May 24, 2018

Oil Prices Continues Gain As Brent Crude Hits $74.2 Per Barrel

27 April 2018, 10:01 | Lionel James

Crude Oil Price Falls Away From Late-2014 Highs

By Henning Gloystein SINGAPORE Petroleumworld 04 25 2018

The outlook for oil prices, thanks to supply-side factors, is further dampened by the expectation that U.S. president Donald Trump will not extend the waiver of sanctions against Iran, possibly resulting in supply cuts to the tune of ~1 mbpd. A slight suggestion that President Trump might accept a revised deal between the six Western powers who signed the original nuclear deal with Iran on Tuesday did halt the price rise, but it was temporary. While French President Emmanuel Macron has proposed a new deal to offer Trump, the markets will need to wait to see if the President will extend the sanction waivers.

June WTI oil settled at $68.19/bbl on Nymex, up 14 cents, or 0.2%.

Brent crude futures, the benchmark for oil prices outside the USA, ticked up 17 cents to $74.18 a barrel.

Oil output in Venezuela, a member of the Organization of the Petroleum Exporting Countries (OPEC), has fallen from nearly 2.5 million barrels per day (bpd) to just around 1.5 million bpd now due to political and economic turmoil in the South American country.

Venezuela's plunging output and looming US sanctions against Iran come against a backdrop of strong demand, especially in Asia, the world's biggest oil consuming region.

Not all market indicators point towards tighter supplies, however.

North Korea: "heavy toll" of an accident involving Chinese tourists
The Foreign Ministry launched its emergency response procedure overnight to offer whatever help was needed, the release said. Chinese language vacationers are among the many largest teams of holiday makers to the remoted, hard-line communist state.

United States crude production rose by 46,000 bpd on the previous week, to 10.59 bpd.

U.S. crude oil inventories increased last week ending April 20, and the refining sector fell 328,000 barrels per day from the previous week's average, the U.S. Energy Information Administration (EIA) said in a report on Wednesday. The authority added that in the same week crude oil inventories had increased by 2.2 million barrels, which went counter to analyst expectations of a draw or a much smaller build.

Dutch bank ING said "the wide discount for WTI to Brent saw exports rising 582,000 bpd week-on-week to a record high of 2.33-million bpd".

Said Greg McKenna, chief market strategist at futures brokerage AxiTrader, "The market does look a little toppish".

Last week's unusual diesel exports are more likely an anomaly than a trend: As the USA continues to ramp up output of light, sweet, Texas oil, refiners' ability to pump out diesel will be threatened, and the US will soon face a shortfall, Fitch's BMI Research analysts said Wednesday in a note.

Other News

Trending Now

Cardinals reportedly 'making a lot of noise about moving up' in draft
He's appeared in 16 regular-season games each of the past four seasons and led the team with four interceptions in 2017. The total number of quarterbacks selected in the first round is set at 5.5 with -220 odds favoring the UNDER.

Schumer to oppose Pompeo to lead State Department
Maggie Hassan also said she will vote against Pompeo, despite supporting his nomination as Central Intelligence Agency director. Joe Manchin, D-W.Va., and Joe Donnelly, D-Ind. - announced they would back his nomination on the floor. "Mr.

Venom Gets a Lot of Screen Time in Sony's New Trailer
Hardy's Venom does have the edge in terms of looking more like he came straight off the comic pages. By removing Spider-Man from the equation, Sony has had to completely rework Venom's origin story.

Gleyber Torres to be called up by Yankees
Infielder-outfielder Jace Peterson was designated for assignment, and infielder Tyler Wade was optioned to Scranton/Wilkes-Barre. He said he had a hard time nodding off Saturday night and got only three or four hours of sleep.

Nazi pug video lands man $1200 fine in Scotland
The entire point of the joke was the juxtaposition of having an adorable animal react to something vulgar, he said. A man has been fined £800 after he posted footage on YouTube of a pet dog giving Nazi salutes.

Amazon launches free in-car delivery service
To further their vehicle delivery options , there will be on-call couriers for customers to receive in-car deliveries . Potential users will also have to own a GM or Volvo cars 2015 or newer with active OnStar and Volvo on Call accounts.

Ruling against ending US Dreamers program
Federal judges in San Francisco and NY previously blocked the Trump administration from ending the program for now. In exchange, the U.S. government agreed to defer any action on their immigration status for a period of two years.

Marvel's Stan Lee Accused of Lewd Behavior
Comic book and pop culture icon Stan Lee has been accused of a lewd assault in Chicago , and is facing a civil lawsuit. The suit reads: "Lee grabbed Plaintiff's foot and moved it against his penis and scrotum". "He is rich and famous".

Two Dallas police officers shot, wounded
The arrest came just before 10 p.m. after a lengthy vehicle chase involving officers of various law enforcement agencies. In a tweet about the shooting Tuesday evening, the Dallas Police Department said the officers were critically wounded.

MotoGP: Marquez storms to sixth Texas win
In truth the American round was a largely uneventful affair with most of the riders spread out around the long circuit. Last night when I was going to sleep, I thought about the strategy, and today I followed it.