RIGZONE
"Oil Inventories Rise by 1.0M Barrels Last Week: API"
By Yasin Ebrahim
Sep 20, 2022
Investing.com -- U.S. crude stockpiles increased by less than expected last week, the API reported Tuesday, adding to expectations for slowing energy demand into the end of the year as global growth stutters.
West Texas Intermediate, the U.S. benchmark, traded at $84.09 a barrel following the report after settling down 1.5% at $84.45 a barrel.
U.S. crude inventories rose by 1.0 million barrels for the week ended Sept. 16.
That compared with a build of 6.0 million barrels reported by the API in the previous week.
Economists were expecting an increase of about 2.3 million barrels.
As well as slowing demand, crude prices have also been hurt by expectations that the U.S. will release more petroleum from its strategic reserves through November.
The U.S. said Monday it would sell an additional 10 million barrels of oil from its strategic reserves in November.
The API data also showed that gasoline inventories increased by 3.2 million barrels last week, and distillate stocks rose by 1.5 million barrels.
The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies rose by 2.2 million barrels last week.
https://www.investing.com/news/commodit ... pi-2895843
OIL, NATURAL GAS
Re: OIL, NATURAL GAS
RIGZONE
"Oil Falls as Interest Rate Hike Boosts Recession Fears"
by Bloomberg | Julia Fanzeres and Ilena Peng
Wednesday, September 21, 2022
Oil dropped after the Federal Reserve raised interest rates, signaling the market fears the cascading effects of economic slowdown more than potential supply disruptions from Russia’s escalating war.
West Texas Intermediate slipped to settle below $83 a barrel Wednesday.
Crude whipsawed, rising early in the session to as high as $86 after Vladimir Putin called for substantially more troops to widen the war in Ukraine.
Those gains were erased as the Federal Reserve meeting came into focus.
The US central bank raised interest rates by 75 basis points for the third consecutive time, a move that could trigger an economic recession.
“Crude prices remained heavy after the Fed signaled they are going to continue to bring down inflation with more rate hikes even as the economy slows,” said Ed Moya, senior market analyst at Oanda.
US crude stockpiles climbed by 1.14 million barrels last week, while a measure of distillate demand -- which includes diesel -- fell to the lowest seasonal level in more than a decade, according to an Energy Information Administration report.
The drop in fuel demand comes at a time when consumption typically picks up.
Crude is on track for its first quarterly loss in more than two years as concerns over a global economic slowdown weigh on the outlook for energy demand.
The Fed decision will be followed by other central banks from Europe to Asia, which are also expected to increase borrowing costs.
Adding to bearish sentiment, China issued a giant new quota to export refined fuels, according to a local industry consultant, which could weigh on oil product markets.
Prices:
WTI for November delivery dropped $1 to settle at $82.94 a barrel in New York.
Brent for November settlement fell 79 cents to $89.83 a barrel at market close.
Earlier on Wednesday, Putin said Russia will safeguard its sovereignty and defend territory with all available means, announcing a call-up of reservists.
The move threatened to escalate the Ukraine conflict further, with the Kremlin moving to stage sham votes on annexing regions that it holds.
Prompt spreads, meanwhile, which are an indicator of near-term supply and demand tightness, were impacted by a fire at BP Plc’s refinery in Ohio that led to two fatalities.
WTI’s prompt spread -- the difference between the two nearest contracts -- was at 51 cents after narrowing by 16 cents.
(with assistance from Sheela Tobben)
https://www.rigzone.com/news/wire/oil_f ... 7-article/
"Oil Falls as Interest Rate Hike Boosts Recession Fears"
by Bloomberg | Julia Fanzeres and Ilena Peng
Wednesday, September 21, 2022
Oil dropped after the Federal Reserve raised interest rates, signaling the market fears the cascading effects of economic slowdown more than potential supply disruptions from Russia’s escalating war.
West Texas Intermediate slipped to settle below $83 a barrel Wednesday.
Crude whipsawed, rising early in the session to as high as $86 after Vladimir Putin called for substantially more troops to widen the war in Ukraine.
Those gains were erased as the Federal Reserve meeting came into focus.
The US central bank raised interest rates by 75 basis points for the third consecutive time, a move that could trigger an economic recession.
“Crude prices remained heavy after the Fed signaled they are going to continue to bring down inflation with more rate hikes even as the economy slows,” said Ed Moya, senior market analyst at Oanda.
US crude stockpiles climbed by 1.14 million barrels last week, while a measure of distillate demand -- which includes diesel -- fell to the lowest seasonal level in more than a decade, according to an Energy Information Administration report.
The drop in fuel demand comes at a time when consumption typically picks up.
Crude is on track for its first quarterly loss in more than two years as concerns over a global economic slowdown weigh on the outlook for energy demand.
