Brent crude prices rose 0.1%, or 13 cents, to $79.80 per barrel. West Texas Intermediate, the US benchmark, was up by 4 cents to $74.26. This is both benchmarks’ third consecutive daily price rise, pushed higher as observers worried about trade disruption as suppliers look to divert shipments away from the Red Sea, thereby incurring additional transport costs.

The U.S. Energy Information Administration (EIA) announced on Wednesday that U.S. crude inventories rose to 443.7 million barrels; a 2.9 million barrel increase from December 15. This figure significantly outpaced analysts’ expectations of a 2.3 million barrel drop. U.S. crude output rose to a record 13.3 million barrels per day (bpd) last week, exceeding the previous record daily output of 13.2 million bpd.

The post Oil Rises as U.S. Output Nears Record Numbers 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.

Global benchmark Brent rose above $93 per barrel, with JPMorgan Chase & Co. analysts including Natasha Kaneva explaining in a report that geopolitical tensions are at the core of price rises. Kaneva claimed that prices are $7 higher than what they would be if the Middle East conflict was not ongoing. “Underlying fundamentals are playing second fiddle to the tragic events in Israel and Gaza,” said Tamas Varga, an analyst at brokerage PVM Oil Associates Ltd, thus agreeing with Kaneva’s sentiment.

Despite this pressure, Kaneva explained that any further escalation in the conflict may not have much of an upward push on prices seeing as this pressure has already been applied. As the conflict rages on,  the US Energy Department revealed its plan to buy as many as  6 million barrels for the Strategic Petroleum Reserve in an effort to replenish its stockpile.

The post Oil Continues Rise Amid Middle East Conflict appeared first on theprimarymarket.com.

Oil prices jumped by 3% after an explosion in a hospital in Gaza escalated tensions. Crude oil rose to $89.22 a barrel while Brent crude hit $92.39 per barrel. This price rise has convinced investors to refocus on the Federal Reserve’s potential next moves regarding its fiscal policy.

Looking forward, investors are awaiting the quarterly results of Procter & Gamble and Morgan Stanley, both of whom are expected to release their reports before the opening bell on Wednesday. Tesla and Netflix are among the tech giants set to release their earnings later in the day.

The post Futures Decline and Oil Jumps Amid Rising Mideast Fears appeared first on theprimarymarket.com.

As Israel prepares to ramp up its retaliation against terror organization Hamas for Saturday’s deadly attack, analysts from Bloomberg Economics believe that oil could surge to $150 per barrel while cutting $1 trillion off world economic output.

Speaking on Treasury yields, Christophe Barraud, chief economist and strategist at Market Securities LLP, offered the following observation: “Bonds are rallying ahead of the weekend as traders likely want to hedge geopolitical risk.” Futures on the New York Stock Exchange declined, with those on the S&P 500 slipping by 0.3% and futures on the Nasdaq 100 falling by 0.6%. Contracts listed on the Dow Jones Industrial Average remained little changed.

The post Oil and Treasury Yields Surge as Israel-Hamas Conflict Intensifies appeared first on theprimarymarket.com.

Ed Morse, global head of commodity strategy at Citi, has assured that the rising Middle East tension will not force oil prices above $100. “The good news for the market is that with the cuts that have been taken, we have a good 4.5 to 5 million barrels a day of capacity in the world,” Morse remarked. He added that if oil prices should soar significantly higher, then spare capacity from Saudi Arabia, the UAE, and Kuwait may be released into the market to bring oil prices back down.

Still, Morse insists that there is little chance of price rises in the first place due to a slowing or zero growth in regions including China, Europe, and the United States.

The post Oil Prices Unlikely to Hit $100 Despite Mideast Conflict appeared first on theprimarymarket.com.

“While we forecast consumption growth to slow during the fall and winter, we think higher oil prices are unlikely to cause consumer spending and GDP to decline,” Goldman’s chief economist Jan Hatzius wrote in a note to consumers, explaining that the level of change in prices is small compared to 2008 and the first half of 2022.

According to the Goldman Sachs team, the Federal Reserve is unlikely to adjust its fiscal policy in response to changes in oil prices, particularly since core inflation and inflation expectations are on the decline.

