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

 

 

 

 

U.S. oil prices up an 8th session Wednesday to score highest finish since mid-December


By Myra P. Saefong / MarketWatch

SAN FRANCISCO
Petroleumworld 01 09 2019

Oil futures rallied Wednesday, with the U.S. benchmark up an eighth session in a row to finish at its highest in nearly four weeks, on continued optimism over U.S.-China trade talks, a December output drop from major producers, and a weekly decline in domestic inventories.

“Support for oil comes from the Saudis cutting exports more than called for by the OPEC+ agreement and prospects of a trade agreement with China,” said James Williams, energy economist at WTRG Economics. “A trade agreement would help the Chinese economy and increase demand for oil.”

Saudi Arabia's energy minister Khalid al-Falih vowed to “stabilise” the oil market and said the agreement between the Organization of the Petroleum Exporting Countries and its allies to cut production is already starting to show results, the Financial Times reported Wednesday .

OPEC oil production fell by 630,000 barrels a day to a six-month low of 32.43 million barrels in December, according to an S&P Global Platts survey released Tuesday.

West Texas Intermediate crude for February delivery CLG9, +4.78%  rose $2.58, or 5.2%, to settle at $52.36 a barrel, for the highest finish since Dec. 13. Prices have now climbed out of a bear market, rising by 23% from its 52-week low of $42.53 on Dec. 24, according to Dow Jones Market Data.

March Brent crude LCOH9, +4.43%  rose $2.72, or 4.6%, to $61.44 a barrel, with prices for the most-active contract also poised for the highest finish since mid-December.

The positive finish extended the winning streak for both U.S. and global benchmark crude to eight sessions, the longest in about 18 months.

“Oil has yet to have a losing session in 2019, and the near-term path of least resistance is still higher based on momentum and near-term technicals,” said analysts at the Sevens Report. “However, the longer-term outlook is still unclear as production/export cuts won't be enough to curb another bout of broad market volatility based on peak earnings concerns (if Q4 reporting season underwhelms) and economic growth doesn't show signs of picking up.”

Read: Oil prices are on the verge of busting above a bullish line in the sand—exiting bear market

U.S.-China trade talks concluded Wednesday after being extended to a third day. Global stocks rose, with U.S. equities moving higher on Wall Street, and Bloomberg reporting that President Donald Trump is eager to complete a deal on the expectation that it would boost financial markets battered in part due to fears surrounding the trade battle.

Analysts at Commerzbank said trade-related optimism was also lifting crude, noting that the slump in oil prices at the end of 2018 “was driven not only by the oversupply, but also by the selloff on the stock markets. This was due to fears that the trade conflict will slow economic growth in the U.S. and China, ultimately also dampening oil demand in the two leading oil consumer countries.”

Read: Here's how closely the stock market and oil prices are tracking each other

Contributing to a positive tone, the Energy Information Administration reported Wednesday that domestic crude supplies fell by 1.7 million barrels for the week ended Jan. 4. That was bigger than the fall of 1.4 million barrels expected by analysts polled by S&P Global Platts, but significantly less than the 6.1 million-barrel drop reported by the American Petroleum Institute on Tuesday .

Product stockpiles also climbed by more than double what the market expected. Gasoline stockpiles climbed by 8.1 million barrels last week, while distillate stockpiles rose by 10.6 million barrels, according to the EIA. The S&P Global Platts survey had shown expectations for supply increases of 4.2 million barrels for gasoline and 4.3 million barrels in distillates.

On Nymex, however, futures prices for the products followed oil higher. February gasoline RBG9, +4.69%  rose 4.6% to $1.425 a gallon, while February heating oil HOG9, +2.97%  added 2.9% to $1.881 a gallon.

March natural gas NGH19, +0.49%  added 0.6% to $2.984 per million British thermal units after rising 0.8% a day earlier. Traders awaited a weekly EIA update on U.S. supplies of the commodity due Thursday. The report is expected to show a weekly decline of 84 billion cubic feet, according to a S&P Global Platts survey of analysts.

 


________________________



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 09 2019 20:14 GMT


Copyright© 1999-2019 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 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.