OIL PRICE: ABOVE $67 YET
BLOOMBERG - A day after oil was swept up in a global market rout, crude is rebounding as investor focus snaps back to U.S. supplies.
Futures in New York rose as much as 1.3 percent, after being dragged down 1.2 percent in the previous session as a flight from risk shook assets around the world. While equity markets are clawing back on calls to 'buy the dip,' crude's advance is being driven by industry data that showed an unexpected decrease in U.S. stockpiles. Investors are watching if government data also surprises with a decline when it's released on Wednesday.
As calm returns to markets, Goldman Sachs Group Inc. stuck to its bullish call on commodities, saying the recent global selloff only bolsters its view that raw materials are set to perform well in months ahead. Still, crude is struggling to extend last month's gains that were largely driven by a weaker dollar, on speculation that U.S. output will impede efforts by OPEC and its allies to curb a glut.
"What's happening in the U.S. has become critical to the oil market, whether it's inventories and production figures or the movement in the greenback," Will Yun, a commodities analyst at Hyundai Futures Corp., said by phone from Seoul. "While oil prices are likely to be supported at this level after its correction, the upcoming U.S. data will be the deciding factor" for future prices.
West Texas Intermediate for March delivery rose as much as 79 cents to $64.18 a barrel and traded at $63.88 as of 11:39 a.m. in Singapore. The contract fell 76 cents to $63.39 on Tuesday. Total volume traded was about 16 percent above the 100-day average.
Brent for April settlement rose 46 cents to $67.32 a barrel on the London-based ICE Futures Europe exchange, snapping a three-day decline. The global benchmark crude traded at a premium of $3.73 to April WTI.
The American Petroleum Institute was said to report U.S. crude stockpiles slid 1.05 million barrels last week, with storage also shrinking at tanks in the key hub of Cushing, Oklahoma. Nationwide inventories probably rose by 3.15 million barrels, according to a Bloomberg survey before a report from the Energy Information Administration due Wednesday.
|May, 21, 11:10:00|
|May, 21, 11:05:00|
|May, 21, 11:00:00|
|May, 21, 10:55:00|
|May, 21, 10:50:00|
|May, 21, 10:45:00|
API - American Petroleum Institute reported that the first four months of this year saw U.S. petroleum demand average 750 thousand barrels a day above the same period in 2017 despite higher prices, a sign of solid economic activity. April also saw the U.S. produce a record 10.5 million barrels per day (MBD) of oil.
IMF - “Egypt’s growth has continued to accelerate during 2017/18, rising to 5.2 percent in the first half of the year from 4.2 percent in 2016/17. The current account deficit has also declined sharply, reflecting the recovery in tourism and strong growth in remittances, while improved investor confidence has continued to support portfolio inflows. In addition, gross international reserves rose to $44 billion by end-April, equal to 7 months of imports.
BAKER HUGHES A GE - U.S. Rig Count is up 1 rig from last week to 1,046, with oil rigs unchanged at 844, gas rigs up 1 to 200, and miscellaneous rigs unchanged at 2. Canada Rig Count is up 4 rigs from last week to 83, with oil rigs up 6 to 38 and gas rigs down 2 to 45.
REUTERS - Brent crude futures LCOc1 were at $79.57 per barrel at 0310 GMT, up 27 cents, or 0.3 percent from their last close. Brent broke through $80 for the first time since November 2014 on Thursday. U.S. West Texas Intermediate (WTI) crude futures were at $71.62 a barrel, up 13 cents, or 0.2 percent, from their last settlement.