OIL PRICE: ABOVE $63 TOO
BLOOMBERG - Oil headed for its best weekly advance in a month after an outage on the Keystone pipeline added to speculation crude supply could tighten and as investors await OPEC's decision on extending output curbs.
Futures gained as much as 1 percent in New York. News that TransCanada Corp. was said to have cut 85 percent of Keystone's November shipments because of last week's spill in South Dakota has helped West Texas Intermediate prices head toward a 3.4 percent gain this week. Meanwhile, Brent crude has climbed just 1.1 percent, leading to the narrowest spread on a closing basis between the grades since early September.
The U.S. benchmark settled above $58 a barrel for the first time since mid-2015 this week on heightened optimism the Organization of Petroleum Exporting Countries and its allies will agree to prolong cuts at a Nov. 30 meeting in Vienna. Prices are up more than 7 percent in November, heading for a third monthly gain in what would be their longest winning streak since May last year.
"The Keystone outage is putting upward pressure on oil prices," Kim Yumi, a Seoul-based market strategist at Kiwoom Securities Co., said by phone. "While expectations over OPEC's supply-curb extension has already been reflected in prices, there's a high chance we may lose a clear price direction next week as the market may take a wait-and-see stance close to the meeting."
WTI for January delivery was at $58.43 a barrel on the New York Mercantile Exchange at 1:25 p.m. in Singapore, up 41 cents. The contract added $1.19 to $58.02 on Wednesday. There was no settlement Thursday because of the Thanksgiving holiday in the U.S. and all transactions will be booked Friday.
Brent for January settlement lost 14 cents, or 0.2 percent, to $63.41 a barrel on the London-based ICE Futures Europe exchange. Prices rose 23 cents to $63.55 on Thursday. The global benchmark crude traded at a premium of $4.98 to WTI.
This week, the front-month contract for WTI on Nymex turned more expensive than the second-month contract, a structure known as backwardation, driven by the Nov. 16 shutdown of the Keystone pipeline after a spill.
Also aiding prices this week is data showing U.S. crude inventories declined to about 457.1 million in the week ended Nov. 17, according to the Energy Information Administration. Stockpiles at Cushing, Oklahoma, dropped by 1.83 million barrels to 61.2 million, the largest draw since July. Meanwhile, American production gained for a fifth week to 9.66 million barrels a day.
|January, 18, 10:55:00|
|January, 18, 10:50:00|
|January, 18, 10:45:00|
|January, 18, 10:40:00|
|January, 18, 10:35:00|
|January, 18, 10:30:00|
PLATTS - Bangladesh is planning to step up efforts to liberalize its gas and LNG sectors from 2019 in order to boost private investment and enhance energy security, a move that would likely increase domestic downstream competition and affect the competitiveness of existing oil-linked LNG supply contracts.
NOVATEK - In 2018, NOVATEK’s hydrocarbon production totaled 548.4 million barrels of oil equivalent (boe), including 68.81 billion cubic meters (bcm) of natural gas and 11,800 thousand tons of liquids (gas condensate and crude oil), resulting in an increase in total hydrocarbons produced by 35.1 million boe, or by 6.9% as compared with the twelve months 2017.
REUTERS - International Brent crude oil futures LCOc1 were at $60.68 per barrel at 0703 GMT, 4 cents above their last close. U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 2 cents from their last settlement, at $52.13 a barrel.
REUTERS - Germany will try to protect German and European companies from some potentially “massive collateral damage” if Washington levies further sanctions against Russia, Foreign Minister Heiko Maas said.