RIGZONE
"Oil Edges Lower Amid Stronger US Dollar"
by Bloomberg | Julia Fanzeres
Thursday, March 21, 2024
Oil edged lower as a stronger US dollar outweighed optimism that the Federal Reserve will stick to its path of interest-rate cuts this year.
West Texas Intermediate fell 0.3% to settle near $81 after a surprise rate cut by the Swiss National Bank strengthened the dollar, which typically pressures commodities priced in the currency.
That sapped the benefit of Fed officials maintaining their outlook for three rate reductions this year, which broader markets interpreted as dovish.
US benchmark crude dropped the most in about a month on Wednesday after a technical indicator suggested the recent rally was getting stretched.
Crude has posted a double-digit percentage advance this year, breaking out of a narrow range in recent weeks, after OPEC+ extended production cuts.
Geopolitical tensions including Ukrainian drone attacks on Russian refineries and rising transport costs due to attacks on ships in the Red Sea have also supported prices.
However, gains have been limited by surging supply from outside the cartel.
Prices:
WTI for May fell 20 cents to $81.07 a barrel in New York.
Brent for May settlement slipped 17 cents to settle at $85.78 a barrel.
https://www.rigzone.com/news/wire/oil_e ... 8-article/
OIL, NATURAL GAS
Re: OIL, NATURAL GAS
RIGZONE
"Oil Settles Lower as Stronger Dollar Offsets Tighter Market"
by Bloomberg | Julia Fanzeres
Friday, March 22, 2024
Oil edged lower to settle below $81 a barrel after a stronger dollar curbed investor appetite for commodities, offsetting signs of a tighter global crude market.
Refined products supplies are looking more constrained after Ukrainian drone attacks hit major facilities, pushing Russia’s refining rate to a multi-month low.
Adding to the crunch, Indian refiners are refusing to take Russian crude carried on PJSC Sovcomflot tankers due to US sanctions, complicating a trade that helped contain prices.
Yet hampering crude’s recent rally is the US dollar’s strength, which makes the commodity more expensive for overseas buyers.
A dollar index is heading for its best week since January following a surprise rate cut from the Swiss National Bank, as well as weakness in China’s yuan, even after the Federal Reserve signaled lower rates remain on the cards this year.
Global oil demand seems to be surpassing expectations, creating a bullish mood at the annual CERAWeek by S&P Global conference in Houston.
Crude has advanced in the first quarter amid declining US inventories, production cuts by the OPEC+ alliance and the Ukrainian attacks on Russian refineries.
However, gains have been limited by surging supply from outside OPEC+ and a muddled economic outlook in top importer China.
In the Middle East, Israel said it would invade Rafah no matter what the US says, potentially escalating regional tensions, as it battles Iran-backed Hamas in the Gaza Strip.
The Houthis in Yemen — who have been targeting ships in the Red Sea for months to support Hamas — have assured China and Russia that their vessels wouldn’t be at risk.
Prices:
WTI for May delivery fell 44 cents to settle at $80.63 a barrel.
Brent for May settlement fell 35 cents to settle at $85.43 a barrel
https://www.rigzone.com/news/wire/oil_s ... 5-article/
"Oil Settles Lower as Stronger Dollar Offsets Tighter Market"
by Bloomberg | Julia Fanzeres
Friday, March 22, 2024
Oil edged lower to settle below $81 a barrel after a stronger dollar curbed investor appetite for commodities, offsetting signs of a tighter global crude market.
Refined products supplies are looking more constrained after Ukrainian drone attacks hit major facilities, pushing Russia’s refining rate to a multi-month low.
Adding to the crunch, Indian refiners are refusing to take Russian crude carried on PJSC Sovcomflot tankers due to US sanctions, complicating a trade that helped contain prices.
Yet hampering crude’s recent rally is the US dollar’s strength, which makes the commodity more expensive for overseas buyers.
A dollar index is heading for its best week since January following a surprise rate cut from the Swiss National Bank, as well as weakness in China’s yuan, even after the Federal Reserve signaled lower rates remain on the cards this year.
