69134
Oil Near Eight-Week Highs
Oil Near Eight-Week Highs

Oil Near Eight-Week Highs

Oil Near Eight-Week Highs

Oil prices firmed on Wednesday, holding near eight-week highs, as a fall in US inventories bolstered expectations that the long-oversupplied market was moving toward balance.
Brent crude futures rose 30 cents to $50.50 a barrel, after rallying more than 3% on Tuesday. US West Texas Intermediate futures climbed 40 cents to $48.29 a barrel, Reuters reported.
US crude stockpiles fell sharply last week as refineries boosted output, while gasoline inventories increased and distillate stocks decreased, data from industry group American Petroleum Institute showed on Tuesday.
Crude inventories fell 10.2 million barrels in the week ending July 21 to 487 million, more than the expected decrease of 2.6 million barrels. Data from the US Energy Information Administration on Wednesday could provide more support, with forecasts of a drop for a fourth week in a row. Tuesday's stock draw added to hopes the long-awaited oil market rebalancing was underway. Saudi Arabia said on Monday it would limit oil exports to 6.6 million barrels per day in August, down nearly 1 million bpd from a year earlier.
"The market has been tightening and the refinery margins are strong," said PetroMatrix Managing Director Olivier Jakob, saying the US stock draw offered a boost to prices.
"You add geopolitical risk premium for Venezuela and you've got a strong market."
Nigerian output slipped this week as leaks forced Shell to shut a pipeline exporting some 180,000 bpd of oil. Nigeria, which has been exempted from OPEC-led production curbs, also agreed to cap or cut output when it stabilized at 1.8 million bpd.
But analysts said the current oil price rally could encourage more production, particularly from the United States.
"Relieved bulls should be careful what they wish for. Any price rebound will only embolden US shale producers at a time when rumors have started to emerge that the US shale boom is slowing," PVM oil analyst, Stephen Brennock, said in a note.

Short URL : https://goo.gl/v2FSiF
  1. https://goo.gl/WAboNZ
  • https://goo.gl/4hKqeY
  • https://goo.gl/4YAEnL
  • https://goo.gl/dgqLgy
  • https://goo.gl/GXEgT5

You can also read ...

Oil futures are sliding on expectation of higher Russian and Saudi production.
US President Donald Trump's unilateral decision to withdraw...
Aramco IPO Likely In 2019
Saudi Aramco’s much-hyped initial public offering is “most...
1st Platform of Iran's South Pars Phase 22 Installed
In line with plans to boost gas output from South Pars Gas...
Record Conformity Level in OPEC, Non-OPEC Output Cut
The 24 OPEC and non-OPEC producing countries participating in...
Japan Refiners Undecided on Iran Import
Japanese oil refiners will likely take a few months to decide...
Iranian Crude at $76.6 pb
Iran's crude oil prices continued to advance in the week to...
The Iranian government provides power firms’ with the US dollar  at  42,000 rials.
Iran’s rial devaluation against the US dollar is not expected...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus