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.
|July, 16, 11:05:00|
|July, 16, 11:00:00|
|July, 16, 10:55:00|
|July, 16, 10:50:00|
|July, 16, 10:45:00|
|July, 16, 10:40:00|
AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.