RIGZONE
"Oil Rises Amid Signs of Tighter Market"
by Bloomberg | Devika Krishna Kumar and Alex Longley
Thursday, February 22, 2024
Oil rose to near the top of its recent trading range after a smaller-than-expected increase in US crude stockpiles added to signs of a tightening physical market.
West Texas Intermediate ended the session above $78 a barrel after a government report said US crude inventories climbed by 3.51 million barrels, less than what many market watchers expected.
Run rates at refineries finally ended a streak of declines for this year and may increase in the coming weeks as facilities restart after a spate of outages and maintenance, boosting crude demand.
Timespreads are signaling a more robust market, and gauges of crude supply balances at the delivery point for US futures at Cushing, Oklahoma, have also soared.
Both measures are in a bullish pattern indicative of tight near-term supplies.
“The numbers were not a game-changer for the broader narrative, but did show signs of green shoots and may quell some fears of demand collapse,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
Crude is trading near the upper end of this year’s range as investors weigh a subdued demand outlook for top importer China against rising geopolitical risks in the Middle East and disruptions in the Red Sea.
In Libya, militias who’ve held sway in the capital for years will begin leaving in April, and traders are monitoring how that may affect oil flows out of the OPEC nation.
In the US, minutes from the Federal Reserve’s latest meeting showed most officials remain worried about the risk of cutting borrowing costs too soon, potentially maintaining a headwind for energy demand.
Other data points also helped lend support to markets.
The four-week average US demand for jet fuel is near the highest level seasonally since before the pandemic.
Prices:
WTI for April delivery rose 0.9% to settle at $78.61 a barrel.
Brent for April settlement advanced 0.8% to settle at $83.67 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 2-article/
OIL, NATURAL GAS
Re: OIL, NATURAL GAS
RIGZONE
"Oil Falls on Bearish Technical Signals"
by Bloomberg | Devika Krishna Kumar and Alex Longley
Friday, February 23, 2024
Oil fell as the lack of fresh drivers prompted some investors to exit positions ahead of the weekend and the dip below a key technical indicator accelerated selling.
West Texas Intermediate slipped nearly 3% to end the session under $77 a barrel, below its 200-day moving average and the lowest close since Feb. 8.
Timespreads are indicating a more robust market, and US crude inventories expanded less than forecast, but many analysts still expect a global surplus this year.
WTI still is up about 7% this year.
A package of new US sanctions against Russia didn’t appear to include major energy-related curbs, and media reports suggested Israel will send negotiators to truce talks in Paris on Friday.
“No increased energy sanctions and ceasefire talks over the weekend are causing some to take dollars off the table in crude,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
Oil has been caught between the bullish tailwinds of lower OPEC+ output and rising Middle East tensions, and bearish concerns about flagging consumption in top importer China.
The International Energy Agency said earlier this month that the global oil market could remain in surplus all year.
“Strong-enough oil demand juxtaposed with weak Chinese macroeconomic data has been a recurring theme,” Michael Tran, an analyst at RBC Capital Markets LLC, said in a note.
“So far, fundamental signals have been a mixed bag.”
Attacks on commercial shipping in the Red Sea by Houthi militants have added to the risk premium for oil futures.
The group and their Iranian backers are preparing for a lengthy confrontation with the US and its allies around the waterway — regardless of how the Israel-Hamas war plays out.
While US crude stockpiles rose less than expected last week, they were still up for a fourth week.
Inventories at Cushing, Oklahoma, the delivery point for West Texas Intermediate futures, also climbed, but remain below seasonal averages.
Prices:
WTI for April delivery dipped 2.7% to settle at $76.49 a barrel.
Brent for April settlement fell 2.5% to $81.62 a barrel.
https://www.rigzone.com/news/wire/oil_f ... 6-article/
"Oil Falls on Bearish Technical Signals"
by Bloomberg | Devika Krishna Kumar and Alex Longley
Friday, February 23, 2024
Oil fell as the lack of fresh drivers prompted some investors to exit positions ahead of the weekend and the dip below a key technical indicator accelerated selling.
