Investing.com
"Oil Inventories in Surprise 593,000 Barrel Rise Last Week: API"
By Yasin Ebrahim
Aug 30, 2022
Investing.com -- U.S. crude stockpiles unexpectedly climbed last week, the API reported Tuesday, but larger declines in product supplies including gasoline pointed to underlying strength in energy demand despite signs of slowing global growth.
West Texas Intermediate, the U.S. benchmark, traded at $92.23 a barrel following the report after settling down 5.5% at $91.64 a barrel.
U.S. crude inventories rose by 593,000 barrels for the week ended Aug. 26.
That compared with a draw of 5.6 million barrels reported by the API in the previous week.
Economists were expecting a decline of about 633,000 barrels.
The API data also showed that gasoline inventories fell by 3.4 million barrels last week, and distillate stocks decreased by 1.7 million barrels.
The official government inventory report due Wednesday is expected to show weekly U.S. crude supplies fell by about 1.5 million barrels last week.
Oil prices slumped on Tuesday amid reports that Iraq suffered no major disruptions to oil exports from ongoing civil unrest.
Russian media outlet TASS, citing an unnamed source in one of the OPEC+ delegations, said major oil producers aren't weighing up plans to cut production.
The remarks arrived a week after Saudi Energy Minister bin Salman floated the idea of production cuts to prop up oil prices.
https://www.investing.com/news/commodit ... pi-2882896
OIL, NATURAL GAS
Re: OIL, NATURAL GAS
RIGZONE
"Oil Posts Third Monthly Drop Amid Growth Concerns"
by Bloomberg | Julia Fanzeres and Sheela Tobben
Wednesday, August 31, 2022
Oil registered its third straight monthly decline, its longest losing run in more than two years, on concern that tighter monetary policy and China’s economic slowdown will impact crude demand.
West Texas Intermediate lost more than 9% in August, the largest monthly decline since November.
Bearish sentiment is mounting amid slowing economic growth for major oil consumer China.
Also, central bank officials reaffirmed their commitment to raising interest rates to cool rapid inflation.
The US oil benchmark settled Wednesday below $90 a barrel for the first time in two weeks.
“This morning’s price weakness is a summation of overall sentiment for the month of August, in which rising central bank interest rates are seen as the brake pedals to oil demand growth,” said Harry Altham, an energy analyst for StoneX Group.
Low liquidity has exacerbated crude’s steep price swings, frustrating oil bulls including hedge fund manager Pierre Andurand, who opined Thursday that the futures market is “broken.”
In the past week, oil has traded in a range of close to $10 a barrel.
The decline in futures comes even as the US supply picture has turned bullish, with crude stockpiles dropping for a third week while inventories at the largest storage hub fell for the first time in over two months, according to the latest Energy Information Administration report.
While there has been significant unrest in both Libya and Iraq in recent days, oil output in both OPEC members appears to be unaffected so far.
Separately, talks to revive an Iranian nuclear deal that may unlock greater crude exports have dragged on, and Russian output has been maintained at levels higher than prior expectations.
An agreement to revive the 2015 nuclear deal is “not out of reach” if the text of the final accord is stronger with better guarantees for Iran, Iranian Foreign Minister Hossein Amirabdollahian said at a press conference in Moscow.
Oil’s decline in August marks the latest chapter in a tumultuous year, with prices driven higher in the first half by Russia’s invasion of Ukraine, then undermined as central banks shifted tack and Moscow managed to keep most exports flowing.
Crude’s recent slump prompted OPEC+ heavyweight Saudi Arabia to float the idea the alliance could cut output, although Russian media reported the group wasn’t discussing such a move at present.
The main theme “is pessimistic macro-economic expectations, coupled with tight supply from low inventories,” said Zhou Mi, an analyst at Chaos Research Institute in Shanghai, which is affiliated with Chaos Ternary Futures Co.
Prices:
WTI for October delivery settled $2.09 lower at $89.55 a barrel in New York.
Brent for October settlement, which expires Wednesday, dropped $2.82 to $96.49 a barrel.
The contract lost about 12% in August.
November Brent fell 2.3%.
Key time spreads suggest that tightness in the market has eased.
WTI’s prompt spread -- the difference between the two nearest contracts -- settled for the month at 52 cents a barrel in backwardation, compared with $1.87 a month ago.
“This just seems like a violent retracement in prices and spreads in oil after they failed to maintain their strength yesterday in what is an extremely illiquid market,” said Scott Shelton, an energy specialist at ICAP.
(with assistance from Devika Krishna Kumar)
https://www.rigzone.com/news/wire/oil_p ... 4-article/
"Oil Posts Third Monthly Drop Amid Growth Concerns"
by Bloomberg | Julia Fanzeres and Sheela Tobben
Wednesday, August 31, 2022
Oil registered its third straight monthly decline, its longest losing run in more than two years, on concern that tighter monetary policy and China’s economic slowdown will impact crude demand.
West Texas Intermediate lost more than 9% in August, the largest monthly decline since November.
Bearish sentiment is mounting amid slowing economic growth for major oil consumer China.
Also, central bank officials reaffirmed their commitment to raising interest rates to cool rapid inflation.
The US oil benchmark settled Wednesday below $90 a barrel for the first time in two weeks.
“This morning’s price weakness is a summation of overall sentiment for the month of August, in which rising central bank interest rates are seen as the brake pedals to oil demand growth,” said Harry Altham, an energy analyst for StoneX Group.