Global oil demand seems to be surpassing expectations, creating a bullish mood at the annual CERAWeek by S&P Global conference in Houston.
Crude has advanced in the first quarter amid declining US inventories, production cuts by the OPEC+ alliance and the Ukrainian attacks on Russian refineries.
However, gains have been limited by surging supply from outside OPEC+ and a muddled economic outlook in top importer China.
In the Middle East, Israel said it would invade Rafah no matter what the US says, potentially escalating regional tensions, as it battles Iran-backed Hamas in the Gaza Strip.
The Houthis in Yemen — who have been targeting ships in the Red Sea for months to support Hamas — have assured China and Russia that their vessels wouldn’t be at risk.
Prices:
WTI for May delivery fell 44 cents to settle at $80.63 a barrel.
Brent for May settlement fell 35 cents to settle at $85.43 a barrel
https://www.rigzone.com/news/wire/oil_s ... 5-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rises on Global Tensions and Signs of Continued Cutbacks"
by Bloomberg | Josyana Joshua
Monday, March 25, 2024
Oil futures rose on geopolitical unrest and signs that OPEC+ will stick with current output cuts when delegates hold a review session next week.
Western Texas Intermediate settled just shy of $82 a barrel after losing more than 3% in the final three days of last week.
Continued drone strikes by Ukraine are crimping Russia’s crude-refining capabilities.
Rosneft’s Kuibyshev oil refinery in Samara, Russia was forced to shut half of its capacity after an attack Saturday, Reuters reported.
Separately, delegates from the Organization of Petroleum Exporting Countries and its allies see no need to recommend changes to oil supply policy, according to several national officials.
Key members will gather online on April 3 to assess implementation of the latest cutbacks, which are scheduled to be in place through the end of June.
Crude is also getting a push from technical indicators, with its 50-day moving average exceeding the 100-day moving average, a chart pattern known as a “golden cross.”
Crude is headed for a third monthly gain as OPEC+ presses on with its curbs and the US tightens sanctions on Russian flows.
While China’s shaky demand outlook has been a headwind, Premier Li Qiang said Beijing was stepping up policy support to spur growth.
Reflecting the bullish mood, money managers’ net-long positions on Brent have risen to the highest in more than a year.
Goldman Sachs Group Inc. said in a research note that commodities will advance this year as central banks reduce interest rates, helping to support industrial and consumer demand.
That cautiously bullish outlook squares with recent comments from other market watchers, including Macquarie Group Ltd. and Carlyle Group LP.
Prices:
WTI for May delivery advanced 1.6% to settle at $81.95 a barrel.
Brent for May settlement rose 1.5% to $86.75 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 7-article/
"Oil Rises on Global Tensions and Signs of Continued Cutbacks"
by Bloomberg | Josyana Joshua
Monday, March 25, 2024
Oil futures rose on geopolitical unrest and signs that OPEC+ will stick with current output cuts when delegates hold a review session next week.
Western Texas Intermediate settled just shy of $82 a barrel after losing more than 3% in the final three days of last week.
Continued drone strikes by Ukraine are crimping Russia’s crude-refining capabilities.
Rosneft’s Kuibyshev oil refinery in Samara, Russia was forced to shut half of its capacity after an attack Saturday, Reuters reported.
Separately, delegates from the Organization of Petroleum Exporting Countries and its allies see no need to recommend changes to oil supply policy, according to several national officials.
Key members will gather online on April 3 to assess implementation of the latest cutbacks, which are scheduled to be in place through the end of June.
Crude is also getting a push from technical indicators, with its 50-day moving average exceeding the 100-day moving average, a chart pattern known as a “golden cross.”
Crude is headed for a third monthly gain as OPEC+ presses on with its curbs and the US tightens sanctions on Russian flows.
While China’s shaky demand outlook has been a headwind, Premier Li Qiang said Beijing was stepping up policy support to spur growth.
Reflecting the bullish mood, money managers’ net-long positions on Brent have risen to the highest in more than a year.
Goldman Sachs Group Inc. said in a research note that commodities will advance this year as central banks reduce interest rates, helping to support industrial and consumer demand.
