OIL PRICES UP TO $50
Oil extended its advance to near $50 a barrel as weekly U.S. industry data showed crude stockpiles declined, easing a glut.
Futures rose as much as 1.4 percent in New York after climbing 1.1 percent Tuesday. Inventories dropped by 5.14 million barrels last week, the American Petroleum Institute was said to report. Data from the Energy Information Administration Wednesday is forecast to show supplies fell. Canadian oil-sands producers that cut more than 1 million barrels a day from the market because of the threat of wildfires are starting the process of resuming operations.
Oil has surged more than 85 percent from a 12-year low earlier this year on signs the global glut will ease amid declining supply in Nigeria and non-OPEC countries including the U.S. The Organization of Petroleum Exporting Countries is unlikely to set an output target when it meets June 2 as it sticks with Saudi Arabia's strategy of squeezing out rivals, according to all but one of 27 analysts surveyed by Bloomberg.
"The API crude inventory number is very bullish," Angus Nicholson, an analyst at IG Ltd. in Melbourne, said by phone. "If we see a similar figure in the EIA data that will push prices above $50. The big question is whether this pullback in stockpiles is because of the disruptions from the Canadian wildfires, or does it have more to do with the seasonal pickup."
West Texas Intermediate for July delivery rose as much as 67 cents to $49.29 a barrel on the New York Mercantile Exchange and was at $49.23 at 8:57 a.m. Hong Kong time. The contract gained 54 cents to $48.62 on Tuesday. Total volume traded was about 52 percent below the 100-day average.
Brent for July settlement increased as much as 58 cents, or 1.2 percent, to $49.19 a barrel on the London-based ICE Futures Europe exchange. The contract rose 26 cents to $48.61 on Tuesday. The global benchmark crude was at a discount of 6 cents to WTI.
Crude stockpiles at Cushing, Oklahoma, the delivery point for WTI and the biggest U.S. oil-storage hub, declined by 189,000 barrels last week, the API said Tuesday, according to people familiar with the numbers. Nationwide inventories probably dropped by 2 million barrels through May 20, according to the median estimate in a Bloomberg survey before the EIA report.
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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.