West Texas Intermediate slipped nearly 3% to end the session under $77 a barrel, below its 200-day moving average and the lowest close since Feb. 8.
Timespreads are indicating a more robust market, and US crude inventories expanded less than forecast, but many analysts still expect a global surplus this year.
WTI still is up about 7% this year.
A package of new US sanctions against Russia didn’t appear to include major energy-related curbs, and media reports suggested Israel will send negotiators to truce talks in Paris on Friday.
“No increased energy sanctions and ceasefire talks over the weekend are causing some to take dollars off the table in crude,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
Oil has been caught between the bullish tailwinds of lower OPEC+ output and rising Middle East tensions, and bearish concerns about flagging consumption in top importer China.
The International Energy Agency said earlier this month that the global oil market could remain in surplus all year.
“Strong-enough oil demand juxtaposed with weak Chinese macroeconomic data has been a recurring theme,” Michael Tran, an analyst at RBC Capital Markets LLC, said in a note.
“So far, fundamental signals have been a mixed bag.”
Attacks on commercial shipping in the Red Sea by Houthi militants have added to the risk premium for oil futures.
The group and their Iranian backers are preparing for a lengthy confrontation with the US and its allies around the waterway — regardless of how the Israel-Hamas war plays out.
While US crude stockpiles rose less than expected last week, they were still up for a fourth week.
Inventories at Cushing, Oklahoma, the delivery point for West Texas Intermediate futures, also climbed, but remain below seasonal averages.
Prices:
WTI for April delivery dipped 2.7% to settle at $76.49 a barrel.
Brent for April settlement fell 2.5% to $81.62 a barrel.
https://www.rigzone.com/news/wire/oil_f ... 6-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rises on Stronger US Physical Markets and China Demand"
by Bloomberg | Devika Krishna Kumar
Monday, February 26, 2024
Oil rose as physical markets in the US strengthened and demand from China showed signs of picking up.
West Texas Intermediate futures climbed 1.4% to settle above $77 a barrel, while Brent advanced to top $82.
Trading volumes were muted as several market participants attend International Energy Week in London, a major industry gathering, where they are set to weigh the outlook for oil this year.
US physical crude prices strengthened in recent weeks to the highs of the year as refineries benefiting from strong margins snapped up barrels and foreign buyers turned to American crude to avoid Red Sea shipping issues.
Prices also got support from a brief shutdown in exports from an oil field in western Libya during the weekend and stepped-up US and allied strikes on Houthi targets to combat commercial shipping disruptions in the Red Sea region.
Some positive signals on demand also are emerging.
In China, a boom in travel during the Lunar New Year holidays has raised hopes of a more sustained recovery in consumption.
Local refiners have been snapping up cargoes from across the world since the mid-February holiday, according to traders, as well as having increased term supplies from Saudi Arabia for March.
Traders are awaiting US inflation data that will shape expectations for when the Federal Reserve will start cutting interest rates.
In wider markets, a gauge of the US currency was steady, while most other commodities, including copper, were weaker.
Oil has traded in a narrow band for the past two weeks, with tensions in the Middle East and OPEC+ supply curbs offsetting the impact of higher production from outside the group, including the US.
“Oil prices should stay anchored near term” amid “substantial non-OPEC+ supply growth over the next few years,” Francisco Blanch, commodity strategist at Bank of America Corp., said in a report.
The cartel and allies including Russia are widely expected to prolong their current cutbacks into the next quarter at their meeting early next month.
Prices:
WTI for April delivery rose 1.4% to settle at $77.58 a barrel.
Brent for April settlement was up 1.1% at $82.53 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 2-article/
"Oil Rises on Stronger US Physical Markets and China Demand"
by Bloomberg | Devika Krishna Kumar
Monday, February 26, 2024
Oil rose as physical markets in the US strengthened and demand from China showed signs of picking up.
West Texas Intermediate futures climbed 1.4% to settle above $77 a barrel, while Brent advanced to top $82.
