En Español



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Oil prices rise Wednesday on tighter US market, Middle East tensions

By Henning Gloystein

SINGAPORE
Petroleumworld 10 18 2017

Oil prices rose on Wednesday, lifted by a fall in U.S. crude inventories and concerns that tensions in the Middle East could disrupt supplies.

Brent crude futures LCOc1, the international benchmark for oil prices, were at $58.16 at 0643 GMT, up 28 cents, or 0.5 percent from their last close - and almost a third above mid-year levels.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $52.03 per barrel, up 15 cents, or 0.3 percent, and almost a quarter above mid-June levels.

Trading volumes were limited during Asian hours on Wednesday due to a public holiday in Singapore, Malaysia and parts of India.

However, a technical pattern known as a ‘Golden Cross' was approaching in WTI crude oil contracts on Wednesday, in which the 50-day moving average price climbs higher than the 200-day moving average. This is widely seen as a bullish price indicator, and already occurred with Brent futures on Sept. 25.

Traders said that prices were pushed up by a drop in U.S. crude inventories as well as concerns that fighting in Iraq and mounting tensions between the United States and Iran could affect supplies.

U.S. crude inventories fell by 7.1 million barrels in the week to Oct. 13 to 461.4 million barrels, the American Petroleum Institute (API) said late on Tuesday.

“API data from the U.S. overnight showed a big draw ... If $52.83 in WTI and $59.22 in Brent give way, then oil is stepping into a new and much higher range,” said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

Official U.S. fuel inventory data is due later on Wednesday from the Energy Information Administration, which Dutch bank ING said would likely also show a stock drawdown.

Adding to a tightening U.S. market, tensions in the Middle East meant that a risk premium was being priced into oil markets.

Iraqi government forces captured the major Kurdish-held oil city of Kirkuk earlier this week, responding to a Kurdish independence referendum, and there are concerns that fighting could disrupt supplies.

“In the case of Kurdistan, the 500,000 barrel-per-day (bpd) Kirkuk oil field cluster is at risk,” U.S. bank Goldman Sachs said on Tuesday.

The Iraq crisis adds to a looming dispute between the United States and Iran. U.S. President Donald Trump last week refused to certify Iran's compliance over a nuclear deal, leaving Congress 60 days to decide further action against Tehran.

During the previous round of sanctions against Iran, some 1 million bpd of oil was cut from global markets.



Story by Henning Gloystein; Editing by Kenneth Maxwell and Joseph Radford from Reuters.

reuters.com 10 18 2017 07:51AM BST

We invite all our readers to share with us
their views and comments about this article.

Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

 

Nov 13-14 ;
Mexico City, Mexico

 

 

 

 

 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.