OIL PRICES UP TO $48
Light, sweet crude prices rose on the New York market May 16, approaching nearly $48/bbl for the day's high before settling at $47.72/bbl, up $1.15. The Brent crude front-month oil contract on the London market approached a 7-month high May 16 but dropped again in May 17 trading.
"After a strong day of trading yesterday and similar gains earlier today, there seems to be some profit-taking from investors and traders," said Commerzbank analyst Carsten Fritsch. "The situation is still very bullish." He expects lingering production disruptions worldwide could drive oil prices to $50/bbl.
On world oil markets, Libya's divided oil representatives said they agreed to allow production in western Libya to resume moving to refineries in that area, but they have yet to end a dispute blocking exports from Marsa al-Hariga.
Libya became divided after the 2011 ouster and death of Moammar Gadhafi. A peace effort supported by the United Nations resulted in a new government getting set up in Tripoli, but factions in eastern Libya have yet to recognize that government.
On May 15, Mustafa Sanallah, chairman of Tripoli-based National Oil Co., and Naji Almugrabi, the chief of an eastern oil company, signed a draft memorandum of understanding promising to end the impasse.
The MOU proposed a unification of both companies although a parliament ruling the East would need to approve any such agreement.
The July crude oil contract on the New York Mercantile Exchange gained $1.52 to settle at $48.42/bbl.
The NYMEX natural gas contract for June delivery fell nearly 7¢ to a rounded $2.03/MMbtu. The Henry Hub price was $1.91/MMbtu, down 4¢.
Heating oil for June delivery gained nearly 4¢ to $1.44/gal. The price for reformulated gasoline stock for oxygenates blending for June climbed 1.8¢ to a rounded $1.61/gal.
The Brent crude contract for July on London's ICE was up $1.14 to $48.97/bbl. The August contract gained $1.29 to $49.43/bbl. The June gas oil contract gained $11.50 to $430.25/tonne.
The Organization of Petroleum Exporting Countries' basket of crudes price for May 16 was $44.37/bbl, up $1.07.
|September, 20, 09:05:00|
|September, 20, 09:00:00|
|September, 20, 08:55:00|
|September, 20, 08:50:00|
|September, 20, 08:45:00|
|September, 20, 08:40:00|
BP and its partners in Azerbaijan's giant ACG oil production complex agreed Thursday to extend the production sharing contract by 25 years to 2049 and to increase the stake of state-owned SOCAR, reducing the size of their own shares.
The U.S. current-account deficit increased to $123.1 billion (preliminary) in the second quarter of 2017 from $113.5 billion (revised) in the first quarter of 2017, according to statistics released by the Bureau of Economic Analysis (BEA). The deficit increased to 2.6 percent of current-dollar gross domestic product (GDP) from 2.4 percent in the first quarter.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading up 41 cents, or 0.8 percent, at $50.30 by 0852 GMT, near the three-month high of $50.50 it reached last Thursday. Brent crude futures LCOc1, the benchmark for oil prices outside the United States, were at $55.91 a barrel, up 29 cents, and also not far from the near five-month high of $55.99 touched on Thursday.
“The principal risk regarding Russian and Chinese activities in Venezuela in the near term is that they will exploit the unfolding crisis, including the effect of US sanctions, to deepen their control over Venezuela’s resources, and their [financial] leverage over the country as an anti-US political and military partner,” observed R. Evan Ellis, a senior associate in the Center for Strategic and International Studies’ Americas Program.