Trading volumes were muted as several market participants attend International Energy Week in London, a major industry gathering, where they are set to weigh the outlook for oil this year.
US physical crude prices strengthened in recent weeks to the highs of the year as refineries benefiting from strong margins snapped up barrels and foreign buyers turned to American crude to avoid Red Sea shipping issues.
Prices also got support from a brief shutdown in exports from an oil field in western Libya during the weekend and stepped-up US and allied strikes on Houthi targets to combat commercial shipping disruptions in the Red Sea region.
Some positive signals on demand also are emerging.
In China, a boom in travel during the Lunar New Year holidays has raised hopes of a more sustained recovery in consumption.
Local refiners have been snapping up cargoes from across the world since the mid-February holiday, according to traders, as well as having increased term supplies from Saudi Arabia for March.
Traders are awaiting US inflation data that will shape expectations for when the Federal Reserve will start cutting interest rates.
In wider markets, a gauge of the US currency was steady, while most other commodities, including copper, were weaker.
Oil has traded in a narrow band for the past two weeks, with tensions in the Middle East and OPEC+ supply curbs offsetting the impact of higher production from outside the group, including the US.
“Oil prices should stay anchored near term” amid “substantial non-OPEC+ supply growth over the next few years,” Francisco Blanch, commodity strategist at Bank of America Corp., said in a report.
The cartel and allies including Russia are widely expected to prolong their current cutbacks into the next quarter at their meeting early next month.
Prices:
WTI for April delivery rose 1.4% to settle at $77.58 a barrel.
Brent for April settlement was up 1.1% at $82.53 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 2-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rises Higher on Physical Markets Strength"
by Bloomberg | Julia Fanzeres
Tuesday, February 27, 2024
Oil rose, bolstered by pockets of strength in physical crude markets, while traders weighed the potential for OPEC+ to extend its output cuts.
West Texas Intermediate climbed to just shy of $79 a barrel in a low-volume session, trading near the highest level of 2024.
In the physical market, US refineries are benefiting from strong profit margins while foreign buyers are turning to American crude to avoid Red Sea shipping issues.
The US benchmark’s prompt spread — the price difference between its two nearest contracts — has widened to 65 cents in backwardation, compared with a bearish contango structure less than four weeks ago.
The move indicates a tightening supply outlook.
Meanwhile, traders are also keeping a close eye on next month’s meeting of the Organization of Petroleum Exporting Countries and its allies.
Market participants and analysts alike expect Saudi Arabia and its partners will prolong their curbs into the second quarter.
Trading volumes were muted this week as many market participants attend International Energy Week in London, a major industry gathering, where attendees are set to weigh the outlook for oil this year.
Russell Hardy, chief executive officer of Vitol Group, is among the scheduled speakers on the opening day.
Oil is grinding its way toward a second straight monthly advance, although it’s yet to break decisively out of its recent, narrow range.
While tensions in the Middle East and OPEC+ supply curbs have supported crude prices, higher production from outside the group, especially the US, has capped the gains.
The market’s opposing drivers have prompted both Goldman Sachs Group Inc. and Bank of America Corp. to forecast that rangebound trading will persist in the near term.
Goldman sees a $20 band centered on $80 a barrel, with muted volatility, while its rival expects oil to hold between $60 and $80.
Prices:
WTI for April delivery rose $1.29 to settle at $78.87 a barrel in New York.
Brent for April settlement advanced $1.12 to settle at $83.65 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 8-article/
"Oil Rises Higher on Physical Markets Strength"
by Bloomberg | Julia Fanzeres
Tuesday, February 27, 2024
Oil rose, bolstered by pockets of strength in physical crude markets, while traders weighed the potential for OPEC+ to extend its output cuts.
West Texas Intermediate climbed to just shy of $79 a barrel in a low-volume session, trading near the highest level of 2024.
In the physical market, US refineries are benefiting from strong profit margins while foreign buyers are turning to American crude to avoid Red Sea shipping issues.
