RIGZONE
"Crude Settles Above $75 as US Inventories Decline"
by Bloomberg | Julia Fanzeres
Wednesday, January 24, 2024
Oil rose to surpass a key psychological level after US stockpiles declined more than expected.
West Texas Intermediate advanced 1% to settle above $75 a barrel, after earlier jumping as much as 2% to the highest intraday price this year.
The gain came after a government report showed US stockpiles fell by 9.23 million barrels last week.
Inventories at the storage hub in Cushing, Oklahoma, declined by 2.01 million barrels.
Oil may struggle to remain above the key resistance band, with markets needing to see sustained drawdowns globally as well as “product draws to go along with the crude draws,” Matt Sallee, a portfolio manager at Tortoise, said in a phone interview.
Adding to positive sentiment for oil on Tuesday, China’s government planned measures to unleash more money to boost growth, and equities broadly gained.
The dollar fell, making commodities priced in the currency more attractive.
Still, crude has been confined to a narrow range this month, with geopolitical risks in the Middle East countered by expectations of increasing supplies from producers outside of the Organization of Petroleum Exporting Countries.
Major oil trader Gunvor Group Ltd. said the opening half of the year would be dominated by non-OPEC output growth that will eventually plateau, with markets remaining stagnant.
Traders are assessing the latest US-led strikes intended to halt vessel attacks by Iran-backed Houthis in Yemen.
Central Command hit two anti-ship missiles aimed into the Red Sea.
Elsewhere, US forces carried out airstrikes on a Tehran-backed militia in Iraq.
Prices:
WTI for March delivery rose 72 cents to settle at $75.09 a barrel.
Brent for March settlement rose 49 cents to settle at $80.04 a barrel .
https://www.rigzone.com/news/wire/crude ... 3-article/
OIL, NATURAL GAS
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rises to Two Month High as US Stockpiles Fall"
by Bloomberg | Julia Fanzeres and Alex Longley
Thursday, January 25, 2024
Oil rose to the highest in about two months as US inventories, Chinese stimulus and an attack on a Russian refinery ignited a rush of trend-following algorithmic buying.
West Texas Intermediate climbed 3% to top $77 a barrel, breaking out of the narrow range it has been trading in for months.
Commodity-trading algorithms helped extend the rally after WTI passed $76.20.
The US benchmark’s next resistance level is its 200-day moving average, which is about 30 cents above today’s close.
A slew of bullish factors propelled crude higher on Thursday.
US crude inventories fell by more than 9 million barrels last week to the lowest level since October.
Meanwhile, a drone attack caused a fire that damaged a major refinery on Russia’s Black Sea coast on Thursday.
That followed another strike that endangered Russian crude flows earlier this week.
In China, the government said it will cut the reserve-requirement ratio for banks within two weeks and hinted that more support measures could follow, aiding the outlook for energy consumption in the world’s largest crude importer.
Leading up to Thursday’s trading, crude had traded in a narrow band as geopolitical tensions in the Red Sea had been largely offset by expectations that non-OPEC producers will continue to increase supplies.
“Crude is breaking above short-term resistance as technical and fundamental data points have improved, while geopolitical dynamics have gotten worse,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
“Sentiment remains quite bearish, so there is some room to run here if things continue to improve from a fundamental perspective.”
Prices:
WTI for March delivery rose $2.27 to settle at $77.36 a barrel.
Brent for March settlement climbed $2.39 to settle at$82.43 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 9-article/
"Oil Rises to Two Month High as US Stockpiles Fall"
by Bloomberg | Julia Fanzeres and Alex Longley
Thursday, January 25, 2024
Oil rose to the highest in about two months as US inventories, Chinese stimulus and an attack on a Russian refinery ignited a rush of trend-following algorithmic buying.
West Texas Intermediate climbed 3% to top $77 a barrel, breaking out of the narrow range it has been trading in for months.
Commodity-trading algorithms helped extend the rally after WTI passed $76.20.
The US benchmark’s next resistance level is its 200-day moving average, which is about 30 cents above today’s close.
A slew of bullish factors propelled crude higher on Thursday.
US crude inventories fell by more than 9 million barrels last week to the lowest level since October.
Meanwhile, a drone attack caused a fire that damaged a major refinery on Russia’s Black Sea coast on Thursday.
That followed another strike that endangered Russian crude flows earlier this week.
