OIL, NATURAL GAS

thelivyjr
Site Admin
Posts: 73386
Joined: Thu Aug 30, 2018 1:40 p

Re: OIL, NATURAL GAS

Post by thelivyjr »

Investing.com

"Oil Inventories Fell by 6.1M Barrels Last Week: API"


By Yasin Ebrahim

Sep 21, 2021

Investing.com - U.S. crude stockpiles fell by more than expected last week, amid a slow recovery of U.S. production following disruptions from Hurricane Ida.

West Texas Intermediate, the benchmark climbed to $70.84 a barrel on the news, after settling up $0.27 to $70.56 a barrel.

U.S. crude inventories decreased by about 6.1 million barrels for the week ended Sept. 17.

That compared with a draw of 5.4 million barrels reported by the API for the previous week.

Economists were expecting a draw of about 2.4 million barrels.

About a fifth of crude production remains offline in the U.S. Gulf of Mexico nearly three weeks after Hurricane Ida made landfall in the Louisiana Gulf Coast.

The API also showed that gasoline inventories declined by about 432,000 last week, and distillate stocks slipped by about 2.7 million barrels.

The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies declined by about 2.4 million barrels last week.

https://www.investing.com/news/commodit ... pi-2622664
thelivyjr
Site Admin
Posts: 73386
Joined: Thu Aug 30, 2018 1:40 p

Re: OIL, NATURAL GAS

Post by thelivyjr »

RIGZONE

"Oil Gains With Supply and Demand In Focus"


by Bloomberg | Sheela Tobben

Wednesday, September 22, 2021

Oil advanced after U.S. crude inventories slid to the lowest since October 2018 amid a global energy crunch expected to increase demand.

Futures in New York rose 2.5% on Wednesday.

Domestic crude stockpiles fell for a seventh straight week to about 414 million barrels, according to an Energy Information Administration report.

Meanwhile, U.S. equities gained as concerns about China Evergrande Group’s debt woes eased.

The bullish news overshadowed Federal Reserve officials signaling they would probably begin tapering their bond-buying program soon.

“The focus is back on supply and demand,” said Phil Flynn, senior market analyst at Price Futures Group Inc.

“The market looks very bullish and has the potential to be under supplied."

"There is real concern about demand going into the winter season.”

Crude prices have increased this month after extreme weather disrupted U.S. supplies, and as a rally in natural gas spurred expectations consumers may switch to oil for power generation.

Crude may surge to $90 a barrel if the approaching winter in the northern hemisphere proves colder than normal, according to Goldman Sachs Group Inc.

In physical markets, Mars crude slid for the second day as supplies of the medium sour grade are set to improve with the return of a critical pipeline in the Gulf of Mexico.

Discounts for Heavy Louisiana Sweet also fell to the widest in more than a year as offshore production was restored by refineries in Louisiana remained offline due to storm-related damage.

Prices:

West Texas Intermediate crude for November delivery climbed $1.74 to settle at $72.23 a barrel in New York.

Brent for the same month rose $1.83 to $76.19 a barrel, the highest since July 30.

The EIA data also showed U.S. gasoline inventories unexpectedly rose by 3.47 million barrels last week as U.S. Gulf Coast refineries ramped up operations after recent storms, but gasoline future managed to rise.

(With assistance from Josyana Joshua, Alfred Cang, Saket Sundria and Alex Longley.)

https://www.rigzone.com/news/wire/oil_g ... 4-article/
thelivyjr
Site Admin
Posts: 73386
Joined: Thu Aug 30, 2018 1:40 p

Re: OIL, NATURAL GAS

Post by thelivyjr »

RIGZONE

"Oil Rises Again With Brent At Three Year High"


by Bloomberg | Jessica Summers and Josyana Joshua

Thursday, September 23, 2021

The global benchmark crude rose 1.4% on Thursday to close at the highest level since October 2018, while U.S. crude futures advanced 1.5%.

U.S. equities rallied and the dollar weakened, boosting the appeal of commodities priced in the currency.

Oil inventories are rapidly tightening.

Supplies in the U.S. are at the lowest since 2018 with output levels weaker after recent U.S. Gulf Coast storms, while stockpiles at a key hub in Europe remain below average levels for the time of year.

Some of the world’s largest oil traders and banks are predicting crude prices to surge even higher this year.

