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 end at 2-month high Wednesday on modest crude supply rise, Venezuela turmoil


By Myra P. Saefong / MarketWatch

SAN FRANCISCO
Petroleumworld 01 30 2019

Oil futures settled higher Wednesday, with weekly domestic crude supplies up less than expected and U.S. sanctions on Venezuela's state-run oil company lifting U.S. benchmark prices to their highest finish in over two months.

The U.S. sanctioned Venezuela's Petróleos de Venezuela SA, or PdVSA, earlier this week, raising the risk of disruptions to global oil supply from the Organization of the Petroleum Exporting Countries member, which is also home to the world's largest oil reserves.

West Texas Intermediate crude for March delivery US:CLG9 gained 92 cents, or 1.7%, to settle at $54.23 a barrel on the New York Mercantile Exchange. Based on the front-month contracts, prices logged their highest finish since Nov. 21, according to FactSet data. Month to date, front-month contracts were up 19%, on pace for the best January performance since at least 1985, according to Dow Jones Market Data.

March Brent crude LCOH9, +0.70%  rose 33 cents, or 0.5%, to $61.65 a barrel on ICE Futures Europe. The contract expires at Thursday's settlement.

The Energy Information Administration reported Wednesday that domestic crude supplies edged up by 900,000 barrels for the week ended Jan. 25. That was smaller than the 3.1 million-barrel rise expected by analysts polled by S&P Global Platts.

The American Petroleum Institute reported on Tuesday a weekly climb of about 1.1 million barrels, but the group also upwardly revised the previous week's total by roughly 1 million barrels.

“A precipitous drop in imports has helped stave off another big build to crude stocks,” said Matt Smith, director of commodity research at ClipperData, referring to the EIA data.

“A whopping drop in imports of over 1 million barrels per day has helped mitigate the impact of a substantive drop in refining activity — down nearly 600,000 bpd — leading to a minor build to crude stocks.”

“This plunge in refining activity, a seasonal trend as we dive into seasonal maintenance, has yielded the first weekly drop in gasoline inventories in nine attempts,” he added.

Gasoline stockpiles fell by 2.2 million barrels last week, while distillate stockpiles were down 1.1 million barrels, according to the EIA. The S&P Global Platts survey had shown expectations for a supply increase of 2.8 million barrels for gasoline, but forecast a fall of 2 million barrels for distillates.

On Nymex, February gasoline RBG9, +3.06%  added 2.3% to $1.382 a gallon and February heating oil HOG9, +0.07%  rose 0.05% to $1.898 a gallon. The contracts expire at Thursday's settlement.

Meanwhile, in Venezuela, “interim president” of Venezuela Juan Guaido, who has U.S. backing, is the biggest challenge to strongman Nicolás Maduro's government in years. Guaido has urged the country's powerful military forces to defect, promising amnesty, as the country strains under an economic crisis and sky-high inflation.

Venezuelan factors play out against the broader OPEC-led production cuts of 1.2 million barrels a day for the first half of the year aimed at rebalancing an oversupplied market. As supply is curbed, the oil market has also been weighing signs of slower global economic growth and the potential for weaker energy consumption especially after the International Monetary Fund last week lowered its economic growth outlook for 2019.

Read: Here's what Venezuela turmoil means for oil prices

“Production in Venezuela is likely to decrease by more than the shortfall in exports to the U.S. of approximately 500,000 barrels per day,” said commodities analysts at Commerzbank, writing in a note. “Other buyers are also likely to be hesitant to do business with PdVSA, the oil company subject to the sanctions.”

What's more, trade tensions between the U.S. and China continue to hang over energy trading, raising expectations for a slowdown in energy demand. China triggered the legal process for the World Trade Organization to hear its challenge to U.S. tariffs imposed on $234 billion of goods, according to a report from Reuters this week .

Still, oil prices are up roughly 27% from the 2018 lows hit in the last week of December.

In other energy trading, March natural gas NGH19, +0.70% fell by 1.7% to $2.854 per million British thermal units. Prices settled at the lowest since September as factors tied to the extreme cold-weather conditions briefly hitting parts of the U.S. have been generally dismissed by the market.

“Strong production seems to be preventing any meaningful price movement for now,” said Christin Redmond, global commodity analyst at Schneider Electric.

But natural-gas prices “may receive some support when the [U.S.] storage report is released [Thursday], with expectations for a withdrawal of about 200 [billion cubic feet], which is higher than the 5-year average of 150 Bcf,” he said.

Providing critical information for the U.S. trading day. Subscribe to MarketW


________________________



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

Story by Myra P. Saefong from MarketWatch.


reuters.com
01 30 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 reserved

 

This 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.