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Oil extends losses on China slowdown signs

The price of oil fell further on Friday as recent signs of sputtering economic growth in China suggested demand for crude could weaken. Other factors influencing crude supplies included a report that U.S. crude reserves rose to a 38-year high and the delayed reopening of export terminals in Libya. Benchmark crude for May delivery was down 20 cents to $103.20 a barrel at 0740 GMT in electronic trading on the New York Mercantile Exchange. The contract fell 20 cents to settle at $103.40 a barrel on Thursday. Brent crude, a benchmark for international oil prices, slipped 23 cents to $107.29 a barrel on the ICE Futures exchange in London. Oil prices retreated from a five-week high this week after China report shrinking exports and imports for March, raising concerns about slowing growth in the world’s No. 2 economy. Investors are nervously awaiting the release of first-quarter economic data next […]

Posted On : Published By : Tom Whipple
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WTI Heads for Weekly Gain as Discount to Brent Shrinks on Libya

West Texas Intermediate headed for a weekly gain amid speculation that U.S. fuel demand will increase as employment recovers. The discount to Brent shrank to the least since September after Libya signaled it’s ready to boost crude exports. Futures were little changed in New York and up 1.9 percent this week. Fewer Americans filed applications for jobless benefits last week than at any time since before the recession, according to Labor Department data. Brent’s premium to WTI narrowed to $4.06 a barrel yesterday as state-run National Oil Corp. lifted force majeure at its Hariga terminal, which rebels handed over to the Libyan government. “Libyan production will be bearish for Brent, and if there’s optimism on the U.S. economy, then that’s going to help boost WTI,” Victor Shum, a vice president at IHS Energy Insight in Singapore , said by phone today. “Looking back this week on the U.S. inventory […]

Posted On : Published By : Tom Whipple
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Crude-Oil Benchmarks Pulled Closer By Contrasting Demand Pictures

Crude oil futures were trading lower Thursday but still not far below the week’s highs, with the price gap between the two benchmark contracts at a multi-month low. Brent crude for May delivery was down 61 cents at $107.37 a barrel on ICE Futures Europe having hit its highest since March 31 in the previous session. U.S. crude-oil futures were down 24 cents at $103.35 a barrel on the New York Mercantile Exchange having topped out Wednesday at the highest since March 4. High demand in the U.S. is boosting West Texas Intermediate, which has rallied almost 3% in the past two sessions, according to Kash Kamal of Sucden Research. This is despite crude inventories increasing by 4 million barrels week-on-week, "as steady flows towards the Gulf Coast signaled…both stronger domestic and export demand." In Europe, March demand for crude from Europe and Norway was down […]

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International Energy Agency – Oil Market Report

Highlights of the latest OMR dated: 11th April 2014 Crude oil prices were range-bound in March, with supply outages in the MENA and Russia-Ukraine tensions countering seasonally weaker demand. By early April, market expectations of an imminent restart of Libyan exports pressured Brent prices lower. Brent last traded at $107.75/bbl.   The forecast of global demand growth has been marginally trimmed to 1.3 mb/d for 2014, reflecting downward adjustments to the projection of Russian demand. The absolute demand estimate remains roughly unchanged, as upward revisions to baseline non-OECD Asian demand counterbalance lower Russian growth. Global supplies plunged by 1.2 mb/d to 91.75 mb/d in March, led by steeply lower OPEC output , but remained up by 1.1 mb/d year-on-year, as non‐OPEC growth of 1.98 mb/d more […]

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IEA Trims 2014 Oil Demand Growth Forecast

The International Energy Agency on Friday highlighted ongoing "elevated" risks in the oil market, as it trimmed its forecast for an increase in demand this year following Russia’s annexation of Crimea, but also warned of lower oil production. In its closely watched monthly report, the Paris-based energy watchdog lowered its 2014 forecast for Russian oil demand by 55,000 barrels a day to total 3.5 million barrels a day following the country’s annexation of Crimea last month and subsequent downgrades of the World Bank and International Monetary Fund’s views of the country’s growth. Further economic sanctions and pressure on Russia’s economy could cut its oil demand by a further 150,000 barrels a day this year, the IEA said. The IEA’s overall forecast for the increase in oil demand this year was cut by 100,000 barrels a day to 1.3 million barrels a day. The IEA also lowered […]

