Previously scheduled for Sunday 26 November, members of OPEC+ delayed their meeting until Thursday, November 30, with the cartel giving no reason for the decision. At the meeting, Saudi Arabian and Russia, along with its fellow OPEC+ allies, were set to discuss changes to a deal that limits supply going into 2024.

“The upcoming meeting has been the key central focus for oil prices for now, with sentiment shrugging off the sharp build in U.S. crude inventories,” Jun Rong Yeap, a market strategist at IG observed. While oil broker PVM explained that oil cuts must be extended and deepened, the International Energy Agency’s (IEA) oil markets and industry division confirmed that the global oil market will see a slight surplus heading into 2024.

The post Oil Slumps 4% as OPEC+ Meeting Delayed appeared first on theprimarymarket.com.

A source at Saudi Arabia’s energy ministry revealed that the nation would maintain a cut of 1 million barrels per day (bpd) in December, bringing daily output down to around 9 million barrels. Russia is maintaining a cut of 300,000 bpd.

ING analysts believed that such cuts could continue next year. The analysts wrote in a note that the oil market will be in surplus during the first quarter of next year, “which may be enough to convince the Saudis and Russians to continue with cuts.” Observers are now looking to China, where refineries have eased their crude oil throughputs.

The post Oil Prices Rise as Saudi Arabia and Russia Stick to Output Cuts appeared first on theprimarymarket.com.

“After reaching our target of $90 in September, our end-year target remains $86 [per barrel],” Natasha Kaneva, head of the global commodities strategy team at JPMorgan announced. Kaneva claimed that oil inventories should build up during the final months of the year.

“Demand destruction has begun,” the note from JPMorgan read. According to the team of analysts, demand restraint is expected to be particularly prominent in the United States, Europe, and some emerging markets. They added that consumers have already hit their pain limit for gasoline; a derivative of oil.

The post JPMorgan Claims Oil Demand Destruction Has Begun appeared first on theprimarymarket.com.

Exports from Iran jumped to 2.2 million barrels per day since the start of this month, while the oil minister of Iraq reportedly arrived in Ankara, Turkey, to discuss the resumption of shipments through the Ceyhan terminal. “Supply tightness could ease,” Charu Chanana, market strategist for Saxo Capital Markets Pte said of the talks, noting that flows were approximately 500,000 barrels per day through the Ceyhan port.

After futures began to rally in late June, a falter in this upward trajectory pushed OPEC+ leaders Saudi Arabia and Russia to announce a stoppage in output. Prices of Russia’s flagship oil rose above a Group of Seven imposed cap during the height of the rally.

The post Oil Sustains Losses Amid Signs of Supply Rebound appeared first on theprimarymarket.com.

“We should be building stocks now as they usually begin drawing seasonally from September,” Eugene Lindell, head of refined products at industry consultant FGE recommended. “There is a worry that stocks will not build sufficiently before October, and we will then start seeing draws from what threatens to be a low base.”

US retail diesel prices have been on a constant rise in August following a crude supply cut by Saudi Arabia, Russia, and a slew of OPEC+ allies. Europe’s yields of diesel-type fuel have since declined by 1.6% in July compared to the historic average.

The post Diesel Scarcity Looms Amid Expected Oil Shortage appeared first on theprimarymarket.com.

West Texas Intermediate futures remained above $84 per barrel after gaining 3% over the past two trading sessions. This recent showing of strength is expected to have a noticeable impact on the consumer price index, which the Federal Reserve will look to for guidance when reviewing its monetary policy at its next meeting.

The oil sector received a major boost from a rise in demand from Asia, with refiners purchasing at least 24 million barrels of US crude for November arrival according to traders, the second consecutive monthly rise in order for US suppliers.

“Hot money continues to flow into the oil complex,” Keshav Lohiya, founder of consultant Oilytics observed. “The question remains if this is just a beginning of speculative money flowing in or a bull trap before the majority of market participants return in September.”

The post Oil Remains at Nine-Month High Ahead of Inflation Report appeared first on theprimarymarket.com.

West Texas Intermediate surpassed $78 per barrel as the previously-announced oil production cutbacks from OPEC+ began to take effect. The global oil supply has been delivered another blow following an outage at the Baton Rouge refinery resulting from the breakdown of a gasoline-making catalytic cracker. The machine may be out for several weeks.

Crude remains slightly down for the year, with China’s stalled economic recovery erasing the effects of OPEC+’s production cuts which include Russia and China. The Chinese government has indicated, however, that it intends to provide stimulus to boost the economy.

“Commentary out of China is disappointing to some markets, but the fact that we are seeing stimulus, if they do anything to support the economy, it’s positive for crude because I don’t think crude has priced in stimulus,” Rebecca Babin, a senior energy trader at CIBC Private Wealth observed.

The post Oil Hits Three-Month High as Supply Tightens appeared first on theprimarymarket.com.

