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U.S. Oil Futures Rise as Gap With Brent Crude Narrows

U.S. oil futures finished higher Friday as traders narrowed the gap between the domestic and international benchmarks after the spread reached a roughly eight-month high earlier this week. Light, sweet crude for January delivery rose 42 cents, or 0.5%, to $92.72 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange declined $1.17, or 1.1%, to $109.69 a barrel. The U.S. contract, known as West Texas Intermediate, or WTI, recovered some of the losses from Wednesday’s selloff, when it sank to a near six-month low amid swelling domestic supplies. Meanwhile, Brent futures, considered to be a gauge of world prices, hovered near a $110 a barrel all week, with support coming from fading concerns […]

Posted On : Published By : Tom Whipple
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Oil edges up in thin post-holiday trade

Oil remained below $93 a barrel Friday, in light trading a day after the Thanksgiving holiday in the U.S. For the week, oil fell by $2.32 a barrel. At the gas pump, the average price of a gallon of gasoline is $3.28. That’s up 4 cents from a week ago, but down 13 cents from this time last year. The nationwide average is the cheapest for the day after Thanksgiving since 2010. Benchmark U.S. crude for January delivery rose 42 cents to close at $92.72 a barrel Friday on the New York Mercantile Exchange. Brent crude, a benchmark for international oils, was down $1.17 at $109.69 a barrel on the ICE exchange in London. In other energy futures trading on Nymex: – Wholesale gasoline fell 3 cents to $2.66 a gallon. – Heating oil fell 1 cent at $3.03 a gallon. – Natural gas rose […]

Posted On : Published By : Tom Whipple
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Brent Falls a Second Day to Reduce Premium to WTI

Brent crude fell for a second day, reducing its premium over West Texas Intermediate futures as the euro slid against the dollar. The European benchmark pared its second monthly gain as the euro declined after climbing to a November high in intraday trading. A weaker euro and stronger dollar reduce crude’s investment appeal. The Brent-WTI spread narrowed for a second day. WTI capped a third monthly decline, the longest losing streak in almost five years. “The reversal of the euro is weighing on Brent prices,” said Phil Flynn , senior market analyst at the Price Futures Group in Chicago . “It seems like there is some profit taking in the Brent-WTI spread. The fundamentals are still bearish for WTI.” Brent for January settlement decreased $1.17, or 1.1 percent, to end the session at $109.69 a barrel on the London-based ICE Futures Europe exchange and is up 0.8 percent this […]

Posted On : Published By : Tom Whipple
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OPEC November Crude Production Falls to Two-Year Low in Survey

OPEC crude production dropped to a two-year low in November, led by declines in Saudi Arabian and Nigerian output, a Bloomberg survey showed. Output by the 12-member Organization of Petroleum Exporting Countries decreased 245,000 barrels to an average 30.007 million barrels a day this month from 30.252 million in October, the survey of oil companies , producers and analysts showed. The October total was revised lower by 369,000 barrels a day because of changes to the Saudi and Libyan estimates. Saudi Arabian crude output declined 150,000 barrels a day to 9.65 million. The desert kingdom pumped 10 million barrels a day in September, the most in monthly data going back to 1989. The October estimate was reduced by 200,000 barrels a day. Nigeria’s production dropped 100,000 barrels a day to 1.89 million in November, the lowest level since May. Production is often disrupted by unrest in the Niger River […]

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OPEC Rift Emerging Over Iraq Output, Possible Return of Iran

Tensions are emerging within the Organization of the Petroleum Exporting Countries over which member countries should trim oil production to make room for a resurgence in Iraqi exports and the possible return of more Iranian crude to world markets if sanctions are eased. There is no expectation of a decision to cut back at the OPEC cartel’s meeting in Vienna on Wednesday. The group of 12 of the world’s largest producers, though long riven by squabbling, has kept its overall production ceiling at 30 million barrels a day since December 2011. OPEC expects overall demand for its crude to drop by about 300,000 barrels a day next year and some members are pushing to trim output, according to people familiar with the debate. Members will have to decide whether to cut production as early as the first half of the year, with the risk that short-term global supply might […]