Low liquidity has exacerbated crude’s steep price swings, frustrating oil bulls including hedge fund manager Pierre Andurand, who opined Thursday that the futures market is “broken.”
In the past week, oil has traded in a range of close to $10 a barrel.
The decline in futures comes even as the US supply picture has turned bullish, with crude stockpiles dropping for a third week while inventories at the largest storage hub fell for the first time in over two months, according to the latest Energy Information Administration report.
While there has been significant unrest in both Libya and Iraq in recent days, oil output in both OPEC members appears to be unaffected so far.
Separately, talks to revive an Iranian nuclear deal that may unlock greater crude exports have dragged on, and Russian output has been maintained at levels higher than prior expectations.
An agreement to revive the 2015 nuclear deal is “not out of reach” if the text of the final accord is stronger with better guarantees for Iran, Iranian Foreign Minister Hossein Amirabdollahian said at a press conference in Moscow.
Oil’s decline in August marks the latest chapter in a tumultuous year, with prices driven higher in the first half by Russia’s invasion of Ukraine, then undermined as central banks shifted tack and Moscow managed to keep most exports flowing.
Crude’s recent slump prompted OPEC+ heavyweight Saudi Arabia to float the idea the alliance could cut output, although Russian media reported the group wasn’t discussing such a move at present.
The main theme “is pessimistic macro-economic expectations, coupled with tight supply from low inventories,” said Zhou Mi, an analyst at Chaos Research Institute in Shanghai, which is affiliated with Chaos Ternary Futures Co.
Prices:
WTI for October delivery settled $2.09 lower at $89.55 a barrel in New York.
Brent for October settlement, which expires Wednesday, dropped $2.82 to $96.49 a barrel.
The contract lost about 12% in August.
November Brent fell 2.3%.
Key time spreads suggest that tightness in the market has eased.
WTI’s prompt spread -- the difference between the two nearest contracts -- settled for the month at 52 cents a barrel in backwardation, compared with $1.87 a month ago.
“This just seems like a violent retracement in prices and spreads in oil after they failed to maintain their strength yesterday in what is an extremely illiquid market,” said Scott Shelton, an energy specialist at ICAP.
(with assistance from Devika Krishna Kumar)
https://www.rigzone.com/news/wire/oil_p ... 4-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Drops Further Amid Growing Demand Concerns"
by Bloomberg | Julia Fanzeres and Devika Krishna Kumar
Thursday, September 01, 2022
Oil fell for to a two-week low amid escalating concerns about worldwide demand while a broader risk-off sentiment weighed on assets from metals to equities.
West Texas Intermediate futures dropped 3.3% to settle at $86.61 a barrel on Thursday.
Investors are focusing on tightening monetary policy around the world that could crimp economic growth and hit oil demand.
The lockdown of the Chinese megacity of Chengdu to contain a Covid-19 outbreak added to the negative sentiment.
“The oil benchmarks have started September lower as signs that the global economy is heading towards murky waters grow ever-more apparent,” said Harry Altham, an energy analyst for StoneX Group.
“There has been a wider shift away from risk assets in recent days and this has accelerated as bets are on” for a 75-basis-point rise in US interest rates next month.
Oil declined by more than 20% in the three months through August, overturning all of the gains since Russia’s invasion of Ukraine at the end of February.
The slump prompted Saudi Arabia to signal that the Organization of Petroleum Exporting Countries and its allies could cut supplies.
The group is scheduled to gather on Monday to discuss output policy.
“What it could translate into is OPEC potentially once again cutting production if prices get too low,” said Ole Hansen, Saxo Bank’s head of commodity strategy.
“That makes me believe that the downside is limited ahead of Monday’s meeting.”
Prices:
WTI for October delivery dropped $2.94 to settle at $86.61, lowest closing price since Aug. 16.
Brent for November shed $3.28 to settle at $92.36.
Among the items that OPEC+ ministers may weigh up is a US-led plan to cap the price of Russian crude in a bid to deprive Moscow of funds amid the war in Ukraine.
The proposal has been gathering support, with the UK government signaling its approval.
Group of Seven finance ministers including US Treasury Secretary Janet Yellen are due to discuss the proposal on Friday.
Strength in the greenback has added to headwinds for dollar-denominated commodities as the pricier currency makes them more expensive for overseas buyers.
The Bloomberg Dollar Index rose toward the highest level on record following a run of three monthly gains.
https://www.rigzone.com/news/wire/oil_d ... 0-article/
"Oil Drops Further Amid Growing Demand Concerns"
by Bloomberg | Julia Fanzeres and Devika Krishna Kumar
Thursday, September 01, 2022
Oil fell for to a two-week low amid escalating concerns about worldwide demand while a broader risk-off sentiment weighed on assets from metals to equities.
West Texas Intermediate futures dropped 3.3% to settle at $86.61 a barrel on Thursday.
Investors are focusing on tightening monetary policy around the world that could crimp economic growth and hit oil demand.
The lockdown of the Chinese megacity of Chengdu to contain a Covid-19 outbreak added to the negative sentiment.
“The oil benchmarks have started September lower as signs that the global economy is heading towards murky waters grow ever-more apparent,” said Harry Altham, an energy analyst for StoneX Group.
“There has been a wider shift away from risk assets in recent days and this has accelerated as bets are on” for a 75-basis-point rise in US interest rates next month.
Oil declined by more than 20% in the three months through August, overturning all of the gains since Russia’s invasion of Ukraine at the end of February.
