Oil Holds Above $50

Oil Holds Above $50

Oil prices held above $50 a barrel on Wednesday following a 3% jump a day earlier on the back of Brazilian and Libyan supply worries, a US pipeline outage and a general rally in riskier assets on hopes of more economic stimulus measures.
Brent and US futures for December delivery rose slightly to $50.70 and $48.09 respectively. Brent ended the last session $1.75, or 3.6%, higher while US crude rose $1.76, or 3.8% on Tuesday, Reuters reported.
US crude hit its highest since Oct. 13 during Tuesday’s session after the US Colonial Pipeline suspended operations due to flooding, on outage that came on top of a strike at Brazil’s state oil producer Petrobras and the closure of the Libyan oil export terminal.
The Petrobras strike has slowed daily oil output by about 25% in the world’s ninth biggest oil producer.
“While a few days of even 500,000 barrels per day of lost supply are clearly not an issue, a sustained outage of this magnitude heading into December when refinery runs reach a seasonal high could be a reasonably bullish factor,” JBC Energy analysts said in a note.
Longer term, oil prices are expected to recover as low oil prices are hurting the US shale boom, thus helping the market to rebalance despite record high production volumes from the Organization of the Petroleum Exporting Countries.
“The market will rebalance ... Most people think oil will be back at $60-70 a barrel in the next couple of years,” Ian Taylor, chief executive at Vitol, the world’s largest oil trading company, told a conference in London.
Crude stocks rose by an estimated 2.8 million barrels in the week to Oct. 30 to 479.9 million, data from industry group the American Petroleum Institute showed on Tuesday.


Short URL : http://goo.gl/i4f4Xn
  1. http://goo.gl/OVvTMJ
  • http://goo.gl/KIsmkE
  • http://goo.gl/nKio71
  • http://goo.gl/uy30vy
  • http://goo.gl/q0Sj0C

You can also read ...

China Rejects US Sanctions, Vows to Continue Iran Crude Purchase
As the US and Iran continue to trade barbs over the...
India Vying for US Waiver
India, the second biggest crude customer of Iran, may cut its...
Venezuela Braces for Pricey Gasoline
Gasoline prices in Venezuela will soon catch up with world...
Zanganeh to Attend OPEC, Non-OPEC Committee Meeting
Iran's Oil Minister Bijan Namdar Zanganeh will attend a...
S. Korea Iran Crude Imports Up 15%
South Korea’s imports of Iranian crude rose around 15% in July...
Indonesia Cuts Oil Imports
Indonesia’s PT Pertamina will get an extra 225,000 barrels per...
UK's Quercus Halts Iran Renewable Project
British renewable energy investor Quercus said it will halt...
NPC Not Worried About Exports
The National Petrochemical Company is not concerned about...