Despite Friday’s dropoff, both West Texas Intermediate and Brent headed for their third consecutive weekly gain, spurred on by curbed Saudi and Russian output as well as supply disruptions in Africa. WTI was trading around $75 per barrel.

“Technicals are driving trading action today as crude is bumping up against significant resistance,” Rebecca Babin, a senior energy trader at CIBC Private Wealth observed. WTI has failed to breach its US 200-day threshold, however, it appeared to be on course to doing so in April.

African supply disruptions came as protestors shut a major oil field in Libya after a smaller field was shut earlier in the day. Flows to the Forcados oil terminal in Nigeria were suspended in order to check for a potential leak. 

The post Oil Declines As Traders Take in Profits appeared first on theprimarymarket.com.

Brent, the global benchmark, fell back below $76 per barrel following the conclusion of the 4th of July holiday that saw U.S. markets close. After the Saudi and Russian output cut announcements were made public, Morgan Stanley cut its fourth-quarter forecast for Brent from $75 per barrel to $70.

“We still model stock draws in 3Q but expect oil price softness to continue as the market’s focus shifts to 1H24 when balances look in surplus,” analysts from the investment banking company stated.

Investor confidence was partially restored after the energy minister of the UAE confirmed that his nation would not be implementing output cuts like their OPEC+ counterparts.

Crude prices have slumped this year, largely driven downward by China’s stalling economic recovery. Observers will await the upcoming OPEC+ meeting to gauge the direction of crude and Brent prices.

The post Oil Drops as Investors Weigh Opec+ Decision appeared first on theprimarymarket.com.

West Texas Intermediate, the U.S. benchmark, returned to a price a little over $69 per barrel having slipped 0.7% earlier in the day. Brent crude, the international benchmark, also experienced minor turbulence.

“There is very little reaction and not much disruption,” S&P Global Inc. Vice Chairman Daniel Yergin said of the effects of the Russian conflict on oil. “The thing that is dominating the oil markets right now is economics, not geopolitics.”

Since the start of the year, oil in New York has fallen by about 13%. In addition to monetary tightening in the U.S. and a stagnating economic recovery in China, Russia’s falling exports also affected oil prices.

Goldman Sachs observed that the Russian uprising may have had a limited impact on oil prices seeing as spot fundamentals remain unchanged. Still, RBC Capital Markets stated that the potential further unrest must be factored into their oil analysis.

The post Oil Fluctuates Following Weekend Of Russian Turmoil appeared first on theprimarymarket.com.

Previously scheduled for Sunday 26 November, members of OPEC+ delayed their meeting until Thursday, November 30, with the cartel giving no reason for the decision. At the meeting, Saudi Arabian and Russia, along with its fellow OPEC+ allies, were set to discuss changes to a deal that limits supply going into 2024.

“The upcoming meeting has been the key central focus for oil prices for now, with sentiment shrugging off the sharp build in U.S. crude inventories,” Jun Rong Yeap, a market strategist at IG observed. While oil broker PVM explained that oil cuts must be extended and deepened, the International Energy Agency’s (IEA) oil markets and industry division confirmed that the global oil market will see a slight surplus heading into 2024.

The post Oil Slumps 4% as OPEC+ Meeting Delayed appeared first on theprimarymarket.com.

A source at Saudi Arabia’s energy ministry revealed that the nation would maintain a cut of 1 million barrels per day (bpd) in December, bringing daily output down to around 9 million barrels. Russia is maintaining a cut of 300,000 bpd.

ING analysts believed that such cuts could continue next year. The analysts wrote in a note that the oil market will be in surplus during the first quarter of next year, “which may be enough to convince the Saudis and Russians to continue with cuts.” Observers are now looking to China, where refineries have eased their crude oil throughputs.

The post Oil Prices Rise as Saudi Arabia and Russia Stick to Output Cuts appeared first on theprimarymarket.com.

“After reaching our target of $90 in September, our end-year target remains $86 [per barrel],” Natasha Kaneva, head of the global commodities strategy team at JPMorgan announced. Kaneva claimed that oil inventories should build up during the final months of the year.

“Demand destruction has begun,” the note from JPMorgan read. According to the team of analysts, demand restraint is expected to be particularly prominent in the United States, Europe, and some emerging markets. They added that consumers have already hit their pain limit for gasoline; a derivative of oil.

The post JPMorgan Claims Oil Demand Destruction Has Begun appeared first on theprimarymarket.com.

Exports from Iran jumped to 2.2 million barrels per day since the start of this month, while the oil minister of Iraq reportedly arrived in Ankara, Turkey, to discuss the resumption of shipments through the Ceyhan terminal. “Supply tightness could ease,” Charu Chanana, market strategist for Saxo Capital Markets Pte said of the talks, noting that flows were approximately 500,000 barrels per day through the Ceyhan port.