Vitol Group sees oil rising above $80 a barrel, partly as surging gas prices boost demand for crude in power generation.

Goldman Sachs Group Inc. said crude may top $90 if the coming winter in the northern hemisphere proves colder than normal.


Crude futures have steadily climbed higher this month as traders weigh the impact of a tightening natural gas market on the broader energy complex over winter.

The focus has led to cross-commodity flows across the oil and gas markets, some of which have been unwound in recent days, which had helped to push crude higher.

“We’re still not seeing a very robust recovery in U.S. production levels, so we have a situation where demand is deemed to look a little bit better and the supply side is at risk of not delivering what we thought,” said Bart Melek, head of commodity strategy at Toronto Dominion Bank.

Prices:

West Texas Intermediate for November settlement advanced $1.07 to settle at $73.30 a barrel in New York, the highest level since July.

Brent for the same month added $1.06 to end the session at $77.25 a barrel.

Oil is most likely headed above $80 a barrel, partly as higher gas prices boost demand, Vitol Chief Executive Officer Russell Hardy said in an interview from London on Thursday.

That could force OPEC+ producers to add more supply into the market, he said.

Currently, technical indicators show oil’s rally may be due for a pullback in the near-term.

WTI crude is flirting with the upper Bollinger band, a technical signal indicating the commodity is overbought.

(With assistance from Javier Blas, Alex Longley and Elizabeth Low.)

https://www.rigzone.com/news/wire/oil_r ... 8-article/
thelivyjr
Site Admin
Posts: 73386
Joined: Thu Aug 30, 2018 1:40 p

Re: OIL, NATURAL GAS

Post by thelivyjr »

RIGZONE

"Oil Closes On Five Week Win Streak"


by Bloomberg | Jessica Summers

Friday, September 24, 2021

Oil rose for the fifth straight week with the global energy crunch set to boost demand for crude as stockpiles decline from the U.S. to China.

Futures in New York gained 2.8% this week.

The global benchmark Brent settled at the highest in nearly three for the second day in a row.

Global onshore crude supplies sank by almost 21 million barrels last week, led by China, according to data analytics firm Kayrros, while U.S. inventories are near a three-year low.

The surge in natural gas prices is expected to force some consumers to switch to oil, tightening the market further ahead of the northern hemisphere winter.

“The market is pricing in a prolonged impact of supply disruptions, and the likely storage draws that will be needed to fulfill refinery demand,” said Louise Dickson, oil markets analyst at Rystad Energy, in a note.

In terms of oil demand, “no new lockdowns in Europe, robust recovery in China road activity, and the U.S. nixing its ban on foreign travelers from November 2021, all lift prospects for upside in the coming quarters.”

Oil has steadily climbed higher this month after a period of Covid-induced demand uncertainty, with some of the world’s largest traders and banks predicting prices may climb further amid the energy crisis.

Global crude consumption could rise by an additional 370,000 barrels a day if natural gas costs stay high, according to the Organization of Petroleum Exporting Countries.

Various underlying oil market gauges are also pointing to a strengthening market.

The key spread between Brent futures for December and a year later is near $7, the strongest since 2019.

That’s a sign traders are positive on the market outlook.

Money managers increased their bullish ICE Brent bets positions to the most in six months, indicating many believe there’s yet more room for crude prices to climb.

Prices:

West Texas Intermediate for November delivery rose 68 cents to $73.98 a barrel in New York.

Brent for November settlement climbed 84 cents to $78.09 a barrel, the highest since October 2018.

At the same time, the premium options traders are paying for bearish put options is the smallest since January 2020, another indication that traders are less concerned about a pullback in prices.

Meanwhile, China sold crude oil from its strategic petroleum reserves for the first time via auction in a historic effort to curb raw materials prices, with a unit of PetroChina Co. Ltd. and Hengli Petrochemical Co. Ltd. securing volumes.

(With assistance from Alex Longley and Elizabeth Low.)

https://www.rigzone.com/news/wire/oil_c ... 4-article/
thelivyjr
Site Admin
Posts: 73386
Joined: Thu Aug 30, 2018 1:40 p

Re: OIL, NATURAL GAS

Post by thelivyjr »

RIGZONE

"Tightening Market Drives Brent to Three Year High"


by Bloomberg | Sheela Tobben

Monday, September 27, 2021

Brent closed at the highest in nearly three years amid signs the crude market is rapidly tightening from a global energy crunch.