The Fed decision will be followed by other central banks from Europe to Asia, which are also expected to increase borrowing costs.
Adding to bearish sentiment, China issued a giant new quota to export refined fuels, according to a local industry consultant, which could weigh on oil product markets.
Prices:
WTI for November delivery dropped $1 to settle at $82.94 a barrel in New York.
Brent for November settlement fell 79 cents to $89.83 a barrel at market close.
Earlier on Wednesday, Putin said Russia will safeguard its sovereignty and defend territory with all available means, announcing a call-up of reservists.
The move threatened to escalate the Ukraine conflict further, with the Kremlin moving to stage sham votes on annexing regions that it holds.
Prompt spreads, meanwhile, which are an indicator of near-term supply and demand tightness, were impacted by a fire at BP Plc’s refinery in Ohio that led to two fatalities.
WTI’s prompt spread -- the difference between the two nearest contracts -- was at 51 cents after narrowing by 16 cents.
(with assistance from Sheela Tobben)
https://www.rigzone.com/news/wire/oil_f ... 7-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rises Slightly as Economic Outlook Concerns Mount"
by Bloomberg | Ilena Peng
Thursday, September 22, 2022
Oil clung to a slight gain after a slew of rate hikes around the world reaffirmed central bankers would continue to fight inflation at the expense of economic growth.
West Texas Intermediate settled near $83 a barrel, sticking close to the previous day’s close.
Equity markets fell under the weight of multiple interest rate hikes from Norway to South Africa, putting a lid on oil prices.
Markets are largely following macroeconomic indicators after the Fed boosted rates by 75 basis points for a third straight time, casting a shadow on oil’s demand outlook.
Traders are “waiting for the next headline to dictate market direction here,” said Robert Yawger, director of the energy futures division at Mizuho Securities USA.
“You’re looking for some kind of fundamental part of the puzzle to change dramatically to put the bid in.”
Crude remains on track for its first quarterly decline in more than two years on concerns that demand may be crimped by an economic slowdown.
Nonetheless, geopolitical risks to supply and OPEC’s readiness to support prices with production cuts have provided a floor of sorts.
OPEC would consider additional cuts if crude prices fall because current levels are affecting the budgets of some members, Nigeria’s oil minister Timipre Sylva told Bloomberg Thursday,
Data this week showed that signs of economic slowdown are mounting, as US gasoline and diesel demand fell to the lowest seasonal levels in more than a decade.
The Energy Information Administration also reported nationwide US crude stockpiles and those at the key storage hub at Cushing, Oklahoma, expanded last week.
Prices:
WTI for November delivery rose 55 cents to $83.49 a barrel at market close in New York.
Brent for November settlement gained 63 cents to settle at $90.46 a barrel.
Traders are also watching bullish indicators for the coming months, including an escalation of Russia’s invasion to Ukraine that prompted EU member states to push for the adoption of a price cap on Russian oil before its sanctions take effect in December.
The sanctions could further crimp supplies.
Russian President Vladimir Putin has previously said Russia would not supply commodities to nations that introduce price caps.
(with assistance from Devika Krishna Kumar and Julia Fanzeres)
https://www.rigzone.com/news/wire/oil_r ... 4-article/
"Oil Rises Slightly as Economic Outlook Concerns Mount"
by Bloomberg | Ilena Peng
Thursday, September 22, 2022
Oil clung to a slight gain after a slew of rate hikes around the world reaffirmed central bankers would continue to fight inflation at the expense of economic growth.
West Texas Intermediate settled near $83 a barrel, sticking close to the previous day’s close.
Equity markets fell under the weight of multiple interest rate hikes from Norway to South Africa, putting a lid on oil prices.
Markets are largely following macroeconomic indicators after the Fed boosted rates by 75 basis points for a third straight time, casting a shadow on oil’s demand outlook.
Traders are “waiting for the next headline to dictate market direction here,” said Robert Yawger, director of the energy futures division at Mizuho Securities USA.
“You’re looking for some kind of fundamental part of the puzzle to change dramatically to put the bid in.”
Crude remains on track for its first quarterly decline in more than two years on concerns that demand may be crimped by an economic slowdown.
Nonetheless, geopolitical risks to supply and OPEC’s readiness to support prices with production cuts have provided a floor of sorts.
OPEC would consider additional cuts if crude prices fall because current levels are affecting the budgets of some members, Nigeria’s oil minister Timipre Sylva told Bloomberg Thursday,
Data this week showed that signs of economic slowdown are mounting, as US gasoline and diesel demand fell to the lowest seasonal levels in more than a decade.
The Energy Information Administration also reported nationwide US crude stockpiles and those at the key storage hub at Cushing, Oklahoma, expanded last week.