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Natural Gas Futures Rally on Chilly Weather Outlook

Natural gas futures rose for a seventh straight day on Friday, as forecasts for colder-than-normal temperatures, boosted the prospects for near-term heating demand. Natural gas for January delivery gained 5.9 cents, or 1.5%, to $3.954 a million British thermal units on the New York Mercantile Exchange and posted their highest settlement since June 19. Prices gained 37.3 cents, or 10.4%, in November and finished their best month since last March. “The weather forecasts this morning were really supportive and it looks like that outlook will stick around for awhile,” said Kyle Cooper, director of research at IAF Advisors, a Houston energy consultancy. In a research note, MDA Weather Services, a Gaithersburg, Md., weather forecaster, […]

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U.S. extends Iran oil sanctions waivers to China, India, South Korea

The U.S. State Department extended six-month Iran sanctions waivers on Friday to China, India, South Korea and other countries in exchange for their reducing purchases of Iranian crude oil earlier this year. The waivers had been expected. Under a law governing sanctions imposed on Iran’s disputed nuclear program by the United States, the State Department is required to determine whether the Islamic Republic’s oil consumers have reduced their purchases. The decision comes even after the United States and five other global powers, known as the P5+1, agreed in Geneva this month to ease Iran’s access to about $4.2 billion in foreign currency reserves for six months in exchange for Tehran’s taking steps to curb its nuclear program. The waivers, which the State Department calls exceptions, mean that banks in the consuming countries will not face being cut off from the U.S. financial system for the next […]

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US: Tough sanctions on Iran remain despite deal

The Obama administration said on Friday that it was maintaining tough oil-related sanctions against Iran even though the U.S. and five other world powers have signed an initial deal with Tehran to curb its nuclear program and prevent it from developing nuclear weapons. President Barack Obama has forcefully defended the interim agreement and has asked Congress not to impose new sanctions on Iran while a final, more comprehensive agreement can be negotiated. While pleading with Congress not to “close the door on diplomacy,” Obama has emphasized that crippling economic sanctions imposed on Iran have not been eased. The White House said in a statement that there appears to be a sufficient supply of non-Iranian oil to permit foreign countries to keep cutting back purchases of Iranian oil. In response, the State Department said in a statement that it had extended – for another six months – […]

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Iran Nuclear Deal Raises Fears of Proliferation Among Arab States

The Obama administration is hailing the accord with Iran as a victory in its campaign to stop the spread of nuclear weapons, but the deal is already feeding concerns of Arab governments and some proliferation experts that it could have the opposite effect. They worry it could instead fuel the spread of dangerous technologies across the Middle East and Asia. At issue is the agreement’s acceptance of Iran’s demand that at the end of a broader diplomatic process, the country will likely retain some ability to permanently produce nuclear fuel through the enrichment of uranium. Uranium enriched to low levels can be used for peaceful purposes such as energy production. But at higher levels, it can be used to make the fissile core of a nuclear weapon. The deal represents a particular risk of proliferation in the Middle East, where many governments view Iran as a rival, if not […]

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In Iran, Geneva deal is seen as a strategic pivot in US relations

The conversation in Western capitals about the nuclear deal signed between world powers and Iran in Geneva last weekend has focused on the degree of sanctions relief and uranium-enrichment limits involved in the tradeoff. But in Tehran, supporters and critics of the agreement in the corridors of power and on the streets see the Geneva deal as nothing less than a historic pivot in the Islamic Republic’s dealings with the West. And that puts the fragile agreement at the very heart of a high-stakes political battle over the country’s future. Credit for Geneva in Iran has gone to the government of President Hassan Rouhani, whose public diplomacy and skillful foreign minister have been essential to securing multilateral Western agreement. But the ultimate responsibility rests with Supreme Leader Ali Khamenei, who approved the bilateral talks with the United States that laid the groundwork for the accord. “This deal was a wider […]

Posted On : Published By : Tom Whipple