The global benchmark crude surged 1.8% on Monday, but met some resistance as it neared the key, psychological $80-a-barrel level.

Its U.S. counterpart rose 2% to close above $75 a barrel for the first time since July.

Both benchmarks are set to continue climbing as supply struggles to catch up with fast-rising demand, according to Trafigura Group’s co-head of oil trading Ben Luckock.

His remarks came as Goldman Sachs Group Inc. said Brent could hit $90 by year-end as the market is in a bigger deficit than many realize.

Brent failed to break $80 because some speculators were taking profits, said Bob Yawger, director of the futures division at Mizuho Securities.

“We should look for the market to reload and give the $80 level another shot in coming days.”

Crude is rallying on signs that inventories globally are falling sharply, with demand heating up ahead of winter and OPEC+ only slowly adding barrels back to the market.

As traders eye the prospect of large market deficits, Trafigura said longer-dated oil prices remain cheap at around $70 a barrel.

So-called timespreads, which gauge market strength, have rallied sharply in recent weeks in another sign that traders are positive about the outlook.

“Observable inventory draws are the largest on record,” Goldman Sachs analysts including Damien Courvalin wrote in a note to clients.

“This deficit will not be reversed in coming months, in our view, as its scale will overwhelm both the willingness and ability of OPEC+ to ramp up.”

Prices:

West Texas Intermediate for November delivery advanced $1.47 to settle at $75.45 a barrel in New York.

Brent for November settlement climbed $1.44 to settle at $79.53 a barrel.

WTI’s front-month contract traded at the biggest premium to its second-month in nearly two months.

Meanwhile, OPEC+ is scheduled to meet on Oct. 4. to review its output policy.

Internal documents from the group have already highlighted the risk of the natural gas crisis ramping up demand.

World oil consumption could be boosted by an additional 370,000 barrels a day -- roughly 6% of expected growth -- if gas prices stay high for an extended period, according to the group.

U.S. natural gas futures rose for a third straight session on Monday as inventory levels stayed low ahead of the heating season.

(With assistance from Saket Sundria and Alex Longley)

https://www.rigzone.com/news/wire/tight ... 8-article/
thelivyjr
Site Admin
Posts: 73386
Joined: Thu Aug 30, 2018 1:40 p

Re: OIL, NATURAL GAS

Post by thelivyjr »

RIGZONE

"Oil Soars Above $80"


by Bloomberg | Saket Sundria, Alex Longley

Tuesday, September 28, 2021

(Bloomberg) -- Brent oil roared above $80 a barrel, the latest milestone in a global energy crisis, on signs that demand is running ahead of supply and depleting inventories.

The international crude benchmark extended a recent run of gains to hit the highest since October 2018, while West Texas Intermediate also climbed.

Oil’s latest upswing has come with a flurry of bullish price predictions from banks and traders, forecasts for surging demand this winter, and speculation that the industry isn’t investing enough to maintain supplies.

The jump to $80 is adding inflationary pressure to the global economy at a time when prices of energy commodities are soaring.

European natural gas, carbon permits and power rose to fresh records on Tuesday, with little sign of the rally slowing.

Oil has rebounded from its eye-watering collapse last year amid record output curbs from the OPEC+ group and a global economic recovery that has boosted demand.

While OPEC+ is now easing its cuts, some traders and analysts are doubting just how quickly it will return shuttered barrels, with Goldman Sachs Group Inc. saying prices could hit $90 this year as stock drawdowns deepen.

“Oil markets are accelerating as a persistent supply deficit is shrinking the inventory cover to the lowest level in decades,” said Barclays analyst Amarpreet Singh.

Prices:

Brent for November settlement advanced 0.9% to $80.26 a barrel at 9:05 a.m. in London.
WTI for November delivery gained 1.1% to $76.29 a barrel.

Much of the outlook for the rest of the year is likely to hinge on just how cold the northern-hemisphere winter gets.

Analysts and consultants have published a range of estimates for how much demand could be boosted by soaring gas costs and frigid temperatures, swinging from a few hundred thousand barrels a day to 2 million.

Oil has also managed to recover despite jet fuel -- a key component of demand -- remaining hobbled by the pandemic.

Yet other pockets of consumption have rebounded strongly, including fuels used to make plastics and those used in manufacturing processes, such as diesel.

