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Oil complex settles lower amid mixed US macro data

NYMEX crude settled 87 cents lower at $102.71/b Friday in light volume trading amid lackluster US macroeconomic data. NYMEX June product contracts both settled lower upon expiry, led by June ULSD futures, which fell 3.44 cents to end at $2.8846/gal. June RBOB fell 1.71 cents to settle at $2.9965/gal. July ULSD fell 3.17 cents to settle at $2.8882/gal, while July RBOB dropped 2.39 cents to settle at $2.9719/gal. US macroeconomic data Friday was mixed, with Chicago PMI — a key manufacturing index — beating expectations, coming in at 65.5 for May, up from 63 in April. But the Michigan Consumer Sentiment index left a little to be desired, coming in slightly higher at 81.9 in May, but missing economists expectations for a 82.5 reading. "I think that we might be seeing some macro reaction today," Oil Outlooks President Carl Larry said. "And this could be knocking gasoline and diesel […]

Posted On : Published By : Tom Whipple
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Oil Mixed Following U.S. Inventory Data

Oil futures were mixed in Asian trade, with some profit-taking in U.S. crude after overnight gains thanks to a drawdown in stockpiles at Cushing, a major onshore storage hub and the physical delivery point for New York Mercantile Exchange futures. Light, sweet crude futures for delivery in July traded at $103.42 a barrel at 0534 GMT on the Nymex, down $0.16 in the Globex electronic session. They settled up 86 cents, or 0.8%, at $103.58 a barrel overnight. U.S. crude futures are likely to see little downside risk, with prices staying well above $100/bbl in the near-term due to the low stocks at Cushing, which fell 1.5 million barrels from a week ago, said Okato Shoji Co. ‘s deputy manager of research, Kaname Gokon, in Tokyo. Supplies in Cushing have fallen 16 out of the last 17 weeks and are down more than 20 million barrels since late January, […]

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Oil falls below $103, ends week down 1.6 pct

The price of oil fell below $103 per barrel Friday on ample supplies of crude and fuels. Benchmark U.S. crude for July delivery fell 87 cents to close at $102.71 a barrel in New York. The contract closed down 1.6 percent for the week, though it finished the month up nearly 3 percent. Brent crude, a benchmark for international oil used by many U.S. refineries, fell 56 cents to close at $109.41 a barrel in London. The price of crude was pulled down in part by the falling prices of wholesale gasoline and heating oil, suggesting that the U.S. has ample supplies of refined fuels. That could crimp demand for crude oil in coming weeks. Crude supplies in the U.S. are also plentiful, but crude prices were pushed higher during the month because inventories at the U.S. trading hub where benchmark crude is priced have fallen sharply. Next week […]

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WTI Caps Weekly Loss on Consumer Spending; Brent Falls

West Texas Intermediate crude capped the first weekly loss since May 2 as U.S. consumer spending fell in April and rising inventories signaled ample supply. WTI declined for the third time in four days. Household purchases, which account for about 70 percent of the economy, dropped 0.1 percent, the first decrease in a year, the Commerce Department said today. Crude stockpiles climbed 1.66 million barrels to 393 million last week, the Energy Information Administration reported yesterday. Brent slipped as Russia pulled back most of its troops from the border with Ukraine. “The economic data was not really giving us expectations that demand will be strong,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago . “Supply is pretty ample here. Russia pulled back its troops and that reduced risk premium a little bit.” WTI for July delivery slid 87 cents, or 0.8 percent, to end […]

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Oil Price Becalmed as Supply Growth Means Record Low Volatility

Oil-price volatility fell to a record amid speculation that crude-supply growth in the U.S. and spare Saudi Arabian production capacity will avoid any shortages resulting from strengthening economies. The 20-day historical volatility of Brent crude declined to 8.1 percent at 3 p.m. in London today, set to be the lowest since the contract began trading in 1988, according to data compiled by Bloomberg News. Spare capacity in Saudi Arabia and booming U.S. output of oil from shale-rock formations are preventing price surges, while stable global economic recovery and steady stimulus measures by the Federal Reserve avert a slump, BNP Paribas SA said. “It can be taken as a sign that markets are deemed to be in equilibrium, with no clear fundamental imbalances,” Olivier Jakob , managing director at consultants Petromatrix GmbH in Zug, Switzerland, said by e-mail today. Brent futures traded as low as $103.95 a barrel and as […]