That cautiously bullish outlook squares with recent comments from other market watchers, including Macquarie Group Ltd. and Carlyle Group LP.
Prices:
WTI for May delivery advanced 1.6% to settle at $81.95 a barrel.
Brent for May settlement rose 1.5% to $86.75 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 7-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Dips as Continued OPEC Cutbacks are Likely"
by Bloomberg | Josyana Joshua
Tuesday, March 26, 2024
Oil settled little changed Tuesday, after swinging between gains and losses, with OPEC+ set to affirm its policy of production cuts amid tensions in the Middle East and Russia.
West Texas Intermediate settled above $81, while global benchmark Brent closed above $86 a barrel.
OPEC+ delegates aren’t seeing a need to change supply policy at a review meeting next week, according to several national officials, with quotas in place until June proving effective.
The Houthis renewed threats against Saudi Arabia if it supported US strikes.
The technical backdrop helped keep oil range-bound Tuesday, with crude’s moving averages yet to form a golden cross, a bullish pattern.
That’s when an asset’s 50-day moving average exceeds the corresponding 200-day figure.
Its last formation for the generic contract in August preceded WTI surging by more than $10 a barrel to above $90.
Signs of a shift in monetary policy have also aided sentiment.
The Federal Reserve has signaled a willingness to cut interest rates later this year, buoying appetite for risk assets, including oil.
Crude has risen about 14% this quarter, breaking out of a tight range that held for the first two months of the year.
Attacks by Ukraine on Russian refineries have aided gains, together with signs of strength in some product markets including gasoline.
The positive overall market outlook has spurred hedge funds to increase their bullish bets on Brent.
Prices:
WTI for May delivery dipped 0.4% to settle at $81.62 a barrel.
Brent for May settlement fell 0.6% to $86.25 a barrel.
https://www.rigzone.com/news/wire/oil_d ... 9-article/
"Oil Dips as Continued OPEC Cutbacks are Likely"
by Bloomberg | Josyana Joshua
Tuesday, March 26, 2024
Oil settled little changed Tuesday, after swinging between gains and losses, with OPEC+ set to affirm its policy of production cuts amid tensions in the Middle East and Russia.
West Texas Intermediate settled above $81, while global benchmark Brent closed above $86 a barrel.
OPEC+ delegates aren’t seeing a need to change supply policy at a review meeting next week, according to several national officials, with quotas in place until June proving effective.
The Houthis renewed threats against Saudi Arabia if it supported US strikes.
The technical backdrop helped keep oil range-bound Tuesday, with crude’s moving averages yet to form a golden cross, a bullish pattern.
That’s when an asset’s 50-day moving average exceeds the corresponding 200-day figure.
Its last formation for the generic contract in August preceded WTI surging by more than $10 a barrel to above $90.
Signs of a shift in monetary policy have also aided sentiment.
The Federal Reserve has signaled a willingness to cut interest rates later this year, buoying appetite for risk assets, including oil.
Crude has risen about 14% this quarter, breaking out of a tight range that held for the first two months of the year.
Attacks by Ukraine on Russian refineries have aided gains, together with signs of strength in some product markets including gasoline.
The positive overall market outlook has spurred hedge funds to increase their bullish bets on Brent.
Prices:
WTI for May delivery dipped 0.4% to settle at $81.62 a barrel.
Brent for May settlement fell 0.6% to $86.25 a barrel.
https://www.rigzone.com/news/wire/oil_d ... 9-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Falls as US Inventories Increase"
by Bloomberg | Josyana Joshua
Wednesday, March 27, 2024
Oil lost more of the ground it had gained early this week as US crude and gasoline inventories increased, undercutting expectations for tightening supplies.
West Texas Intermediate dipped 0.3%, its second straight day of minor losses, after a US government report showed oil stockpiles rose 3.17 million barrels last week.
Still, the gain was about a third of the 9.3 million-barrel increase projected by the industry-funded American Petroleum Institute on Tuesday.