Global oil consumption is expected to return to pre-pandemic levels in the third quarter of 2022, President of BP Singapore Eugene Leong said in an interview.

With prices now at $80 a barrel, forward values are also surging.

WTI for 2022 is trading close to $71 a barrel.

Gains in forward prices in theory make it more attractive for producers in the U.S. to lock in production, but growth has been limited this year as investors push for returns to shareholders instead of higher output.

--With assistance from Serene Cheong and Jack Wittels.

https://www.rigzone.com/news/wire/oil_s ... 1-article/
thelivyjr
Site Admin
Posts: 73386
Joined: Thu Aug 30, 2018 1:40 p

Re: OIL, NATURAL GAS

Post by thelivyjr »

Investing.com

"Oil Inventories Rise by 4.1M Barrels Last Week: API"


By Yasin Ebrahim

Sep 28, 2021

Investing.com - U.S. crude stockpiles unexpectedly rose last week following a strong start to the week in oil prices amid global energy crunch in natural gas.

West Texas Intermediate Crude Oil, the benchmark fell to $74.33 a barrel on the news, after settling down 0.21% at $75.29 a barrel.

U.S. crude inventories increased by about 4.1 million barrels for the week ended Sept. 24.

That compared with a draw of 6.1 million barrels reported by the API for the previous week.

Economists were expecting a draw of about 2.3 million barrels.

The API also showed that gasoline inventories jumped by about 3.6 million last week, and distillate stocks increased by about 2.5 million barrels.

The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies declined by about 1.6 million barrels last week.

https://www.investing.com/news/commodit ... pi-2629068
thelivyjr
Site Admin
Posts: 73386
Joined: Thu Aug 30, 2018 1:40 p

Re: OIL, NATURAL GAS

Post by thelivyjr »

RIGZONE

"Oil Slides On Stronger Dollar And Stockpile Increase"


by Bloomberg | Julia Fanzeres and Jessica Summers

Wednesday, September 29, 2021

Oil slid as the dollar surged and after a U.S. government report showed crude stockpiles rose for the first time in eight weeks.

Futures in New York ended the session 0.6% lower after a choppy trading session on Wednesday.

A more-than 4 million-barrel increase in U.S. crude stockpiles tugged futures lower, while a stronger dollar made exports of the commodity less attractive.

“This dollar strength has reached a level that can’t be ignored,” said John Kilduff, a partner at Again Capital LLC.

Oil’s advance earlier this week -- and Brent’s surge above $80 a barrel -- reflected signs of a tighter global market amid stronger demand and rising natural gas prices.

Higher energy costs this month have stoked speculation that the Organization of Petroleum Exporting Countries and its allies may ease supply cuts more quickly.

The White House said Tuesday it’s continuing to talk to OPEC and other international partners about the importance of competitive markets and doing more to support the recovery.

Meanwhile, world oil supply is expected to be 1.2 million barrels a day below demand in October, and 900,000 barrels a day in November, according to a OPEC secretariat document being reviewed by the group’s Joint Technical Committee.

Prices:

West Texas Intermediate crude futures for November delivery fell 46 cents to settle at $74.83 a barrel in New York.

Brent for November settlement dropped 45 cents to end the session at $78.64 a barrel.

In addition to the crude stockpile rise in the U.S. last week, gasoline inventories rose for a second week and distillate inventories climbed for the first time since late August, Energy Information Administration data show.

Yet, U.S. crude exports jumped above 3 million barrels a day, signaling stronger global demand.

https://www.rigzone.com/news/wire/oil_s ... 4-article/
thelivyjr
Site Admin
Posts: 73386
Joined: Thu Aug 30, 2018 1:40 p

Re: OIL, NATURAL GAS

Post by thelivyjr »

RIGZONE

"Oil Closes September Almost 10 Percent Higher"


by Bloomberg | Julia Fanzeres

Thursday, September 30, 2021

Oil closed the month almost 10% higher after a tumultuous session during which China was said to order its top energy companies to secure energy supplies at all costs amid shortages, prompting the White House to reiterate its own concerns over rising prices.

Futures in New York rose 0.3% Thursday, wiping out earlier losses of as much as 2.3%.

Prices surged after China was said to order its top state-owned energy companies to secure supplies at all costs.

The rally cooled somewhat after Reuters reported OPEC+ is considering boosting production even more than previously announced at its meeting next week.