Prices:
WTI for November delivery rose 55 cents to $83.49 a barrel at market close in New York.
Brent for November settlement gained 63 cents to settle at $90.46 a barrel.
Traders are also watching bullish indicators for the coming months, including an escalation of Russia’s invasion to Ukraine that prompted EU member states to push for the adoption of a price cap on Russian oil before its sanctions take effect in December.
The sanctions could further crimp supplies.
Russian President Vladimir Putin has previously said Russia would not supply commodities to nations that introduce price caps.
(with assistance from Devika Krishna Kumar and Julia Fanzeres)
https://www.rigzone.com/news/wire/oil_r ... 4-article/
Re: OIL, NATURAL GAS
REUTERS
"Yellen says Russia offering 'enormous discounts' on oil to China, India"
Reuters
September 22, 2022
WASHINGTON, Sept 22 (Reuters) - A planned Western price cap on Russian oil is already making a difference, U.S. Treasury Secretary Janet Yellen said on Thursday, noting that Russia was now offering China and India "enormous discounts" while looking for other outlets for its oil.
In December, Europe would halt the bulk of its purchases of 3 million barrels per day, putting additional pressure on Russia to find new buyers for its oil, Yellen told a conference hosted by The Atlantic magazine.
Europe was facing a tough winter with tight energy supplies as it decoupled from Russian energy, Yellen said.
She said that could have some spillover effects on the United States, but she "wouldn't exaggerate" the potential impact on U.S. growth.
Reporting by Andrea Shalal; Editing by Leslie Adler
https://www.reuters.com/markets/asia/ye ... 022-09-22/
"Yellen says Russia offering 'enormous discounts' on oil to China, India"
Reuters
September 22, 2022
WASHINGTON, Sept 22 (Reuters) - A planned Western price cap on Russian oil is already making a difference, U.S. Treasury Secretary Janet Yellen said on Thursday, noting that Russia was now offering China and India "enormous discounts" while looking for other outlets for its oil.
In December, Europe would halt the bulk of its purchases of 3 million barrels per day, putting additional pressure on Russia to find new buyers for its oil, Yellen told a conference hosted by The Atlantic magazine.
Europe was facing a tough winter with tight energy supplies as it decoupled from Russian energy, Yellen said.
She said that could have some spillover effects on the United States, but she "wouldn't exaggerate" the potential impact on U.S. growth.
Reporting by Andrea Shalal; Editing by Leslie Adler
https://www.reuters.com/markets/asia/ye ... 022-09-22/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Posts Longest Run of Weekly Losses This Year"
by Bloomberg | Julia Fanzeres and Ilena Peng
Friday, September 23, 2022
Oil posted its longest stretch of weekly losses this year as central banks around the world stepped up the fight against inflation at the cost of economic growth.
West Texas Intermediate settled below $79 a barrel on Friday for the first time since January and declined for a fourth straight week.
The Federal Reserve this week gave its clearest signal yet that it’s willing to tolerate a US recession as the trade-off for regaining control of inflation, while the UK, Norway and South Africa also raised rates.
“The fears of a hard landing for the US economy and across the global economy are working its way into the system,” said John Kilduff, founding partner at Again Capital.
Using interest rates like “a mallet to the global economy” may curtail economic activity and “that’s why you’re seeing the selloff.”
Economic slowdown concerns are putting crude on track for its first quarterly loss in more than two years.
Prices are also being pushed lower by a surging dollar -- with the Bloomberg Dollar Spot Index rising to a record high on Friday -- making commodities priced in the currency more expensive for investors.
If crude declines further, the Organization of Petroleum Exporting Countries may be forced to cut output, said Nigeria’s Oil Minister Timipre Sylva.
The group and its allies earlier this month agreed to the first supply reduction in more than a year.
There could be further turmoil ahead with a looming European Union ban on Russian oil.
Separately, member states are also racing to clinch a political agreement within weeks that would impose a price cap on Russian oil.
The push gained momentum after President Vladimir Putin this week announced a mobilization of troops, escalating the war in Ukraine.
The pullback in prices is evident across oil markets.
Gasoline futures dipped more than 6%, despite retail prices increasing after 98 days of straight declines.
Refined product futures are experiencing heavy selling on Friday despite supply tightness as “risk taking has fallen out of favor,” analysts at wholesale-fuel distributor TACenergy wrote in a note to clients.
Prices:
WTI for November delivery retreated $4.75 to settle at $78.74 a barrel in New York.
Brent for the same month declined $4.31 to settle at $86.15.
Some of the world’s biggest banks are, however, forecasting a rebound in prices because of low inventories, and sustained demand despite recession concerns.
JPMorgan Chase & Co. forecasts Brent at $101 a barrel for the final quarter of 2022, while Goldman Sachs Group Inc. sees $125.