Crude has rallied this year on Ukrainian drone attacks on Russian oil infrastructure and extended supply cutbacks by OPEC and its allies.
Meanwhile, a challenging economic outlook in China and robust non-OPEC supply growth remain headwinds.
Gasoline futures, which in previous weeks played into crude’s bullish tone, traded at the lowest in almost two weeks.
US stockpiles of the fuel rose 1.3 million barrels last week, according to Energy Information Administration, a reversal from the 4.4 million-barrel drawdown the API projected.
Implied weekly demand was below 9 million barrels a day for the second week in a row, adding to the bearish sentiment.
“Given an approaching end of month, end of quarter and the long Easter weekend, it is understandable that a little froth comes off the markets,” said John Evans, an analyst at brokerage PVM.
The generally more positive tone across markets in recent weeks has some banks calling for higher prices.
JPMorgan Chase & Co. said Wednesday that crude could hit $100 a barrel if Russia’s recent decision to cut output isn’t balanced by other measures.
US gasoline prices are also likely to hit $4 a gallon by May, the bank’s analysts, including Natasha Kaneva, wrote in a note.
Prices:
WTI for May delivery declined 0.3% to settle at $81.35 a barrel.
Brent for May settlement fell 0.2% to $86.09 a barrel.
https://www.rigzone.com/news/wire/oil_f ... 1-article/
"Oil Falls as US Inventories Increase"
by Bloomberg | Josyana Joshua
Wednesday, March 27, 2024
Oil lost more of the ground it had gained early this week as US crude and gasoline inventories increased, undercutting expectations for tightening supplies.
West Texas Intermediate dipped 0.3%, its second straight day of minor losses, after a US government report showed oil stockpiles rose 3.17 million barrels last week.
Still, the gain was about a third of the 9.3 million-barrel increase projected by the industry-funded American Petroleum Institute on Tuesday.
Crude has rallied this year on Ukrainian drone attacks on Russian oil infrastructure and extended supply cutbacks by OPEC and its allies.
Meanwhile, a challenging economic outlook in China and robust non-OPEC supply growth remain headwinds.
Gasoline futures, which in previous weeks played into crude’s bullish tone, traded at the lowest in almost two weeks.
US stockpiles of the fuel rose 1.3 million barrels last week, according to Energy Information Administration, a reversal from the 4.4 million-barrel drawdown the API projected.
Implied weekly demand was below 9 million barrels a day for the second week in a row, adding to the bearish sentiment.
“Given an approaching end of month, end of quarter and the long Easter weekend, it is understandable that a little froth comes off the markets,” said John Evans, an analyst at brokerage PVM.
The generally more positive tone across markets in recent weeks has some banks calling for higher prices.
JPMorgan Chase & Co. said Wednesday that crude could hit $100 a barrel if Russia’s recent decision to cut output isn’t balanced by other measures.
US gasoline prices are also likely to hit $4 a gallon by May, the bank’s analysts, including Natasha Kaneva, wrote in a note.
Prices:
WTI for May delivery declined 0.3% to settle at $81.35 a barrel.
Brent for May settlement fell 0.2% to $86.09 a barrel.
https://www.rigzone.com/news/wire/oil_f ... 1-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Seals Quarterly Gain in Tightening Market"
by Bloomberg | Josyana Joshua and Kateryna Kadabashy
Thursday, March 28, 2024
Oil scored a 16% quarterly gain in the latest sign that export curbs by OPEC and its allies are reining in global supplies.
West Texas Intermediate futures closed above $83 a barrel on Friday, the highest settlement in more than a week.
Timespreads this year have swung from bearish contango to a bullish backwardated structure — signaling a tightening physical market.
The OPEC+ alliance extended daily supply cutbacks of about 2 million barrels through the end of June, underpinning expectations that global stockpiles will shrink.
Prices have also been aided by Ukraine’s drone strikes on Russian energy infrastructure, geopolitical tensions in the Middle East, and demand growth around the world.
In the US, key gauges of economic activity posted strong advances Thursday, pointing to healthy growth.
That helped counter an increase in domestic crude and gasoline stockpiles that has undercut some of the supply tightness.