In China, the government said it will cut the reserve-requirement ratio for banks within two weeks and hinted that more support measures could follow, aiding the outlook for energy consumption in the world’s largest crude importer.
Leading up to Thursday’s trading, crude had traded in a narrow band as geopolitical tensions in the Red Sea had been largely offset by expectations that non-OPEC producers will continue to increase supplies.
“Crude is breaking above short-term resistance as technical and fundamental data points have improved, while geopolitical dynamics have gotten worse,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
“Sentiment remains quite bearish, so there is some room to run here if things continue to improve from a fundamental perspective.”
Prices:
WTI for March delivery rose $2.27 to settle at $77.36 a barrel.
Brent for March settlement climbed $2.39 to settle at$82.43 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 9-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Posts Weekly Gain After Another Tanker Attack"
by Bloomberg | Julia Fanzeres and Alex Longley
Friday, January 26, 2024
Oil rallied to the highest price in two months after a fuel tanker was struck near Yemen, underscoring the geopolitical risks to crude supplies.
West Texas Intermediate rose to top $78 a barrel, the highest price since November.
The ship operating on behalf of trading giant Trafigura Group was hit by a missile about 55 miles southeast of Aden, Yemen.
Futures for refined products, including diesel and gasoline, also jumped to two-month highs.
Crude climbed more than 6% this week — the biggest gain since the week after the start of the Israel-Hamas war — as positive fundamental news and a push from trading algorithms helped futures surpass key technical levels.
Still, the US benchmark settled overbought on its nine-day relative strength index, suggesting the surge may have been overdone.
Crude’s advance has been underpinned by elevated tensions in the Middle East, with the US striking Iran-backed Houthi rebels in Yemen to force them to halt attacks on commercial shipping in the Red Sea.
Elsewhere, drone attacks on refineries in Russia endangered crude flows as the war in Ukraine drags on.
Oil has gained more than 8% in January, with additional support from an unexpectedly large drawdown in US inventories and efforts by Chinese policymakers to shore up the economy.
Still, many traders remain cautious given prospects for robust supplies from non-OPEC producers, as well as slower demand growth in major importers, including India.
Prices:
WTI for March delivery rose 65 cents to settle at $78.01 a barrel in New York.
Brent for March settlement advanced $1.12 to settle at $83.55 a barrel.
https://www.rigzone.com/news/wire/oil_p ... 2-article/
"Oil Posts Weekly Gain After Another Tanker Attack"
by Bloomberg | Julia Fanzeres and Alex Longley
Friday, January 26, 2024
Oil rallied to the highest price in two months after a fuel tanker was struck near Yemen, underscoring the geopolitical risks to crude supplies.
West Texas Intermediate rose to top $78 a barrel, the highest price since November.
The ship operating on behalf of trading giant Trafigura Group was hit by a missile about 55 miles southeast of Aden, Yemen.
Futures for refined products, including diesel and gasoline, also jumped to two-month highs.
Crude climbed more than 6% this week — the biggest gain since the week after the start of the Israel-Hamas war — as positive fundamental news and a push from trading algorithms helped futures surpass key technical levels.
Still, the US benchmark settled overbought on its nine-day relative strength index, suggesting the surge may have been overdone.
Crude’s advance has been underpinned by elevated tensions in the Middle East, with the US striking Iran-backed Houthi rebels in Yemen to force them to halt attacks on commercial shipping in the Red Sea.
Elsewhere, drone attacks on refineries in Russia endangered crude flows as the war in Ukraine drags on.
Oil has gained more than 8% in January, with additional support from an unexpectedly large drawdown in US inventories and efforts by Chinese policymakers to shore up the economy.
Still, many traders remain cautious given prospects for robust supplies from non-OPEC producers, as well as slower demand growth in major importers, including India.
Prices:
WTI for March delivery rose 65 cents to settle at $78.01 a barrel in New York.
Brent for March settlement advanced $1.12 to settle at $83.55 a barrel.
https://www.rigzone.com/news/wire/oil_p ... 2-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Drops as Ample Supplies Offset Middle East Tensions"
by Bloomberg | Julia Fanzeres
Monday, January 29, 2024
Oil fell below $77 a barrel after last week’s rally pushed futures into overbought territory.
At the same time, ample crude supplies outweighed military escalation in the Middle East.
