2020-05-28 12:05:00
OIL PRICE: NEAR $34
REUTERS - MAY 28, 2020 - Oil prices plunged on Thursday after U.S. industry data showed a surprise steep build in crude oil inventories, dampening hopes of a smooth recovery in demand as some countries begin to ease their way out of coronavirus lockdowns.
The decline in oil benchmarks extended losses from Wednesday over uncertainty about Russia's commitment to deep output cuts ahead of a June 9 meeting of the Organization of the Petroleum Exporting Countries and its allies, a grouping dubbed OPEC+.
U.S. West Texas Intermediate (WTI) crude futures were down 3%, or 98 cents, at $31.83 a barrel at 0709 GMT. The U.S. futures slipped earlier as much as 5% to a low of $31.14.
Brent crude futures were down 2%, or 71 cents at $34.03 per barrel, after dropping to as low as $33.63.
"The rise in API (American Petroleum Institute) inventories was very much unexpected and means this evening's U.S. EIA crude inventories will be monitored closely. That appears to be weighing on sentiment in Asia," said Jeffrey Halley, senior market analyst at OANDA.
Data from industry group API showed U.S. crude stocks rose by 8.7 million barrels in the week to May 22, compared with analysts' expectations for a draw of 1.9 million barrels.
"With the oil market assumed to be rebalanced at a much quicker pace than anyone expected, investors are now attempting to digest the outcome of the upcoming OPEC+ meeting," said Stephen Innes, chief global markets strategist at AxiCorp.
"As is often the case during a run-up up an OPEC+ meeting, the focus is squarely on Russia's commitment and understandably so as historically they have been the laggard within the OPEC+."
With WTI holding above $30 a barrel, OPEC+ will be closely watching to see whether U.S. shale oil producers, who have breakeven prices in the high $20 and low $30 dollar range, step up production, National Australia Bank's head of commodity research, Lachlan Shaw said.
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Earlier:
2020, May, 27, 12:20:00
OIL PRICE: ABOVE $35
Brent fell 53 cents, or 1.5%, to $35.64, WTI was down 50 cents, or 1.5%, at $33.85.
2020, May, 26, 10:50:00
OIL PRICE: ABOVE $36
Brent were up nearly 1.7%, or 61 cents to $36.14, WTI gained 3.4%, or $1.12, to $34.37 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.