The post Higher Oil Prices are “Manageable” Economic Concern, Goldman Sachs appeared first on theprimarymarket.com.

Crude prices are currently in the mid-90s, while Benchmark Brent has risen by 30% since March, largely spurred by output cuts from Saudi Arabia and Russia. This tightening of supplies has raised bets among industry leaders that prices will continue to surge in the near term.

In an interview on Bloomberg Television, Chevron Corp. Chief Executive Officer Mike Wirth stated his belief that oil will reach $100 per barrel. Amrita Sen, head of research at consultant Energy Aspects, supported this claim, explaining: “Fundamentals are very, very strong right now. At this point, it’s a short-term thing. I’m not saying it’s going to average above $100, but could it go to $100 for a bit? Absolutely yes.”

The post Booming Oil Market Sees Prices Surge Toward $100 Mark appeared first on theprimarymarket.com.

Core prices, which exclude volatile food and gas costs, rose by 4.3% in August compared to the previous year, marking a slowdown from the 4.7% annual rise experienced in July. On a monthly basis, core prices rose 0.3%, outpacing July’s 0.2% rise.

Oil prices also embarked on a rampant rise, with U.S. benchmark West Texas Intermediate jumping to a price just below $89 per barrel. Brent crude futures were priced at over $92 per barrel; its highest level since November 2022. Like consumer prices, oil was also driven upwards by the rise in energy costs.

The post Inflation and Oil Embark on Simultaneous Surge appeared first on theprimarymarket.com.

Brent crude oil sailed above $91 per barrel following the announcement; the first time it hit this height in 10 months. According to Goldman Sachs’s previous forecasts, Brent oil would reach $86 per barrel in December and $93 by the end of 2024 barring any unforeseen drastic macroeconomic changes.

The investment bank expects Saudi oil supply to be 500,000 barrels below its previous expectations. Still, Goldman Sachs warned that price increases could be even more drastic than it expected if should output cuts be extended further than the end of 2023.

The post Oil Prices Expected To Surge Following Russian And Saudi Supply Cuts appeared first on theprimarymarket.com.

Brent crude prices rose 0.1%, or 13 cents, to $79.80 per barrel. West Texas Intermediate, the US benchmark, was up by 4 cents to $74.26. This is both benchmarks’ third consecutive daily price rise, pushed higher as observers worried about trade disruption as suppliers look to divert shipments away from the Red Sea, thereby incurring additional transport costs.

The U.S. Energy Information Administration (EIA) announced on Wednesday that U.S. crude inventories rose to 443.7 million barrels; a 2.9 million barrel increase from December 15. This figure significantly outpaced analysts’ expectations of a 2.3 million barrel drop. U.S. crude output rose to a record 13.3 million barrels per day (bpd) last week, exceeding the previous record daily output of 13.2 million bpd.

The post Oil Rises as U.S. Output Nears Record Numbers 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.

Global benchmark Brent rose above $93 per barrel, with JPMorgan Chase & Co. analysts including Natasha Kaneva explaining in a report that geopolitical tensions are at the core of price rises. Kaneva claimed that prices are $7 higher than what they would be if the Middle East conflict was not ongoing. “Underlying fundamentals are playing second fiddle to the tragic events in Israel and Gaza,” said Tamas Varga, an analyst at brokerage PVM Oil Associates Ltd, thus agreeing with Kaneva’s sentiment.

Despite this pressure, Kaneva explained that any further escalation in the conflict may not have much of an upward push on prices seeing as this pressure has already been applied. As the conflict rages on,  the US Energy Department revealed its plan to buy as many as  6 million barrels for the Strategic Petroleum Reserve in an effort to replenish its stockpile.

The post Oil Continues Rise Amid Middle East Conflict appeared first on theprimarymarket.com.

Oil prices jumped by 3% after an explosion in a hospital in Gaza escalated tensions. Crude oil rose to $89.22 a barrel while Brent crude hit $92.39 per barrel. This price rise has convinced investors to refocus on the Federal Reserve’s potential next moves regarding its fiscal policy.

Looking forward, investors are awaiting the quarterly results of Procter & Gamble and Morgan Stanley, both of whom are expected to release their reports before the opening bell on Wednesday. Tesla and Netflix are among the tech giants set to release their earnings later in the day.