While markets were already poised for a correction — with West Texas Intermediate overbought for the last two sessions — OPEC+ exports are further weighing on prices.
Overall crude shipments by the producer alliance were broadly unchanged in January, suggesting promised output cuts are slow to materialize, according to market-intelligence firm Kpler Ltd.
Yet traders say a strong US response to escalating conflict in the Middle East could take oil higher.
The White House is weighing potential action after Iranian-backed militants killed three soldiers in a drone assault, while Tehran has sought to distance itself from the attack.
That followed a Houthi missile strike Friday on a vessel carrying Russian fuel for Trafigura Group, the most significant attack yet on a ship hauling energy products.
US futures have risen about 7% this month as the conflict intensifies, but a well-supplied market is keeping a lid on prices.
While the attacks in the Red Sea have led to some re-routing of cargoes — adding to freight costs — they haven’t yet led to shortages or affected production.
Last week as money managers covered short positions, slashing their bearish bets the most since April.
But long positions have only increased marginally, which traders say shows a lack of conviction in the recent rally.
“You need people to believe the rally and not just be afraid of losing money,” Rebecca Babin, a senior energy trader at CIBC Private Wealth, said in a phone interview.
Prices:
WTI for March delivery fell $1.23 to settle at $76.78 a barrel New York.
Brent for March settlement dropped $1.15 to settle at $82.40 a barrel.
https://www.rigzone.com/news/wire/oil_d ... 8-article/
"Oil Drops as Ample Supplies Offset Middle East Tensions"
by Bloomberg | Julia Fanzeres
Monday, January 29, 2024
Oil fell below $77 a barrel after last week’s rally pushed futures into overbought territory.
At the same time, ample crude supplies outweighed military escalation in the Middle East.
While markets were already poised for a correction — with West Texas Intermediate overbought for the last two sessions — OPEC+ exports are further weighing on prices.
Overall crude shipments by the producer alliance were broadly unchanged in January, suggesting promised output cuts are slow to materialize, according to market-intelligence firm Kpler Ltd.
Yet traders say a strong US response to escalating conflict in the Middle East could take oil higher.
The White House is weighing potential action after Iranian-backed militants killed three soldiers in a drone assault, while Tehran has sought to distance itself from the attack.
That followed a Houthi missile strike Friday on a vessel carrying Russian fuel for Trafigura Group, the most significant attack yet on a ship hauling energy products.
US futures have risen about 7% this month as the conflict intensifies, but a well-supplied market is keeping a lid on prices.
While the attacks in the Red Sea have led to some re-routing of cargoes — adding to freight costs — they haven’t yet led to shortages or affected production.
Last week as money managers covered short positions, slashing their bearish bets the most since April.
But long positions have only increased marginally, which traders say shows a lack of conviction in the recent rally.
“You need people to believe the rally and not just be afraid of losing money,” Rebecca Babin, a senior energy trader at CIBC Private Wealth, said in a phone interview.
Prices:
WTI for March delivery fell $1.23 to settle at $76.78 a barrel New York.
Brent for March settlement dropped $1.15 to settle at $82.40 a barrel.
https://www.rigzone.com/news/wire/oil_d ... 8-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rises Near $78 After Wave of Algorithmic Buying"
by Bloomberg | Julia Fanzeres
Tuesday, January 30, 2024
West Texas Intermediate crude rose to settle near $78 a barrel, bolstered by a wave of technical trading.
While “aggressive algorithmic buying activity” supported futures Tuesday, fundamental drivers are now needed to sustain higher prices, according to Dan Ghali, a commodity strategist at TD Securities.
A strong US military response to a drone assault on US soldiers over the weekend could lift the market, but for now the escalating conflict in the Middle East has had minimal impact on oil supplies.
“The response from the US will be key,” said Daniel Hynes, a senior commodity strategist at ANZ Group Holdings Ltd.
“The market’s view on risks to supply have definitely changed in recent days.”
Futures fell earlier amid concerns about long-term demand.
Saudi Aramco, one of the largest oil producers in the world, abandoned a plan to boost its crude output capacity, a huge reversal that raises questions about its view on future consumption.
Still, oil is on track for a monthly gain, with traders on high alert as Yemen-based Houthi rebels continue their assault commercial shipping in the Red Sea.
An attack on a fuel tanker on Friday was the most significant yet on an oil-carrying vessel.