“This is going to be a very, very volatile last quarter,” Amrita Sen, chief oil analyst at Energy Aspects Ltd., said in a Bloomberg television interview.
There are “just too many different and contradictory factors driving prices right now,” she added.
https://www.rigzone.com/news/wire/oil_p ... 2-article/
"Oil Posts Longest Run of Weekly Losses This Year"
by Bloomberg | Julia Fanzeres and Ilena Peng
Friday, September 23, 2022
Oil posted its longest stretch of weekly losses this year as central banks around the world stepped up the fight against inflation at the cost of economic growth.
West Texas Intermediate settled below $79 a barrel on Friday for the first time since January and declined for a fourth straight week.
The Federal Reserve this week gave its clearest signal yet that it’s willing to tolerate a US recession as the trade-off for regaining control of inflation, while the UK, Norway and South Africa also raised rates.
“The fears of a hard landing for the US economy and across the global economy are working its way into the system,” said John Kilduff, founding partner at Again Capital.
Using interest rates like “a mallet to the global economy” may curtail economic activity and “that’s why you’re seeing the selloff.”
Economic slowdown concerns are putting crude on track for its first quarterly loss in more than two years.
Prices are also being pushed lower by a surging dollar -- with the Bloomberg Dollar Spot Index rising to a record high on Friday -- making commodities priced in the currency more expensive for investors.
If crude declines further, the Organization of Petroleum Exporting Countries may be forced to cut output, said Nigeria’s Oil Minister Timipre Sylva.
The group and its allies earlier this month agreed to the first supply reduction in more than a year.
There could be further turmoil ahead with a looming European Union ban on Russian oil.
Separately, member states are also racing to clinch a political agreement within weeks that would impose a price cap on Russian oil.
The push gained momentum after President Vladimir Putin this week announced a mobilization of troops, escalating the war in Ukraine.
The pullback in prices is evident across oil markets.
Gasoline futures dipped more than 6%, despite retail prices increasing after 98 days of straight declines.
Refined product futures are experiencing heavy selling on Friday despite supply tightness as “risk taking has fallen out of favor,” analysts at wholesale-fuel distributor TACenergy wrote in a note to clients.
Prices:
WTI for November delivery retreated $4.75 to settle at $78.74 a barrel in New York.
Brent for the same month declined $4.31 to settle at $86.15.
Some of the world’s biggest banks are, however, forecasting a rebound in prices because of low inventories, and sustained demand despite recession concerns.
JPMorgan Chase & Co. forecasts Brent at $101 a barrel for the final quarter of 2022, while Goldman Sachs Group Inc. sees $125.
“This is going to be a very, very volatile last quarter,” Amrita Sen, chief oil analyst at Energy Aspects Ltd., said in a Bloomberg television interview.
There are “just too many different and contradictory factors driving prices right now,” she added.
https://www.rigzone.com/news/wire/oil_p ... 2-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Settles Near January Lows Amid Strong Dollar and Broader Markets"
by Bloomberg | Ilena Peng and Julia Fanzeres
Monday, September 26, 2022
Oil declined, taking direction from broader markets as the potential impact of rising interest rates worldwide subdued investor sentiment.
Crude gave up a short-lived rally with both benchmarks falling to near nine-month lows as the dollar traded at an all-time high, which makes commodities priced in the currency less attractive.
Brent settled below $85 a barrel and West Texas Intermediate remains under $80.
“Crude prices are still riding the FX-volatility roller coaster,” said Ed Moya, senior market analyst at Oanda.
“Historic moves with currencies is troubling for the global growth outlook and that will ultimately weigh on the crude demand outlook.”
Meanwhile, the EU continues to struggle with reaching an agreement on Russian oil price caps and will likely push back the deal until a broader sanctions package has been agreed on.
Oil is on track for a substantial quarterly slump as leading central banks including the US Federal Reserve raise interest rates aggressively to fight inflation, hurting the outlook for energy demand and sapping investors’ appetite for risk.
The Fed’s tightening helped drive up the US dollar.
Prices:
Brent for November settlement sank $2.09 to settle at $84.06 a barrel in New York.
WTI for November delivery dropped $2.03 to $76.71 a barrel.
The Bloomberg Dollar Spot Index spiked as much as 1.2% earlier in the day, and is 15% higher year-to-date.
The slump in prices may induce the Organization of Petroleum Exporting Countries and its allies to consider intervening to stem the slide, either verbally or by announcing a reduction in output.
Earlier this month, OPEC+ announced a token supply cut and said members would monitor the market.
The market is also keeping an eye on a hurricane in the Gulf of Mexico that is headed for the west coast of Florida.
Chevron and BP have both shut platforms southeast of New Orleans and evacuated personnel.
