México

Guyana

Trinidad
& Tobago




Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Oil ends at 2-week high Wednesday as traders eye signs OPEC output cuts


By Myra P. Saefong / MarketWatch

SAN FRANCISCO
Petroleumworld 01 02 2019

Oil futures on Wednesday shook off earlier losses to settle at their highest in two weeks, buoyed by a reported drop in December crude exports from Saudi Arabia, as the new year marked the start of output cuts by the Organization of the Petroleum Exporting Countries and its allies.

Oil fell in early trading, fueled by concerns about the global economy and its potential impact on demand for crude.

Traders are “now buying key support and looking ahead to the OPEC cuts that will now go into play,” Phil Flynn, senior market analyst at Price Futures Group, told MarketWatch.

He also said data from Bloomberg revealed a drop in crude exports from Saudi Arabia in December. “Anybody who thinks that the Saudis are not serious about reducing the perception of a supply glut had better think again,” said Flynn.

Observed crude exports from Saudi Arabia declined to 7.253 million barrels a day in December, from 7.717 million in November, according to tanker-tracking data compiled by Bloomberg . The news agency cited lower flows to the U.S. and China.

West Texas Intermediate crude for February delivery CLG9, -1.44% climbed $1.13, or 2.5%, to settle at $46.54 a barrel on the New York Mercantile Exchange. WTI ended Monday's session with a loss of 10.8% for December, finished down 38% over the quarter, and 24.8% for 2018, according to Dow Jones Market Data.

The global benchmark, March Brent crude UK:LCOG9 meanwhile, added $1.11, or 2.1%, to $54.91 a barrel on ICE Futures Europe. The international benchmark finished Monday's session down by more than 8% for December, 35% for the quarter, and off 19.5% for the year.

WTI and Brent futures both logged their highest settlements since Dec. 19.

Major markets were closed on Tuesday for New Year's Day.

Read: Gasoline prices could jump 35% by May, forecast says

Also see: U.S. oil drillers aren't producing as much crude as forecast, finds WSJ report

At a meeting in December, OPEC and some nonmember producers, including Russia, agreed to cut production by 1.2 million barrels from October 2018 levels, effective as of January 2019, for an initial period of six months. They plan to review output levels in April.

Brent prices had dipped below $53 a barrel early Wednesday, with traders attributing the weakness to fresh signs of contraction in China's economy.

The China Caixin manufacturing purchasing managers index fell to 49.7 in December, according to data released Wednesday, marking the first time the sector has been in contraction territory — below 50 — since May 2017.

A slowdown in the world's second-largest economy, and biggest oil importer, can translate to slack in appetite for oil.

Lately, oil prices have closely tracked swings in the Dow Jones Industrial Average DJIA, +0.08% and the S&P 500 index SPX, +0.13% providing signs to some market participants that lower prices emanate from worries about flagging global economic expansion rather than just supply-demand factors. As oil futures settled Wednesday afternoon, those benchmark indexes were trading mixed, following earlier losses.

Rounding out the action in the energy market, February gasoline RBG9, -1.29%  finished at $1.326 a gallon, up 1.8% on Nymex, while February heating oil HOG9, -0.72%  added 1.3% to $1.701 a gallon.

February natural gas NGG19, +0.27%  rose 0.6% to $2.958 per million British thermal units. It trades around 11% lower week to date.

“Near-term prices should continue to be heavily influenced by changing weather expectations,” said Robbie Fraser, global commodity analyst at Schneider Electric, in a note. “While an early blast of cold weather sent winter contracts rocketing higher, the increasing confidence around warmer than normal conditions to start January has been a major contributor to recent weakness.”

On Friday morning, the Energy Information Administration will release its weekly data on U.S. natural-gas supplies, followed by the weekly report on domestic petroleum stockpiles. Both are delayed this week because of Tuesday's New Year's Day holiday.


________________________



We invite you to join us as a sponsor. Circulated Videos, Articles, Opinions and Reports which carry your name and brand are used to target Entrepreneurs through our site, promoting your organization’s services. The opportunity is to insert in our stories pages short attention-grabbing videos, or to publish your own feature stories.

Hit your target - Advertise with us

PW 300.000 plus request per week

Reporting by Myra P. Saefong from MarketWatch.

marketwatch.com
01 02 2019 20:12 GMT


Copyright© 1999-2018 Petroleumworld or respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ (PW) stories by anyone provided it mentions Petroleumworld.com as the source.

Other stories you have to get authorization by its authors. Internet web links to http://www.petroleumworld.com are appreciated.

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!

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

Twitter: @petroleumworld1


 

Contact: editor@petroleumworld.com,

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

CopyRight © 1999-2019, Elio Ohep A. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites
 
 

CopyRight©1999-2019, Petroleumworld ™  / Elio Ohep - All rights reservedT

his 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.