RIGZONE
"Oil Swings Amid Rising Iranian Threats"
by Bloomberg | Julia Fanzeres and Alex Longley
Thursday, April 18, 2024
Oil fluctuated as markets weighed Iran’s threats on Israeli nuclear sites against a stronger US dollar.
West Texas Intermediate settled little changed below $83 a barrel after swinging between gains and losses in nearly a $2 range, ultimately leaving crude near the three-week low it reached on Wednesday.
Geopolitical risks lingered, with Iran warning Israel against attacking its nuclear facilities, threatening to respond in kind if its atomic sites are targeted.
At present, oil is carrying a premium of $5 to $10 a barrel because of geopolitical tensions, but futures may fall without escalation, Goldman Sachs Group Inc. said.
Still, crude’s recovery remains hampered by broader financial market sentiment as the US dollar’s strength makes commodities priced in the currency more expensive.
The fundamental picture also is cloudy, and futures dropped on Wednesday after US crude inventories rose by 2.7 million barrels last week while fuel demand declined.
Despite the recent dip, oil remains comfortably higher year to date as supply cuts by OPEC+ members underpin a market that’s been boosted by geopolitical risks in the Middle East and Russia.
The run-up had ignited speculation that crude may regain $100 a barrel, although market metrics such as timespreads and parts of the diesel market are pointing to more amply supply conditions.
US sanctions are also in focus.
President Joe Biden’s administration has reimposed restrictions on Venezuelan oil, ending a six-month reprieve in a move that may hamper flows from the South American nation.
At the same time, new sanctions on Iranian oil were included as part of a foreign aid package released by House Republicans that is slated for a floor vote later this week.
Prices:
WTI for May delivery was little changed to settle at $82.73 a barrel in New York.
Brent for June settlement fell 0.2% to settle at $87.11 a barrel.
https://www.rigzone.com/news/wire/oil_s ... 2-article/
OIL, NATURAL GAS
Re: OIL, NATURAL GAS
RIGZONE
"Oil Managed Slight Gain as Risk Premium Falls"
by Bloomberg | Julia Fanzeres and Alex Longley
Friday, April 19, 2024
Oil eked out a meager gain after Iranian media appeared to downplay the effect of Israeli strikes, lowering the geopolitical risk premium for crude.
Global benchmark Brent earlier soared more than $3, popping above $90 a barrel, after the attack reignited concerns that a wider regional conflict could endanger oil supplies.
Israel launched a strike on Iran, according to two US officials, but the Islamic Republic’s state media said the attack failed.
The strikes followed last weekend’s unprecedented bombardment by Tehran.
An Iranian military official told Reuters the country isn’t planning to react immediately.
Traders had been awaiting an Israeli response to last weekend’s missile and drone attack, with the rhetoric escalating as Tehran warned against striking its nuclear facilities.
The Middle East accounts for about a third of global crude supply.
There have been signs in recent days that crude’s risk premium was easing, with benchmark crudes falling sharply earlier this week.
While Friday’s muted response to the Middle East may bolster the view that traders are confident that an escalation in the region can be avoided, there has been a flurry of options buying this month to protect against a price spike.
“Our analysis suggests a fair market value of $83 per barrel based on fundamentals, indicating a current premium attributable to geopolitical concerns,” Jorge Leon, senior vice president of oil market research at Rystad Energy, said in a note.
“The near future is likely to see continued volatility in the oil market due to these geopolitical factors.”
The deluge of market-moving headlines prompted unusually large trading of both futures and options early in the day.
About 950,000 Brent futures had traded by midday in London, roughly the same amount as would trade in an entire session normally.
Brent has rallied around 13% this year, with gains driven by the worsening hostilities in the Middle East, as well as OPEC+ supply cuts that have tightened the market.
Higher energy prices, if sustained, would boost risks for the global economy and pose a challenge for central bankers as they seek to tame inflation.
Prices:
West Texas Intermediate for May delivery rose 41 cents to settle at $83.14 a barrel in New York.
