Oil Prices Rise Again as Traders Close Out Bets
NEW YORK—Oil prices soared Friday for the second day in a row, notching the biggest two-day percentage gain since 2009 as traders who had bet on lower prices scrambled to close out those wagers. Oil prices had surged Thursday on positive U.S. economic data, news that some Nigerian exports would be halted and a report that Venezuela wanted an emergency meeting of the Organization of the Petroleum Exporting Countries to respond to low prices. The market momentum continued Friday in the anticipation that monthly U.S. government data due for release Monday would show a continued decline in domestic crude production. Analysts attributed most of the rally Friday to traders closing out bets made after the U.S. benchmark had slumped below $40 a barrel earlier this week for the first time since 2009. On Friday, light, sweet crude for October delivery settled up $2.66, or 6.2%, to $45.22 a barrel […]
Oil markets catch breath after biggest gains in six years
A fuel pump is seen in a car at a gas station in Toronto April 22, 2014. Crude oil futures were largely steady on Friday after posting their biggest one-day rally in over six years the day before led by recovering equity markets and news of diminished crude supplies. Stock markets around the world rallied on Thursday, shaking off a slump related to China growth fears, as strong U.S. economic data boosted investor sentiment, and the dollar advanced for a third consecutive session. Front-month October Brent crude LCOc1 had dipped 20 cents to $47.36 per barrel as of 0046 GMT. It settled $4.42 higher at $47.56 per barrel in the previous session. U.S. crude CLc1 edged down 3 cents to $42.53 per barrel, after ending up $3.96, or 10.3 percent, at $42.56 per barrel, its biggest one-day percentage gain since March 2009. "A short covering rally, led by crude […]
Efficiency mandates to cap recovery in oil demand
A drop of diesel is seen at the tip of a nozzle after a fuel station customer fills her car’s tank in Sint Pieters Leeuw December 5, 2014. Lower prices should help stimulate oil consumption in advanced economies, restoring some of the demand lost over the last decade, as the cost of crude soared from less than $50 to more than $100 per barrel. In the late 1980s and through the 1990s, strong growth in demand played a crucial role in rebalancing the market after the slump caused by the two oil shocks in the 1970s. Investments in energy efficiency and policies to encourage conservation ebbed as memories of the oil shocks receded and a long period of relatively low prices encouraged complacency. But it could prove much harder to stimulate increased oil consumption this time around because policies to encourage further reductions in fuel demand for years ahead […]
Iran Deal Opens a Vitriolic Divide Among American Jews
Photo Representative Jerrold Nadler, Democrat of New York, in 2014. Mr. Nadler has announced his support for the nuclear accord with Iran. Credit Andrew Burton/Getty Images WASHINGTON — The attacks on Representative Jerrold Nadler, Democrat of New York, since he announced his support for the nuclear accord with Iran have been so vicious that the National Jewish Democratic Council and the Anti-Defamation League both felt compelled this week to publicly condemn Jewish voices of hate. On the other side, three Jewish Democrats in the House who oppose the deal released a joint statement denouncing “ad hominem attacks and threats” against not only supporters like Mr. Nadler but also Jewish opponents, who have been accused of “dual loyalties” and treason. This August recess has not produced the kind of fiery town hall-style meetings that greeted lawmakers in 2009 before their vote on the Affordable Care Act, but in one small […]
Exclusive: Arab OPEC producers brace for oil-price weakness for rest of 2015
The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria, August 21, 2015. A second oil price rout of 2015 has forced Arab OPEC members to cut their price expectations for this year, showing they are prepared to tolerate cheaper crude for longer to defend market share and curb rivals’ output. OPEC delegates, including those from core Gulf OPEC countries, see economic troubles in top energy consumer China as short term and unlikely to have much impact on demand for crude which will rise seasonally in the fourth quarter. But they also believe it will take more than just a few months for weak oil prices, which fell to a more than six-year low near $42 on Monday, to reduce supplies from higher-cost producers such as U.S. shale and stimulate demand. They expect the recent price drop will help reduce […]
Iran: Low oil prices no production deterrent
Iran must ignore low price of crude oil when considering potential market share, oil minister says. File Photo by UPI Photo/Mohammad Kheirkhah TEHRAN, Aug. 28 (UPI) — Iran must ignore the lower price of crude oil and work to increase the rate of production to ensure its share of the market, the country’s oil minister said. Iran, since reaching a multilateral nuclear agreement that could bring sanctions relief, has hosted representatives from companies like Italy’s ENI and Royal Dutch Shell. Iran’s crude oil production in July was around 3.1 million barrels per day, an increase of six tenths of a percent from the previous month and about 13 percent less than the peak rate in the pre-sanctions era. Iranian Oil Minister Bijan Zangeneh said his country could become the second largest producer in the Organization of Petroleum Exporting Countries, after Saudi Arabia, within seven or eight months of sanctions […]
China’s industrial wane follows PetroChina
China reports drop in industrial sector profits after PetroChina, the country’s largest oil and gas producer, reports a steep decline in profits. File Photo by UPI/Stephen Shaver BEIJING, Aug. 28 (UPI) — China reported poor performance from major industrial firms as its major oil company, PetroChina, posts a 63 percent drop in its first half profit. The National Bureau of Statistics reported Friday profits from major industrial firms were off 2.9 percent year-on-year in July, down from the year-on-year decline of 0.3 percent reported for June. China’s economy is slowing from double-digit growth, but still expected to grow at around 6 percent of gross domestic product. Nevertheless, a series of steep declines in the Shanghai Composite Index forced the government to infuse cash into the market, cut the value of the national currency and lower key interest rates in an effort to maintain positive momentum . Industrial profit declines […]
Texas oil production increased in June
Texas energy regulator reports a net increase in June oil production year-on-year. File Photo by UPI/Shutterstock/Lilac Mountain. AUSTIN, Texas, Aug. 28 (UPI) — A Texas energy regulator said total crude oil production for June, the last full month for complete data, was up around 12 percent year-on-year. The Railroad Commission of Texas said crude oil production in June averaged about 2.43 million barrels per day, up from the 2.15 million bpd reported in June 2014. June data show the third straight month for gains for the No. 1 oil producer in the nation. April crude oil production of 2.31 million bpd was a 13 percent increase year-on-year. Decreases were posted, however, in early 2015. The railroad commission, the state’s energy regulator, said the average Texas rig count as of Aug. 21 was 383, which represented about 45 percent of all U.S. onshore rig activity. A report from Fitch Ratings […]
China Extends Two-Day Gains, but Weekly Losses Mount
Chinese stocks surged for two straight trading days amid suspected government buying, but plunges Monday and Tuesday left the market down nearly 8% for the week. China’s domestic market became the epicenter of a global selloff, with a five-session crash starting last Thursday triggering steep losses in U.S. and European stocks. Rumors of Beijing’s hand in the market reversed the selling by Thursday, which helped support global shares prices, commodities, and currencies of emerging markets that had been battered. The Shanghai Composite Index fell for second-straight week and posted a third month of declines, falling 11.8% in August. Hong Kong’s Hang Seng Index lost 12.3% this month, its worst monthly performance since September 2011. To quiet worries about its slowing growth, Beijing took several easing measures this week to get its economy back in gear, including an interest-rate cut and liquidity injections. The move follows a decision earlier this […]