The US benchmark’s prompt spread — the price difference between its two nearest contracts — has widened to 65 cents in backwardation, compared with a bearish contango structure less than four weeks ago.
The move indicates a tightening supply outlook.
Meanwhile, traders are also keeping a close eye on next month’s meeting of the Organization of Petroleum Exporting Countries and its allies.
Market participants and analysts alike expect Saudi Arabia and its partners will prolong their curbs into the second quarter.
Trading volumes were muted this week as many market participants attend International Energy Week in London, a major industry gathering, where attendees are set to weigh the outlook for oil this year.
Russell Hardy, chief executive officer of Vitol Group, is among the scheduled speakers on the opening day.
Oil is grinding its way toward a second straight monthly advance, although it’s yet to break decisively out of its recent, narrow range.
While tensions in the Middle East and OPEC+ supply curbs have supported crude prices, higher production from outside the group, especially the US, has capped the gains.
The market’s opposing drivers have prompted both Goldman Sachs Group Inc. and Bank of America Corp. to forecast that rangebound trading will persist in the near term.
Goldman sees a $20 band centered on $80 a barrel, with muted volatility, while its rival expects oil to hold between $60 and $80.
Prices:
WTI for April delivery rose $1.29 to settle at $78.87 a barrel in New York.
Brent for April settlement advanced $1.12 to settle at $83.65 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 8-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Edges Down Amid Rising US Stockpiles"
by Bloomberg | Julia Fanzeres
Wednesday, February 28, 2024
Oil fell after trading in a narrow range as traders weighed rising US crude inventories against expectations that OPEC+ will extend supply cuts.
West Texas Intermediate edged lower to settle near $78 a barrel, pulled down by broader risk-off sentiment.
US crude inventories rose 4.2 million barrels last week, the Energy Information Administration said, a smaller buildup than the 8.4 million barrel gain projected in an industry report.
The stockpile increase somewhat damps the narrative of stronger physical markets that had driven crude’s gains in recent sessions.
Timespreads have been widening in a bullish, backwardated pattern — with near-term barrels priced above longer-dated ones.
So-called physical market swaps and the WTI cash roll have also strengthened.
Oil is pushing toward a modest monthly gain, though prices remain within a relatively tight band.
The advance has been supported by supply cuts from OPEC and its allies, with the group widely expected to agree to prolonging reductions into the second quarter.
Prices have also been aided by tensions in the Middle East.
Still, concerns about the demand outlook remain.
China’s crude consumption growth is expected to expand by just 1% this year as a post-pandemic recovery fades and adoption of new energy vehicles saps demand, China National Petroleum Corp. forecast in a report released Wednesday.
Prices:
WTI for April delivery dipped 33 cents to settle at $78.54 a barrel in New York.
Brent for April settlement rose 3 cents to $83.68 a barrel.
https://www.rigzone.com/news/wire/oil_e ... 4-article/
"Oil Edges Down Amid Rising US Stockpiles"
by Bloomberg | Julia Fanzeres
Wednesday, February 28, 2024
Oil fell after trading in a narrow range as traders weighed rising US crude inventories against expectations that OPEC+ will extend supply cuts.
West Texas Intermediate edged lower to settle near $78 a barrel, pulled down by broader risk-off sentiment.
US crude inventories rose 4.2 million barrels last week, the Energy Information Administration said, a smaller buildup than the 8.4 million barrel gain projected in an industry report.
The stockpile increase somewhat damps the narrative of stronger physical markets that had driven crude’s gains in recent sessions.
Timespreads have been widening in a bullish, backwardated pattern — with near-term barrels priced above longer-dated ones.
So-called physical market swaps and the WTI cash roll have also strengthened.
Oil is pushing toward a modest monthly gain, though prices remain within a relatively tight band.
The advance has been supported by supply cuts from OPEC and its allies, with the group widely expected to agree to prolonging reductions into the second quarter.
Prices have also been aided by tensions in the Middle East.
Still, concerns about the demand outlook remain.