The current track, headed for Tampa, leaves most of the Gulf’s energy complex unscathed.
https://www.rigzone.com/news/wire/oil_s ... 8-article/
"Oil Settles Near January Lows Amid Strong Dollar and Broader Markets"
by Bloomberg | Ilena Peng and Julia Fanzeres
Monday, September 26, 2022
Oil declined, taking direction from broader markets as the potential impact of rising interest rates worldwide subdued investor sentiment.
Crude gave up a short-lived rally with both benchmarks falling to near nine-month lows as the dollar traded at an all-time high, which makes commodities priced in the currency less attractive.
Brent settled below $85 a barrel and West Texas Intermediate remains under $80.
“Crude prices are still riding the FX-volatility roller coaster,” said Ed Moya, senior market analyst at Oanda.
“Historic moves with currencies is troubling for the global growth outlook and that will ultimately weigh on the crude demand outlook.”
Meanwhile, the EU continues to struggle with reaching an agreement on Russian oil price caps and will likely push back the deal until a broader sanctions package has been agreed on.
Oil is on track for a substantial quarterly slump as leading central banks including the US Federal Reserve raise interest rates aggressively to fight inflation, hurting the outlook for energy demand and sapping investors’ appetite for risk.
The Fed’s tightening helped drive up the US dollar.
Prices:
Brent for November settlement sank $2.09 to settle at $84.06 a barrel in New York.
WTI for November delivery dropped $2.03 to $76.71 a barrel.
The Bloomberg Dollar Spot Index spiked as much as 1.2% earlier in the day, and is 15% higher year-to-date.
The slump in prices may induce the Organization of Petroleum Exporting Countries and its allies to consider intervening to stem the slide, either verbally or by announcing a reduction in output.
Earlier this month, OPEC+ announced a token supply cut and said members would monitor the market.
The market is also keeping an eye on a hurricane in the Gulf of Mexico that is headed for the west coast of Florida.
Chevron and BP have both shut platforms southeast of New Orleans and evacuated personnel.
The current track, headed for Tampa, leaves most of the Gulf’s energy complex unscathed.
https://www.rigzone.com/news/wire/oil_s ... 8-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rises on News of Russia Urging OPEC to Cut Production"
by Bloomberg | Ilena Peng and Julia Fanzeres
Tuesday, September 27, 2022
Oil rallied after a report that Russia will advocate for OPEC+ nations to cut production, heightening supply concerns as deadlines to implement Russian fuel bans approach.
West Texas Intermediate rose 2.3% to settle above $78 a barrel.
Futures earlier rose almost 4% after Reuters reported Russia is expected to push for production cuts at OPEC’s next meeting.
A strengthening dollar and a reminder from Federal Reserve members that more rates hikes are likely in order to slow inflation tamped down the rally.
Supporting crude’s gains were technical gauges indicating that WTI hit oversold territory yesterday when it fell below $77.
Additionally, the market is keeping an eye out for potential disruptions in the Gulf of Mexico as operators shut platforms ahead of Hurricane Ian.
These factors, however, are still of “secondary importance” to the dollar, said Robert Yawger, director of the energy futures division at Mizuho Securities USA.
“The market is still going to have a rough time trading strongly to the upside unless we get a break in the rally in the dollar.”
The US oil benchmark remains on track for its first quarterly loss in more than two years on concern that energy consumption will fall, as an aggressive round of central bank rate hikes menace global growth.
Some analysts have said the slump may spur the Organization of Petroleum Exporting Countries and allies to consider paring supply.
UBS and JPMorgan Chase & Co. are among those in the industry that have called on OPEC+ to make supply cuts, which would help stabilize oil markets.
Meanwhile. Goldman Sachs Group Inc. slashed its oil forecasts as markets price in a major hit to the global economy.
“A strong USD and falling demand expectations will remain powerful headwinds to prices into year-end,” Goldman analysts including Damien Courvalin wrote in a report.
“Yet, the structurally bullish set-up -- due to the lack of investment, low spare capacity and inventories -- has only grown stronger, inevitably requiring much higher prices."
Prices:
WTI for November delivery rose $1.79 to settle at $78.50 in New York.
Brent for November settlement climbed $2.21 to settle at $86.27 a barrel.
Top traders have also indicated wariness about the recent price pullback.
Trafigura Group’s chief economist said commodity markets are potentially moving from cycles to a world of price spikes instead amid sustained underinvestment and a lack of spare capacity.
However, a parade of Federal Reserve policy makers signaled on Monday that further rate increases are in store, with the need to tame inflation coming at the cost of a slowdown.
Among them, Fed Bank of Cleveland President Loretta Mester said that officials will need to keep restrictive policy in place for longer.
https://www.rigzone.com/news/wire/oil_r ... 0-article/
"Oil Rises on News of Russia Urging OPEC to Cut Production"
by Bloomberg | Ilena Peng and Julia Fanzeres
Tuesday, September 27, 2022
Oil rallied after a report that Russia will advocate for OPEC+ nations to cut production, heightening supply concerns as deadlines to implement Russian fuel bans approach.