After three US deaths last week, President Joe Biden is facing pressure from some Republicans to strike Iran directly, but the most likely scenario is that Iranian-aligned assets outside of the country will be targeted.
The challenge will be to project toughness without spurring a jump in oil prices in an election year.
Prices:
WTI for March delivery was up $1.04 to settle at $77.82 a barrel in New York.
Brent for March settlement rose 47 cents to settle at $82.87 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 4-article/
"Oil Rises Near $78 After Wave of Algorithmic Buying"
by Bloomberg | Julia Fanzeres
Tuesday, January 30, 2024
West Texas Intermediate crude rose to settle near $78 a barrel, bolstered by a wave of technical trading.
While “aggressive algorithmic buying activity” supported futures Tuesday, fundamental drivers are now needed to sustain higher prices, according to Dan Ghali, a commodity strategist at TD Securities.
A strong US military response to a drone assault on US soldiers over the weekend could lift the market, but for now the escalating conflict in the Middle East has had minimal impact on oil supplies.
“The response from the US will be key,” said Daniel Hynes, a senior commodity strategist at ANZ Group Holdings Ltd.
“The market’s view on risks to supply have definitely changed in recent days.”
Futures fell earlier amid concerns about long-term demand.
Saudi Aramco, one of the largest oil producers in the world, abandoned a plan to boost its crude output capacity, a huge reversal that raises questions about its view on future consumption.
Still, oil is on track for a monthly gain, with traders on high alert as Yemen-based Houthi rebels continue their assault commercial shipping in the Red Sea.
An attack on a fuel tanker on Friday was the most significant yet on an oil-carrying vessel.
After three US deaths last week, President Joe Biden is facing pressure from some Republicans to strike Iran directly, but the most likely scenario is that Iranian-aligned assets outside of the country will be targeted.
The challenge will be to project toughness without spurring a jump in oil prices in an election year.
Prices:
WTI for March delivery was up $1.04 to settle at $77.82 a barrel in New York.
Brent for March settlement rose 47 cents to settle at $82.87 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 4-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Posts Monthly Gain as Red Sea Tensions Escalate"
by Bloomberg | Julia Fanzeres
Wednesday, January 31, 2024
Oil clinched its first monthly gain since September after attacks on vessels in and around the Red Sea diverted tanker traffic and escalated tensions in the Middle East.
US futures climbed nearly 6% in January, even as they ended the week lower.
Traders are awaiting President Joe Biden’s response to an attack by Iranian-backed militants that killed three US soldiers last week.
But for now, the ongoing conflict hasn’t affected crude supplies, which is capping the market’s gains.
Oil traded in a narrow range for much of January, buoyed by war risk premium but limited by concerns about supply and demand.
US production reached a new monthly record of 13.3 million barrels a day, according to data released Wednesday.
And supply increases from the Americas this year should offset all of global demand growth, according to the International Energy Agency.
Meanwhile, US inventory data released Wednesday presented a mixed picture, with inventories at the key Cushing, Okla., storage hub falling to the lowest level since November while gasoline demand wavered.
Prices:
WTI for March delivery fell $1.97 to settle at $75.85 a barrel.
Brent for March settlement, which expires on Wednesday, fell $1.16 to settle at $81.71 a barrel.
The more-active April contract settled at $80.55 a barrel.
https://www.rigzone.com/news/wire/oil_p ... 0-article/
"Oil Posts Monthly Gain as Red Sea Tensions Escalate"
by Bloomberg | Julia Fanzeres
Wednesday, January 31, 2024
Oil clinched its first monthly gain since September after attacks on vessels in and around the Red Sea diverted tanker traffic and escalated tensions in the Middle East.
US futures climbed nearly 6% in January, even as they ended the week lower.
Traders are awaiting President Joe Biden’s response to an attack by Iranian-backed militants that killed three US soldiers last week.
But for now, the ongoing conflict hasn’t affected crude supplies, which is capping the market’s gains.
Oil traded in a narrow range for much of January, buoyed by war risk premium but limited by concerns about supply and demand.
US production reached a new monthly record of 13.3 million barrels a day, according to data released Wednesday.
And supply increases from the Americas this year should offset all of global demand growth, according to the International Energy Agency.
