OIL PRICES UP TO $48.84
According to REUTERS, oil rose on Wednesday as financial traders poured money back into commodities following the initial shock of Britain's vote to leave the European Union, and as a potential strike in Norway and crisis in Venezuela threatened to cut supply.
Brent crude futures were trading at $48.84 per barrel at 0422 GMT, up 26 cents from their last settlement. U.S. crude was up 35 cents at $48.20 a barrel.
Both oil benchmarks had climbed on Tuesday after markets shook off some of shock from the referendum in Britain in which most voters elected to exit the EU.
"The risk-on tone should see commodities continue to push higher," ANZ Bank said.
"Oil led the (commodities) sector as the shock of the UK voting to leave the EU wore off. Oil gains were solidified by news that the decline in Venezuela's oil output appears to be accelerating, while a strike in Norway also looked like it would impact production," it added.
Standard Chartered said that it expected oil prices to regain $50 per barrel rapidly after the Brexit-related fall as the referendum's impact on demand was limited.
On the supply side, a looming strike by Norwegian oil workers threatened to cut output from the biggest North Sea producer.
In crisis-struck Venezuela, oil producers and refiners were struggling to keep output up due to power outages and equipment shortages also supported prices, traders said.
Additionally, the American Petroleum Institute (API) indicated in a report on Tuesday that U.S. crude inventories fell nearly 4 million barrels for the week to June 24, some two-thirds more than the 2.4 million barrels expected by analysts.
The U.S. Energy Information Administration will issue official stockpile data on Wednesday.
Despite the tightening supply-side, there are concerns that a looming refined products glut especially in Asia, which has halved benchmark Singapore production margins since January, might spill back into the crude market as refiners cut output and orders of their main feedstock, crude.
"Refining margins... have averaged lower than the same period last year, which should be supportive of lower fuels production," said analysts at BMI Research.
Bankers also said that knock-on effects from Britain's EU exit vote would continue to impact oil.
Citi said that Brexit's "uncertainty and volatility ... are both likely to be persistent for a long time to come."
And investment bank Jefferies said that "Brexit.. has brought currency considerations to the fore... Near-term, a strengthening U.S. dollar makes a barrel of oil more expensive in local emerging market currencies and so likely weighs on demand."
|November, 17, 19:55:00|
|November, 17, 19:50:00|
|November, 17, 19:45:00|
|November, 17, 19:40:00|
|November, 17, 19:35:00|
|November, 17, 19:30:00|
REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.