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IEA Says OPEC Will Need to Pump More Crude in Second Half

OPEC will need to pump more crude in the second half of the year to meet demand after its production plunged to a five-month low in March, according to the International Energy Agency . Supplies from the Organization of Petroleum Exporting Countries “plummeted” by 890,000 barrels a day to 29.62 million barrels a day in March, the Paris-based IEA said today in its monthly oil market report. That’s below OPEC’s collective 30 million production target and means the group will have to increase output in the second half of the year, it said. “OPEC supply actually registered a steep drop in March from February highs, but this setback looks likely to be short-lived,” the IEA, an adviser to oil-consuming nations, said. “Prospects for OPEC output are also on the rise – though not without considerable political risk.” Brent crude oil prices have dropped 3.2 percent this year to trade […]

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Platts Survey: OPEC Pumps 29.56 Million Barrels of Crude Oil Per Day in March

Down 550,000 Barrels Per Day from February on Saudi, Iraqi and Libyan Cuts Oil production from the Organization of the Petroleum Exporting Countries (OPEC) plunged 550,000 b/d from February to 29.56 million b/d in March — its lowest level since mid-2011 — according to the latest Platts survey of OPEC and oil industry officials and analysts. The decline followed February production of 30.11 million b/d and was mainly attributable to insurgent attacks which shut a key export pipeline in Iraq, and a renewed downward swing in Libyan production. Saudi Arabia also reduced output because of lower refining demand due to maintenance. The survey showed Saudi output at 9.6 million b/d, down from 9.7 million b/d in February and the lowest level since June last year, when the kingdom’s output was estimated at 9.65 million b/d. Together, Saudi Arabia, Iraq and Libya accounted for 440,000 b/d of the overall drop. […]

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House Votes to Deny Visa to Iranian Envoy Linked to ’79 Hostage Crisis

The House on Thursday unanimously passed legislation approved by the Senate aimed at denying a visa to Iran ’s choice for United Nations ambassador. The vote sent what sponsors called a blunt rejoinder to the Iranian government for having selected a nominee who played a role, however minor, in the 1979 American hostage crisis in Tehran. The legislation, which goes to President Obama for signature, reflected the raw political nerves rubbed by the nominee, Hamid Aboutalebi, a veteran diplomat who has said he once worked as an interpreter for the revolutionary student group that seized the United States Embassy and held 52 Americans for 444 days. The Obama administration had already signaled its opposition to Mr. Aboutalebi, informing the Iranian government that the choice was “not viable,” while stopping short of denying him a visa or taking a position on the legislation. But the strong bipartisan approval of the […]

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Iran Feb Oil Shipments Highest Since Sanctions Began: IEA

Iran’s crude shipments in February were the highest since the imposition of Western sanctions that have crippled its oil-dependent economy, according to the International Energy Agency . Imports of Iranian oil were 1.65 million barrels a day in February, the highest level since June 2012, the IEA said. March shipments were estimated to have fallen to 1.05 million barrels a day from February’s figure, “but that figure will likely be revised upwards closer to February levels upon receipt of more complete data,” the IEA said. “Imports of Iranian oil are running well above 2013 levels for the third consecutive month,” the Paris-based adviser to 28 nations, said in its monthly oil market report . “Imports from Iran could remain high for April.” An interim accord easing restrictions on insurance for Iran’s oil shipments and freeing up cash held outside the country went into effect in January, in return for […]

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Dam takeover highlights worsening Anbar violence

As militants seize control of a dam in Fallujah, the government is planning for April 30 elections in which worsening security problems will not allow many Anbar residents to vote. Iraqi men move a boat that was stuck on the banks of the Euphrates river in Twairij, roughly 20 kilometers east of Karbala, due to a decline in the water level after supplies were blocked by anti-government fighters who control access to the Fallujah dam further upstream in conflict-hit Anbar province on April 8, 2014. (MOHAMMED SAWAF/AFP/Getty Images) The militants controlling the Fallujah dam were skeptical at first, reluctant to grant an interview with their leader.But after a thorough questioning, a pat-down, confiscation of mobile phones, and an agreement to preserve the anonymity of the fighters, Iraq Oil Report was introduced to a man who called himself only "al-Hajji."Dressed in a traditional Afghan-style robe but speaking a distinctively Anbari […]

Posted On : Published By : Tom Whipple