Meanwhile, US inventory data released Wednesday presented a mixed picture, with inventories at the key Cushing, Okla., storage hub falling to the lowest level since November while gasoline demand wavered.
Prices:
WTI for March delivery fell $1.97 to settle at $75.85 a barrel.
Brent for March settlement, which expires on Wednesday, fell $1.16 to settle at $81.71 a barrel.
The more-active April contract settled at $80.55 a barrel.
https://www.rigzone.com/news/wire/oil_p ... 0-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Drops on Conflicting Reports of War Ceasefire"
by Bloomberg | Julia Fanzeres and Devika Krishna Kumar
Thursday, February 01, 2024
Oil fell after a choppy session as traders assessed conflicting reports of progress on an agreement to pause the Israel-Hamas war and release hostages.
Al Jazeera reported that Israel had agreed to a ceasefire, but later deleted that post and now says Hamas has received the proposal “in a positive atmosphere.”
Bloomberg, meanwhile, reported that negotiations were in the early stages and a breakthrough isn’t expected in the coming days.
The reports sent West Texas Intermediate on a wild ride.
The US benchmark erased earlier gains to slide more than 2% before paring those losses and even briefly edging back into positive territory.
Crude then faded again, in part because of the shutdown of a major US refinery, and settled near $74 a barrel.
“It’s a confused and scared market,” said Trevor Woods, chief investment officer of commodities fund Northern Trace.
The spillover from the war in Israel and Gaza, most notably disruptions to shipping in the Red Sea, has been among the key drivers pushing crude futures higher this year.
With the US and allies striking the Iran-backed Houthis, concerns had been spreading that the conflict may widen enough to significantly disrupt oil flows.
Yet some market participants see the Middle East risks having a minimal effect on crude prices, with JPMorgan only identifying $2 as “pure geopolitical risk premium.”
Traders may have used the algorithmic-led plunge as a buying opportunity to purchase cheap crude.
The “proposal is the first de-escalation in the Middle East,” said Dennis Kissler, senior vice president at Bok Financial.
The headlines about the ceasefire triggered long liquidation, and a breach below the 200-day moving average escalated selling pressure, he said.
Meanwhile, physical crude prices were roiled after BP’s Whiting refinery was shut down after a power loss.
The refinery is one of the largest users of Canadian oil in the US, causing Canadian heavy crude prices to weaken to an $18.60 a barrel discount to WTI.
Oil capped its first monthly gain in four months in January as the Israel-Hamas war dragged on and attacks on commercial shipping in the Red Sea gathered pace.
President Joe Biden said this week he’d decided how to respond to last weekend’s assault that killed US troops, without providing details.
He said Iran was responsible for providing weaponry, but Tehran denied involvement and vowed to hit back against any strike on its soil or assets abroad.
On Thursday, OPEC+ delegates said Thursday that the group’s members plan to decide in early March whether to extend output cuts into the second quarter.
The alliance previously pledged additional curbs of roughly 900,000 barrels a day for the period as global demand growth slows and rival supplies continued to climb.
Prices:
WTI for March delivery fell 2.7% to settle at $73.82 a barrel in New York.
Brent for April settlement dropped 2.3% to settle at $78.70 a barrel.
https://www.rigzone.com/news/wire/oil_d ... 7-article/
"Oil Drops on Conflicting Reports of War Ceasefire"
by Bloomberg | Julia Fanzeres and Devika Krishna Kumar
Thursday, February 01, 2024
Oil fell after a choppy session as traders assessed conflicting reports of progress on an agreement to pause the Israel-Hamas war and release hostages.
Al Jazeera reported that Israel had agreed to a ceasefire, but later deleted that post and now says Hamas has received the proposal “in a positive atmosphere.”
Bloomberg, meanwhile, reported that negotiations were in the early stages and a breakthrough isn’t expected in the coming days.
The reports sent West Texas Intermediate on a wild ride.
The US benchmark erased earlier gains to slide more than 2% before paring those losses and even briefly edging back into positive territory.
Crude then faded again, in part because of the shutdown of a major US refinery, and settled near $74 a barrel.
“It’s a confused and scared market,” said Trevor Woods, chief investment officer of commodities fund Northern Trace.
The spillover from the war in Israel and Gaza, most notably disruptions to shipping in the Red Sea, has been among the key drivers pushing crude futures higher this year.