West Texas Intermediate rose 2.3% to settle above $78 a barrel.
Futures earlier rose almost 4% after Reuters reported Russia is expected to push for production cuts at OPEC’s next meeting.
A strengthening dollar and a reminder from Federal Reserve members that more rates hikes are likely in order to slow inflation tamped down the rally.
Supporting crude’s gains were technical gauges indicating that WTI hit oversold territory yesterday when it fell below $77.
Additionally, the market is keeping an eye out for potential disruptions in the Gulf of Mexico as operators shut platforms ahead of Hurricane Ian.
These factors, however, are still of “secondary importance” to the dollar, said Robert Yawger, director of the energy futures division at Mizuho Securities USA.
“The market is still going to have a rough time trading strongly to the upside unless we get a break in the rally in the dollar.”
The US oil benchmark remains on track for its first quarterly loss in more than two years on concern that energy consumption will fall, as an aggressive round of central bank rate hikes menace global growth.
Some analysts have said the slump may spur the Organization of Petroleum Exporting Countries and allies to consider paring supply.
UBS and JPMorgan Chase & Co. are among those in the industry that have called on OPEC+ to make supply cuts, which would help stabilize oil markets.
Meanwhile. Goldman Sachs Group Inc. slashed its oil forecasts as markets price in a major hit to the global economy.
“A strong USD and falling demand expectations will remain powerful headwinds to prices into year-end,” Goldman analysts including Damien Courvalin wrote in a report.
“Yet, the structurally bullish set-up -- due to the lack of investment, low spare capacity and inventories -- has only grown stronger, inevitably requiring much higher prices."
Prices:
WTI for November delivery rose $1.79 to settle at $78.50 in New York.
Brent for November settlement climbed $2.21 to settle at $86.27 a barrel.
Top traders have also indicated wariness about the recent price pullback.
Trafigura Group’s chief economist said commodity markets are potentially moving from cycles to a world of price spikes instead amid sustained underinvestment and a lack of spare capacity.
However, a parade of Federal Reserve policy makers signaled on Monday that further rate increases are in store, with the need to tame inflation coming at the cost of a slowdown.
Among them, Fed Bank of Cleveland President Loretta Mester said that officials will need to keep restrictive policy in place for longer.
https://www.rigzone.com/news/wire/oil_r ... 0-article/
Re: OIL, NATURAL GAS
Investing.com
"Oil Inventories Rise by More Than Expected 4M Barrels Last Week: API"
By Yasin Ebrahim
Sep 27, 2022
Investing.com -- U.S. crude stockpiles increased by much more than expected last week, the API reported Tuesday, just as investors up their bets on supply disruptions as Hurricane Ian is expected to make landfall in Florida on Wednesday.
West Texas Intermediate, the U.S. benchmark, traded at $78.11 a barrel following the report after settling up 2.3% at $78.50 a barrel.
U.S. crude inventories rose by 4 million barrels for the week ended Sept. 23.
That compared with a build of 6.0 million barrels reported by the API in the previous week.
Economists were expecting an increase of about 333,000 barrels.
Crude prices recovered from a soft start to the week on bets of supply disruptions in the Gulf of Mexico as Hurricane Ian is expected to make landfall in Florida on Wednesday.
The U.S. offshore regulator said that 190,358 barrels per day of production was shut down in the Gulf of Mexico on hurricane disruptions.
The API data also showed that gasoline inventories decreased by 1.0 million barrels last week, and distillate stocks rose by 438,000 barrels.
The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies rose by 443,000 barrels last week.
https://www.investing.com/news/commodit ... pi-2900250
"Oil Inventories Rise by More Than Expected 4M Barrels Last Week: API"
By Yasin Ebrahim
Sep 27, 2022
Investing.com -- U.S. crude stockpiles increased by much more than expected last week, the API reported Tuesday, just as investors up their bets on supply disruptions as Hurricane Ian is expected to make landfall in Florida on Wednesday.
West Texas Intermediate, the U.S. benchmark, traded at $78.11 a barrel following the report after settling up 2.3% at $78.50 a barrel.
U.S. crude inventories rose by 4 million barrels for the week ended Sept. 23.
That compared with a build of 6.0 million barrels reported by the API in the previous week.
Economists were expecting an increase of about 333,000 barrels.
Crude prices recovered from a soft start to the week on bets of supply disruptions in the Gulf of Mexico as Hurricane Ian is expected to make landfall in Florida on Wednesday.
The U.S. offshore regulator said that 190,358 barrels per day of production was shut down in the Gulf of Mexico on hurricane disruptions.
