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Oil Marginally Higher but Strong Dollar Weighs

By Eric Yep Oil prices were marginally higher in Asian trade Wednesday, attempting a rebound after sharp losses of nearly 3% in the previous session on the back of a strong U.S. dollar. On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $58.35 a barrel at 0324 GMT, up $0.32 in the Globex electronic session. July Brent crude on London’s ICE Futures exchange rose $0.15 to $63.87 a barrel. However, strength in the greenback continues to weigh on oil prices. Market participants have raised concerns about the inability of the oil market to sustain its latest price rally. "At least for the time being, the strength in the U.S. dollar has called attention away from declining U.S. petroleum inventories," analyst Tim Evans at Citi Futures said. He said while the upcoming meeting of the Organization of the Petroleum Exporting Countries in early […]

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Oil rebounds 1 percent, U.S. crude stocks in focus

SINGAPORE Crude futures rose about 1 percent on Wednesday to recover some ground after steep drops in the previous session, boosted by expectations that U.S. crude stocks could fall for a fourth straight week. Prices were also supported by comments from western diplomats that a nuclear deal with Iran was unlikely by a June 30 deadline, and the oil producer would not get sanctions relief before the end of the year in the best of cases. July Brent crude LCOc1 rose 60 cents to $64.32 a barrel by 0651 GMT, while U.S. crude was up 75 cents at $58.78 a barrel. Both contracts fell more than 2 percent on Tuesday after a stronger greenback curbed buying interest in dollar-denominated commodities such as oil. U.S. commercial crude inventories likely decreased by 2 million barrels last week, a preliminary Reuters survey showed. Declining U.S. stockpiles of crude and oil products in […]

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Oil Price Hurt by Dollar Strength

ENLARGE An Endeavor Energy Resources rig outside Midland, Texas. U.S. players say they could start adding rigs in coming months if prices stabilize near current levels. Photo: Bloomberg News Oil prices fell Tuesday as the U.S. dollar strengthened and market participants continued to question the sustainability of the recent price rally. Light, sweet crude for July delivery recently fell $1.27, or 2.1%, to $58.45 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, fell $1.12, or 1.7%, to $64.40 a barrel on ICE Futures Europe. The Wall Street Journal Dollar Index, which tracks the dollar against a basket of other major currencies, rose 0.7% on Tuesday. As it is priced in dollars, oil becomes more expensive for holders of other currencies as the greenback appreciates. “Oil prices are fighting exceptional strength in the dollar,” said Phil Flynn , analyst at Price Futures Group in Chicago, in […]

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Natural Gas Futures Fall as Demand Outlook Weakens

By Christian Berthelsen Natural gas futures extended losses Tuesday as forecasts for an East Coast heat wave faded, dashing expectations for a bout of gas-fired cooling demand. Natural gas for June delivery settled down 6.5 cents, or 2.3%, at $2.822 a million British thermal units on the New York Mercantile Exchange. The June contract expires Wednesday. The loss prolonged last week’s slide, as concerns about robust production and more than adequate supplies prompt the market to give back gains made in early May. The May rally was driven by hotter-than-average temperatures that were expected to provide a boost for natural gas demand to generate power and run air conditioning. But the most recent forecasts show that trend beginning to moderate, with a spate of much-above normal temperatures in the Northeast fading in the coming days and predictions for renewed heat into early June losing strength, according to forecaster Commodity […]

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Return of crude/dollar trade fuels oil market dilemma ahead of OPEC

A once-popular pair trade pitting the U.S. dollar against oil prices has re-emerged in recent weeks, injecting a new wildcard into the market just as the Organization of the Petroleum Exporting Countries prepares to meet. Through the second half of 2014, oil slid while the dollar rose, though market watchers viewed this inverse correlation as a coincidence. Oil’s rout was fueled by a swelling global glut, the dollar’s rise driven by European monetary easing and expectations of higher U.S. interest rates. In recent weeks, however, oil market analysts and traders said it looked as though foreign exchange markets were jerking oil prices around. Oil market players are now paying closer attention to currency markets than they have since the European financial crisis. About two weeks ago, Morgan Stanley analysts said an "uncanny" relationship has developed between the dollar index and benchmark Brent crude oil. The inverse correlation between the […]

