Oil Market news and price forecasts - June 13

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Oil Market news and price forecasts - June 13

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Inflation: Oil hits 2018 high in third week of gains
Suzanne O'Halloran
Sat, June 12, 2021, 6:30 AM

CL +0.70%
Oil continued its run higher clocking the third straight week of gains and adding to the inflation concerns building on Wall and Main Street.

West Texas Intermediate crude prices topped $70.91 on Friday, a weekly gain of 11.5% and the highest level since October 2018, as tracked by Dow Jones Market Data Group. For the year, crude is up over 46%.

CONSUMER PRICES JUMP 5% MOST SINCE 2008 < Inflation is the foundation for this Commodity Super Cycle

"The commodity strength has been one of the stories of the recovery," Baird Investment Strategy Analyst Ross Mayfield told FOX Business, adding the run is not over. "I do think oil continues to head higher, continues to look strong on reopening demand so anything highly linked, highly correlated, with oil price, should be a winner" he noted.
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Iraq Sees Oil Prices at $68 to $75 a Barrel in 2nd Half
Kadhim Ajrash and Bloomberg Automation
Sat, June 12, 2021, 1:03 PM

(Bloomberg) -- Iraq, OPEC’s second-biggest oil producer, said crude prices will be in the range of $68 to $75 a barrel in the second half.

The price range is expected because of a commitment to OPEC+ output cut, Iraq’s Oil Minister Ihsan Abdul Jabbar told reporters at the Baghdad International Book Fair.

The Organization of Petroleum Exporting Countries had predicted earlier in the week that the recovery in global oil demand will gather strength in the second half of the year, as the group prepares to consider reviving more halted output. Oil consumption will jump by about 5 million barrels a day -- or roughly 5% -- in the second half of 2021 versus the first as the world emerges from the pandemic slump, it added.

OPEC and its partners have restored almost 40% of the production they shuttered when the coronavirus crushed demand a year ago, and will gather on July 1 to consider reviving the remainder.

Iraq said in May it’s considering buying Exxon Mobil Corp.’s stake in one of the world’s biggest fields. When asked about Exxon’s status, he said it hasn’t yet withdrew from West Qurna-1 field as the country is still studying the alternative.
Dan Steffens
Energy Prospectus Group
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