The slump prompted Saudi Arabia to signal that the Organization of Petroleum Exporting Countries and its allies could cut supplies.
The group is scheduled to gather on Monday to discuss output policy.
“What it could translate into is OPEC potentially once again cutting production if prices get too low,” said Ole Hansen, Saxo Bank’s head of commodity strategy.
“That makes me believe that the downside is limited ahead of Monday’s meeting.”
Prices:
WTI for October delivery dropped $2.94 to settle at $86.61, lowest closing price since Aug. 16.
Brent for November shed $3.28 to settle at $92.36.
Among the items that OPEC+ ministers may weigh up is a US-led plan to cap the price of Russian crude in a bid to deprive Moscow of funds amid the war in Ukraine.
The proposal has been gathering support, with the UK government signaling its approval.
Group of Seven finance ministers including US Treasury Secretary Janet Yellen are due to discuss the proposal on Friday.
Strength in the greenback has added to headwinds for dollar-denominated commodities as the pricier currency makes them more expensive for overseas buyers.
The Bloomberg Dollar Index rose toward the highest level on record following a run of three monthly gains.
https://www.rigzone.com/news/wire/oil_d ... 0-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rose Slightly Friday but Posted Weekly Loss"
by Bloomberg | Julia Fanzeres
Friday, September 02, 2022
Oil fell this week as prospects for a global economic slowdown weighed heavily on the demand outlook.
West Texas Intermediate futures dropped 6.7% for the week amid tightening monetary policy and renewed anti-virus lockdowns in China.
Meanwhile, traders shrugged off an announcement by G-7 leaders of plans to cap the price of Russian crude in retaliation for Vladimir Putin’s aggression in Ukraine.
The G-7 move is largely symbolic “as the Russians are proving capable of circumventing restrictions already imposed by the G-7 countries, and hitting a record high export volume in August despite sanctions,” analysts at wholesale-fuel distributor TACenergy wrote in a note to clients.
On Friday, prices briefly rebounded after the US State Department said the Iran’s latest response to nuclear-deal proposals was “not constructive.”
The talks are being closely watched by oil traders because any deal to relax sanctions could allow more Iranian crude to flow into markets.
Oil fell by more than 20% in the three months through August, erasing all of the gains since Russia’s late-February invasion of Ukraine.
The price retreat poses a challenge for the Organization of Petroleum Exporting Countries and its allies, with ministers due to meet Monday to plan output policy.
While OPEC-watchers expect the group to keep supplies steady, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman raised the possibility of a production cut in remarks last week.
Prices:
WTI for October delivery rose 26 cents to settle at $86.87 a barrel.
Brent for November settlement rose 66 cents to $93.02.
Widely-watched time spreads, an indicator of market tightness, have been volatile.
Brent’s prompt spread -- the difference between its nearest two contracts -- was $1.21 a barrel in a backwardation, compared with almost $2 a barrel at the end of last week and 63 cents two weeks ago.
https://www.rigzone.com/news/wire/oil_r ... 1-article/
"Oil Rose Slightly Friday but Posted Weekly Loss"
by Bloomberg | Julia Fanzeres
Friday, September 02, 2022
Oil fell this week as prospects for a global economic slowdown weighed heavily on the demand outlook.
West Texas Intermediate futures dropped 6.7% for the week amid tightening monetary policy and renewed anti-virus lockdowns in China.
Meanwhile, traders shrugged off an announcement by G-7 leaders of plans to cap the price of Russian crude in retaliation for Vladimir Putin’s aggression in Ukraine.
The G-7 move is largely symbolic “as the Russians are proving capable of circumventing restrictions already imposed by the G-7 countries, and hitting a record high export volume in August despite sanctions,” analysts at wholesale-fuel distributor TACenergy wrote in a note to clients.
On Friday, prices briefly rebounded after the US State Department said the Iran’s latest response to nuclear-deal proposals was “not constructive.”
The talks are being closely watched by oil traders because any deal to relax sanctions could allow more Iranian crude to flow into markets.
Oil fell by more than 20% in the three months through August, erasing all of the gains since Russia’s late-February invasion of Ukraine.
The price retreat poses a challenge for the Organization of Petroleum Exporting Countries and its allies, with ministers due to meet Monday to plan output policy.
While OPEC-watchers expect the group to keep supplies steady, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman raised the possibility of a production cut in remarks last week.
Prices:
WTI for October delivery rose 26 cents to settle at $86.87 a barrel.
Brent for November settlement rose 66 cents to $93.02.
Widely-watched time spreads, an indicator of market tightness, have been volatile.
Brent’s prompt spread -- the difference between its nearest two contracts -- was $1.21 a barrel in a backwardation, compared with almost $2 a barrel at the end of last week and 63 cents two weeks ago.
https://www.rigzone.com/news/wire/oil_r ... 1-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rally Dwindles on Renewed Slowdown Fears"
by Bloomberg | Julia Fanzeres
Tuesday, September 06, 2022
Oil dropped as additional Covid-related lockdowns in China heightened risk-off sentiment across markets, halting the rally that followed the OPEC+ meeting earlier this week.
Brent crude dropped 3.04% to settle at $92.83 a barrel Tuesday.
West Texas Intermediate was little changed at $86.88 compared to its Friday settlement; markets in New York didn’t register a closing price on Monday due to the US holiday.
Saudi Arabia cut oil prices for customers in Asia from a record as Covid-19 restrictions and sagging economies cool energy demand in the region.