China’s crude consumption growth is expected to expand by just 1% this year as a post-pandemic recovery fades and adoption of new energy vehicles saps demand, China National Petroleum Corp. forecast in a report released Wednesday.
Prices:
WTI for April delivery dipped 33 cents to settle at $78.54 a barrel in New York.
Brent for April settlement rose 3 cents to $83.68 a barrel.
https://www.rigzone.com/news/wire/oil_e ... 4-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Posts Back to Back Monthly Gain"
by Bloomberg | Julia Fanzeres
Thursday, February 29, 2024| 15:34 EST
Oil posted a second straight monthly gain as physical markets show signs of strength and traders look ahead to OPEC+ potentially extending its supply cuts.
West Texas Intermediate settled little changed above $78 a barrel, up 3.4% since the end of January.
February’s incremental advance comes amid multiple signals of a strong physical market.
WTI’s prompt spread stood at 74 cents a barrel in backwardation, indicating tightening supplies, compared with a bearish contango structure earlier this month.
Gauges such as the WTI cash roll have also strengthened.
The roll, which reflects supply-demand balances at Cushing, Oklahoma, climbed to the highest in more than a year.
Oil’s back-to-back monthly advances have pushed prices to the upper end of this year’s tight trading band.
The climb has been supported by supply cuts from OPEC and its allies, and the group is widely expected to prolong the reductions into the second quarter.
Earlier this month, crude rallied to the highest price in 2024 as investors weighed escalating geopolitical risks in the Middle East, an area that supplies a third of the world’s crude.
Attacks on merchant ships in the Red Sea have buoyed crude and helped strengthen US physical markets as foreign buyers turn to American oil to avoid shipping issues.
Prices:
WTI for April delivery fell 28 cents to settle at $78.26 a barrel in New York.
Brent for April settlement, which settles on Thursday, fell 6 cents to settle at $83.62 a barrel.
The more active May settled at $81.91 a barrel.
https://www.rigzone.com/news/wire/oil_p ... 0-article/
"Oil Posts Back to Back Monthly Gain"
by Bloomberg | Julia Fanzeres
Thursday, February 29, 2024| 15:34 EST
Oil posted a second straight monthly gain as physical markets show signs of strength and traders look ahead to OPEC+ potentially extending its supply cuts.
West Texas Intermediate settled little changed above $78 a barrel, up 3.4% since the end of January.
February’s incremental advance comes amid multiple signals of a strong physical market.
WTI’s prompt spread stood at 74 cents a barrel in backwardation, indicating tightening supplies, compared with a bearish contango structure earlier this month.
Gauges such as the WTI cash roll have also strengthened.
The roll, which reflects supply-demand balances at Cushing, Oklahoma, climbed to the highest in more than a year.
Oil’s back-to-back monthly advances have pushed prices to the upper end of this year’s tight trading band.
The climb has been supported by supply cuts from OPEC and its allies, and the group is widely expected to prolong the reductions into the second quarter.
Earlier this month, crude rallied to the highest price in 2024 as investors weighed escalating geopolitical risks in the Middle East, an area that supplies a third of the world’s crude.
Attacks on merchant ships in the Red Sea have buoyed crude and helped strengthen US physical markets as foreign buyers turn to American oil to avoid shipping issues.
Prices:
WTI for April delivery fell 28 cents to settle at $78.26 a barrel in New York.
Brent for April settlement, which settles on Thursday, fell 6 cents to settle at $83.62 a barrel.
The more active May settled at $81.91 a barrel.
https://www.rigzone.com/news/wire/oil_p ... 0-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rallies Near $80 Amid Tightening Physical Market"
by Bloomberg | Julia Fanzeres and Alex Longley
Friday, March 01, 2024
Oil extended this year’s rally to almost $80 a barrel amid signs of a tightening physical market.
West Texas Intermediate earlier breached the key level before paring gains to close up 2.2% at the highest settlement price since November.
Crude’s time spreads, which represent physical-market conditions, have exploded higher this week in a sign of tightening supply and demand balances.