Brent for June settlement advanced 18 cents to settle at $87.29 a barrel.
https://www.rigzone.com/news/wire/oil_m ... 9-article/
"Oil Managed Slight Gain as Risk Premium Falls"
by Bloomberg | Julia Fanzeres and Alex Longley
Friday, April 19, 2024
Oil eked out a meager gain after Iranian media appeared to downplay the effect of Israeli strikes, lowering the geopolitical risk premium for crude.
Global benchmark Brent earlier soared more than $3, popping above $90 a barrel, after the attack reignited concerns that a wider regional conflict could endanger oil supplies.
Israel launched a strike on Iran, according to two US officials, but the Islamic Republic’s state media said the attack failed.
The strikes followed last weekend’s unprecedented bombardment by Tehran.
An Iranian military official told Reuters the country isn’t planning to react immediately.
Traders had been awaiting an Israeli response to last weekend’s missile and drone attack, with the rhetoric escalating as Tehran warned against striking its nuclear facilities.
The Middle East accounts for about a third of global crude supply.
There have been signs in recent days that crude’s risk premium was easing, with benchmark crudes falling sharply earlier this week.
While Friday’s muted response to the Middle East may bolster the view that traders are confident that an escalation in the region can be avoided, there has been a flurry of options buying this month to protect against a price spike.
“Our analysis suggests a fair market value of $83 per barrel based on fundamentals, indicating a current premium attributable to geopolitical concerns,” Jorge Leon, senior vice president of oil market research at Rystad Energy, said in a note.
“The near future is likely to see continued volatility in the oil market due to these geopolitical factors.”
The deluge of market-moving headlines prompted unusually large trading of both futures and options early in the day.
About 950,000 Brent futures had traded by midday in London, roughly the same amount as would trade in an entire session normally.
Brent has rallied around 13% this year, with gains driven by the worsening hostilities in the Middle East, as well as OPEC+ supply cuts that have tightened the market.
Higher energy prices, if sustained, would boost risks for the global economy and pose a challenge for central bankers as they seek to tame inflation.
Prices:
West Texas Intermediate for May delivery rose 41 cents to settle at $83.14 a barrel in New York.
Brent for June settlement advanced 18 cents to settle at $87.29 a barrel.
https://www.rigzone.com/news/wire/oil_m ... 9-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Edges Lower Amid Limited War Risks"
by Bloomberg | Julia Fanzeres and Jordan Fitzgerald
Monday, April 22, 2024
Oil inched lower on limited fresh signs of escalating conflict in the Middle East, but prices hovered above monthly lows as technical support limited losses.
West Texas Intermediate’s most active June contract settled near $83 a barrel after plunging 1.9% earlier, as the 50-day moving average provided some support.
Still, with the US Congress moving to sanction Iran’s oil sector and the conflict between Israel and Iran remaining tense, prices may continue to see sharp swings.
Last week, crude posted the biggest weekly drop since February.
“Buyers are waiting to see if crude will hold its 50-day moving average before increasing exposure,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
“Bullish sentiment has been burning hot into summer and many investors are already long heading into the summer driving season, leaving less ammunition to buy the dip on a sell off,” she added.
Even after recent declines, oil is roughly 14% higher this year, buoyed by OPEC+ supply curbs.
Investors will be focusing on a slew of US economic data this week, including the Federal Reserve’s preferred measure of inflation, which will give more clues on the path for monetary policy.
Money managers are the most bullish on Brent since March 2021 as they snap up contracts to profit from any spikes.
Meanwhile, oil call options — which profit when prices rise — posted a second consecutive week of record volumes.
Earnings from supermajors TotalEnergies SE, Chevron Corp. and Exxon Mobil Corp. are also due this week, as well as Reliance Industries Ltd. and Cnooc Ltd.
Prices:
WTI for June delivery fell to settle at $82.85 a barrel in New York.
