Crude futures reach four-month highs

by Ben Pena March 18, 2019, 11:22
Crude futures reach four-month highs

Meanwhile, West Texas Intermediate gained 0.39 per cent to United States dollars 58.79, while Brent crude, the global benchmark was at 0.30 per cent to USD 67.43 per barrel.

In its Oil Market Report released on March 15, the IEA (International Energy Agency) estimated that the oil market will fall into a deficit of 0.5 MMbpd (million barrels per day) in Q2 2019, which could help USA crude oil prices to easily move above the psychologically important level of $60.

USA sanctions on Venezuelan petroleum products have cemented support for oil prices", said Benjamin Lu of Singapore-based brokerage Phillip Futures.

Oil futures reached four-month highs on Thursday, boosted by tightened global supply and a monthly OPEC report which built a case to extend production cuts beyond June.

The cost of the futures contracts of Brent crude oil for May 2019 delivery gained 0.71% amounting to $68.03 per barrel on London's ICE as of 11:10 a.m. Moscow time today, according to the trading data.

Oil prices have risen since the beginning of this year thanks to supply cuts led by OPEC.

With OPEC voluntarily withholding supply and US sanctions preventing Iranian and Venezuelan oil from entering markets, global crude flow data in Refinitiv showed a slight supply deficit likely appeared in the first quarter. OPEC announced in December it would be cutting production by 1.2 million bpd in 2019 to help balance the market in the near term.

Serge Ibaka and Marquese Chriss fight at Toronto Raptors vs Cleveland Cavaliers
The Raptors are vying for an Eastern Conference win this season, as their team is second in the East now , with a 48-20 record. Ibaka got up from the floor and went after Chriss, putting his hands around Chriss' throat before they began throwing punches.

Along with this, the cuts in pumping implemented by the Organization of Petroleum Exporting Countries (OPEC) and some large producers outside that group, as well as the increase in the crude extraction in the United States, influenced the prices of the so-called black gold. The Saudis drove a 1 million barrel a day production increase over the summer.

The figures revealed that, only in February, OPEC lowered crude extraction by 221,000 barrels per day compared to January, to 30,549 million barrels per day.

"Much of this spare capacity is composed of crude oil similar in quality to Venezuela's exports", said the agency.

According to the IEA's report, this means for OPEC that not only it has lost its once biggest customer, but also that, with the rise of shale oil in the USA, it will continue to lose its power in the global energy market until the mid-2020s.

The WTI Crude Oil market broke higher during the week, clearing the little bit of resistance that we have been involved with for the last several weeks.

Saudi Energy Minister Khalid Al-Falih suggested last month that he favored maintaining output curbs when asked to comment on U.S. President Donald Trump's tweet on February 25 demanding OPEC to "relax" its stance on tightening supplies.

Recommended News


TOP News

Landon Collins deal gives preview of what Tyrann Mathieu would command
After opening day of the NFL's legal tampering period, none of those things turned out to either matter enough or be true. The Chiefs were aggressive with Mathieu, who they viewed as the best and most complete safety on the free-agent market.

This is the Tesla Model Y
Musk has said that cars fitted with Autopilot hardware will be able to drive themselves completely autonomously in the future. In the USA, Tesla requires a deposit of $2.500 and lists all variants except the basic model " Standard Range ".

Kim Jong Un received expanded U.S. definition of "denuclearization": Bolton
The Sohae facility has been inactive since the first summit last June between Trump and Kim in Singapore. Bolton called the incremental approach North Korea has sought a "ploy" to obtain sanctions relief.

PGA THE PLAYERS Championship Predictions 3/13/19, Who Will Win?
Woods arrived Monday at TPC Sawgrass and Tuesday morning played an early practice round with Justin Thomas and Trey Mullinax. Woods measures his success by wins. "I (then drove) to Palm Beach from Orlando and saw a spinal surgeon", Day said.

Daylight Saving Time To Return Early Sunday Morning
A slim majority of participants (56 per cent) said they'd prefer if the province stopped the time change. States and territories are allowed to individually opt out of observing Daylight Saving Time .

Weather warning for SNOW AND ICE will continue into Monday
Highest temperatures 6 to 10 degrees with fresh, gusty westerly winds, easing later in the day. Yellow weather warnings mean there is considered to be a risk of injuries and other dangers.

New Book Unveils Beto O’Rourke History in Computer Hacking
The video of O'Rourke skateboarding in a Whataburger parking lot surfaced during O'Rourke's unsuccessful 2018 U.S. He said he "would not prejudge the outcome of that trial, ' adding:;All I am saying is, there's enough there'".

Pakistan's High Commissioner to India meets PM Imran Khan
He said Pakistan should take concrete steps "against terrorists and terror infrastructure" on its territory. Pakistan's High Commissioner Sohail Mahmood will also resume his diplomatic duty in New Delhi the same day.

3-year-old died 'in his father's arms' during New Zealand massacre
The response from some Muslim countries went further, blaming politicians and the media for stoking that hatred. A number of improvised explosive devices found on a vehicle after the shootings were defused by police.

Sao Paulo school shooting: 8 children and two adult killed in Brazil
Sao Paulo state authorities say eight people have been killed in a school shooting in Brazil, including two student shooters. At least 17 other people, mostly children, were also shot and taken to hospitals, in which several are in serious condition.