Brent’s moving averages close to forming a golden cross, a bullish pattern. That’s when an asset’s 50-day moving average exceeds the corresponding 200-day figure. Its last formation in August preceded Brent surging by more than $10 a barrel to above $95.

Also Read: Asian traders cautious as Wall Street surge stalls

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 ticks higher as sanctions and Russian attacks take spotlight

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

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Oil advanced after a three-day drop on signs of a tightening market driven by sanctions, geopolitical risks, and OPEC+ supply cuts.

Brent crude rose toward $86 a barrel after retreating by more than 2% in the final three days of last week, while West Texas Intermediate was above $81. Indian oil refiners, Russia’s largest customers after China since the 2022 invasion of Ukraine, will no longer accept tankers owned by state-run Sovcomflot PJSC due to sanctions risks, hampering flows.

Continued drone strikes by Ukraine are also crimping Russia’s crude-refining capabilities. In addition, a terrorist attack in Moscow over the weekend left more than 130 people dead. The assault was claimed by Islamic State, although President Vladimir Putin hinted at Ukrainian involvement.

Crude is headed for a third monthly gain as OPEC+ presses on with output curbs. While China’s shaky demand outlook has been a headwind, Premier Li Qiang said Beijing was stepping up policy support to spur growth, and that systemic risks were being addressed. Reflecting the bullish mood, money managers’ net-long positions on Brent have risen to the highest in more than a year.

Iranian-backed Houthis, meanwhile, fired a missile at Chinese-owned oil tanker Huang Pu on Saturday, US Central Command said, highlighting continued risks to shipping in the seas off Yemen. The assault came even after the militant group previously said they wouldn’t attack vessels from China.

“On one hand, demand and supply seems balanced, with the Saudis maintaining spare capacity, but on the other hand disruptions are around the corner” amid supply risks, said Stefano Grasso, senior portfolio manager at Singapore-based fund 8vantedge Pte. “Given the supportive macro picture and two wars near oil-producing countries, we remain surprised on how low oil prices have been.”

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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 steadies after two-day drop as rates, geopolitics dominate

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

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Oil held a two-day drop, with traders assessing the outlook for global interest rates and geopolitical tensions in the Middle East.

Brent crude traded below $86 after falling almost 2% over the previous two days, while West Texas Intermediate was near $81. A surprise rate cut from the Swiss National Bank boosted the dollar, a headwind for commodities priced in the US currency.

Israel said it would invade Rafah no matter what the US says, potentially escalating tensions in the Middle East, as it battles Iran-backed Hamas in the Gaza Strip. The Houthis in Yemen, meanwhile, assured China and Russia that their vessels wouldn’t be targeted in the Red Sea.

Crude has advanced in the first quarter, having broken out of a narrow range in recent weeks as OPEC+ extended production cuts and Ukrainian attacks on Russian territory, including against refineries, intensified. However, gains have been limited by surging supply from outside the group, including from drillers in the US, and a muddled economic outlook in top importer China.

Despite the divergent drivers, crude markets have been relatively calm, with a gauge of volatility for global benchmark Brent sinking to a four-year low. Gasoline, meanwhile, is showing signs of strength, with the profit margin for making the fuel from crude in the US near the widest since August.

Also Read: Asian stocks open mixed as US hits fresh highs

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 pushes higher as US stockpile draw and US Fed’s plan buoy mood

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

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Oil advanced after US stockpiles fell and the Federal Reserve signaled that it would cut interest rates this year, boosting risk appetite across wider markets and bruising the dollar.

Global benchmark Brent rose above $86 a barrel, climbing for the third time four sessions, while West Texas Intermediate was near $82. Nationwide US crude inventories dropped for a second week, with stockpiles below the five-year seasonal average. A large draw was also logged for gasoline.

Federal Reserve officials maintained their outlook for three interest-rate cuts this year after holding borrowing costs steady on Wednesday. A gauge of the US dollar fell for a second day, boosting the allure of commodities priced in the currency.

