But market analysts also warned that the recent rally in the oil market could prompt
some producers to dial up their output if prices hold above more than $60 a barrel.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for July delivery lost 69
cents, or 1.04%, to trade at $65.85 a barrel. On Thursday, London-traded Brent futures
advanced $1.51 cents, or 2.32%, to settle at $66.54.
The spread between the Brent and the WTI crude contracts stood at $5.65 a barrel.
Reference: http://www.investing.com/news/commodities-news/oil-futuresdrop,-u.s.-inflation-data-on-tap-343103
21 may 15
global supply glut. US benchmark West Texas Intermediate (WTI) for July climbed 47
cents to USD 58.46 while Brent crude for July delivery gained 46 cents to USD 64.48 in
late-morning trade. Both contracts fell sharply yesterday on worries about the crude
oversupply and as the greenback soared against other major currencies, making dollarpriced oil more expensive and denting demand. The dollar strengthened against the
euro after a European Central Bank official said the bank would ramp up its assetpurchase stimulus programme in May and June to offset an expected financial market
slowdown in the coming months. A robust report on US housing construction also
lifted the greenback. "The strengthening of the dollar... was the reason for the three
percent decline in crude prices yesterday," said Daniel Ang, an investment analyst with
Phillip Futures in Singapore. "The subsequent rebound we see today is due to bargainhunting and the market forces readjusting to normal trading." The US Department of
Energy is expected to report stockpiles fell by two million barrels in the week ending
May 15, according to Newschannel. They still remain near their highest levels on
record, however. "Although stockpiles are expected to fall, the crude production level in
the US is still on a high side and we expect it to rise further," said Ang.
Reference: http://www.moneycontrol.com/news/commodities/oil-prices-reboundsteep-dive_1388191.html?
utm_source=ref_article
19 may 15
Saudi Arabia as the race between the U.S. and OPEC for global market share of crude
continues to escalate.
On the Intercontinental Exchange (ICE), Brent crude for July delivery also tumbled falling
$2.14 or 3.23% to $64.13 a barrel on Tuesday.
Saudi Arabian oil minister Ali al-Naimi said the kingdom pumped 10.3 million barrels per day in
March, slightly above its previous record high of 10.2 million bpd in August, 2013. Saudi Arabia,
the world's largest exporter, also exported nearly 8 million bpd on the month, its highest level in
nearly 10 years.
Despite a glut of oversupply in the global crude market, Al-Naimi has resisted calls over the last
six months to slash production. In April, OPEC increased output by 160,000 bpd for the month
from an upward revised 960,000 bpd gain in March. OPEC's supply level for April exceeded
31.2 million bpd, its highest level since September, 2012.
Last November, OPEC sent crude prices crashing when it decided to keep daily production
levels constant triggering a protracted battle with the U.S for market share.
Previously, U.S. stockpiles peaked above 480 million barrels the highest level in at least 80
years.
The draw has eased fears that the U.S. could reach full storage capacity in the near future, a
doomsday scenario that could cause crude prices to plunge even further. WTI futures have
declined by more than 40% since reaching triple digits last spring.
Reference: http://www.investing.com/news/commodities-news/nymex-crude-oil-gains-in-asia-asapi-data-shows-sharp-drop,-eia-ahead-342616
19 may 15
session as modest gains from the turmoil in the Middle East failed to offset a resurgent dollar.
In Iraq, approximately 3,000 Shi'iite milita fighters mobilized at a site near Ramadi, after the
Western Iraqi city was taken over by the Islamic State over the weekend.
Meanwhile, U.S.-led warplanes conducted more than 15 airstrikes near the capital of the Anbar
Province at the request of Iraqi Security Forces, a coalition spokesman told Reuters. Islamic
militants reportedly killed up to 500 people and forced 8,000 others to flee from the city in their
biggest victory in more than a year, the Associated Press reported.
In December, crude output in Iraq spiked at a record 4 million barrels per day a month earlier,
significantly above a previous high of 3.56 million barrels in 1979. Weeks later, Iraqi oil minister
Adel Abdel Mahd announced a deal with a Kurdistan regional agency that helped boost exports
from an oil field in northern Iraq from 375,000 bpd over the first three months of the year to
600,000 bpd in April.
Under the deal, a pipeline network exported oil from the Kurdistan region to the Turkish
Mediterranean port of Ceyhan.
Elsewhere, Saudi-led airstrikes resumed in Yemen after a five-day cease fire last week which
enabled impoverished Yemeni citizens to receive much-needed shipments of food and
medicine.
A militia of Shiite-led, Iranian-backed Houthi rebels has been bombarded by Saudi Arabian
airstrikes since late-March when a Houthi advance forced Yemen president Abed Rabbo
Mansour Hadi to flee the country by sea.
Energy traders are sensitive to any geopolitical instability involving Saudi Arabia, the world's
largest crude exporter.
On the Intercontinental Exchange (ICE) Brent crude for July fell 0.51 cents or 0.76% to $66.30
a barrel on Monday.
Reference: http://www.investing.com/news/commodities-news/nymex-crude-higher-in-earlyasia-on-middle-east-tension,-api-data-ahead-342413
18 may 15
On the New York Mercantile Exchange, crude oil for July delivery was down 0.21% to
$60.44 a barrel, off session highs of $61.7.
Brent crude for July delivery, the global benchmark, was down 0.65% to $66.4 a barrel
on the ICE Futures exchange in London.
Goldman cut its oil price forecasts for 2016 to 2020, saying that improved U.S. shale
efficiency and production from OPEC will be more than adequate to meet future
demand.
The announcement came after the investment bank warned last week that the recent
rally in oil prices was premature.
U.S. oil prices have staged a recent rally after dropping more than half from June to
January, amid expectations that U.S. output has peaked.
But global oil production is still outpacing demand following a boom in U.S. shale
production and after OPEC's decision last year not to cut production.
On Monday Reuters reported that Iran's Deputy Oil Minister Rokneddin Javadi said
OPEC was unlikely to cut output at its meeting on June 5.
He also said he was hopeful that Irans oil exports would return to pre-sanctions levels
of around 2 million barrels per day within three months once a deal on limiting the
countrys nuclear program is reached.
Oil prices had moved higher earlier Monday amid concerns over supply disruptions after
Islamic State militants seized control of the city of Ramadi in western Iraq over the
weekend.
Meanwhile, Saudi-led air strikes in Yemen resumed after a ceasefire expired on Sunday
night, fuelling concerns over growing turmoil in the region.
Reference:
http://www.investing.com/news/commodities-news/oil-lower-after-goldman-sachs-cutsprice-forecasts-342321