The API data also showed that gasoline inventories decreased by 1.0 million barrels last week, and distillate stocks rose by 438,000 barrels.
The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies rose by 443,000 barrels last week.
https://www.investing.com/news/commodit ... pi-2900250
Re: OIL, NATURAL GAS
RIGZONE
"Bring Down Pump Prices Now, Biden Says"
by Andreas Exarheas | Rigzone Staff
Tuesday, September 27, 2022
Bring Down Pump Prices Now, Biden Says.
'Do it now.'
'Do it now.'
'Not a month from now - do it now'.
'Bring down the prices you’re charging at the pump, now.'
That’s the message U.S. President Joe Biden delivered to companies running gas stations at the Third Meeting of the White House Competition Council on Monday.
“The price of oil worldwide is down … in fact, lower than any price since Putin invaded Ukraine …"
"We haven’t seen the lower prices reflected at the pump though,” Biden stated at the meeting.
“Meanwhile, oil and gas companies are still making record profits — billions of dollars in profit."
"But guess what?"
"The price of oil comes down … don’t you think the price at the pump should come down?"
"The price of [a] gallon of gasoline."
"But it takes a long time for that to happen in relative terms,” Biden added.
“My message is simple."
"To the companies running gas stations and setting those prices at the pump: Bring down the prices you’re charging at the pump to reflect the cost you pay for the product."
"Do it now."
"Do it now."
"Not a month from now — do it now,” Biden continued.
When Rigzone sent an email to the American Petroleum Institute (API) asking if it had any comment on Biden’s statement, API’s SVP of Policy, Economics and Regulatory Affairs, Frank Macchiarola, replied with the below:
“Americans are looking for solutions, not political posturing."
"This is an industry of price takers, not price makers, and repeated in-depth investigations by the FTC have shown that changes in gasoline prices are based on market factors and not due to illegal behavior."
"The price at the pump that Americans are currently paying is a function of increased demand and lagging supply combined with geopolitical turmoil and policy uncertainty from Washington”.
As of September 27, the average price of regular gasoline in the U.S. is $3.747 per gallon, according to the AAA gas prices website.
Yesterday’s average was $3.725 per gallon, the week ago average was $3.674 per gallon, the month ago average was $3.857 per gallon, and the year ago average was $3.189 per gallon, the AAA site shows.
The highest recorded average price of regular unleaded in the U.S. was seen on June 14 at $5.016 per gallon, the AAA site outlines.
https://www.rigzone.com/news/bring_down ... 8-article/
"Bring Down Pump Prices Now, Biden Says"
by Andreas Exarheas | Rigzone Staff
Tuesday, September 27, 2022
Bring Down Pump Prices Now, Biden Says.
'Do it now.'
'Do it now.'
'Not a month from now - do it now'.
'Bring down the prices you’re charging at the pump, now.'
That’s the message U.S. President Joe Biden delivered to companies running gas stations at the Third Meeting of the White House Competition Council on Monday.
“The price of oil worldwide is down … in fact, lower than any price since Putin invaded Ukraine …"
"We haven’t seen the lower prices reflected at the pump though,” Biden stated at the meeting.
“Meanwhile, oil and gas companies are still making record profits — billions of dollars in profit."
"But guess what?"
"The price of oil comes down … don’t you think the price at the pump should come down?"
"The price of [a] gallon of gasoline."
"But it takes a long time for that to happen in relative terms,” Biden added.
“My message is simple."
"To the companies running gas stations and setting those prices at the pump: Bring down the prices you’re charging at the pump to reflect the cost you pay for the product."
"Do it now."
"Do it now."
"Not a month from now — do it now,” Biden continued.
When Rigzone sent an email to the American Petroleum Institute (API) asking if it had any comment on Biden’s statement, API’s SVP of Policy, Economics and Regulatory Affairs, Frank Macchiarola, replied with the below:
“Americans are looking for solutions, not political posturing."
"This is an industry of price takers, not price makers, and repeated in-depth investigations by the FTC have shown that changes in gasoline prices are based on market factors and not due to illegal behavior."
"The price at the pump that Americans are currently paying is a function of increased demand and lagging supply combined with geopolitical turmoil and policy uncertainty from Washington”.
As of September 27, the average price of regular gasoline in the U.S. is $3.747 per gallon, according to the AAA gas prices website.
Yesterday’s average was $3.725 per gallon, the week ago average was $3.674 per gallon, the month ago average was $3.857 per gallon, and the year ago average was $3.189 per gallon, the AAA site shows.