Virus-related lockdowns in China spread, reigniting fears of a global slowdown.
“Energy traders appear to be skeptical of any rallies as they digest a plethora of global economic challenges, a wrath of uncertainty to supplies, and looming crude demand destruction fears,” said Ed Moya, senior market analyst at Oanda.
On Monday, WTI rallied over $90 a barrel as the Organization of Petroleum Exporting Countries and allies including Russia agreed to shave a modest 100,000 barrels a day off production.
Oil’s drop in the summer months is the latest chapter of a tumultuous year, with prices driven higher in the first half by Russia’s invasion of Ukraine, then undermined as central banks shifted tack and Moscow managed to keep most exports flowing.
Crude’s recent slump prompted OPEC+ to cut its production for the first time in more than a year, a sign the production group is serious about managing global markets.
“Fundamentally we’re probably moving in the right direction in terms of calming the oil market, but all of that friction out there related to Russia seems like it’s only going in one direction,” Jeff Brown, president of consultant FGE, said in a Bloomberg TV Interview.
“OPEC is essentially signaling that we don’t like $90 a barrel."
"They’re pretty much at production limits, so let’s defend a high price.”
The group’s move “signals a willingness to resume active market management to avert a major sell-off due to recession concerns or expectations of policy-driven supply increases,” RBC Capital Markets LLC analysts including Helima Croft said in a note.
“They are seeking to put short-sellers on notice that they will not easily surrender the recent gains and go gently into the night.”
Prices:
WTI for October rose 1 cent from Friday to settle at $86.88 a barrel in New York.
Brent for November settlement dropped $2.91 to settle at $92.83 a barrel.
Oil traders are also wrestling with the growing energy crisis in Europe.
Governments are patching together emergency measures to support utilities amid concerns that companies will buckle under the weight of growing margin calls.
https://www.rigzone.com/news/wire/oil_r ... 8-article/
"Oil Rally Dwindles on Renewed Slowdown Fears"
by Bloomberg | Julia Fanzeres
Tuesday, September 06, 2022
Oil dropped as additional Covid-related lockdowns in China heightened risk-off sentiment across markets, halting the rally that followed the OPEC+ meeting earlier this week.
Brent crude dropped 3.04% to settle at $92.83 a barrel Tuesday.
West Texas Intermediate was little changed at $86.88 compared to its Friday settlement; markets in New York didn’t register a closing price on Monday due to the US holiday.
Saudi Arabia cut oil prices for customers in Asia from a record as Covid-19 restrictions and sagging economies cool energy demand in the region.
Virus-related lockdowns in China spread, reigniting fears of a global slowdown.
“Energy traders appear to be skeptical of any rallies as they digest a plethora of global economic challenges, a wrath of uncertainty to supplies, and looming crude demand destruction fears,” said Ed Moya, senior market analyst at Oanda.
On Monday, WTI rallied over $90 a barrel as the Organization of Petroleum Exporting Countries and allies including Russia agreed to shave a modest 100,000 barrels a day off production.
Oil’s drop in the summer months is the latest chapter of a tumultuous year, with prices driven higher in the first half by Russia’s invasion of Ukraine, then undermined as central banks shifted tack and Moscow managed to keep most exports flowing.
Crude’s recent slump prompted OPEC+ to cut its production for the first time in more than a year, a sign the production group is serious about managing global markets.
“Fundamentally we’re probably moving in the right direction in terms of calming the oil market, but all of that friction out there related to Russia seems like it’s only going in one direction,” Jeff Brown, president of consultant FGE, said in a Bloomberg TV Interview.
“OPEC is essentially signaling that we don’t like $90 a barrel."
"They’re pretty much at production limits, so let’s defend a high price.”
The group’s move “signals a willingness to resume active market management to avert a major sell-off due to recession concerns or expectations of policy-driven supply increases,” RBC Capital Markets LLC analysts including Helima Croft said in a note.
“They are seeking to put short-sellers on notice that they will not easily surrender the recent gains and go gently into the night.”
Prices:
WTI for October rose 1 cent from Friday to settle at $86.88 a barrel in New York.
Brent for November settlement dropped $2.91 to settle at $92.83 a barrel.
Oil traders are also wrestling with the growing energy crisis in Europe.
Governments are patching together emergency measures to support utilities amid concerns that companies will buckle under the weight of growing margin calls.
https://www.rigzone.com/news/wire/oil_r ... 8-article/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Plunges to Six Month Low Amid Demand Concerns"
by Bloomberg | Julia Fanzeres and Alex Longley
Wednesday, September 07, 2022
Oil benchmarks tumbled to their lowest in more than six months as demand concerns emanating from China prompted a wave of selling that turned into a frenzy as prices breached technical warning levels.
West Texas Intermediate extended losses to settle below $82 a barrel while Brent closed at $88, their lowest since January.
A dollar gauge reached an all-time high on Wednesday, offering a macro headwind to commodities at a time when the oil market is grappling with potential slowing demand in China.
Traders lamented the market picture was darkening as oil formed what’s referred to as a “death cross” - a bearish technical signal where WTI’s 50-day moving average falls below its 200-day MA- for the first time since 2020.
“Elevated volatility is the story here,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management.
“There is no way to have conviction and want to place bets when the market trades in huge ranges with limited liquidity."
"The risk reward is just not there.”
Crude has made a soft start to September, extending a run of three monthly losses that’s the longest streak in more than two years.