Brent for June settlement fell 0.3% to settle at $87 a barrel.
https://www.rigzone.com/news/wire/oil_e ... 6-article/
"Oil Edges Lower Amid Limited War Risks"
by Bloomberg | Julia Fanzeres and Jordan Fitzgerald
Monday, April 22, 2024
Oil inched lower on limited fresh signs of escalating conflict in the Middle East, but prices hovered above monthly lows as technical support limited losses.
West Texas Intermediate’s most active June contract settled near $83 a barrel after plunging 1.9% earlier, as the 50-day moving average provided some support.
Still, with the US Congress moving to sanction Iran’s oil sector and the conflict between Israel and Iran remaining tense, prices may continue to see sharp swings.
Last week, crude posted the biggest weekly drop since February.
“Buyers are waiting to see if crude will hold its 50-day moving average before increasing exposure,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
“Bullish sentiment has been burning hot into summer and many investors are already long heading into the summer driving season, leaving less ammunition to buy the dip on a sell off,” she added.
Even after recent declines, oil is roughly 14% higher this year, buoyed by OPEC+ supply curbs.
Investors will be focusing on a slew of US economic data this week, including the Federal Reserve’s preferred measure of inflation, which will give more clues on the path for monetary policy.
Money managers are the most bullish on Brent since March 2021 as they snap up contracts to profit from any spikes.
Meanwhile, oil call options — which profit when prices rise — posted a second consecutive week of record volumes.
Earnings from supermajors TotalEnergies SE, Chevron Corp. and Exxon Mobil Corp. are also due this week, as well as Reliance Industries Ltd. and Cnooc Ltd.
Prices:
WTI for June delivery fell to settle at $82.85 a barrel in New York.
Brent for June settlement fell 0.3% to settle at $87 a barrel.
https://www.rigzone.com/news/wire/oil_e ... 6-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rises Above $83 on Risk On Sentiment"
by Bloomberg | Julia Fanzeres and Alex Longley
Tuesday, April 23, 2024
Oil gained as the prospect of looser monetary policy countered a decreasing premium for geopolitical risk.
West Texas Intermediate rose to settle near $83 a barrel after fluctuating in a range of more than $2.
Equities rallied following a report showing growth for US business activity was at the slowest pace this year.
The weakening economic data is being interpreted as bullish for markets as traders parse clues for the Federal Reserve’s next move on lower interest rates.
Meanwhile, a slew of crude-market gauges have signaled traders are discounting the risk of further escalations in the Middle East.
WTI’s second-month options skew has flipped back to its usual put skew as traders are now seeking to protect against price drops.
And US crude pierced its 50-day moving average Tuesday for the first time since February, a move that could lead to additional selling.
After a bout of volatility, prices remain shy of yearly highs ahead of the US summer travel season that typically brings a swell of fuel demand.
That has many analysts expecting further gains for prices later this year, even after a recent pullback.
Traders also are turning their focus to the OPEC+ alliance’s next meeting on production, with the group’s recent supply cuts leading to a tighter market.
Futures are coming off back-to-back weekly losses, but remain higher this year amid geopolitical risks in the Middle East.
The US House of Representatives moved to further curb Iran’s oil sector, though analysts anticipate a muted impact on exports.
Prices:
WTI for June delivery rose 1.8% to settle at $83.36 a barrel in New York.
Brent for June settlement gained 1.6% to $88.42 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 2-article/
"Oil Rises Above $83 on Risk On Sentiment"
by Bloomberg | Julia Fanzeres and Alex Longley
Tuesday, April 23, 2024
Oil gained as the prospect of looser monetary policy countered a decreasing premium for geopolitical risk.
West Texas Intermediate rose to settle near $83 a barrel after fluctuating in a range of more than $2.
Equities rallied following a report showing growth for US business activity was at the slowest pace this year.
The weakening economic data is being interpreted as bullish for markets as traders parse clues for the Federal Reserve’s next move on lower interest rates.
Meanwhile, a slew of crude-market gauges have signaled traders are discounting the risk of further escalations in the Middle East.
