Oil Price - Oct 9
Posted: Mon Oct 09, 2017 10:26 am
There will be no floor trading on the Nymex on Monday because of the Columbus Day holiday in the U.S. All electronic transactions will be booked with Tuesday's trades for settlement.
On the New York Mercantile Exchange crude futures for November delivery rose 29 cents to settle at $49.58 a barrel, while on London's Intercontinental Exchange, Brent gained 22 cents to trade at $55.84 a barrel.
In what was a volatile session, oil prices made a positive start to the week as oil infrastructure shut down in the Gulf of Mexico in preparation for Hurricane Nate started returning to service as Hurricane Nate weakened and moved inland.
More than 90% percent of crude oil production capacity in the Gulf of Mexico was shut in, the Bureau of Safety and Environmental Enforcement said on Sunday. < This will have a impact on the next two EIA weekly estimates of U.S. crude oil production.
Meanwhile, Opec Secretary-General Mohammad Barkindo stoked expectations of an extension to the output-cut agreement deal beyond the March 2018 deadline, assuring market participants that talks concerning a possible extension were underway.
The Organization of the Petroleum Exporting Countries is due to meet in Vienna on Nov. 30, when it will discuss the impact of its global deal to rein in output.
Oil prices have come under pressure, dropping below $50 a barrel, as investors questioned whether the recent rally has been justified. < Listen to the Marshall Adkins interview and you will see that higher oil prices are definitely justified.
“There appears to be growing doubt among market participants as to whether the price rise of recent weeks is justified,” said Commerzbank (DE:CBKG) analysts in a recent note. ”Among other things, this was due to the possible extension of the production cuts until the end of 2018.”
A monthly report from both OPEC and the International Energy Agency (IEA) later in the week, however, is expected to provide traders with fresh insight into global demand and supply in oil markets. < I am expecting these reports to confirm that the global oil market is tightening rapidly.
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Crude oil prices are set by hundreds of speculative traders in the NYMEX futures market. Oil prices will push higher when the physical market makers take over. As oil supply tightens, commercial traders with get into bidding wars to insure supply for the refiners that they work for. A steady supply of crude oil is essential to the global economy.
On the New York Mercantile Exchange crude futures for November delivery rose 29 cents to settle at $49.58 a barrel, while on London's Intercontinental Exchange, Brent gained 22 cents to trade at $55.84 a barrel.
In what was a volatile session, oil prices made a positive start to the week as oil infrastructure shut down in the Gulf of Mexico in preparation for Hurricane Nate started returning to service as Hurricane Nate weakened and moved inland.
More than 90% percent of crude oil production capacity in the Gulf of Mexico was shut in, the Bureau of Safety and Environmental Enforcement said on Sunday. < This will have a impact on the next two EIA weekly estimates of U.S. crude oil production.
Meanwhile, Opec Secretary-General Mohammad Barkindo stoked expectations of an extension to the output-cut agreement deal beyond the March 2018 deadline, assuring market participants that talks concerning a possible extension were underway.
The Organization of the Petroleum Exporting Countries is due to meet in Vienna on Nov. 30, when it will discuss the impact of its global deal to rein in output.
Oil prices have come under pressure, dropping below $50 a barrel, as investors questioned whether the recent rally has been justified. < Listen to the Marshall Adkins interview and you will see that higher oil prices are definitely justified.
“There appears to be growing doubt among market participants as to whether the price rise of recent weeks is justified,” said Commerzbank (DE:CBKG) analysts in a recent note. ”Among other things, this was due to the possible extension of the production cuts until the end of 2018.”
A monthly report from both OPEC and the International Energy Agency (IEA) later in the week, however, is expected to provide traders with fresh insight into global demand and supply in oil markets. < I am expecting these reports to confirm that the global oil market is tightening rapidly.
----------------------------
Crude oil prices are set by hundreds of speculative traders in the NYMEX futures market. Oil prices will push higher when the physical market makers take over. As oil supply tightens, commercial traders with get into bidding wars to insure supply for the refiners that they work for. A steady supply of crude oil is essential to the global economy.