The rising price of oil “is of concern for the U.S.,” said White House press secretary Jennifer Psaki.

The U.S. has been in touch with OPEC about oil prices, she said at a press briefing.

Heading into next week’s meeting between OPEC and its partners, there is increased speculation that the organization will consider raising production more than the previously announced hike of 400,000 barrels a day.

“With oil prices at multi-year highs, we think that OPEC will come under increasingly intense pressure from Washington to increase production,” RBC analyst Helima Croft said in report.

The biggest monthly increase since June was spurred by ongoing supply disruptions in the U.S. Gulf of Mexico and an ongoing energy crunch that many expect will prompt a shift to burning oil for power generation as coal and natural gas prices skyrocket.

Some options traders are even betting prices could reach $200.

Crude supplies probably will be 1.5 million barrels a day shy of demand during the next six months, according to Citigroup Inc.

That deficit could widen should soaring natural gas prices spur a shift to petroleum-derived fuels.

Prices

West Texas Intermediate for November delivery rose 20 cents to settle at $75.03 a barrel.

Brent for November settlement, which expires Thursday, fell 12 cents to $78.52 a barrel.

Global oil supplies are expected to fall short of demand by 1.2 million barrels a day in October, and by 900,000 the following month, according to an OPEC secretariat document being reviewed by the group’s Joint Technical Committee.

Meanwhile, Wall Street is turning more bullish on oil prices the longer Iran delays a resumption of nuclear talks.

Strategists and traders from Goldman Sachs Group Inc. to Citigroup and Vitol Group said the stalling has reduced chances of millions of Iranian barrels returning to global markets this year.

(With assistance from Alex Longley, Saket Sundria and Grant Smith.)

https://www.rigzone.com/news/wire/oil_c ... 7-article/
thelivyjr
Site Admin
Posts: 73386
Joined: Thu Aug 30, 2018 1:40 p

Re: OIL, NATURAL GAS

Post by thelivyjr »

RIGZONE

"Oil Completes Sixth Straight Week Of Gains"


by Bloomberg | Julia Fanzeres

Friday, October 01, 2021

Oil rose in tandem with equity markets while traders turned their attention to an upcoming OPEC+ meeting that may yield supply increases.

Futures in New York rose 1.1% on Friday.

U.S. benchmark crude posted a sixth straight weekly gain, the longest streak of weekly advances since early July.

Buzz continued around whether on Monday OPEC will decide to increase output after reviving its production by 360,000 barrels a day in September, according to a Bloomberg Survey.

Last month’s output is lower than the threshold that markets are expecting OPEC to increase their production to, and a lot of countries in OPEC do not have the capability to increase production by very much, according to Bob Yawger, director of the futures division at Mizuho Securities USA.

But that hasn’t stopped markets from pricing in the possibility that OPEC will go “above and beyond” in output.

Investors are also focusing on demand after China ordered its state-owned companies to secure energy supplies for winter at all costs as the country struggles with a deepening power crisis.

The order from Beijing is the latest sign that rising energy prices are becoming a political issues, after the White House Thursday said crude’s rally was a concern.

“Oil is being supported by the prospect of demand outstripping supply over the coming months,” said Fiona Cincotta, senior financial markets analyst at City Index.

“The expectations of future demand are strong.”


Prices:

West Texas Intermediate crude for November delivery rose 85 cents to settle at $75.88 a barrel; futures rose 2.6% this week.

Brent for December settlement rose 97 cents to settle at $79.28 a barrel.

JP Morgan Chase & Co. also warned that worsening natural gas crises in Asia and Europe will spur so many power generators to switch to petroleum-based fuels that Brent crude will reach $84 a barrel by the end of the year.

It is likely to add more upward pressure to already elevated coal and liquefied natural gas prices, as well as oil products including fuel oil, diesel and propane, which can be used for electricity generation or to power small generators.

That’s bolstering the scrutiny on OPEC+’s next move when it meets Monday.

Meanwhile, the OPEC+ alliance, led by Saudi Arabia and Russia, will meet next week to review the next monthly increase.

Part of the problem is that some OPEC members, like Angola and Nigeria, are struggling to revive production as they wrestle with operational disruptions and investment constraints.

(With assistance from Alex Longley, Sharon Cho, Jessica Summers, Serene Cheong and Michael Tobin.)

https://www.rigzone.com/news/wire/oil_c ... 3-article/
Post Reply