WTI’s second-month options skew has flipped back to its usual put skew as traders are now seeking to protect against price drops.
And US crude pierced its 50-day moving average Tuesday for the first time since February, a move that could lead to additional selling.
After a bout of volatility, prices remain shy of yearly highs ahead of the US summer travel season that typically brings a swell of fuel demand.
That has many analysts expecting further gains for prices later this year, even after a recent pullback.
Traders also are turning their focus to the OPEC+ alliance’s next meeting on production, with the group’s recent supply cuts leading to a tighter market.
Futures are coming off back-to-back weekly losses, but remain higher this year amid geopolitical risks in the Middle East.
The US House of Representatives moved to further curb Iran’s oil sector, though analysts anticipate a muted impact on exports.
Prices:
WTI for June delivery rose 1.8% to settle at $83.36 a barrel in New York.
Brent for June settlement gained 1.6% to $88.42 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 2-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Swings as US Stockpiles Fall Sharply"
by Bloomberg | Julia Fanzeres and Alex Longley
Wednesday, April 24, 2024
Oil fluctuated as traders weighed a larger-than-anticipated drop in US crude stockpiles against broader risk-off sentiment.
West Texas Intermediate settled below $83 a barrel after swinging in a narrow range on Wednesday.
US oil inventories fell by 6.37 million barrels last week, according to an Energy Information Administration report.
The stockpile draw was larger than most analysts anticipated and was the biggest decline since January.
Meanwhile, a flight from risky assets gripped broader markets.
The S&P 500 Index swung in directionless trading while a stronger US dollar made commodities priced into the currency more expensive.
Oil prices have pulled back from recent highs above $90 a barrel as geopolitical risks in the Middle East began to ease.
Traders also are weighing the outlook for US monetary policy, with data on the Federal Reserve’s preferred inflation gauge due later this week.
The US, meanwhile, approved tougher measures against Iran in response to its attack on Israel earlier this month.
While some Asian refiners are bracing for added scrutiny, the move isn’t expected to have a significant market impact.
Timespreads are signaling tighter conditions, with the gap between Brent’s two nearest contracts widening to $1.05 a barrel in backwardation, a bullish pattern in which the nearer contract trades at a premium to the next in sequence.
That compares with 69 cents a week ago.
Prices:
WTI fell 0.6% to settle at $82.81 a barrel in New York.
Brent settlement was 0.5% lower at $88.02 a barrel.
https://www.rigzone.com/news/wire/oil_s ... 8-article/
"Oil Swings as US Stockpiles Fall Sharply"
by Bloomberg | Julia Fanzeres and Alex Longley
Wednesday, April 24, 2024
Oil fluctuated as traders weighed a larger-than-anticipated drop in US crude stockpiles against broader risk-off sentiment.
West Texas Intermediate settled below $83 a barrel after swinging in a narrow range on Wednesday.
US oil inventories fell by 6.37 million barrels last week, according to an Energy Information Administration report.
The stockpile draw was larger than most analysts anticipated and was the biggest decline since January.
Meanwhile, a flight from risky assets gripped broader markets.
The S&P 500 Index swung in directionless trading while a stronger US dollar made commodities priced into the currency more expensive.
Oil prices have pulled back from recent highs above $90 a barrel as geopolitical risks in the Middle East began to ease.
Traders also are weighing the outlook for US monetary policy, with data on the Federal Reserve’s preferred inflation gauge due later this week.
The US, meanwhile, approved tougher measures against Iran in response to its attack on Israel earlier this month.
While some Asian refiners are bracing for added scrutiny, the move isn’t expected to have a significant market impact.
Timespreads are signaling tighter conditions, with the gap between Brent’s two nearest contracts widening to $1.05 a barrel in backwardation, a bullish pattern in which the nearer contract trades at a premium to the next in sequence.
That compares with 69 cents a week ago.
Prices:
WTI fell 0.6% to settle at $82.81 a barrel in New York.