“$80 has been a psychological level for crude, and holding this level could provide some positive momentum signals for trend-following strategies,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
Geopolitical tensions — including the Israel-Hamas war and attacks on tankers in the Red Sea — have underpinned some gains, with scores of Palestinians killed and injured in an outbreak of violence on Thursday.
The climb has been supported by supply cuts from OPEC and its allies, and the group is widely expected to prolong the reductions into the second quarter.
But rising non-OPEC supply and persistent concerns about China’s outlook have restrained the rally.
The nation’s factory activity shrank again last month, adding to signs of weak demand.
OPEC+ is expected to extend its current supply cuts into the next quarter in a bid to avert a global glut and prop up prices, according to a recent Bloomberg survey.
The group has put in place about 2 million barrels-a-day of curbs.
Prices:
WTI for April delivery rose 2.2% to settle at $79.97 a barrel in New York.
Brent for May settlement advanced 2% to settle at $83.55 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 7-article/
"Oil Rallies Near $80 Amid Tightening Physical Market"
by Bloomberg | Julia Fanzeres and Alex Longley
Friday, March 01, 2024
Oil extended this year’s rally to almost $80 a barrel amid signs of a tightening physical market.
West Texas Intermediate earlier breached the key level before paring gains to close up 2.2% at the highest settlement price since November.
Crude’s time spreads, which represent physical-market conditions, have exploded higher this week in a sign of tightening supply and demand balances.
“$80 has been a psychological level for crude, and holding this level could provide some positive momentum signals for trend-following strategies,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
Geopolitical tensions — including the Israel-Hamas war and attacks on tankers in the Red Sea — have underpinned some gains, with scores of Palestinians killed and injured in an outbreak of violence on Thursday.
The climb has been supported by supply cuts from OPEC and its allies, and the group is widely expected to prolong the reductions into the second quarter.
But rising non-OPEC supply and persistent concerns about China’s outlook have restrained the rally.
The nation’s factory activity shrank again last month, adding to signs of weak demand.
OPEC+ is expected to extend its current supply cuts into the next quarter in a bid to avert a global glut and prop up prices, according to a recent Bloomberg survey.
The group has put in place about 2 million barrels-a-day of curbs.
Prices:
WTI for April delivery rose 2.2% to settle at $79.97 a barrel in New York.
Brent for May settlement advanced 2% to settle at $83.55 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 7-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Falls Amid Extended Output Cuts"
by Bloomberg | Julia Fanzeres
Monday, March 04, 2024
Oil retreated after hitting resistance near $80 a barrel as the OPEC+ coalition met expectations with its latest production move.
West Texas Intermediate settled below $79 a barrel as traders locked in gains from crude’s rally to the key psychological level last week, the first time it had breached that price since November.
The Organization of the Petroleum Exporting Countries and its allies extended their roughly 2 million-barrel-a-day reduction through the end of June, with Russia emphasizing it would cut output and not just exports.
Traders and analysts had already priced in the widely expected OPEC+ decision, which was seen as necessary to offset a seasonal lull in demand and soaring output from other producers.
The latest cuts will be returned gradually, subject to market conditions, OPEC’s Secretariat said in a statement.
“Traders are now faced with the dilemma of whether to dive into oil following OPEC’s decision or adopt a wait-and-see approach to gauge whether the bulls will maintain control at the outset of this week,” said Fawad Razaqzada, a market analyst at City Index and Forex.com.
Crude has been on a slow but steady ascent this year.
Widening timespreads are signaling tighter physical conditions driven by a host of disruptions, including attacks on ships in the Red Sea.
Still, delayed expectations for when the Federal Reserve will start to lower interest rates, strong production from outside OPEC+ and a shaky Chinese demand outlook have capped gains.
Prices:
WTI for April delivery fell $1.23 to settle at $78.74 a barrel in New York.
Brent for May settlement slid 75 cents to settle at $82.80 a barrel.
https://www.rigzone.com/news/wire/oil_f ... 3-article/
"Oil Falls Amid Extended Output Cuts"
by Bloomberg | Julia Fanzeres
Monday, March 04, 2024
Oil retreated after hitting resistance near $80 a barrel as the OPEC+ coalition met expectations with its latest production move.