With central banks jacking up rates to quell inflation, investors are concerned economies may tip into recession and slow crude demand.
In China, one of the world’s largest oil consumers, virus curbs are damping demand, with centers from Chengdu to Shenzhen extending lockdowns or adopting movement controls.
As oil sheds all of the gains accrued since the invasion of Ukraine and heads back to levels seen at the start of the year, traders are evaluating if prices could fall much further.
Despite the uncertainty in Chinese demand, another main oil buyer, the US, remains strong.
“WTI crude should hold $80 given how strong the US economy remains and now that most of the demand shock from China’s deteriorating COVID situation has been priced in,” said Ed Moya, senior market analyst at Oanda.
Prices:
WTI for October delivery fell $4.94 to settle at $81.94 in New York.
Brent for November settlement dropped $4.83 to settle at $88 barrel.
Meanwhile, the US administration is attempting to build a coalition on a proposed oil price cap on Russian crude in order to limit Moscow’s ability to fund its war in Ukraine.
Market participants see the move as largely symbolic as Russia has been capable of working around G-7 restrictions.
Prices erased a one-day rally on Monday driven by a decision from the Organization of Petroleum Exporting Countries and its allies on Monday to pare output.
Reflecting the market softness, Saudi Arabia reduced prices for customers in Asia and Europe for next month’s shipments.
(with assistance from Devika Krishna Kumar)
https://www.rigzone.com/news/wire/oil_p ... 5-article/
"Oil Plunges to Six Month Low Amid Demand Concerns"
by Bloomberg | Julia Fanzeres and Alex Longley
Wednesday, September 07, 2022
Oil benchmarks tumbled to their lowest in more than six months as demand concerns emanating from China prompted a wave of selling that turned into a frenzy as prices breached technical warning levels.
West Texas Intermediate extended losses to settle below $82 a barrel while Brent closed at $88, their lowest since January.
A dollar gauge reached an all-time high on Wednesday, offering a macro headwind to commodities at a time when the oil market is grappling with potential slowing demand in China.
Traders lamented the market picture was darkening as oil formed what’s referred to as a “death cross” - a bearish technical signal where WTI’s 50-day moving average falls below its 200-day MA- for the first time since 2020.
“Elevated volatility is the story here,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Management.
“There is no way to have conviction and want to place bets when the market trades in huge ranges with limited liquidity."
"The risk reward is just not there.”
Crude has made a soft start to September, extending a run of three monthly losses that’s the longest streak in more than two years.
With central banks jacking up rates to quell inflation, investors are concerned economies may tip into recession and slow crude demand.
In China, one of the world’s largest oil consumers, virus curbs are damping demand, with centers from Chengdu to Shenzhen extending lockdowns or adopting movement controls.
As oil sheds all of the gains accrued since the invasion of Ukraine and heads back to levels seen at the start of the year, traders are evaluating if prices could fall much further.
Despite the uncertainty in Chinese demand, another main oil buyer, the US, remains strong.
“WTI crude should hold $80 given how strong the US economy remains and now that most of the demand shock from China’s deteriorating COVID situation has been priced in,” said Ed Moya, senior market analyst at Oanda.
Prices:
WTI for October delivery fell $4.94 to settle at $81.94 in New York.
Brent for November settlement dropped $4.83 to settle at $88 barrel.
Meanwhile, the US administration is attempting to build a coalition on a proposed oil price cap on Russian crude in order to limit Moscow’s ability to fund its war in Ukraine.
Market participants see the move as largely symbolic as Russia has been capable of working around G-7 restrictions.
Prices erased a one-day rally on Monday driven by a decision from the Organization of Petroleum Exporting Countries and its allies on Monday to pare output.
Reflecting the market softness, Saudi Arabia reduced prices for customers in Asia and Europe for next month’s shipments.
(with assistance from Devika Krishna Kumar)
https://www.rigzone.com/news/wire/oil_p ... 5-article/
Re: OIL, NATURAL GAS
REUTERS
"Oil edges up from seven-month low as Russia threatens export halt"
By Scott Disavino
September 8, 2022
Summary
* U.S. crude stocks jump by nearly 9 million barrels -EIA
* U.S. weighing need for more oil releases from strategic reserves
* Britain goes big to ease energy shock, EU meets on Friday
* Belgium seeks price cap on all EU gas imports, not just Russian
NEW YORK, Sept 8 (Reuters) - Crude prices edged up about 1% on Thursday after dropping to a seven-month low in the prior session as some technical traders bought the dip and Russia threatened to halt oil and gas exports to some buyers.
That price increase came despite a surprise build in U.S. crude inventories, news that the United States was weighing the need for more crude releases from strategic reserves and concerns China's COVID-19 lockdown extensions and rising global interest rates would slow economic activity and hit fuel demand.
U.S. crude stockpiles surged by nearly 9 million barrels last week due to a combination of increased imports and ongoing releases from government emergency reserves, the Energy Information Administration said.
The hefty build compares with the 250,000-barrel draw analysts forecast in a Reuters poll and data from American Petroleum Institute (API) industry group showing a 3.6 million barrel increase.
"Most of that oil in that build came from the Strategic Petroleum Reserve."
"The quicker we empty out the SPR, the bigger the draws are going to be in the future," said Phil Flynn, an analyst at Price Futures Group.
U.S. Energy Secretary Jennifer Granholm said Joe Biden's administration was weighing the need for further releases of crude oil from the nation's emergency stockpiles.