The bullish backdrop spurred some banks to warn there’s scope for higher prices.
While sticking with existing forecasts, JPMorgan Chase & Co. said this week there’s a path for the international benchmark, Brent crude, to close in on triple-digits by September if the impact of Russia’s production cuts isn’t balanced out by countermeasures.
Prices:
WTI rose 2.2% to settle at $83.17 a barrel.
Brent, which is due for expiry, added 1.6% to $87.48.
https://www.rigzone.com/news/wire/oil_s ... 4-article/
"Oil Seals Quarterly Gain in Tightening Market"
by Bloomberg | Josyana Joshua and Kateryna Kadabashy
Thursday, March 28, 2024
Oil scored a 16% quarterly gain in the latest sign that export curbs by OPEC and its allies are reining in global supplies.
West Texas Intermediate futures closed above $83 a barrel on Friday, the highest settlement in more than a week.
Timespreads this year have swung from bearish contango to a bullish backwardated structure — signaling a tightening physical market.
The OPEC+ alliance extended daily supply cutbacks of about 2 million barrels through the end of June, underpinning expectations that global stockpiles will shrink.
Prices have also been aided by Ukraine’s drone strikes on Russian energy infrastructure, geopolitical tensions in the Middle East, and demand growth around the world.
In the US, key gauges of economic activity posted strong advances Thursday, pointing to healthy growth.
That helped counter an increase in domestic crude and gasoline stockpiles that has undercut some of the supply tightness.
The bullish backdrop spurred some banks to warn there’s scope for higher prices.
While sticking with existing forecasts, JPMorgan Chase & Co. said this week there’s a path for the international benchmark, Brent crude, to close in on triple-digits by September if the impact of Russia’s production cuts isn’t balanced out by countermeasures.
Prices:
WTI rose 2.2% to settle at $83.17 a barrel.
Brent, which is due for expiry, added 1.6% to $87.48.
https://www.rigzone.com/news/wire/oil_s ... 4-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rises as Mexico Plans to Cut Exports"
by Bloomberg | Julia Fanzeres
Monday, April 01, 2024
Oil rose on the prospect of tightening crude supplies in the Americas while an Israeli attack in Syria threatened to widen the conflict in the Middle East.
West Texas Intermediate gained 0.6% to settle at $83.71, its highest closing price since Oct. 27.
In Mexico, state-controlled oil company Pemex plans to halt some crude exports over the next few months, a move that would cut flows to the global market.
Meanwhile in the US, tightening supplies at the key storage hub in Cushing, Oklahoma, have propped up prices for near-term barrels.
The so-called WTI cash roll — the price for barrels for immediate delivery at Cushing — traded at a premium of $1.50 a barrel Monday, the highest since early March, traders said.
Markets also were closely monitoring the war in the Middle East after an Israeli airstrike on Iran’s embassy compound in Syria killed a top military commander, according to state media reports.
The airstrike could potentially escalate the conflict, and traders see the development adding to crude’s risk premium.
Crude surged 16% in the first three months of the year as markets focused on strong consumption.
The Organization of Petroleum Exporting Countries and its allies have also cut back supplies, helping offset the impact of increased flows from outside the cartel.
The group is expected to affirm its current output policy at an online review meeting scheduled for Wednesday.
Signs of demand strengthening have also bolstered prices.
China’s industrial activity rebounded in March to snap a five-month decline, stoking expectations that oil consumption in the world’s biggest crude importer might be rebounding, while Goldman Sachs Group Inc. said it’s seeing resilience in European demand.
Yet traders are keeping a close eye on a potential reversal after money managers poured heavily into oil the previous week.
Brent long positions rose to the highest in more than a year last week, according to figures from ICE Futures Europe.
Algorithms for the global benchmark reached their maximum long positions, according to data from Bridgeton Research Group.
Prices:
WTI for May delivery rose 54 cents to settle at $83.71 a barrel in New York.
