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Tag: Price of petroleum

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News Oil

Oil Rises Slightly On Unrest In The Middle East

October 16, 2012

The price of oil fell Friday on concerns that growth in global crude demand will slow even as more petroleum becomes available.

Benchmark oil fell 21 cents Friday to $91.86 per barrel in New York.

On Friday, the International Energy Agency issued a new report predicting slower growth in demand for oil over the next five years.

It cited the sluggish global economy and growing energy efficiency. The agency also forecast that supplies will increase, in part because U.S. production from shale formations is exceeding expectations.

The IEA is an organization of 28 oil-importing countries that collects and analyzes data about global petroleum supply and demand.

Friday’s decline in the price of oil eroded some of the gains from earlier this week, when tensions between Syria and Turkey raised worries about supplies. Still, the price of U.S. benchmark crude climbed 2.2 per cent over the past week.

AAA said gasoline prices at the pump fell less than a penny from Thursday to $3.81 for a gallon of regular. That’s about 41 cents higher than a year ago but down 5 cents from a month ago.

Brent crude, which is used to price international varieties of oil, dropped $1.07 to $113.61 per barrel in London.

In other energy trading on the New York Mercantile Exchange, heating oil fell 3.32 cents to end at $3.2239 per gallon.

Wholesale gasoline dropped 6.28 cents to end at $2.8928 per gallon and natural gas rose less than a penny to end at $3.611 per 1,000 cubic feet.

AP

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News Oil

Oil rebounds from 2-month low

October 5, 2012

Oil prices rebounded today, from a two month low, to a two month high, as tensions between Syria and Turkey fanned concerns, that exports from the Middle East may be curtailed.

Lawmakers in Turkey gave their government a one year mandate for possible military incursion into Syria, after explosives from Syria killed Turkish citizens.

The tension saw prices jumping by 3 dollars 57 cents, erasing almost all of yesterday’s 3 dollars 75 cents loss.

It pushed the price of oil up, by 4 point 1 percent, to 91 dollars 71 cents a barrel.

It was the biggest increase in oil prices since August 3, and means prices are up 15 percent, since the start of the year.

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News Oil

Oil Drops Below US$92

September 25, 2012

Worries about weaker economic growth dragged down oil prices Monday.

Oil has now fallen five of the last six trading days. It fell more than six per cent last week.

Benchmark crude fell 96 cents, or one per cent, to finish at US$91.93 a barrel on the New York Mercantile Exchange. Prices for other petroleum products dropped, too.

In London, Brent crude dropped US$1.61 at US$109.81 a barrel on the ICE Futures exchange.

Germany delivered the latest dose of gloomy economic news, with its index of business confidence falling for the fifth month in a row. Germany is an economic powerhouse, but 43 per cent of its exports go to its euro partners. And growth is stalling across the other 16 countries in the Eurozone.

Slower economies mean less demand for oil, pushing prices down.

Phil Flynn, a senior market analyst for Price Futures Group, said he’s surprised prices haven’t fallen further. He said one reason could be that commodity funds have not been bailing out of oil.

demand destruction

Still, oil prices have been under pressure from worries about Europe. The dollar has been stronger, which makes oil cheaper for holders of other currencies.

“You’re seeing demand destruction around the globe,” he said. “You’ve got Saudi Arabia saying they’re going to pump oil until the cows come home.” All of that drives down oil prices, he said.

Heating oil dropped 2.2 cents to US$3.0987 per gallon, wholesale gasolene decreased 2.49 cents to US$2.9176 per gallon and natural gas ended down 4.8 cents to US$2.837 per 1,000 cubic feet.

– AP

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News Oil

Oil Drops Below US$92

September 25, 2012

Worries about weaker economic growth dragged down oil prices Monday.

Oil has now fallen five of the last six trading days. It fell more than six per cent last week.

Benchmark crude fell 96 cents, or one per cent, to finish at US$91.93 a barrel on the New York Mercantile Exchange. Prices for other petroleum products dropped, too.

In London, Brent crude dropped US$1.61 at US$109.81 a barrel on the ICE Futures exchange.

Germany delivered the latest dose of gloomy economic news, with its index of business confidence falling for the fifth month in a row. Germany is an economic powerhouse, but 43 per cent of its exports go to its euro partners. And growth is stalling across the other 16 countries in the Eurozone.

Slower economies mean less demand for oil, pushing prices down.

Phil Flynn, a senior market analyst for Price Futures Group, said he’s surprised prices haven’t fallen further. He said one reason could be that commodity funds have not been bailing out of oil.

demand destruction

Still, oil prices have been under pressure from worries about Europe. The dollar has been stronger, which makes oil cheaper for holders of other currencies.

“You’re seeing demand destruction around the globe,” he said. “You’ve got Saudi Arabia saying they’re going to pump oil until the cows come home.” All of that drives down oil prices, he said.

Heating oil dropped 2.2 cents to US$3.0987 per gallon, wholesale gasolene decreased 2.49 cents to US$2.9176 per gallon and natural gas ended down 4.8 cents to US$2.837 per 1,000 cubic feet.

– AP

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News Oil

Oil higher for 2nd day, still buoyed by Fed

September 17, 2012

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.

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News Oil

Oil price up to near US$97 ahead of ECB meeting

September 4, 2012

(AP) -The price of oil crept up closer to US$97 a barrel today on expectations that the European Central Bank will soon announce new measures to fight the continent’s debt crisis.

 

By early afternoon in Europe, benchmark crude for October delivery was up 47 cents to US$96.94 per barrel in electronic trading on the New York Mercantile Exchange.

The contract rose US$1.85 to finish at US$96.47 Friday. There was no closing price Monday because of a public holiday in the US.

In London, Brent crude was up $1.72 at $116.29 on the ICE Futures exchange.

The ECB’s governing council is meeting Thursday and ECB President Mario Draghi is expected to reveal a new bond-buying programme aimed at easing borrowing cost for countries like Spain and Italy.

The ECB’s awaited announcement “is likely to prompt speculative financial investors to jump on the bandwagon and drive the (oil) price further upward,” said analysts at Commerzbank in Frankfurt.

“The development of prices and the commitment displayed by investors are at odds with the fundamental data, which continue to suggest an oversupply,” analysts at Commerzbank said. If the central banks fail to live up to expectations, oil prices are likely to drop sharply, they added.

Speculation about the ECB’s stimulus measures has helped support the euro against the dollar. After dropping to near two-year lows near US$1.20 at the end of July, the euro has pushed back to near US$1.26. That pushes up oil prices, which is traded in dollars and becomes cheaper for holders of other currencies when the dollar drops.

Oil analyst Stephen Schork said in a report that oil prices could see “increased volatility this week” due to the loss of a trading day Monday because of a holiday in the US.

The release Friday of US nonfarm payrolls for August, a closely watched gauge of employment in the world’s No 1 economy, also could impact prices, Schork said. He attributed recent swings in the oil price to the conflicting influences of a lower dollar and refinery disruptions in the US Gulf Coast that resulted from Hurricane Isaac.

While a substantial amount of oil and gas production remains offline, production is coming back as expected. No major damage to oil platforms or refineries has been reported.

In other Nymex energy futures trading, heating oil rose 2.53 cents to US$3.2055 a gallon and wholesale gasoline was up 2.31 cents at US$2.9959 a gallon. Natural gas fell 2.8 cents to US$2.771 per 1,000 cubic feet

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