With the US and allies striking the Iran-backed Houthis, concerns had been spreading that the conflict may widen enough to significantly disrupt oil flows.
Yet some market participants see the Middle East risks having a minimal effect on crude prices, with JPMorgan only identifying $2 as “pure geopolitical risk premium.”
Traders may have used the algorithmic-led plunge as a buying opportunity to purchase cheap crude.
The “proposal is the first de-escalation in the Middle East,” said Dennis Kissler, senior vice president at Bok Financial.
The headlines about the ceasefire triggered long liquidation, and a breach below the 200-day moving average escalated selling pressure, he said.
Meanwhile, physical crude prices were roiled after BP’s Whiting refinery was shut down after a power loss.
The refinery is one of the largest users of Canadian oil in the US, causing Canadian heavy crude prices to weaken to an $18.60 a barrel discount to WTI.
Oil capped its first monthly gain in four months in January as the Israel-Hamas war dragged on and attacks on commercial shipping in the Red Sea gathered pace.
President Joe Biden said this week he’d decided how to respond to last weekend’s assault that killed US troops, without providing details.
He said Iran was responsible for providing weaponry, but Tehran denied involvement and vowed to hit back against any strike on its soil or assets abroad.
On Thursday, OPEC+ delegates said Thursday that the group’s members plan to decide in early March whether to extend output cuts into the second quarter.
The alliance previously pledged additional curbs of roughly 900,000 barrels a day for the period as global demand growth slows and rival supplies continued to climb.
Prices:
WTI for March delivery fell 2.7% to settle at $73.82 a barrel in New York.
Brent for April settlement dropped 2.3% to settle at $78.70 a barrel.
https://www.rigzone.com/news/wire/oil_d ... 7-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Posts Largest Weekly Decline Since October"
by Bloomberg | Julia Fanzeres
Friday, February 02, 2024
Oil slumped as talks to pause the Israel-Hamas war reduced crude’s geopolitical risk premium, with the decline accelerating after the commodity slipped below key technical levels.
West Texas Intermediate fell 2.1% to settle around $72 a barrel.
Futures are down 7.3% since last Friday — the biggest weekly tumble since early October.
Early negotiations to halt bombardments and release hostages are bolstering prospects for a resolution to the four-month conflict, which has threatened Middle East energy flows.
Headlines on the talks and oil’s drop below its 200-day and 50-day moving averages triggered trend-following algorithms, exacerbating the decline.
Meanwhile, there have been several indications that world markets remain adequately supplied.
On Friday, WTI’s prompt spread — the difference between its two nearest contracts — flipped as much as 5 cents into contango, a bearish structure that shows weakening demand for near-term barrels.
The spillover from the war in Israel and Gaza, most notably disruptions to shipping in the Red Sea, has been among the key drivers pushing crude futures higher this year.
Still, Yemen-based Houthi militants continue to target merchant shipping in the Red Sea region, and the US has been hinting at its response to a drone assault that killed American troops in Jordan.
Meanwhile, fuel markets, which have been most impacted by the disruption in the Middle East, saw a dramatic dropoff in prices after news of a potential ceasefire.
Gasoil futures fell more than 4% on Friday, while diesel fell to $2.66 a gallon, the lowest since mid-January.
Prices:
WTI for March delivery slipped 2.1% to settle at $72.28 a barrel in New York.
Brent for April settlement slid 1.7% to $77.33 a barrel.
https://www.rigzone.com/news/wire/oil_p ... 4-article/
"Oil Posts Largest Weekly Decline Since October"
by Bloomberg | Julia Fanzeres
Friday, February 02, 2024
Oil slumped as talks to pause the Israel-Hamas war reduced crude’s geopolitical risk premium, with the decline accelerating after the commodity slipped below key technical levels.
West Texas Intermediate fell 2.1% to settle around $72 a barrel.
Futures are down 7.3% since last Friday — the biggest weekly tumble since early October.
Early negotiations to halt bombardments and release hostages are bolstering prospects for a resolution to the four-month conflict, which has threatened Middle East energy flows.
Headlines on the talks and oil’s drop below its 200-day and 50-day moving averages triggered trend-following algorithms, exacerbating the decline.
Meanwhile, there have been several indications that world markets remain adequately supplied.
On Friday, WTI’s prompt spread — the difference between its two nearest contracts — flipped as much as 5 cents into contango, a bearish structure that shows weakening demand for near-term barrels.