Brent settlement was 0.5% lower at $88.02 a barrel.
https://www.rigzone.com/news/wire/oil_s ... 8-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rises on Weaker US Dollar"
by Bloomberg | Jordan Fitzgerald and Julia Fanzeres
Thursday, April 25, 2024
Oil erased earlier losses to top $83 a barrel as a weaker dollar boosted commodities priced in the currency.
Strengthening equities markets also supported crude futures, which spent much of the session trading in a narrow range after a closely watched measure of US inflation soured sentiment.
“Oil markets are still trying to find an equilibrium price due to the lack of geopolitical headlines and data releases,” said Keshav Lohiya, founder of consultant Oilytics.
Crude remains higher this year, aided by supply curbs from OPEC+ and tensions in the Middle East, although prices have pulled back from recent highs as geopolitical risks eased.
The options skews remain in a bearish tilt toward puts, while the world’s biggest oil exchange-traded fund — the US Oil Fund — posted its largest daily outflow on record.
The demand outlook also remains clouded, with a weakness showing in some refined products.
Profit margins for turning crude into diesel in Asia were near the lowest level in nearly a year.
Prices:
WTI for June delivery rose 76 cents to settle at $83.57 a barrel in New York.
Brent for June settlement rose 99 cents to settle at $89.01 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 4-article/
"Oil Rises on Weaker US Dollar"
by Bloomberg | Jordan Fitzgerald and Julia Fanzeres
Thursday, April 25, 2024
Oil erased earlier losses to top $83 a barrel as a weaker dollar boosted commodities priced in the currency.
Strengthening equities markets also supported crude futures, which spent much of the session trading in a narrow range after a closely watched measure of US inflation soured sentiment.
“Oil markets are still trying to find an equilibrium price due to the lack of geopolitical headlines and data releases,” said Keshav Lohiya, founder of consultant Oilytics.
Crude remains higher this year, aided by supply curbs from OPEC+ and tensions in the Middle East, although prices have pulled back from recent highs as geopolitical risks eased.
The options skews remain in a bearish tilt toward puts, while the world’s biggest oil exchange-traded fund — the US Oil Fund — posted its largest daily outflow on record.
The demand outlook also remains clouded, with a weakness showing in some refined products.
Profit margins for turning crude into diesel in Asia were near the lowest level in nearly a year.
Prices:
WTI for June delivery rose 76 cents to settle at $83.57 a barrel in New York.
Brent for June settlement rose 99 cents to settle at $89.01 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 4-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Posts Weekly Gain as Market Tightens"
by Bloomberg | Julia Fanzeres and Jack Wittels
Friday, April 26, 2024
Oil rose this week amid signs of a tightening physical market while traders continue to assess lingering Middle East risks.
West Texas Intermediate edged higher to settle just below $84 a barrel, concluding a weekly advance of 2% for the June contract.
A report earlier this week showed US crude stockpiles dropping to the lowest since January, while gauges such as the WTI cash roll and key timespreads are signaling supply constraints.
The roll, which reflects supply-demand balances at Cushing, Oklahoma, climbed to the highest in two years.
Meanwhile, WTI’s prompt spread — the gap between its two nearest contracts — has strengthened to 72 cents in backwardation, up from 55 cents last week.
Crude’s gains are being restrained by US economic data showing inflation rose in March, reinforcing concerns of persistent price pressures.
The data followed weaker US economic growth and traders paring back expectations for the timing of a Fed rate reduction.
Crude has advanced this year, supported by supply cuts from OPEC+ and political risks in the Middle East, including heightened tensions between Israel and Iran that helped lift Brent above $90 a barrel earlier this month.
Israel is stepping up preparations for a potential all-out war with Hezbollah.
Despite the strength in crude futures, there are concerns in other corners of the oil markets.
A sharp drop in returns from making diesel is prompting some Asian refiners to make modest reductions in operating rates, which could crimp regional oil imports.