Brent for June settlement advanced 42 cents to settle at $87.42 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 1-article/
"Oil Rises as Mexico Plans to Cut Exports"
by Bloomberg | Julia Fanzeres
Monday, April 01, 2024
Oil rose on the prospect of tightening crude supplies in the Americas while an Israeli attack in Syria threatened to widen the conflict in the Middle East.
West Texas Intermediate gained 0.6% to settle at $83.71, its highest closing price since Oct. 27.
In Mexico, state-controlled oil company Pemex plans to halt some crude exports over the next few months, a move that would cut flows to the global market.
Meanwhile in the US, tightening supplies at the key storage hub in Cushing, Oklahoma, have propped up prices for near-term barrels.
The so-called WTI cash roll — the price for barrels for immediate delivery at Cushing — traded at a premium of $1.50 a barrel Monday, the highest since early March, traders said.
Markets also were closely monitoring the war in the Middle East after an Israeli airstrike on Iran’s embassy compound in Syria killed a top military commander, according to state media reports.
The airstrike could potentially escalate the conflict, and traders see the development adding to crude’s risk premium.
Crude surged 16% in the first three months of the year as markets focused on strong consumption.
The Organization of Petroleum Exporting Countries and its allies have also cut back supplies, helping offset the impact of increased flows from outside the cartel.
The group is expected to affirm its current output policy at an online review meeting scheduled for Wednesday.
Signs of demand strengthening have also bolstered prices.
China’s industrial activity rebounded in March to snap a five-month decline, stoking expectations that oil consumption in the world’s biggest crude importer might be rebounding, while Goldman Sachs Group Inc. said it’s seeing resilience in European demand.
Yet traders are keeping a close eye on a potential reversal after money managers poured heavily into oil the previous week.
Brent long positions rose to the highest in more than a year last week, according to figures from ICE Futures Europe.
Algorithms for the global benchmark reached their maximum long positions, according to data from Bridgeton Research Group.
Prices:
WTI for May delivery rose 54 cents to settle at $83.71 a barrel in New York.
Brent for June settlement advanced 42 cents to settle at $87.42 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 1-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Climbs to $85 on OPEC Cuts and Geopolitical Risks"
by Bloomberg | Julia Fanzeres
Tuesday, April 02, 2024
US crude futures pierced $85 for the first time since October, the latest milestone in a rally driven by OPEC+ production cuts, strong demand and heightened geopolitical risks.
Oil has jumped this week as tensions rise in the Middle East, with Iran vowing revenge on Israel for an airstrike on its embassy in Syria that killed a top military commander.
Crude has climbed 19% this year, propelled by robust global consumption and prolonged production cuts from the Organization of Petroleum Exporting Countries and its allies.
The cartel is expected to affirm its current output policy at a review meeting scheduled for Wednesday.
Meanwhile this week, Chinese manufacturing data showed signs of an economic recovery in the world’s largest oil importer.
West Texas Intermediate added 1.7% in New York, while the global Brent benchmark also rose 1.7% to settle near $89 a barrel.
The market’s strength has also been reflected throughout the oil market curve.
The US benchmark’s prompt spread has widened near $1 in backwardation, compared with as low as 54 cents three sessions ago.
Meanwhile, the oil options market has flipped to a call skew, underscoring the magnitude of bullish sentiment for crude.
“An escalation in tension in the Middle East has coincided with firmer oil fundamentals,” said Warren Patterson, head of commodities strategy for ING Groep NV.
“The market is tightening thanks to OPEC+ supply cuts, which is evident with the strength we have seen in timespreads.”
Prices:
WTI for May delivery rose $1.44 a barrel to settle at $85.15 a barrel in New York.
Brent for June settlement rose $1.50 to settle at $88.92 a barrel.
https://www.rigzone.com/news/wire/oil_c ... 7-article/
"Oil Climbs to $85 on OPEC Cuts and Geopolitical Risks"
by Bloomberg | Julia Fanzeres
Tuesday, April 02, 2024
US crude futures pierced $85 for the first time since October, the latest milestone in a rally driven by OPEC+ production cuts, strong demand and heightened geopolitical risks.