The spillover from the war in Israel and Gaza, most notably disruptions to shipping in the Red Sea, has been among the key drivers pushing crude futures higher this year.
Still, Yemen-based Houthi militants continue to target merchant shipping in the Red Sea region, and the US has been hinting at its response to a drone assault that killed American troops in Jordan.
Meanwhile, fuel markets, which have been most impacted by the disruption in the Middle East, saw a dramatic dropoff in prices after news of a potential ceasefire.
Gasoil futures fell more than 4% on Friday, while diesel fell to $2.66 a gallon, the lowest since mid-January.
Prices:
WTI for March delivery slipped 2.1% to settle at $72.28 a barrel in New York.
Brent for April settlement slid 1.7% to $77.33 a barrel.
https://www.rigzone.com/news/wire/oil_p ... 4-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Edges Up From Three Week Low"
by Bloomberg | Julia Fanzeres
Monday, February 05, 2024
Oil edged higher, rebounding from a three-week low, as traders weighed rising geopolitical risks against hawkish comments from Federal Reserve Chair Jerome Powell.
West Texas Intermediate rose above $72 a barrel after swinging between gains and losses, with a rally in the afternoon bolstered by equity markets rebounding from intraday lows.
Also supporting prices are the biggest US attacks on Yemen’s Houthis since an initial operation on Jan. 11.
Yet while the conflict has increased threats to ships in the Red Sea, ample supplies have muted the geopolitical risk premium in crude.
The risk appetite in broader markets weakened after Powell said in an interview Sunday that Americans may have to wait beyond March for rate cuts while the central bank assesses whether inflation is retreating in a “sustainable way.”
Meanwhile, the dollar rose to the highest in almost three months, making commodities priced in the currency less attractive.
Crude slumped last week — erasing most of this year’s gains — amid talks to pause the four-month Israel-Hamas war, though US National Security Advisor Jake Sullivan said on Sunday that an agreement isn’t imminent.
Elsewhere, a sizable amount of refining capacity is likely to be offline after a fire at the Lukoil PJSC facility in Russia’s Volgograd over the weekend, blamed on a downed drone from Ukraine.
European diesel futures jumped as much as 2.6% on Monday, the most in a week.
In the US, the largest Midwest refinery — BP Plc’s plant in Whiting, Indiana — is also down.
Prices:
West Texas Intermediate rose 50 cents to settle at $72.78 a barrel in New York.
Brent for April settlement rose 66 cents $77.99 a barrel.
https://www.rigzone.com/news/wire/oil_e ... 0-article/
"Oil Edges Up From Three Week Low"
by Bloomberg | Julia Fanzeres
Monday, February 05, 2024
Oil edged higher, rebounding from a three-week low, as traders weighed rising geopolitical risks against hawkish comments from Federal Reserve Chair Jerome Powell.
West Texas Intermediate rose above $72 a barrel after swinging between gains and losses, with a rally in the afternoon bolstered by equity markets rebounding from intraday lows.
Also supporting prices are the biggest US attacks on Yemen’s Houthis since an initial operation on Jan. 11.
Yet while the conflict has increased threats to ships in the Red Sea, ample supplies have muted the geopolitical risk premium in crude.
The risk appetite in broader markets weakened after Powell said in an interview Sunday that Americans may have to wait beyond March for rate cuts while the central bank assesses whether inflation is retreating in a “sustainable way.”
Meanwhile, the dollar rose to the highest in almost three months, making commodities priced in the currency less attractive.
Crude slumped last week — erasing most of this year’s gains — amid talks to pause the four-month Israel-Hamas war, though US National Security Advisor Jake Sullivan said on Sunday that an agreement isn’t imminent.
Elsewhere, a sizable amount of refining capacity is likely to be offline after a fire at the Lukoil PJSC facility in Russia’s Volgograd over the weekend, blamed on a downed drone from Ukraine.
European diesel futures jumped as much as 2.6% on Monday, the most in a week.
In the US, the largest Midwest refinery — BP Plc’s plant in Whiting, Indiana — is also down.
Prices:
West Texas Intermediate rose 50 cents to settle at $72.78 a barrel in New York.