After futures began to rally in late June, a falter in this upward trajectory pushed OPEC+ leaders Saudi Arabia and Russia to announce a stoppage in output. Prices of Russia’s flagship oil rose above a Group of Seven imposed cap during the height of the rally.

The post Oil Sustains Losses Amid Signs of Supply Rebound appeared first on theprimarymarket.com.

“We should be building stocks now as they usually begin drawing seasonally from September,” Eugene Lindell, head of refined products at industry consultant FGE recommended. “There is a worry that stocks will not build sufficiently before October, and we will then start seeing draws from what threatens to be a low base.”

US retail diesel prices have been on a constant rise in August following a crude supply cut by Saudi Arabia, Russia, and a slew of OPEC+ allies. Europe’s yields of diesel-type fuel have since declined by 1.6% in July compared to the historic average.

The post Diesel Scarcity Looms Amid Expected Oil Shortage appeared first on theprimarymarket.com.

West Texas Intermediate futures remained above $84 per barrel after gaining 3% over the past two trading sessions. This recent showing of strength is expected to have a noticeable impact on the consumer price index, which the Federal Reserve will look to for guidance when reviewing its monetary policy at its next meeting.

The oil sector received a major boost from a rise in demand from Asia, with refiners purchasing at least 24 million barrels of US crude for November arrival according to traders, the second consecutive monthly rise in order for US suppliers.

“Hot money continues to flow into the oil complex,” Keshav Lohiya, founder of consultant Oilytics observed. “The question remains if this is just a beginning of speculative money flowing in or a bull trap before the majority of market participants return in September.”

The post Oil Remains at Nine-Month High Ahead of Inflation Report appeared first on theprimarymarket.com.

West Texas Intermediate surpassed $78 per barrel as the previously-announced oil production cutbacks from OPEC+ began to take effect. The global oil supply has been delivered another blow following an outage at the Baton Rouge refinery resulting from the breakdown of a gasoline-making catalytic cracker. The machine may be out for several weeks.

Crude remains slightly down for the year, with China’s stalled economic recovery erasing the effects of OPEC+’s production cuts which include Russia and China. The Chinese government has indicated, however, that it intends to provide stimulus to boost the economy.

“Commentary out of China is disappointing to some markets, but the fact that we are seeing stimulus, if they do anything to support the economy, it’s positive for crude because I don’t think crude has priced in stimulus,” Rebecca Babin, a senior energy trader at CIBC Private Wealth observed.

The post Oil Hits Three-Month High as Supply Tightens appeared first on theprimarymarket.com.

Despite Friday’s dropoff, both West Texas Intermediate and Brent headed for their third consecutive weekly gain, spurred on by curbed Saudi and Russian output as well as supply disruptions in Africa. WTI was trading around $75 per barrel.

“Technicals are driving trading action today as crude is bumping up against significant resistance,” Rebecca Babin, a senior energy trader at CIBC Private Wealth observed. WTI has failed to breach its US 200-day threshold, however, it appeared to be on course to doing so in April.

African supply disruptions came as protestors shut a major oil field in Libya after a smaller field was shut earlier in the day. Flows to the Forcados oil terminal in Nigeria were suspended in order to check for a potential leak. 

The post Oil Declines As Traders Take in Profits appeared first on theprimarymarket.com.

Brent, the global benchmark, fell back below $76 per barrel following the conclusion of the 4th of July holiday that saw U.S. markets close. After the Saudi and Russian output cut announcements were made public, Morgan Stanley cut its fourth-quarter forecast for Brent from $75 per barrel to $70.

“We still model stock draws in 3Q but expect oil price softness to continue as the market’s focus shifts to 1H24 when balances look in surplus,” analysts from the investment banking company stated.

Investor confidence was partially restored after the energy minister of the UAE confirmed that his nation would not be implementing output cuts like their OPEC+ counterparts.

Crude prices have slumped this year, largely driven downward by China’s stalling economic recovery. Observers will await the upcoming OPEC+ meeting to gauge the direction of crude and Brent prices.

The post Oil Drops as Investors Weigh Opec+ Decision appeared first on theprimarymarket.com.

West Texas Intermediate, the U.S. benchmark, returned to a price a little over $69 per barrel having slipped 0.7% earlier in the day. Brent crude, the international benchmark, also experienced minor turbulence.

“There is very little reaction and not much disruption,” S&P Global Inc. Vice Chairman Daniel Yergin said of the effects of the Russian conflict on oil. “The thing that is dominating the oil markets right now is economics, not geopolitics.”

Since the start of the year, oil in New York has fallen by about 13%. In addition to monetary tightening in the U.S. and a stagnating economic recovery in China, Russia’s falling exports also affected oil prices.

Goldman Sachs observed that the Russian uprising may have had a limited impact on oil prices seeing as spot fundamentals remain unchanged. Still, RBC Capital Markets stated that the potential further unrest must be factored into their oil analysis.

The post Oil Fluctuates Following Weekend Of Russian Turmoil appeared first on theprimarymarket.com.