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.

“We’re at risk of seeing continued tightness in the market, especially for distillates, coming into the winter months,” Toril Bosoni, head of the oil market division at the International Energy Agency confirmed, admitting that “refineries are struggling to keep up.”

A hotter-than-expected summer in the Northern Hemisphere forced plants to run at a slower pace than usual, thereby also curbing diesel output. Callum Bruce, an analyst at Goldman Sachs Group Inc., confirmed that pressures to produce jet fuel and gasoline have also distracted refiners from their diesel production.

The post Diesel Prices Surge Amid Global Shortage 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 was trading slightly above $80 per barrel on Monday morning, touching its peak in April last year and rallying almost 14% since the start of July. Should its current value hold until market close, the US crude benchmark will achieve its best performance for July in the last two years.

“Record high demand and Saudi supply cuts have brought back deficits,” Goldman Sachs noted. “The market has abandoned its growth pessimism.” Goldman Sachs’ team of analysts forecast that Brent would hit $86 per barrel in December.

The post Oil Headed for Largest Monthly Gain Since Early 2022 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.

Futures in London traded near $80 per barrel on Wednesday morning; a threshold last met in early May. With oil still lower this year overall, OPEC+ members Saudi Arabia and Russia pledged to cut output as a means of propping up prices.

According to a report from the Energy Information Administration, the global oil market is set to tighten in the second half of the year. The EIA is set to release its weekly report on US crude stockpiles later on Wednesday.

Earlier, a report from the American Petroleum Institute stated that stockpiles rose by three million barrels last week. Other incoming reports that traders will look to for guidance are the monthly reports of the International Energy Agency and OPEC, set to be released on Thursday.

The post Oil Holds Onto Gains as Russian Crude Declines appeared first on theprimarymarket.com.

Saudi Arabia’s production will remain one million barrels per day lower as per this arrangement, adding to existing output curbs implemented by OPEC+. This reduction is expected to be extended into August and could potentially last longer.

In line with the Saudis’ decision, Russia will reduce its own oil exports by 500,000 barrels a day in August. The country has mostly kept in line with OPEC+’s supply cuts despite facing pressure to keep its sales afloat following the Ukraine invasion.

Oil futures rose soon after Saudi Arabia’s announcement, with Brent crude rising 0.9% to $76.12 per barrel. 

Expected to rally going into this year, oil prices instead shed 11% following a slump in market confidence over global economies as central banks continued to hike inflation rates in the fight against inflation.

The post Oil Rises Amid Russian and Saudi Price Cuts appeared first on theprimarymarket.com.

The Saudi official stated that his country would be cutting its July oil production to its lowest point in a decade excluding the Covid-19 pandemic. While the price of Brent futures rose to around $76 a barrel the day after the announcement, this gain was shortlived as traders appeared to largely ignore Salman’s warning. This comes as a surprise considering OPEC+’s decision to cut output in April took hold of prices for almost the entire month.

Although oil demand is expected to exceed supply in the coming months, two potential obstacles are preventing bulls from becoming overly optimistic. The first is the boom in Russian shipments despite Western sanctions aimed at curtailing them, while the second is a growing concern about China’s post-pandemic economic rebound.

The post Oil Traders Threaten to Ignore Saudi Warnings appeared first on theprimarymarket.com.

Saudi Arabia, a leader among the cartel’s members, has warned traders to avoid betting on lower oil prices. Russia, the leader of the non-member allies, has issued a contrasting statement that no reduction in output is expected.

OPEC+ previously cut output by 2 million barrels per day in October, thereby infuriating U.S. President Joe Biden as higher gasoline prices were caused. Another supply cut was imposed in April, this time a surprise cut of 1.16 million barrels per day.

After climbing as high as $87 per barrel, Brent crude has slumped to around $75 per barrel. U.S. crude has fallen below $70 per barrel during the same period.

James Swanston, Middle East and North Africa economist at Capital Economics has cautioned that the Saudi’s warning to traders does not necessarily signify an impending output cut. “Our expectation is that OPEC+ will stick with current output quotas,” Swanston commented. “There have been signs that the government may be readying to live with lower oil prices and running budget deficits.”

The post OPEC+ Considers Further Supply Cuts Amid Oil Price Decline 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.