Crude has posted a double-digit percentage advance this year, breaking out of a narrow range in recent weeks, as OPEC+ extended production cuts to rebalance the market. Geopolitical tensions including Ukrainian drone attacks on Russian refineries and rising transport costs due to attacks on ships in the Red Sea have also supported prices, although gains have been limited by surging supply from outside the cartel.

Also Read: Stocks in Asia echo US gains on Fed rate signals

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 steadies as focus shifts to US stockpiles and Fed’s decision

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

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Oil steadied after a two-day gain as an industry group flagged a fall in US crude stockpiles, and traders counted down to an interest-rate decision by the Federal Reserve.

Brent was little changed above $87 a barrel after a 2.4% advance in the week’s first two sessions lifted the benchmark to the highest close since late October. West Texas Intermediate was near $83. The American Petroleum Institute reported US crude holdings fell 1.5 million barrels, according to people familiar with the figures. The group also saw a sizable drop in gasoline inventories.

The US central bank is expected to hold rates steady for a fifth consecutive meeting later Wednesday, although policymakers may give hints about when they will be ready to pivot to easing. Carlyle Group LP’s Jeff Currie said oil would rise well above the current consensus for $70 to $90 a barrel if the Fed cuts interest rates in the coming months.

Crude has climbed by about 13% this year, having broken out of a tight trading range that stifled volatility in the opening weeks of 2024. The advance has been supported by supply cuts delivered by OPEC+ and geopolitical risks, including Ukrainian drone strikes on Russian refineries.

Oil’s timespreads suggest traders are pricing in a tighter market. Among them, the spread between Brent’s two upcoming December contracts has gapped out to more than $5 a barrel in backwardation, a bullish pattern marked by the nearer price being more expensive. A month ago, it was less than $4.

Also Read: Asia stocks echo US rally eyes on US Fed meet

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 holds gain with Russian refining and OPEC+ curbs to the fore

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

Listen to the Article (6 Minutes)

Oil held a gain with continued Ukrainian drone attacks on Russian refineries and OPEC+ supply cuts in focus.

Brent crude traded near $87 a barrel after a 1.8% rally on Monday to the highest close since late October. West Texas Intermediate was below $83. About 600,000 barrels of Russia’s daily refining capacity has been knocked out by the strikes, according to Gunvor Group Ltd., while JP Morgan Chase and Co. put the figure at about 900,000 barrels.

Crude is on course for a third monthly climb after breaking free from a narrow range it had been trading in for much of the year. OPEC+ supply curbs have helped to bolster prices, and Iraq said this week it would cut oil exports in the coming months to compensate for not having delivered in full on its earlier pledges to reduce production.

Timespreads have risen in tandem with the latest gains in futures, with the gap between Brent’s two nearest contracts at 73 cents a barrel in backwardation. That’s a bullish pattern, with nearer contracts trading at a premium to later-dated ones. The figure was 49 cents a week ago. Volatility, however, continues to creep lower.

Also Read: Stocks in Asia muted ahead of BOJ rate decision

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 holds weekly advance after more Russian refineries attacked

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

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Oil steadied after its biggest weekly advance in a month as Ukrainian attacks on Russian refineries heightened geopolitical risks.

Global benchmark Brent traded above $85 a barrel after gaining 4% last week, while West Texas Intermediate was near $81. Drone strikes over the weekend hit multiple plants, some of them deep within the country’s territory. The attacks came as Vladimir Putin swept to victory in a presidential election.

Crude has broken out of its tight trading range that dominated the opening months of the year, with prices hitting the highest since November. The advance has been helped by OPEC+ cutbacks to production, and predictions for a global deficit this year. Headwinds, however, remain amid a shaky demand outlook in top importer China and persistent inflation in the US, which is muddying the path for monetary policy.

Crude’s latest leg higher has been accompanied by a jump in the number of outstanding contracts, known as open interest. Holdings of the global oil benchmark have surged to the highest level since October 2021, with a large gain seen toward the end of the last week.

In the coming days, traders will get a host of market insights from the CERAWeek conference in Houston, which starts on Monday. Among speakers scheduled on the opening day are the chief executive officers of Exxon Mobil Corp., Saudi Aramco, Shell Plc and TotalEnergies SE.

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