En Español



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Oil stable Friday as strong Chinese demand counters rising dollar

By Henning Gloystein

SINGAPORE
Petroleumworld 12 08 2017

Oil prices were stable on Friday as the weight of a strengthening U.S. dollar was countered by China's relentless thirst for crude and the OPEC-led supply cuts that have gradually tightened the market this year.

U.S. West Texas Intermediate (WTI) crude futures were at $56.70 a barrel at 0714 GMT, virtually unchanged from their last settlement.

Brent crude futures, the international benchmark for oil prices, were up 7 cents, or 0.1 percent, at $62.27 a barrel.

Traders said a stronger dollar, which has gained over 0.9 percent this month against a basket of other leading currencies, was weighing on prices.

A rising greenback attracts financial traders who switch investments between commodity futures and foreign exchange.

“A strong U.S. dollar could act as a headwind to commodities,” Bank of America Merrill Lynch (BoAML) said in its 2018 outlook.

Preventing prices from sliding further was booming oil demand from China, which will this year overtake the United States as the world's biggest crude importer.

China's crude oil imports rose to 37.04 million tonnes in November, or 9.01 million barrels per day (bpd), the second highest on record, data from the General Administration of Customs showed on Friday.

“China's crude oil imports will continue to rise over the coming years, as output declines from several of its giant onshore fields ... This will inevitably see China become more reliant on crude oil imports over our forecast period, with import dependency set to increase from a record 68.0 percent in 2017 to nearly 80 percent by 2021,” BMI Research said.

Bank of America Merrill Lynch, meanwhile, said healthy global demand and tight supplies should see Brent crude oil rise to $70 per barrel by mid-year.

U.S. investment bank Jefferies said it expects 2018 global oil demand growth of 1.5 million bpd, driven by near 10 percent demand growth in China.

On the supply side, oil prices have been receiving support from the Organization of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC producers, most importantly Russia, which has been withholding supplies to tighten the market.

Largely because of these voluntary production cuts, oil prices rose sharply between June and October, with Brent gaining around 40 percent in value.

Threatening to undermine OPEC's goal to tighten markets is U.S. oil production, which has risen by more than 15 percent since mid-2016 to 9.7 million barrels per day (bpd), the highest level since the early 1970s and close to the output of top producers Russia and Saudi Arabia.

The EIA monthly data on US crude production published Nov. 30 was also somewhat bearish,

(For a graphic on U.S. oil production and U.S. commercial crude oil inventories, click - tmsnrt.rs/2BORWdD )



Story by Henning Gloystein; Editing by Joseph Radford and Richard Pullin from Reuters.

reuters.com 12 08 2017 08:01 GMT

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

 

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.