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Iran wants stronger energy ties with Turkey

| License Photo Iran expects to add to the $10 billion trade relationship with Turkey through further cooperation in the energy sector, Iran’s ambassador to Ankara said. Ambassador Aliereza Bigdeli spoke Thursday on bilateral trade during a summit in Ankara. Both countries, he said, are positioned well to take advantage of transit opportunities in the European and Asian energy sectors. Iran has said its gas resources could be a benefit to a European community struggling to break Russia’s grip on the region’s energy sector, though sanctions on Iran have put many investors on the sidelines. Iranian state media reports Turkey imported $10 billion worth of goods last year and that level could double given the right trade climate. In February, Turkish Energy Minister Taner Yildiz said he’s ready to listen if Iran comes forward with new energy investment proposals, but nothing is in the works.

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Iraqi Army faces deaths and desertions

Ill-equipped soldiers struggle with Anbar offensive as militants pour in across the border from Syria and join forces with local tribesmen Iraq’s acting defence minister looks beleaguered, his face drawn, with deep bags below his eyes from a lack of sleep. For four months, Sadoun Al Dulaimi has been operating from Anbar, the most dangerous province for US soldiers during the Iraq War and one again riven by conflict. The army has dispatched 42,000 troops here in a bid to quell Al Qaida-inspired jihadists and hostile tribesmen, whose resurgence is posing the biggest test for the Iraqi military and the country’s Shiite-led government since the withdrawal of US forces two and a half years ago. The battle is filled with potential pitfalls. A government failure to regain control in Sunni-dominated Anbar would jeopardise the country’s unity. But an escalated military offensive could deepen anger among the nation’s Sunni minority, […]

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Iraq PM calls for “jihad” against Anbar jihadists

Maliki pledges to "cleanse" Anbar of ISIS by start of Ramadan Iraq’s Prime Minister Nuri Al-Maliki speaks during a news conference with UN Secretary-General Ban Ki-moon in Baghdad on January 13, 2014. (Reuters/Ahmed Saad) Baghdad, Asharq Al-Awsat —Iraqi Prime Minster Nuri Al-Maliki called for “jihad” against the Islamic State of Iraq and Syria (ISIS) in Iraq’s restive western Anbar province on Wednesday, pledging to crush the Islamist insurgency before the Muslim holy month of Ramadan that is set to be begin in late June. In his weekly speech from Baghdad, Maliki also called for a “national dialogue” on Anbar, stressing that the Iraqi people must “stand with the security forces,” and that residents of Anbar must work with “their brothers from the tribes of Anbar and the local and central governments to accelerate the cleansing of Anbar” of ISIS militants. “Everybody must unite and return to the ranks of […]

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Maliki: Elimination of Terrorists in Anbar Won’t Require Long Time

World Maliki: Elimination of Terrorists in Anbar Won’t Require Long Time TEHRAN (FNA)- Iraqi Prime Minister Nouri al-Maliki announced that the army’s campaign in Anbar will not be in need of a long time, stressing that the coming Holy month of Ramadan will witness restoring security in the restive province. The Iraqi leader also said that the local tribes are cooperating with the army to face ISIL terrorists, adding that crisis of the displaced will be ended soon, Al-Manar reported. It is worth noting that the Iraqi province of Anbar has been witnessing military clashes between the army and the terrorists of the Islamic State in Iraq and the Levant (ISIL) which has committed numerous crimes against the Iraqi military and citizens.

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Tanker with piped Iraqi Kurdish oil U-turns away from US

A crude oil tanker at the center of a dispute between Iraqi Kurdistan and Baghdad has reversed course from its route towards the United States, ship-tracking data showed on Friday, indicating that the shipper may not have a buyer. The United Leadership oil tanker has become a symbol of a wider conflict between Baghdad and Iraqi Kurdistan over oil sales from the autonomous northern enclave, as it contains the first crude to come out of the region’s newly built pipeline into Turkey. Since loading at the Turkish port of Ceyhan last week, the United Leadership set course for the U.S. Gulf Coast, according to ship-tracking and market sources. The U.S. State Department said that it did not condone oil sales bypassing Baghdad, and that any buyers could risk a legal suit with the central government. “We do not support the export or sale of oil absent the appropriate approval […]

Posted On : Published By : Tom Whipple