Brent futures rose $1.15, or 1.3%, to settle at $89.15 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.60, or 2.0%, to settle at $83.54.
On Wednesday, both benchmarks dropped more than 5% to close at their lowest levels since mid-to-late January, putting WTI into technically oversold territory for the first time in a month.
"Today’s advance ... appears motivated mainly by an oversold technical condition that allowed the complex to shrug off a seemingly bearish crude stock build per the EIA," analysts at energy consulting firm Ritterbusch and Associates said.
Prices also drew support from Russian President Vladimir Putin's threat to halt oil and gas exports if price caps are imposed by European buyers.
The European Union proposed capping Russian gas prices, raising the risk of rationing this winter if Moscow carries out its threat.
Russia's Gazprom has already halted flows from the Nord Stream 1 gas pipeline.
Belgium's energy minister proposed a cap on wholesale gas prices rather than just Russian imports.
Britain said it will cap consumer energy bills for two years.
Concerns about the health of the global economy and expectations of falling fuel demand led to sharp oil price falls in the previous session.
China's Chengdu extended a lockdown for a majority of its more than 21 million residents to prevent further transmission of COVID-19.
The European Central Bank (ECB) raised its key interest rates by an unprecedented 75 basis points and signalled further hikes, prioritising the fight against inflation even as the bloc's economy is heading for a likely winter recession.
U.S. Federal Reserve Chairman Jerome Powell said the central bank is "strongly committed" to bringing down inflation and needs to keep going until it gets the job done.
"Energy traders have mostly priced in the Chinese COVID shutdowns and demand concerns from aggressive tightening signals by the ECB and Fed," said Edward Moya, senior market analyst at data and analytics firm OANDA.
Reporting by Scott DiSavino in New York; Additional reporting by Ahmad Ghaddar in London and Muyu Xu in Singapore; Editing by Marguerita Choy, Matthew Lewis and Deepa Babington
https://www.reuters.com/business/energy ... 022-09-08/
"Oil edges up from seven-month low as Russia threatens export halt"
By Scott Disavino
September 8, 2022
Summary
* U.S. crude stocks jump by nearly 9 million barrels -EIA
* U.S. weighing need for more oil releases from strategic reserves
* Britain goes big to ease energy shock, EU meets on Friday
* Belgium seeks price cap on all EU gas imports, not just Russian
NEW YORK, Sept 8 (Reuters) - Crude prices edged up about 1% on Thursday after dropping to a seven-month low in the prior session as some technical traders bought the dip and Russia threatened to halt oil and gas exports to some buyers.
That price increase came despite a surprise build in U.S. crude inventories, news that the United States was weighing the need for more crude releases from strategic reserves and concerns China's COVID-19 lockdown extensions and rising global interest rates would slow economic activity and hit fuel demand.
U.S. crude stockpiles surged by nearly 9 million barrels last week due to a combination of increased imports and ongoing releases from government emergency reserves, the Energy Information Administration said.
The hefty build compares with the 250,000-barrel draw analysts forecast in a Reuters poll and data from American Petroleum Institute (API) industry group showing a 3.6 million barrel increase.
"Most of that oil in that build came from the Strategic Petroleum Reserve."
"The quicker we empty out the SPR, the bigger the draws are going to be in the future," said Phil Flynn, an analyst at Price Futures Group.
U.S. Energy Secretary Jennifer Granholm said Joe Biden's administration was weighing the need for further releases of crude oil from the nation's emergency stockpiles.
Brent futures rose $1.15, or 1.3%, to settle at $89.15 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.60, or 2.0%, to settle at $83.54.
On Wednesday, both benchmarks dropped more than 5% to close at their lowest levels since mid-to-late January, putting WTI into technically oversold territory for the first time in a month.
"Today’s advance ... appears motivated mainly by an oversold technical condition that allowed the complex to shrug off a seemingly bearish crude stock build per the EIA," analysts at energy consulting firm Ritterbusch and Associates said.
Prices also drew support from Russian President Vladimir Putin's threat to halt oil and gas exports if price caps are imposed by European buyers.
The European Union proposed capping Russian gas prices, raising the risk of rationing this winter if Moscow carries out its threat.
Russia's Gazprom has already halted flows from the Nord Stream 1 gas pipeline.
Belgium's energy minister proposed a cap on wholesale gas prices rather than just Russian imports.
Britain said it will cap consumer energy bills for two years.
Concerns about the health of the global economy and expectations of falling fuel demand led to sharp oil price falls in the previous session.
China's Chengdu extended a lockdown for a majority of its more than 21 million residents to prevent further transmission of COVID-19.
The European Central Bank (ECB) raised its key interest rates by an unprecedented 75 basis points and signalled further hikes, prioritising the fight against inflation even as the bloc's economy is heading for a likely winter recession.
U.S. Federal Reserve Chairman Jerome Powell said the central bank is "strongly committed" to bringing down inflation and needs to keep going until it gets the job done.
"Energy traders have mostly priced in the Chinese COVID shutdowns and demand concerns from aggressive tightening signals by the ECB and Fed," said Edward Moya, senior market analyst at data and analytics firm OANDA.