West Texas Intermediate settled below $79 a barrel as traders locked in gains from crude’s rally to the key psychological level last week, the first time it had breached that price since November.
The Organization of the Petroleum Exporting Countries and its allies extended their roughly 2 million-barrel-a-day reduction through the end of June, with Russia emphasizing it would cut output and not just exports.
Traders and analysts had already priced in the widely expected OPEC+ decision, which was seen as necessary to offset a seasonal lull in demand and soaring output from other producers.
The latest cuts will be returned gradually, subject to market conditions, OPEC’s Secretariat said in a statement.
“Traders are now faced with the dilemma of whether to dive into oil following OPEC’s decision or adopt a wait-and-see approach to gauge whether the bulls will maintain control at the outset of this week,” said Fawad Razaqzada, a market analyst at City Index and Forex.com.
Crude has been on a slow but steady ascent this year.
Widening timespreads are signaling tighter physical conditions driven by a host of disruptions, including attacks on ships in the Red Sea.
Still, delayed expectations for when the Federal Reserve will start to lower interest rates, strong production from outside OPEC+ and a shaky Chinese demand outlook have capped gains.
Prices:
WTI for April delivery fell $1.23 to settle at $78.74 a barrel in New York.
Brent for May settlement slid 75 cents to settle at $82.80 a barrel.
https://www.rigzone.com/news/wire/oil_f ... 3-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Dips After Swinging Amid Technical Support"
by Bloomberg | Julia Fanzeres and Josyana Joshua
Tuesday, March 05, 2024
Oil edged lower, with technical support levels limiting its losses amid risk-off sentiment in broader markets.
West Texas Intermediate slipped 0.7% to just over $78 a barrel after fluctuating in a $2 range for the day.
Equity markets dropped as traders weighed mixed economic data ahead of Federal Reserve Chair Jerome Powell’s testimony in Congress.
Crude’s 200-day moving average of about $77.84 has provided resistance for its declines.
“The anticipation of the Fed chairman holding interest rates steady into mid-year is a pressure point to crude prices,” said Dennis Kissler, senior vice president at BOK Financial.
“Higher interest rates will keep the US dollar elevated, which is a headwind for crude exports.”
WTI has gained 9.2% this year in a slow-motion ascent aided by strength in physical markets as global shippers avoid the Red Sea and OPEC+ works to limit supply.
That optimism has been tempered by strong production from outside of the cartel, a shaky demand outlook in China and expectations central banks will start monetary easing later than previously expected.
Meanwhile, China set its annual growth target at about 5%, raising expectations for officials to unleash more stimulus as they try to lift confidence in a slowing economy.
The nation also set a more ambitious target for reducing the energy needed for economic expansion, or energy intensity, this year.
Prices:
WTI for April delivery fell 59 cents to $78.15 a barrel in New York.
Brent for May settlement slid 76 cents to settle at $82.04 a barrel.
https://www.rigzone.com/news/wire/oil_d ... 1-article/
"Oil Dips After Swinging Amid Technical Support"
by Bloomberg | Julia Fanzeres and Josyana Joshua
Tuesday, March 05, 2024
Oil edged lower, with technical support levels limiting its losses amid risk-off sentiment in broader markets.
West Texas Intermediate slipped 0.7% to just over $78 a barrel after fluctuating in a $2 range for the day.
Equity markets dropped as traders weighed mixed economic data ahead of Federal Reserve Chair Jerome Powell’s testimony in Congress.
Crude’s 200-day moving average of about $77.84 has provided resistance for its declines.
“The anticipation of the Fed chairman holding interest rates steady into mid-year is a pressure point to crude prices,” said Dennis Kissler, senior vice president at BOK Financial.
“Higher interest rates will keep the US dollar elevated, which is a headwind for crude exports.”
WTI has gained 9.2% this year in a slow-motion ascent aided by strength in physical markets as global shippers avoid the Red Sea and OPEC+ works to limit supply.