Analysts have meanwhile forecast a decline in margins for making the fuel in Europe.
Prices:
WTI for June delivery rose 0.3% to settle at $83.85 a barrel in New York.
Brent for June settlement rose 0.6% to settle at $89.50 a barrel.
https://www.rigzone.com/news/wire/oil_p ... 8-article/
"Oil Posts Weekly Gain as Market Tightens"
by Bloomberg | Julia Fanzeres and Jack Wittels
Friday, April 26, 2024
Oil rose this week amid signs of a tightening physical market while traders continue to assess lingering Middle East risks.
West Texas Intermediate edged higher to settle just below $84 a barrel, concluding a weekly advance of 2% for the June contract.
A report earlier this week showed US crude stockpiles dropping to the lowest since January, while gauges such as the WTI cash roll and key timespreads are signaling supply constraints.
The roll, which reflects supply-demand balances at Cushing, Oklahoma, climbed to the highest in two years.
Meanwhile, WTI’s prompt spread — the gap between its two nearest contracts — has strengthened to 72 cents in backwardation, up from 55 cents last week.
Crude’s gains are being restrained by US economic data showing inflation rose in March, reinforcing concerns of persistent price pressures.
The data followed weaker US economic growth and traders paring back expectations for the timing of a Fed rate reduction.
Crude has advanced this year, supported by supply cuts from OPEC+ and political risks in the Middle East, including heightened tensions between Israel and Iran that helped lift Brent above $90 a barrel earlier this month.
Israel is stepping up preparations for a potential all-out war with Hezbollah.
Despite the strength in crude futures, there are concerns in other corners of the oil markets.
A sharp drop in returns from making diesel is prompting some Asian refiners to make modest reductions in operating rates, which could crimp regional oil imports.
Analysts have meanwhile forecast a decline in margins for making the fuel in Europe.
Prices:
WTI for June delivery rose 0.3% to settle at $83.85 a barrel in New York.
Brent for June settlement rose 0.6% to settle at $89.50 a barrel.
https://www.rigzone.com/news/wire/oil_p ... 8-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Falls as Geopolitical Risk Premium Decreases"
by Bloomberg | Julia Fanzeres, Alex Longley and Jordan Fitzgerald
Monday, April 29, 2024
Oil fell as signs of progress toward a cease-fire between Israel and Hamas reduced crude’s geopolitical risk premium.
West Texas Intermediate fell 1.5% to settle below $83 a barrel after the New York Times reported that Israel is open to a truce involving an initial release of 33 hostages, fewer than it previously sought.
Momentum toward a cease-fire has been building, with US Secretary of State Antony Blinken saying he will step up his push to secure a truce in Gaza during a visit to the region.
The White House said Israel has agreed to hear out its concerns and hold off invading Rafah until meeting with the Americans.
Still, the gap between the two nearest Brent contracts was more than $1 a barrel in backwardation, a bullish indicator that signals tight near-term supply.
Benchmark North Sea crudes have also seen a spate of buying in recent days.
Crude has risen this year on OPEC+ supply cuts and heightened tensions in the Middle East — the source of about a third of the world’s oil.
Meanwhile, shifting expectations for US monetary policy are weighing on the demand outlook, and traders will look to a Federal Reserve meeting on Wednesday to gauge the prospects for rate cuts this year.
In another bearish sign, the premiums for diesel and heating oil over crude have fallen to the lowest level in months on concerns about oversupply.
Prices:
WTI for June delivery dropped 1.5% to settle at $82.63 a barrel in New York.
Brent for June settlement lost 1.2% to $88.40 a barrel.
https://www.rigzone.com/news/wire/oil_f ... 4-article/
"Oil Falls as Geopolitical Risk Premium Decreases"
by Bloomberg | Julia Fanzeres, Alex Longley and Jordan Fitzgerald
Monday, April 29, 2024
Oil fell as signs of progress toward a cease-fire between Israel and Hamas reduced crude’s geopolitical risk premium.
