2020-05-26 10:50:00
OIL PRICE: ABOVE $36
REUTERS - MAY 26, 2020 - Oil prices rose on Tuesday, supported by growing confidence in the market that producers will come good on commitments to cut crude supply while demand picks up with more cars back on the road as coronavirus lockdowns eased around the world.
U.S. West Texas Intermediate (WTI) crude futures gained 3.4%, or $1.12, to $34.37 a barrel as of 0652 GMT, just off an intra-day high of $34.54.
There was no WTI settlement on Monday because of the U.S. Memorial Day holiday.
Brent crude futures were up nearly 1.7%, or 61 cents to $36.14, adding to a 1.1% gain on Monday in thin holiday trading.
The market was buoyed by comments from Russia reporting its oil output had nearly dropped to its target of 8.5 million barrels per day (bpd) for May and June under its supply cut deal with the Organization of the Petroleum Exporting Countries (OPEC) and other leading producers, a grouping known as OPEC+.
"There's definitely a feeling those cuts have come through as well as you could expect," said Daniel Hynes, senior commodity strategist at Australia and New Zealand Banking Group.
OPEC+ countries are set to meet again in early June to discuss maintaining their supply cuts to shore up prices, which are still down around 45% since the start of the year. The big producers agreed in April to cut output by nearly 10 million bpd for May and June.
Russia’s energy ministry on Monday quoted minister Alexander Novak as saying a rise in fuel demand should help cut the current global surplus of around 7-12 million bpd by June or July.
“With economies restarting, the focus definitely is on the improvement in the fundamentals, rather than what seemed like a complete collapse in demand only a few weeks ago,” said strategist Hynes.
Meanwhile data from energy services firm Baker Hughes (BKR.N) showed the United States’ rig count hitting a record low of 318 in the week to May 22, also indicating lower output in the future.
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Earlier:
2020, May, 25, 12:50:00
OIL PRICE: NEAR $35 ANEW
Brent was up 6 cents, or 0.2%, at $35.19 a barrel, WTI had gained 27 cents, or 0.82%, at $33.52 a barrel.
2020, May, 25, 12:45:00
U.S. ENERGY MARKET DOWN
Oil markets are being significantly disrupted due to global market dynamics and the coronavirus pandemic, the oil price crash was "causing financial and credit challenges, including oil company bankruptcies."
2020, May, 25, 12:35:00
RUSSIA'S OIL SUPPORT
Putin ordered ministers to work out “special rates” that pipeline operator Transneft PJSC and Russian Railways JSC will charge for transporting crude and petroleum products
2020, May, 22, 13:17:00
OIL MARKET BALANCE
"When it comes to oil, there are signs that the market has tightened in recent weeks. The OPEC+ agreement, voluntary cuts outside OPEC-++, and production shut-ins are working together to start to rebalance the market. This will take time. As economies begin to open up, demand will follow, but the path to the next normal is not a straight line," Dr. Sultan Al Jaber, CEO of ADNOC Group and UAE minister of state said.
2020, May, 22, 13:10:00
OIL & GAS: THE RETURN OF EQUITY 6%
The return on equity for energy companies and U.S. manufacturing decreased to 6% and 13%, respectively, in 2019
2020, May, 22, 12:55:00
OILFIELD SERVICES DOWN 49%
Oilfield services companies have lost approximately 49% of their market capitalization since the beginning of this year.
2020, May, 19, 11:55:00
OIL&GAS INDUSTRY: THE NEXT TRANSFORMATION
To change the current paradigm, the industry will need to dig deep and tap its proud history of bold structural moves, innovation, and safe and profitable operations in the toughest conditions. The winners will be those that use this crisis to boldly reposition their portfolios and transform their operating models. Companies that don’t will restructure or inevitably atrophy.
