Opening Prices in the U.S.;
WTI is up 82c to $57.17/Bbl, and Brent is up 72c to $62.46/Bbl.
Natural gas is down 3.5c to $2.793/MMBtu.
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China says it has agreed with U.S. to cancel tariffs in phases
BEIJING (Reuters) - China and the United States have agreed to cancel in phases the tariffs imposed during their months-long trade war, the Chinese commerce ministry said on Thursday, without specifying a timetable.
Read more: https://www.reuters.com/article/us-usa- ... SKBN1XH0TG
Just a reduction of the FEAR of the U.S. vs China Tariff War opens the path to $60/bbl WTI. A cold start to winter in the Northeast and Europe (more demand for heating oil) will finish the task.
Oil Price - Nov 7
Oil Price - Nov 7
Last edited by dan_s on Thu Nov 07, 2019 10:05 am, edited 1 time in total.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Price - Nov 7
Comments from London (Reuters)
Oil prices rebounded on Thursday, with Brent rising above $62 a barrel as fresh signs of progress in U.S.-China trade talks fueled hopes for an end to the protracted trade war that has depressed global growth and the outlook for energy demand.
China said on Thursday that it had agreed with the United States for both sides to remove tariffs in phases, without specifying a timetable.
A deal may be signed this month by U.S. President Donald Trump and Chinese President Xi Jinping at a yet-to-be determined location.
The trade dispute has prompted analysts to lower forecasts for oil demand and raised concerns that a supply glut could develop in 2020. Oil fell on Wednesday, partly because of worries that a U.S.-China trade deal might be delayed.
“Today we start with a different set of headlines that they came to some agreement on the framework,” said Olivier Jakob, oil analyst at Petromatrix. “That is definitely what is supporting prices.”
Crude oil WTI futures were up 76 cents or 1.3%, at $57.09 per barrel by 08:11 AM ET (01:11 GMT). That's a gain of nearly $1 from when the Chinese Commerce Ministry made its comments.
London’s Brent crude was up 77 cents or 1.3%, to $62.51.
Oil prices had settled lower on Wednesday after the Energy Information Administration reported a larger-than-expected build in U.S. crude stocks last week. Crude stockpiles rose by 7.9 million barrels the EIA said, much more than the 1.5 million barrel build expected by analysts.
Oil prices have been underpinned by a deal between the Organization of the Petroleum Exporting Counties and allies, including Russia, to limit supplies until March next year. The producers meet on Dec. 5-6 in Vienna to review the policy.
OPEC Secretary-General Mohammad Barkindo said this week he was more optimistic about the outlook for 2020 because of developments on trade disputes, appearing to downplay any need to cut output more deeply.
--Reuters contributed to this report
Oil prices rebounded on Thursday, with Brent rising above $62 a barrel as fresh signs of progress in U.S.-China trade talks fueled hopes for an end to the protracted trade war that has depressed global growth and the outlook for energy demand.
China said on Thursday that it had agreed with the United States for both sides to remove tariffs in phases, without specifying a timetable.
A deal may be signed this month by U.S. President Donald Trump and Chinese President Xi Jinping at a yet-to-be determined location.
The trade dispute has prompted analysts to lower forecasts for oil demand and raised concerns that a supply glut could develop in 2020. Oil fell on Wednesday, partly because of worries that a U.S.-China trade deal might be delayed.
“Today we start with a different set of headlines that they came to some agreement on the framework,” said Olivier Jakob, oil analyst at Petromatrix. “That is definitely what is supporting prices.”
Crude oil WTI futures were up 76 cents or 1.3%, at $57.09 per barrel by 08:11 AM ET (01:11 GMT). That's a gain of nearly $1 from when the Chinese Commerce Ministry made its comments.
London’s Brent crude was up 77 cents or 1.3%, to $62.51.
Oil prices had settled lower on Wednesday after the Energy Information Administration reported a larger-than-expected build in U.S. crude stocks last week. Crude stockpiles rose by 7.9 million barrels the EIA said, much more than the 1.5 million barrel build expected by analysts.
Oil prices have been underpinned by a deal between the Organization of the Petroleum Exporting Counties and allies, including Russia, to limit supplies until March next year. The producers meet on Dec. 5-6 in Vienna to review the policy.
OPEC Secretary-General Mohammad Barkindo said this week he was more optimistic about the outlook for 2020 because of developments on trade disputes, appearing to downplay any need to cut output more deeply.
--Reuters contributed to this report
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Oil Price - Nov 7
Closing prices:
WTI prompt month (DEC 19) was up $0.80 on the day, to settle at $57.15/Bbl.
NG prompt month (DEC 19) was down $0.056 on the day, to settle at $2.772/MMBtu.
I just took a look at the U.S. weather forecast for the next ten days: https://www.wunderground.com/ndfdimage/ ... ®ion=us
This is a very bullish forecast for the first half of November. It won't stay this cold, but we should see two very bullish gas storage reports coming up. We aren't going to see natural gas spike to $4.50 like it did last winter, but $3.00 is definitely within range.
For oil it is FINALLY sinking in that U.S. oil production is likely to go on decline in Q1 2020. This is the "Paradigm Shift" we need + if Team Trump can start some "Baby Steps" toward a trade agreement with China we will see WTI over $60/bbl by year-end.
WTI prompt month (DEC 19) was up $0.80 on the day, to settle at $57.15/Bbl.
NG prompt month (DEC 19) was down $0.056 on the day, to settle at $2.772/MMBtu.
I just took a look at the U.S. weather forecast for the next ten days: https://www.wunderground.com/ndfdimage/ ... ®ion=us
This is a very bullish forecast for the first half of November. It won't stay this cold, but we should see two very bullish gas storage reports coming up. We aren't going to see natural gas spike to $4.50 like it did last winter, but $3.00 is definitely within range.
For oil it is FINALLY sinking in that U.S. oil production is likely to go on decline in Q1 2020. This is the "Paradigm Shift" we need + if Team Trump can start some "Baby Steps" toward a trade agreement with China we will see WTI over $60/bbl by year-end.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group