West Texas Intermediate fell 1.5% to settle below $83 a barrel after the New York Times reported that Israel is open to a truce involving an initial release of 33 hostages, fewer than it previously sought.
Momentum toward a cease-fire has been building, with US Secretary of State Antony Blinken saying he will step up his push to secure a truce in Gaza during a visit to the region.
The White House said Israel has agreed to hear out its concerns and hold off invading Rafah until meeting with the Americans.
Still, the gap between the two nearest Brent contracts was more than $1 a barrel in backwardation, a bullish indicator that signals tight near-term supply.
Benchmark North Sea crudes have also seen a spate of buying in recent days.
Crude has risen this year on OPEC+ supply cuts and heightened tensions in the Middle East — the source of about a third of the world’s oil.
Meanwhile, shifting expectations for US monetary policy are weighing on the demand outlook, and traders will look to a Federal Reserve meeting on Wednesday to gauge the prospects for rate cuts this year.
In another bearish sign, the premiums for diesel and heating oil over crude have fallen to the lowest level in months on concerns about oversupply.
Prices:
WTI for June delivery dropped 1.5% to settle at $82.63 a barrel in New York.
Brent for June settlement lost 1.2% to $88.40 a barrel.
https://www.rigzone.com/news/wire/oil_f ... 4-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Ends Rocky Month Falling Below $82"
by Bloomberg | Julia Fanzeres, Alex Longley and Jordan Fitzgerald
Tuesday, April 30, 2024
Oil slid near its lowest price in a month as the potential for a cease-fire in the Middle East eased geopolitical tensions.
West Texas Intermediate settled below $82 a barrel, testing its 50-day moving average of about $81.80.
The level has provided technical support for prices, and a decisive drop below it may accelerate selling.
Earlier, oil was pressured by a potential agreement between Israel and Hamas to release hostages, a move that may de-escalate conflict in the region.
Meanwhile, continued signs of elevated inflation — including an acceleration in a broad gauge of US labor costs — are weighing on the outlook for crude demand.
Economic data in Europe showed the region exited recession, but inflation has also proved sticky.
Crude endured a rocky April after surging to the highest since October following Iran’s unprecedented attack on Israel.
While OPEC+ supply curbs are also bolstering prices, uncertainty over US monetary policy and softness in some fuel markets like diesel are adding headwinds.
US Secretary of State Antony Blinken, in an ongoing visit to the Middle East, urged leaders of the Hamas militant group — designated a terrorist organization by the US and the European Union — to quickly reach a decision on Israeli conditions for a cease-fire.
Prices:
WTI for June fell 0.8% to settle at $81.93 a barrel in New York.
Brent for July dropped 1% to $86.33 a barrel.
https://www.rigzone.com/news/wire/oil_e ... 6-article/
"Oil Ends Rocky Month Falling Below $82"
by Bloomberg | Julia Fanzeres, Alex Longley and Jordan Fitzgerald
Tuesday, April 30, 2024
Oil slid near its lowest price in a month as the potential for a cease-fire in the Middle East eased geopolitical tensions.
West Texas Intermediate settled below $82 a barrel, testing its 50-day moving average of about $81.80.
The level has provided technical support for prices, and a decisive drop below it may accelerate selling.
Earlier, oil was pressured by a potential agreement between Israel and Hamas to release hostages, a move that may de-escalate conflict in the region.
Meanwhile, continued signs of elevated inflation — including an acceleration in a broad gauge of US labor costs — are weighing on the outlook for crude demand.
Economic data in Europe showed the region exited recession, but inflation has also proved sticky.
Crude endured a rocky April after surging to the highest since October following Iran’s unprecedented attack on Israel.
While OPEC+ supply curbs are also bolstering prices, uncertainty over US monetary policy and softness in some fuel markets like diesel are adding headwinds.
US Secretary of State Antony Blinken, in an ongoing visit to the Middle East, urged leaders of the Hamas militant group — designated a terrorist organization by the US and the European Union — to quickly reach a decision on Israeli conditions for a cease-fire.