That optimism has been tempered by strong production from outside of the cartel, a shaky demand outlook in China and expectations central banks will start monetary easing later than previously expected.
Meanwhile, China set its annual growth target at about 5%, raising expectations for officials to unleash more stimulus as they try to lift confidence in a slowing economy.
The nation also set a more ambitious target for reducing the energy needed for economic expansion, or energy intensity, this year.
Prices:
WTI for April delivery fell 59 cents to $78.15 a barrel in New York.
Brent for May settlement slid 76 cents to settle at $82.04 a barrel.
https://www.rigzone.com/news/wire/oil_d ... 1-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rises on Signs of Rising US Gasoline Demand"
by Bloomberg | Julia Fanzeres
Wednesday, March 06, 2024
Oil climbed to near its highs for the year after a US report showed signs of rising fuel demand heading into the summer driving season.
West Texas Intermediate rose 1.3% to top $79 a barrel after government figures showed US gasoline inventories falling 4.46 million barrels last week.
That built off an earlier gain driven by Saudi Arabia’s decision to raise prices to Asia and a rally in equities as Federal Reserve Chair Jerome Powell spoke to Congress.
US crude prices have tested the $80 psychological level for the last few sessions, but have been unable to push through it decisively.
Yet now that WTI has had a “clean break” above $79 a barrel, “the technical path of least resistance has been confirmed to the upside,” said Fawad Razaqzada, a market analyst at City Index and Forex.com.
Crude prices have been on a slow and steady grind higher this year, supported by the OPEC+ cutbacks, tensions in the Middle East and disruptions to shipping in the Red Sea, including a strike on a commodity ship on Wednesday.
The creeping pace of gains has crushed market volatility, and the Organization of the Petroleum Exporting Countries and allies agreed on Sunday to extend their existing output cuts to the end of June, potentially tightening the market and drawing down stockpiles.
Signs of tightness in the physical market are apparent, with near-term futures for US benchmark WTI strengthening to a premium of as much as $1 over later-dated barrels.
That’s near the highest in four months, excluding volatile contract-expiration dates.
Prices:
WTI for April delivery climbed 1.3% to $79.13 a barrel in New York.
Brent for May settlement rose 1.1% to settle at $82.96 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 7-article/
"Oil Rises on Signs of Rising US Gasoline Demand"
by Bloomberg | Julia Fanzeres
Wednesday, March 06, 2024
Oil climbed to near its highs for the year after a US report showed signs of rising fuel demand heading into the summer driving season.
West Texas Intermediate rose 1.3% to top $79 a barrel after government figures showed US gasoline inventories falling 4.46 million barrels last week.
That built off an earlier gain driven by Saudi Arabia’s decision to raise prices to Asia and a rally in equities as Federal Reserve Chair Jerome Powell spoke to Congress.
US crude prices have tested the $80 psychological level for the last few sessions, but have been unable to push through it decisively.
Yet now that WTI has had a “clean break” above $79 a barrel, “the technical path of least resistance has been confirmed to the upside,” said Fawad Razaqzada, a market analyst at City Index and Forex.com.
Crude prices have been on a slow and steady grind higher this year, supported by the OPEC+ cutbacks, tensions in the Middle East and disruptions to shipping in the Red Sea, including a strike on a commodity ship on Wednesday.
The creeping pace of gains has crushed market volatility, and the Organization of the Petroleum Exporting Countries and allies agreed on Sunday to extend their existing output cuts to the end of June, potentially tightening the market and drawing down stockpiles.
Signs of tightness in the physical market are apparent, with near-term futures for US benchmark WTI strengthening to a premium of as much as $1 over later-dated barrels.
That’s near the highest in four months, excluding volatile contract-expiration dates.
Prices:
WTI for April delivery climbed 1.3% to $79.13 a barrel in New York.
Brent for May settlement rose 1.1% to settle at $82.96 a barrel.
https://www.rigzone.com/news/wire/oil_r ... 7-article/