Brent for April settlement rose 66 cents $77.99 a barrel.
https://www.rigzone.com/news/wire/oil_e ... 0-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rises as Traders Weigh Red Sea Risks Against Fedspeak"
by Bloomberg | Julia Fanzeres and Alex Longley
Tuesday, February 06, 2024
Oil edged higher in rangebound trading as investors weighed shifting risks in the Middle East against hawkish comments from the Federal Reserve.
West Texas Intermediate rose 0.7% to settle above $73 a barrel after rebounding from a three-week low on Monday.
Prices have now returned to the roughly $5 channel where they’ve spent most of this year.
Algorithmic trading has exacerbated price choppiness as its trend-following traders quickly flip from bearish bets to bullish ones.
“Current price action is instead consistent with CTA buying activity across both WTI and Brent crudes, as rangebound trading activity whipsaws trend signals once again,” Daniel Ghali, a commodity strategist at TD Securities, wrote in a note to clients.
Continued tension in the Middle East is supporting prices.
The US has vowed to conduct more strikes against Iranian forces and regional proxies, while Yemen’s Houthi rebels claimed another attack on merchant shipping.
Prices pared gains and even briefly declined after Qatari Prime Minister Sheikh Mohammed Bin Abdulrahman Al Thani said at a news conference that Hamas’s response in negotiations over a ceasefire with Israel has been “positive.”
Still, the potential that the conflict will disrupt crude flows has provided a counterweight to early-week gloom in financial markets as traders discounted the chance of a Fed interest rate cut in March.
While headline crude prices remain rangebound, other corners of the market are showing more movement.
BP Plc Chief Executive Officer Murray Auchincloss said the diesel market is short of supplies because of refinery shutdowns.
A key Asian crude trading window has also seen heightened trading this week.
Saudi Arabia, meanwhile, kept the price of its main crude grade steady for March as the Organization of Petroleum Exporting Countries and its allies stick with production cutbacks to avert a surplus.
The kingdom will need prices to average more than $90 a barrel this year to balance its budget, Fitch Ratings said.
OPEC+ is set to decide in early March on whether to extend the curbs into the second quarter.
Prices:
WTI for March delivery gained 0.7% to settle at $73.31 a barrel.
Brent for April settlement rose 0.8% to settle at $78.59 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 6-article/
"Oil Rises as Traders Weigh Red Sea Risks Against Fedspeak"
by Bloomberg | Julia Fanzeres and Alex Longley
Tuesday, February 06, 2024
Oil edged higher in rangebound trading as investors weighed shifting risks in the Middle East against hawkish comments from the Federal Reserve.
West Texas Intermediate rose 0.7% to settle above $73 a barrel after rebounding from a three-week low on Monday.
Prices have now returned to the roughly $5 channel where they’ve spent most of this year.
Algorithmic trading has exacerbated price choppiness as its trend-following traders quickly flip from bearish bets to bullish ones.
“Current price action is instead consistent with CTA buying activity across both WTI and Brent crudes, as rangebound trading activity whipsaws trend signals once again,” Daniel Ghali, a commodity strategist at TD Securities, wrote in a note to clients.
Continued tension in the Middle East is supporting prices.
The US has vowed to conduct more strikes against Iranian forces and regional proxies, while Yemen’s Houthi rebels claimed another attack on merchant shipping.
Prices pared gains and even briefly declined after Qatari Prime Minister Sheikh Mohammed Bin Abdulrahman Al Thani said at a news conference that Hamas’s response in negotiations over a ceasefire with Israel has been “positive.”
Still, the potential that the conflict will disrupt crude flows has provided a counterweight to early-week gloom in financial markets as traders discounted the chance of a Fed interest rate cut in March.
While headline crude prices remain rangebound, other corners of the market are showing more movement.
BP Plc Chief Executive Officer Murray Auchincloss said the diesel market is short of supplies because of refinery shutdowns.
A key Asian crude trading window has also seen heightened trading this week.
Saudi Arabia, meanwhile, kept the price of its main crude grade steady for March as the Organization of Petroleum Exporting Countries and its allies stick with production cutbacks to avert a surplus.
The kingdom will need prices to average more than $90 a barrel this year to balance its budget, Fitch Ratings said.
OPEC+ is set to decide in early March on whether to extend the curbs into the second quarter.
Prices:
WTI for March delivery gained 0.7% to settle at $73.31 a barrel.
Brent for April settlement rose 0.8% to settle at $78.59 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 6-article/