Oil has jumped this week as tensions rise in the Middle East, with Iran vowing revenge on Israel for an airstrike on its embassy in Syria that killed a top military commander.
Crude has climbed 19% this year, propelled by robust global consumption and prolonged production cuts from the Organization of Petroleum Exporting Countries and its allies.
The cartel is expected to affirm its current output policy at a review meeting scheduled for Wednesday.
Meanwhile this week, Chinese manufacturing data showed signs of an economic recovery in the world’s largest oil importer.
West Texas Intermediate added 1.7% in New York, while the global Brent benchmark also rose 1.7% to settle near $89 a barrel.
The market’s strength has also been reflected throughout the oil market curve.
The US benchmark’s prompt spread has widened near $1 in backwardation, compared with as low as 54 cents three sessions ago.
Meanwhile, the oil options market has flipped to a call skew, underscoring the magnitude of bullish sentiment for crude.
“An escalation in tension in the Middle East has coincided with firmer oil fundamentals,” said Warren Patterson, head of commodities strategy for ING Groep NV.
“The market is tightening thanks to OPEC+ supply cuts, which is evident with the strength we have seen in timespreads.”
Prices:
WTI for May delivery rose $1.44 a barrel to settle at $85.15 a barrel in New York.
Brent for June settlement rose $1.50 to settle at $88.92 a barrel.
https://www.rigzone.com/news/wire/oil_c ... 7-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Edges Higher as OPEC Affirms Supply Cuts"
by Bloomberg | Julia Fanzeres
Wednesday, April 03, 2024
Oil edged higher, extending a rally that has brought prices to a five-month high, after OPEC+ ministers affirmed current supply cuts.
Brent rose to within one cent of the $90-a-barrel psychological level on Wednesday after OPEC and its allies didn’t recommend any changes to their existing output cuts at an online ministerial review meeting.
The move means roughly 2 million barrels a day of curbs will be in place until the end of June.
In the US, a government report showed nationwide crude stockpiles rose 3.21 million barrels last week, contrasting with an industry group’s projection of a drop in inventories.
The official US figures showed a decline in gasoline stockpiles.
Still, bullishness is showing up beyond front-month futures prices, with oil options traders increasingly looking to protect against rising prices.
Brent’s second-month options skew has flipped from its usual put skew — favored by producers seeking to protect against price drops — to a bias toward calls.
That comes as timespreads move further into backwardation, another indicator of strength.
Crude has pushed higher this year, with Ukrainian attacks on Russian energy infrastructure and Middle East tensions supporting prices.
OPEC+’s curbs have been tightening the market, while there have been patches of disruption elsewhere, including an early-year deep freeze in the US and a recent curb to exports by Mexico.
However, the recent surge in prices is already drawing the ire of major consumers.
A top Indian oil official said on Wednesday that the recent gain was causing anxiety and that companies would have to act if higher prices are sustained.
Prices:
WTI for May delivery rose 28 cents to settle at $85.43 a barrel in New York.
Brent for June settlement advanced 43 cents to $89.35 a barrel.
https://www.rigzone.com/news/wire/oil_e ... 3-article/
"Oil Edges Higher as OPEC Affirms Supply Cuts"
by Bloomberg | Julia Fanzeres
Wednesday, April 03, 2024
Oil edged higher, extending a rally that has brought prices to a five-month high, after OPEC+ ministers affirmed current supply cuts.
Brent rose to within one cent of the $90-a-barrel psychological level on Wednesday after OPEC and its allies didn’t recommend any changes to their existing output cuts at an online ministerial review meeting.
The move means roughly 2 million barrels a day of curbs will be in place until the end of June.
In the US, a government report showed nationwide crude stockpiles rose 3.21 million barrels last week, contrasting with an industry group’s projection of a drop in inventories.
The official US figures showed a decline in gasoline stockpiles.
Still, bullishness is showing up beyond front-month futures prices, with oil options traders increasingly looking to protect against rising prices.
Brent’s second-month options skew has flipped from its usual put skew — favored by producers seeking to protect against price drops — to a bias toward calls.