Reporting by Scott DiSavino in New York; Additional reporting by Ahmad Ghaddar in London and Muyu Xu in Singapore; Editing by Marguerita Choy, Matthew Lewis and Deepa Babington
https://www.reuters.com/business/energy ... 022-09-08/
Re: OIL, NATURAL GAS
REUTERSHawley Calls for Investigation Into Biden’s Release of Emergency Oil Reserves to China, Foreign Competitors
Wednesday, July 13, 2022
Today U.S. Senator Josh Hawley (R-Mo.) sent a letter to Department of Energy (DOE) Inspector General Teri Donaldson demanding she investigate President Joe Biden’s recent ongoing release of oil from the Strategic Petroleum Reserve (SPR) to foreign competitors, including China.
New reporting has revealed that, as a result of Biden’s unprecedented release of oil from America’s emergency reserves, more than 5 million barrels of oil have already been shipped overseas to American competitors, draining the SPR to its lowest level since 1985.
"While Americans are paying record gasoline and diesel fuel prices, the Biden administration appears to have been letting our strategic oil stockpiles flow to foreign countries and entities," Senator Hawley wrote.
"Critically, the American people deserve answers as to how exactly the Department justified sending oil from the SPR to China."
"DOE’s recent transfer of nearly one million barrels of oil to UNIPEC is just one concerning example."
Senator Hawley called for IG Donaldson to explain, among other things, whether DOE has any internal controls in place to prevent the transfer of oil to countries like China and to quantify exactly how many barrels of oil ultimately served foreign markets.
https://www.hawley.senate.gov/hawley-ca ... nce%201985.
"U.S. evaluating need for further SPR oil releases after October -Granholm"
By Arathy Somasekhar
September 8, 2022
HOUSTON, Sept 8 (Reuters) - U.S. President Joe Biden's administration is weighing the need for further releases of crude oil from the nation's emergency stockpiles after the current program ends in October, Energy Secretary Jennifer Granholm told Reuters on Thursday.
A Department Of Energy official later said the White House was not considering new releases from the U.S. Strategic Petroleum Reserve (SPR) at this time beyond the 180 million barrels that the president announced months ago.
The Biden administration this year has delivered about 1 million barrels of oil per day from SPR stockpiles to lower fuel prices and pare energy inflation ahead of midterm elections in November.
The releases so far this year have helped knock average U.S. retail gasoline prices down to $3.75 a gallon this week from $5 a gallon in June.
But they also have cut U.S. emergency stocks to below 450 million barrels, lowest since 1984.
OPEC and its allies led by Russia on Monday agreed to a small oil production cut beginning next month to bolster prices that have slid on fears of an economic slowdown.
It is "a little early to say to say that there is going to be more SPR releases," said Abhiram Rajendran, head of global oil at Energy Intelligence.
"But if OPEC starts getting aggressive on cutting supply, that's a possibility."
The nation's overall crude stocks have been declining since mid-2020 due to sales from congressional mandates and Biden's price initiative.
Without the SPR releases, U.S. commercial crude oil inventories "would be much lower than they are and they are already below average," said Phil Flynn, an analyst at Price Futures Group.
Granholm also said during a visit to Houston on Thursday that the administration and allies are still discussing a cap on prices for Russian oil purchases.
A price cap would restrict revenues available to Russia amid its invasion of Ukraine.
The administration has not ruled out a U.S. fuel export ban, but said it is "certainly not something on top of the list," she said.
Granholm recently wrote to U.S. refiners urging them to replenish low fuel inventories ahead of winter and to curb rising exports of gasoline and diesel.
The letter warned the administration may take unspecified emergency measures if fuel stocks fell further.
Reporting by Arathy Somasekhar; editing by Deepa Babington and Marguerita Choy
https://www.reuters.com/markets/us/us-e ... 022-09-08/
Re: OIL, NATURAL GAS
RIGZONE
"Oil Rebounds as Softer Dollar Boosts Trader Demand"
by Bloomberg | Julia Fanzeres and Alex Longley
Friday, September 09, 2022
Oil mustered a late comeback after dropping to six-month lows this week as a softer dollar bolstered trader demand across assets.
West Texas Intermediate settled above $86 a barrel, finishing a tumultuous week nearly flat with the prior seven days.
At the start of the week both benchmarks, WTI and Brent, slipped to lows not seen since the start of year.
Extended Covid lockdowns in China are deepening concerns that demand for oil will shrink.
The dollar rallied for much of the week, adding another headwind to commodities priced in the currency.
However, a sharp reversal Friday lifted oil and other riskier assets.
“The broader market rally is helping push crude prices higher,” said Ed Moya, senior market analyst at Oanda.
“China’s inflation numbers were promising and that is giving hope that central banks won’t have to be as aggressive with tightening over the next few months.”
Crude is down about $40 from its closing high earlier this year and the market has been beset by volatility ever since Russia invaded Ukraine.
For much of the period since March, daily trading volumes have been below the 200-day average.
Liquidity across commodity markets has also faced scrutiny amid Europe’s energy crisis, with the region’s ministers gathering in Brussels Friday.
Crude’s slump this week presents a challenge for the Organization of Petroleum Exporting Countries and its allies after they announced a nominal output cut at the start of the week, which triggered a short-lived rally.
The reduction surprised many traders, who had expected no change from OPEC+ no change.
Despite the current bout of market weakness, US officials are hunting for ways to head off a feared spike in oil prices later this year, including the possibility of an additional release from strategic crude reserves.
The officials are warning of a potential increase in prices this December when EU sanctions on Russian energy supplies take effect, unless other steps are taken.
Prices:
WTI for October delivery was up $3.25 to settle at $86.79 in New York.
Brent for November settlement rose $3.69 to settle at $92.84 a barrel.