Prices:
WTI for June fell 0.8% to settle at $81.93 a barrel in New York.
Brent for July dropped 1% to $86.33 a barrel.
https://www.rigzone.com/news/wire/oil_e ... 6-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Slumps Below $80 Amid Surging US Stockpiles"
by Bloomberg|Julia Fanzeres and Jordan Fitzgerald
Wednesday, May 01, 2024
Oil extended its recent skid as US crude inventories swelled to the highest since June the Federal Reserve signaled fresh concerns about inflation.
West Texas Intermediate settled at $79 a barrel, the lowest closing price since mid-March.
Prices also broke beneath the 200-day moving average, which had served as a support level for more than a month.
A report from the Energy Information Administration showed US crude stockpiles increased 7.27 million barrels last week, the biggest jump since early February and more than the 4.91 million-barrel gain projected by an industry group on Tuesday.
That adds to headwinds that also include the prospect of a cease-fire that would reduce tensions in the Middle East.
Crude last month surged to the highest since October following Iran’s unprecedented attack on Israel.
“The surprise build from the EIA caught most traders off guard,” said Dennis Kissler, senior vice president for trading at BOK Financial Securities.
When combined with elevated interest rates from the Fed and accelerated liquidation after crude broke through moving averages, “the long side of crude is losing its luster.”
While OPEC+ supply curbs are also supporting prices, uncertainty over US monetary policy and softness in fuel markets including diesel are adding to headwinds.
US inflation remains too hot, so rates will remain elevated, Federal Reserve Chair Jerome Powell said Wednesday.
Though Powell said the Fed’s next move won’t likely be a hike, the uncertainty surrounding when inflation — and subsequently rates — will come down adds more bearish pressure to markets.
Wednesday also marks the Labor Day holiday in many countries, meaning trading volumes were thinner than usual.
Prices:
WTI for June fell 3.6% to settle at $79 a barrel in New York.
Brent for July settlement dropped 3.3% to $83.44 a barrel.
https://www.rigzone.com/news/wire/oil_s ... 2-article/
"Oil Slumps Below $80 Amid Surging US Stockpiles"
by Bloomberg|Julia Fanzeres and Jordan Fitzgerald
Wednesday, May 01, 2024
Oil extended its recent skid as US crude inventories swelled to the highest since June the Federal Reserve signaled fresh concerns about inflation.
West Texas Intermediate settled at $79 a barrel, the lowest closing price since mid-March.
Prices also broke beneath the 200-day moving average, which had served as a support level for more than a month.
A report from the Energy Information Administration showed US crude stockpiles increased 7.27 million barrels last week, the biggest jump since early February and more than the 4.91 million-barrel gain projected by an industry group on Tuesday.
That adds to headwinds that also include the prospect of a cease-fire that would reduce tensions in the Middle East.
Crude last month surged to the highest since October following Iran’s unprecedented attack on Israel.
“The surprise build from the EIA caught most traders off guard,” said Dennis Kissler, senior vice president for trading at BOK Financial Securities.
When combined with elevated interest rates from the Fed and accelerated liquidation after crude broke through moving averages, “the long side of crude is losing its luster.”
While OPEC+ supply curbs are also supporting prices, uncertainty over US monetary policy and softness in fuel markets including diesel are adding to headwinds.
US inflation remains too hot, so rates will remain elevated, Federal Reserve Chair Jerome Powell said Wednesday.
Though Powell said the Fed’s next move won’t likely be a hike, the uncertainty surrounding when inflation — and subsequently rates — will come down adds more bearish pressure to markets.
Wednesday also marks the Labor Day holiday in many countries, meaning trading volumes were thinner than usual.
Prices:
WTI for June fell 3.6% to settle at $79 a barrel in New York.
Brent for July settlement dropped 3.3% to $83.44 a barrel.
https://www.rigzone.com/news/wire/oil_s ... 2-article/