The highest recorded average price of regular unleaded in the U.S. was seen on June 14 at $5.016 per gallon, the AAA site outlines.
https://www.rigzone.com/news/bring_down ... 8-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rallies Amid Dwindling Stockpiles and Growing Energy Conflict"
by Bloomberg | Ilena Peng and Julia Fanzeres
Wednesday, September 28, 2022
Oil jumped the most since July as an escalating energy conflict with Russia and declining US inventories raised the prospect of supplies tightening in the near term.
West Texas Intermediate settled above $82 a barrel after rising 4.7%, the most in a single day since mid-July.
US crude stockpiles fell last week for the first time in a month as some regional fuel stockpiles declined precariously.
The European Union announced a new round of sanctions against Russia while three ruptured pipelines in the Baltic Sea are widely suspected to be the result of sabotage.
A weaker US dollar also bolstered Wednesday’s rally.
“The damage to Nord Stream is very concerning both from a supply issue and a political issue in that it assures supply from Russia is not reliable,” said Dennis Kissler, senior vice president at Bok Financial Securities.
“It raises concerns that all energy prices are vulnerable to price spikes if we see an early start to a harsh winter.”
Oil futures have been volatile for months amid lackluster liquidity.
Prices stand almost 40% lower than their peak earlier this year amid a rising sense of certainty that central bank efforts around the world to contain inflation will lead to an economic slowdown.
However, geopolitical uncertainty still threatens supplies as traders watch for any hint of a slowdown.
US data showed some signs of demand improving in weekly figures.
Crude inventories fell 215,000 barrels last week, the US Energy Information Administration reported.
West Coast gasoline stockpiles fell to their lowest in 10 years and New England’s distillate stocks, which include diesel and heating oil, fell to an all-time low for this time of year.
Russia, which has to discount its barrels because of Western sanctions, is pushing OPEC and its allies to cut their collective output by 1 million barrels a day when the producer nations meet next week, Reuters reported Tuesday.
A production cut would further tighten supplies and could rally prices.
OPEC and its partners may be amenable to slashing output as some member countries see their revenues shrink from cheaper oil.
Prices:
West Texas Intermediate futures for November delivery climbed $3.65 to settle at $82.15 a barrel.
Brent futures for November settlement added $3.05 to settle at $89.32 a barrel.
Elsewhere, some of China’s top refiners are expecting a better economy in the winter, a bullish signal for oil.
Demand in the country, which is the world’s biggest crude importer, has remained weak for years because of its Covid Zero policy.
https://www.rigzone.com/news/wire/oil_r ... 1-article/
"Oil Rallies Amid Dwindling Stockpiles and Growing Energy Conflict"
by Bloomberg | Ilena Peng and Julia Fanzeres
Wednesday, September 28, 2022
Oil jumped the most since July as an escalating energy conflict with Russia and declining US inventories raised the prospect of supplies tightening in the near term.
West Texas Intermediate settled above $82 a barrel after rising 4.7%, the most in a single day since mid-July.
US crude stockpiles fell last week for the first time in a month as some regional fuel stockpiles declined precariously.
The European Union announced a new round of sanctions against Russia while three ruptured pipelines in the Baltic Sea are widely suspected to be the result of sabotage.
A weaker US dollar also bolstered Wednesday’s rally.
“The damage to Nord Stream is very concerning both from a supply issue and a political issue in that it assures supply from Russia is not reliable,” said Dennis Kissler, senior vice president at Bok Financial Securities.
“It raises concerns that all energy prices are vulnerable to price spikes if we see an early start to a harsh winter.”
Oil futures have been volatile for months amid lackluster liquidity.
Prices stand almost 40% lower than their peak earlier this year amid a rising sense of certainty that central bank efforts around the world to contain inflation will lead to an economic slowdown.
However, geopolitical uncertainty still threatens supplies as traders watch for any hint of a slowdown.
US data showed some signs of demand improving in weekly figures.
Crude inventories fell 215,000 barrels last week, the US Energy Information Administration reported.
West Coast gasoline stockpiles fell to their lowest in 10 years and New England’s distillate stocks, which include diesel and heating oil, fell to an all-time low for this time of year.
Russia, which has to discount its barrels because of Western sanctions, is pushing OPEC and its allies to cut their collective output by 1 million barrels a day when the producer nations meet next week, Reuters reported Tuesday.
A production cut would further tighten supplies and could rally prices.
OPEC and its partners may be amenable to slashing output as some member countries see their revenues shrink from cheaper oil.
Prices:
West Texas Intermediate futures for November delivery climbed $3.65 to settle at $82.15 a barrel.
Brent futures for November settlement added $3.05 to settle at $89.32 a barrel.
Elsewhere, some of China’s top refiners are expecting a better economy in the winter, a bullish signal for oil.
Demand in the country, which is the world’s biggest crude importer, has remained weak for years because of its Covid Zero policy.
https://www.rigzone.com/news/wire/oil_r ... 1-article/