The post Futures Decline and Oil Jumps Amid Rising Mideast Fears appeared first on theprimarymarket.com.

As Israel prepares to ramp up its retaliation against terror organization Hamas for Saturday’s deadly attack, analysts from Bloomberg Economics believe that oil could surge to $150 per barrel while cutting $1 trillion off world economic output.

Speaking on Treasury yields, Christophe Barraud, chief economist and strategist at Market Securities LLP, offered the following observation: “Bonds are rallying ahead of the weekend as traders likely want to hedge geopolitical risk.” Futures on the New York Stock Exchange declined, with those on the S&P 500 slipping by 0.3% and futures on the Nasdaq 100 falling by 0.6%. Contracts listed on the Dow Jones Industrial Average remained little changed.

The post Oil and Treasury Yields Surge as Israel-Hamas Conflict Intensifies appeared first on theprimarymarket.com.

Ed Morse, global head of commodity strategy at Citi, has assured that the rising Middle East tension will not force oil prices above $100. “The good news for the market is that with the cuts that have been taken, we have a good 4.5 to 5 million barrels a day of capacity in the world,” Morse remarked. He added that if oil prices should soar significantly higher, then spare capacity from Saudi Arabia, the UAE, and Kuwait may be released into the market to bring oil prices back down.

Still, Morse insists that there is little chance of price rises in the first place due to a slowing or zero growth in regions including China, Europe, and the United States.

The post Oil Prices Unlikely to Hit $100 Despite Mideast Conflict appeared first on theprimarymarket.com.

“While we forecast consumption growth to slow during the fall and winter, we think higher oil prices are unlikely to cause consumer spending and GDP to decline,” Goldman’s chief economist Jan Hatzius wrote in a note to consumers, explaining that the level of change in prices is small compared to 2008 and the first half of 2022.

According to the Goldman Sachs team, the Federal Reserve is unlikely to adjust its fiscal policy in response to changes in oil prices, particularly since core inflation and inflation expectations are on the decline.

The post Higher Oil Prices are “Manageable” Economic Concern, Goldman Sachs appeared first on theprimarymarket.com.

Crude prices are currently in the mid-90s, while Benchmark Brent has risen by 30% since March, largely spurred by output cuts from Saudi Arabia and Russia. This tightening of supplies has raised bets among industry leaders that prices will continue to surge in the near term.

In an interview on Bloomberg Television, Chevron Corp. Chief Executive Officer Mike Wirth stated his belief that oil will reach $100 per barrel. Amrita Sen, head of research at consultant Energy Aspects, supported this claim, explaining: “Fundamentals are very, very strong right now. At this point, it’s a short-term thing. I’m not saying it’s going to average above $100, but could it go to $100 for a bit? Absolutely yes.”

The post Booming Oil Market Sees Prices Surge Toward $100 Mark appeared first on theprimarymarket.com.

Core prices, which exclude volatile food and gas costs, rose by 4.3% in August compared to the previous year, marking a slowdown from the 4.7% annual rise experienced in July. On a monthly basis, core prices rose 0.3%, outpacing July’s 0.2% rise.

Oil prices also embarked on a rampant rise, with U.S. benchmark West Texas Intermediate jumping to a price just below $89 per barrel. Brent crude futures were priced at over $92 per barrel; its highest level since November 2022. Like consumer prices, oil was also driven upwards by the rise in energy costs.

The post Inflation and Oil Embark on Simultaneous Surge appeared first on theprimarymarket.com.

Brent crude oil sailed above $91 per barrel following the announcement; the first time it hit this height in 10 months. According to Goldman Sachs’s previous forecasts, Brent oil would reach $86 per barrel in December and $93 by the end of 2024 barring any unforeseen drastic macroeconomic changes.

The investment bank expects Saudi oil supply to be 500,000 barrels below its previous expectations. Still, Goldman Sachs warned that price increases could be even more drastic than it expected if should output cuts be extended further than the end of 2023.

The post Oil Prices Expected To Surge Following Russian And Saudi Supply Cuts appeared first on theprimarymarket.com.