That comes as timespreads move further into backwardation, another indicator of strength.
Crude has pushed higher this year, with Ukrainian attacks on Russian energy infrastructure and Middle East tensions supporting prices.
OPEC+’s curbs have been tightening the market, while there have been patches of disruption elsewhere, including an early-year deep freeze in the US and a recent curb to exports by Mexico.
However, the recent surge in prices is already drawing the ire of major consumers.
A top Indian oil official said on Wednesday that the recent gain was causing anxiety and that companies would have to act if higher prices are sustained.
Prices:
WTI for May delivery rose 28 cents to settle at $85.43 a barrel in New York.
Brent for June settlement advanced 43 cents to $89.35 a barrel.
https://www.rigzone.com/news/wire/oil_e ... 3-article/
Re: OIL, NATURAL GAS
RIGZONE
"Brent Hits $90 Amid Rising Geopolitical Tensions"
by Bloomberg | Julia Fanzeres
Thursday, April 04, 2024
Brent crude climbed above $90 a barrel for the first time since October as the conflict in the Middle East showed signs of escalating.
The global benchmark spiked as much as 2.2% after Israeli Prime Minister Benjamin Netanyahu said at a security cabinet meeting that his country will operate against Iran and its proxies and will hurt those who seek to harm it.
President Joe Biden told Netanyahu on a call Thursday that US support for his war would depend on new steps to protect civilians, a shift in position for the US.
“Crude is pricing in additional geopolitical risk after a Biden and Netanyahu call ended with escalatory comments,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
“The market is anticipating Iran’s response to Israel’s attack on Iran’s consulate in Syria and fearing another step-up in tensions.”
While it’s unlikely that crude supplies will be directly affected, “the fear of the unknown” is keeping traders on alert, she said.
The comments extended crude’s gain this year, which has been built on signs that production cuts by OPEC and its allies are tightening supplies while global demand remains robust.
An OPEC+ committee didn’t recommend any changes to the group’s ongoing output cuts when it met on Wednesday, keeping 2 million barrels a day of output offline until the end of June.
The heightening tensions in the Middle East gave futures a further push this week after Iran vowed revenge on Israel for an airstrike on its embassy in Syria that killed a top military commander.
Prices:
West Texas Intermediate for May delivery rose 1.4% to settle at $86.59 a barrel.
Brent for June settlement gained 1.5% to settle at $90.65 a barrel.
https://www.rigzone.com/news/wire/brent ... 9-article/
"Brent Hits $90 Amid Rising Geopolitical Tensions"
by Bloomberg | Julia Fanzeres
Thursday, April 04, 2024
Brent crude climbed above $90 a barrel for the first time since October as the conflict in the Middle East showed signs of escalating.
The global benchmark spiked as much as 2.2% after Israeli Prime Minister Benjamin Netanyahu said at a security cabinet meeting that his country will operate against Iran and its proxies and will hurt those who seek to harm it.
President Joe Biden told Netanyahu on a call Thursday that US support for his war would depend on new steps to protect civilians, a shift in position for the US.
“Crude is pricing in additional geopolitical risk after a Biden and Netanyahu call ended with escalatory comments,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
“The market is anticipating Iran’s response to Israel’s attack on Iran’s consulate in Syria and fearing another step-up in tensions.”
While it’s unlikely that crude supplies will be directly affected, “the fear of the unknown” is keeping traders on alert, she said.
The comments extended crude’s gain this year, which has been built on signs that production cuts by OPEC and its allies are tightening supplies while global demand remains robust.
An OPEC+ committee didn’t recommend any changes to the group’s ongoing output cuts when it met on Wednesday, keeping 2 million barrels a day of output offline until the end of June.
The heightening tensions in the Middle East gave futures a further push this week after Iran vowed revenge on Israel for an airstrike on its embassy in Syria that killed a top military commander.
Prices:
West Texas Intermediate for May delivery rose 1.4% to settle at $86.59 a barrel.
Brent for June settlement gained 1.5% to settle at $90.65 a barrel.
https://www.rigzone.com/news/wire/brent ... 9-article/