“We’re at risk of seeing continued tightness in the market, especially for distillates, coming into the winter months,” Toril Bosoni, head of the oil market division at the International Energy Agency confirmed, admitting that “refineries are struggling to keep up.”

A hotter-than-expected summer in the Northern Hemisphere forced plants to run at a slower pace than usual, thereby also curbing diesel output. Callum Bruce, an analyst at Goldman Sachs Group Inc., confirmed that pressures to produce jet fuel and gasoline have also distracted refiners from their diesel production.

The post Diesel Prices Surge Amid Global Shortage 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 was trading slightly above $80 per barrel on Monday morning, touching its peak in April last year and rallying almost 14% since the start of July. Should its current value hold until market close, the US crude benchmark will achieve its best performance for July in the last two years.

“Record high demand and Saudi supply cuts have brought back deficits,” Goldman Sachs noted. “The market has abandoned its growth pessimism.” Goldman Sachs’ team of analysts forecast that Brent would hit $86 per barrel in December.

The post Oil Headed for Largest Monthly Gain Since Early 2022 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.

Futures in London traded near $80 per barrel on Wednesday morning; a threshold last met in early May. With oil still lower this year overall, OPEC+ members Saudi Arabia and Russia pledged to cut output as a means of propping up prices.

According to a report from the Energy Information Administration, the global oil market is set to tighten in the second half of the year. The EIA is set to release its weekly report on US crude stockpiles later on Wednesday.

Earlier, a report from the American Petroleum Institute stated that stockpiles rose by three million barrels last week. Other incoming reports that traders will look to for guidance are the monthly reports of the International Energy Agency and OPEC, set to be released on Thursday.

The post Oil Holds Onto Gains as Russian Crude Declines appeared first on theprimarymarket.com.

Saudi Arabia’s production will remain one million barrels per day lower as per this arrangement, adding to existing output curbs implemented by OPEC+. This reduction is expected to be extended into August and could potentially last longer.

In line with the Saudis’ decision, Russia will reduce its own oil exports by 500,000 barrels a day in August. The country has mostly kept in line with OPEC+’s supply cuts despite facing pressure to keep its sales afloat following the Ukraine invasion.

Oil futures rose soon after Saudi Arabia’s announcement, with Brent crude rising 0.9% to $76.12 per barrel. 

Expected to rally going into this year, oil prices instead shed 11% following a slump in market confidence over global economies as central banks continued to hike inflation rates in the fight against inflation.

The post Oil Rises Amid Russian and Saudi Price Cuts appeared first on theprimarymarket.com.

The Saudi official stated that his country would be cutting its July oil production to its lowest point in a decade excluding the Covid-19 pandemic. While the price of Brent futures rose to around $76 a barrel the day after the announcement, this gain was shortlived as traders appeared to largely ignore Salman’s warning. This comes as a surprise considering OPEC+’s decision to cut output in April took hold of prices for almost the entire month.

Although oil demand is expected to exceed supply in the coming months, two potential obstacles are preventing bulls from becoming overly optimistic. The first is the boom in Russian shipments despite Western sanctions aimed at curtailing them, while the second is a growing concern about China’s post-pandemic economic rebound.

The post Oil Traders Threaten to Ignore Saudi Warnings appeared first on theprimarymarket.com.

Saudi Arabia, a leader among the cartel’s members, has warned traders to avoid betting on lower oil prices. Russia, the leader of the non-member allies, has issued a contrasting statement that no reduction in output is expected.

OPEC+ previously cut output by 2 million barrels per day in October, thereby infuriating U.S. President Joe Biden as higher gasoline prices were caused. Another supply cut was imposed in April, this time a surprise cut of 1.16 million barrels per day.

After climbing as high as $87 per barrel, Brent crude has slumped to around $75 per barrel. U.S. crude has fallen below $70 per barrel during the same period.

James Swanston, Middle East and North Africa economist at Capital Economics has cautioned that the Saudi’s warning to traders does not necessarily signify an impending output cut. “Our expectation is that OPEC+ will stick with current output quotas,” Swanston commented. “There have been signs that the government may be readying to live with lower oil prices and running budget deficits.”

The post OPEC+ Considers Further Supply Cuts Amid Oil Price Decline appeared first on theprimarymarket.com.