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Oil Above US$103

July 9, 2013 jrobinson

The price of oil finished with a small loss Monday as traders waited for potentially market-moving news at midweek.

US benchmark crude for August delivery slipped eight cents to US$103.14 a barrel on the New York Mercantile Exchange.

Brent crude dropped 29 cents to US$107.43 on the ICE Futures exchange in London.

Oil was pushed higher last week by worries that turmoil in Egypt could disrupt shipments through the Suez Canal and a report showing robust job growth in the United States in June.

Later this week, the US Energy Department releases its weekly report on supplies of crude oil and petroleum products, the US Federal Reserve releases minutes of its recent policy meeting and OPEC issues its monthly update on the oil market.

A large decline in US supplies, or signs that OPEC decreased output last month could boost prices, analysts say.

Additional insight into the Fed’s thinking on monetary policy should also influence trading.

In other energy futures trading on the Nymex Monday, wholesale gasoline dropped one cent to US$2.88 per gallon; natural gas rose 12 cents to $3.74 per 1,000 cubic feet, and heating oil fell one cent to US$2.98 per gallon.

Oil declines to 2-week low

September 19, 2012 Webmaster

Oil declined to a two-week low as Saudi Arabia was said to be taking action to lower prices and increasing concern that an economic slowdown will curb demand.

Oil fell for a second day as a Persian Gulf official said Saudi Arabia is pumping about 10 million barrels a day and will produce more if customers demand it.

Prices tumbled 2.4 percent yesterday, at one point dropping 3 dollars in less than a minute on a surge in volume.

At the end of today the price was down 1 dollar 33 cents or 1.4 percent, to 95 dollars 29 cents a barrel on the New York Mercantile Exchange, the lowest settlement since August 30.

The two-day decline was 3.7 percent.

Prices are down 3.6 percent this year.

News Oil

Oil declines to 2-week low

September 19, 2012 jrobinson

Oil declined to a two-week low as Saudi Arabia was said to be taking action to lower prices and increasing concern that an economic slowdown will curb demand.

Oil fell for a second day as a Persian Gulf official said Saudi Arabia is pumping about 10 million barrels a day and will produce more if customers demand it.

Prices tumbled 2.4 percent yesterday, at one point dropping 3 dollars in less than a minute on a surge in volume.

At the end of today the price was down 1 dollar 33 cents or 1.4 percent, to 95 dollars 29 cents a barrel on the New York Mercantile Exchange, the lowest settlement since August 30.

The two-day decline was 3.7 percent.

Prices are down 3.6 percent this year.

News Oil

Oil Takes Sudden Plunge

September 18, 2012 jrobinson

Oil plunged suddenly Monday afternoon, dropping more than US$4 per barrel at one point in a dramatic end to an otherwise quiet trading day in New York.

Benchmark crude fell $2.38, or 2.4 per cent, to finish at $96.62 on the New York Mercantile Exchange. That’s the biggest percentage decline since July 23. Oil plunged below $95 per barrel during the sell-off.

Traders were unsure of the cause of Monday’s price drop. Some questioned whether an errant trade or another rumour about a release of oil from the Strategic Petroleum Reserve was to blame.

The White House has been considering tapping the Strategic Petroleum Reserve to stem the rising cost of crude and gasolene. A little over a week ago, Reuters reported the Obama administration was considering a release much larger than the 30 million barrels from last year.

Oil rose 2.7 per cent last week after getting a boost from the US Federal Reserve‘s latest plan to boost the US economy. It held to slight gains above $99 for most of Monday.

Brent crude, which is used to price international varieties of oil, fell sharply as well. Brent lost $2.91, or 2.9 per cent, to $113.77 on the ICE Futures Exchange in London.

– AP

News Oil

Oil higher for 2nd day, still buoyed by Fed

September 17, 2012 Webmaster

Oil rose for a second day on the back of the Federal Reserve‘s aggressive plan to boost the US economy. More gains are expected, but that might not translate into a spike in prices at the gas station.

After earlier topping US$100 for the first time since May, benchmark oil was up 72 cents to US$99.03 per barrel in midday trading in New York.

Analysts say the Fed’s plan to keep interest rates at extraordinarily low rates into 2015 gives investors the incentive to put their money into riskier assets like stocks and commodities. The expectation that the Fed’s moves will help the economy should also boost oil prices because demand for energy should pick up.

But the higher oil and other commodities rise, the greater the chance they’ll curtail consumer spending in an economy where unemployment is stuck above 8 per cent. That’s why analysts think the gains should be limited.

“Higher commodity prices are going to put a dent in spending as they give consumers pause when they’re spending more at the (grocery) store or the gas pump,” said Andrew Lipow of Lipow Oil Associates in Houston.

An increase in the price of oil usually means a rise in pump prices. But fundamentals favor a decline in the price of gasoline, said Tom Kloza, chief oil analyst at Oil Price Information Service. The end of summer driving season means less demand for gas. And refiners are about to switch to making winter blends, which are cheaper than summer blends formulated to cut down on pollutants.

Kloza thinks gas might rise a penny or two from its current average of US$3.87 per gallon, but should decline during the period between late September and Thanksgiving. He sees gasoline falling to between US$3.50 and US$3.75 per gallon in October.

The wild card for oil is the unfolding unrest in the oil-rich Middle East. Protesters angry over an anti-Muslim film ridiculing the Prophet Muhammad began assaulting a string of US embassies in the region four days ago.

Brent crude, which is used to price a number of international types of oil, rose 74 cents to US$116.62 in London. Kloza said an escalation in the Middle East situation could push Brent up as high as US$125 per barrel and the US benchmark as high as US$120. That would limit the decline in gasoline prices, he said.

News Oil

Oil Slips After 3 Straight Gains … Pump Prices Rise

August 9, 2012 jrobinson

The price of oil dropped a bit Wednesday after three days of increases.

Benchmark oil fell 53 cents to $93.14 per barrel Wednesday in New York.

Oil prices had increased more than $6 per barrel since Thursday following a positive report on the US job market. In addition, quarterly earnings for many companies have been stronger than expected.

Yet, the overall economy continues to struggle, which has fuelled speculation that the Federal Reserve may take action to promote economic growth.

A stronger economy means more demand for oil and other energy products. Oil demand is better than it was earlier in the year but hasn’t recovered to year-ago levels, said Michael Lynch, president of Strategic Energy & Economic Research.

Oil got a temporary boost Wednesday from a bigger-than-expected decline in US stockpiles. The Energy Department said oil inventories fell 3.7 million barrels last week to 369.9 million barrels. Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted a much smaller decline of 300,000 barrels.

But the economic news from Europe remains grim. The Banque de France said it expects the French economy to slip into recession in the third quarter. German industrial production and exports fell in June.

Traders will closely watch fresh economic data from China Thursday on inflation, factory production and retail sales. China is the world’s second-biggest economy and a huge importer of oil.

At the pump, the national average price of gasolene rose about one penny to $3.647 per gallon, according to AAA, Wright Express and the Oil Price Information Service. That’s up nearly 27 cents from a month ago. It’s about two cents less than a year ago.

Brent crude, which is used to price international varieties of oil, gained 28 cents to $112.26 per barrel in London.

– AP

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