On Thursday, US government data showed a large buildup of crude inventories, which swelled by a greater-than-expected 8.8 million barrels.
At the same time, a gauge of gasoline demand sank below 2020 seasonal levels.
https://www.rigzone.com/news/wire/oil_r ... 4-article/
"Oil Rebounds as Softer Dollar Boosts Trader Demand"
by Bloomberg | Julia Fanzeres and Alex Longley
Friday, September 09, 2022
Oil mustered a late comeback after dropping to six-month lows this week as a softer dollar bolstered trader demand across assets.
West Texas Intermediate settled above $86 a barrel, finishing a tumultuous week nearly flat with the prior seven days.
At the start of the week both benchmarks, WTI and Brent, slipped to lows not seen since the start of year.
Extended Covid lockdowns in China are deepening concerns that demand for oil will shrink.
The dollar rallied for much of the week, adding another headwind to commodities priced in the currency.
However, a sharp reversal Friday lifted oil and other riskier assets.
“The broader market rally is helping push crude prices higher,” said Ed Moya, senior market analyst at Oanda.
“China’s inflation numbers were promising and that is giving hope that central banks won’t have to be as aggressive with tightening over the next few months.”
Crude is down about $40 from its closing high earlier this year and the market has been beset by volatility ever since Russia invaded Ukraine.
For much of the period since March, daily trading volumes have been below the 200-day average.
Liquidity across commodity markets has also faced scrutiny amid Europe’s energy crisis, with the region’s ministers gathering in Brussels Friday.
Crude’s slump this week presents a challenge for the Organization of Petroleum Exporting Countries and its allies after they announced a nominal output cut at the start of the week, which triggered a short-lived rally.
The reduction surprised many traders, who had expected no change from OPEC+ no change.
Despite the current bout of market weakness, US officials are hunting for ways to head off a feared spike in oil prices later this year, including the possibility of an additional release from strategic crude reserves.
The officials are warning of a potential increase in prices this December when EU sanctions on Russian energy supplies take effect, unless other steps are taken.
Prices:
WTI for October delivery was up $3.25 to settle at $86.79 in New York.
Brent for November settlement rose $3.69 to settle at $92.84 a barrel.
On Thursday, US government data showed a large buildup of crude inventories, which swelled by a greater-than-expected 8.8 million barrels.
At the same time, a gauge of gasoline demand sank below 2020 seasonal levels.
https://www.rigzone.com/news/wire/oil_r ... 4-article/
Re: OIL, NATURAL GAS
RIGZONE
"Biden Team Weighs New Oil Release Among Steps to Rein in Prices"
by Bloomberg | Saleha Mohsin
Friday, September 09, 2022
Officials within President Joe Biden’s administration are hunting for ways to head off a feared spike in oil prices later this year, including the possibility of an additional release from the nation’s emergency crude reserves.
The officials are warning of an increase in prices this December when EU sanctions on Russian supplies take effect, unless other steps are taken, according to people familiar with the deliberations.
They asked not to be identified because the discussions aren’t public.
The talks are preliminary and no decision has been made, the people said.
But the debate underscores US fears that the sanctions, on their own, could trigger a new crisis over global crude prices.
The risk of a future jump in prices -- despite this week’s selloff in the crude market -- is also fueling the push to set a price cap on Russian oil sales to ease pressures.
Additional releases from the Strategic Petroleum Reserve, or SPR, could be made in November, December or January but no decision has been reached, the people said.
The potential size of any additional SPR drawdown isn’t known.
A White House spokesperson said no new release is being considered at this time.
Biden began tapping the SPR in May in a historic drawdown that continues into October.
Under that release, almost 180 million barrels are set to flow into the global economy.
The SPR has released a total of 173.8 million barrels since March, a figure that includes volumes associated with an earlier round of tenders.
--With assistance from Jennifer Jacobs, Jennifer A. Dlouhy, Sheela Tobben and Josh Wingrove.
https://www.rigzone.com/news/wire/biden ... 5-article/
"Biden Team Weighs New Oil Release Among Steps to Rein in Prices"
by Bloomberg | Saleha Mohsin
Friday, September 09, 2022
Officials within President Joe Biden’s administration are hunting for ways to head off a feared spike in oil prices later this year, including the possibility of an additional release from the nation’s emergency crude reserves.
The officials are warning of an increase in prices this December when EU sanctions on Russian supplies take effect, unless other steps are taken, according to people familiar with the deliberations.
They asked not to be identified because the discussions aren’t public.
The talks are preliminary and no decision has been made, the people said.
But the debate underscores US fears that the sanctions, on their own, could trigger a new crisis over global crude prices.
The risk of a future jump in prices -- despite this week’s selloff in the crude market -- is also fueling the push to set a price cap on Russian oil sales to ease pressures.
Additional releases from the Strategic Petroleum Reserve, or SPR, could be made in November, December or January but no decision has been reached, the people said.
The potential size of any additional SPR drawdown isn’t known.
A White House spokesperson said no new release is being considered at this time.
Biden began tapping the SPR in May in a historic drawdown that continues into October.
Under that release, almost 180 million barrels are set to flow into the global economy.
The SPR has released a total of 173.8 million barrels since March, a figure that includes volumes associated with an earlier round of tenders.
--With assistance from Jennifer Jacobs, Jennifer A. Dlouhy, Sheela Tobben and Josh Wingrove.
https://www.rigzone.com/news/wire/biden ... 5-article/