Oil Price - July 26
Posted: Wed Jul 26, 2017 8:53 am
They call them "Cycles" for a reason and this one is coming to an end, especially if EIA confirms this BIG DROP in crude oil inventories. This is my topic at today's Houston luncheon. - Dan
Reuters - Oil prices rose to near eight-week highs on Wednesday, as a fall in U.S. inventories bolstered expectations that the long-oversupplied market was moving toward balance.
U.S. crude stockpiles fell sharply last week as refineries boosted output, while gasoline inventories increased and distillate stocks decreased, the industry group the American Petroleum Institute said on Tuesday.
Crude inventories fell 10.2 million barrels in the week ending July 21 to 487 million, more than the expected decrease of 2.6 million barrels.
Data from the U.S. Energy Information Administration on Wednesday could provide more support, with forecasts of a drop for a fourth week in a row.
Tuesday's stock draw added to hopes the long-awaited oil market rebalancing was underway. Saudi Arabia said on Monday it would limit oil exports to 6.6 million barrels per day (bpd) in August, down nearly 1 million bpd from a year earlier.
"The market has been tightening and the refinery margins are strong," said PetroMatrix managing director Olivier Jakob, saying the U.S. stock draw offered a boost to prices. "You add geopolitical risk premium for Venezuela, and you've got a strong market."
Venezuela, an OPEC member producing about 2 million bpd of oil, faces deepening economic woes and protests.
President Nicolas Maduro's adversaries plan strikes to push him to abandon a weekend election. The United States is considering financial sanctions to halt dollar payments for the Venezuelan oil.
Nigerian output slipped this week as leaks forced Shell (LON:RDSa) to shut a pipeline exporting some 180,000 bpd of oil. Nigeria, which has been exempted from OPEC-led production curbs, has agreed to cap or cut output when it stabilized at 1.8 million bpd.
Reuters - Oil prices rose to near eight-week highs on Wednesday, as a fall in U.S. inventories bolstered expectations that the long-oversupplied market was moving toward balance.
U.S. crude stockpiles fell sharply last week as refineries boosted output, while gasoline inventories increased and distillate stocks decreased, the industry group the American Petroleum Institute said on Tuesday.
Crude inventories fell 10.2 million barrels in the week ending July 21 to 487 million, more than the expected decrease of 2.6 million barrels.
Data from the U.S. Energy Information Administration on Wednesday could provide more support, with forecasts of a drop for a fourth week in a row.
Tuesday's stock draw added to hopes the long-awaited oil market rebalancing was underway. Saudi Arabia said on Monday it would limit oil exports to 6.6 million barrels per day (bpd) in August, down nearly 1 million bpd from a year earlier.
"The market has been tightening and the refinery margins are strong," said PetroMatrix managing director Olivier Jakob, saying the U.S. stock draw offered a boost to prices. "You add geopolitical risk premium for Venezuela, and you've got a strong market."
Venezuela, an OPEC member producing about 2 million bpd of oil, faces deepening economic woes and protests.
President Nicolas Maduro's adversaries plan strikes to push him to abandon a weekend election. The United States is considering financial sanctions to halt dollar payments for the Venezuelan oil.
Nigerian output slipped this week as leaks forced Shell (LON:RDSa) to shut a pipeline exporting some 180,000 bpd of oil. Nigeria, which has been exempted from OPEC-led production curbs, has agreed to cap or cut output when it stabilized at 1.8 million bpd.