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Nuclear Move Stands to Lift U.S.-Israel Ties

ENLARGE Israeli Prime Minister Benjamin Netanyahu speaks in the parliament in Jerusalem earlier this month during a ceremony marking the 70th anniversary of the victory over Nazi Germany. Photo: jim hollander/European Pressphoto Agency Israeli officials criticized the Obama administration last week when they thought the U.S. was about to support a United Nations conference on nuclear weapons in the Middle East—with or without Israel’s participation or consent. But by Saturday, Prime Minister Benjamin Netanyahu called Secretary of State John Kerry and praised the White House for instead blocking the proposed meeting, which might have pressured Israel to disclose its presumed nuclear-arms program. “The United States kept its commitment to Israel by preventing a Middle East resolution that would single out Israel and ignore its security interests,” said a senior Israeli official briefed on the call, which was confirmed by U.S. officials. Israel’s diplomatic U-turn over the weekend shined a […]

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Iran denies military role in Iraqi oil fight

An Iranian deputy foreign minister for regional affairs said there are no Iranian troops fighting against the Islamic State in Iraq. photo by Mushtaq mohammed /UPI MOSCOW, May 26 (UPI) — An Iranian deputy foreign minister denied allegations that Iranian forces were fighting in Iraq to regain control over the Beiji oil refinery. U.S. military strikes have supported Iraqi troop activity against the group calling itself the Islamic State in many of the country’s western Sunni-dominated provinces. The militant group claimed a brief hold over the Beiji oil refinery in Saladin province, north of Baghdad, last year and heavy fighting has been reported recently in and around the area. The Islamic State has claimed control over Ramadi, the capital of neighboring Anbar province. U.S. defense officials said last week there were a small number of Iranian forces working on the ground in coordination with Shiite militias to retake the […]

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Iraqi Army and Shiite Militias Begin Push to Take Ramadi From ISIS

Photo Shiite fighters during an operation to retake the remaining areas of the Baiji oil refinery from the Islamic State on Monday in Salahuddin Province in Iraq. Credit Ahmad Al-Rubaye/Agence France-Presse — Getty Images BAGHDAD — Iraqi officials said Tuesday that a combined force of Iraqi soldiers and allied Shiite militias had started moving to retake the city of Ramadi, the capital of Anbar Province, from Islamic State fighters. The officials billed the operation that began Tuesday as the start of a major offensive to liberate all of Anbar Province. But most of the action reported on Tuesday involved pro-government forces maneuvering in the desert areas north and east of Ramadi, and it was unclear when an assault there might begin. The loss of Ramadi more than a week ago was a major setback for the Iraqi government and the United States-led air campaign to contain the Islamic State, also […]

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Baiji refinery devastated by IS scorched earth tactics

Iraqi army tanks get into position on the outskirts of the Baiji refinery during a joint operation between the army and popular mobilization units to retake the remaining area of the refinery from Islamic State (IS) militants, on May 24, 2015. (AHMAD AL-RUBAYE/AFP/Getty Images) Recommend 4 people recommend this. Sign Up to see what your friends recommend. The Baiji refinery, which was once Iraq’s single largest source of fuel, appears to have been almost entirely destroyed.Militants from the so-called Islamic State (IS) group have detonated explosives and set fire to key infrastructure, including control rooms and processing units, as pro-government forces launched a fresh offensive over the weekend to regain control of the facility, Iraqi security and oil officials said."The damage to the refinery is huge," said a senior engineer who use… This content is for registered users. Please login to continue. If you are not a registered user, […]

Posted On : Published By : Tom Whipple