2022-09-28 12:40:00
OIL PRICE: BRENT ABOVE $86, WTI ABOVE $78
REUTERS - Sept 28 - Oil prices fell more than 1% on Wednesday, pressured by a strengthening dollar and crude storage builds that offset support from U.S. production cuts caused by Hurricane Ian.
Brent crude futures fell $1.02, or 1.2%, to $85.25 per barrel by 0630 GMT, while U.S. West Texas Intermediate (WTI) crude futures were down 97 cents, or 1.2%, at $77.53 per barrel. Both contracts had risen over 2% in the previous session.
The dollar hit a fresh two-decade peak against a basket of currencies on Wednesday as rising global interest rates fed recession concerns. A strong dollar reduces demand for oil by making it more expensive for buyers using other currencies.
Asian share markets sank as surging borrowing costs stoked fears of a global recession, spooking investors into the safe-haven dollar.
"With Asian markets tanking due to the surge in bond yields, demand outlooks are darkened amid a possible nearing economic recession," said Tina Teng, an analyst at CMC Markets.
"Traders' focus is not on the supply issues right now as the bond market's turmoil sunk risk assets, along with a stubbornly high U.S. dollar, which pressured oil prices," Teng added.
U.S. crude oil stocks rose by about 4.2 million barrels for the week ended Sept. 23, while gasoline inventories fell about 1 million barrels, according to market sources on Tuesday, citing figures from industry group the American Petroleum Institute.
Distillate stocks rose by about 438,000 barrels, according to the sources, who spoke on condition of anonymity.
The report comes ahead of official Energy Information Administration data due on Wednesday at 4:30 p.m. EDT.
Goldman Sachs cut its 2023 oil price forecast on Tuesday, due to expectations of weaker demand and a stronger U.S. dollar, but said global supply disappointments only reinforced its long-term bullish outlook.
Producers began returning workers to offshore oil platforms after shutting in output ahead of Hurricane Ian, which entered the U.S. Gulf of Mexico on Tuesday and is forecast to become a dangerous Category 4 storm over the warm waters of the Gulf.
About 190,000 barrels per day of oil production, or 11% of the Gulf's total were shut-in, according to offshore regulator the Bureau of Safety and Environmental Enforcement (BSEE).
Producers lost 184 million cubic feet of natural gas, or nearly 9% of daily output. Personnel were evacuated from 14 production platforms and rigs, the BSEE said.
Ian is the first hurricane this year to disrupt oil and gas production in the U.S. Gulf of Mexico, which produces about 15% of the United States' crude oil and 5% of its dry natural gas.
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Earlier:
2022, September, 27, 16:55:00
OIL PRICE: BRENT ABOVE $85, WTI NEAR $78
Brent was up $1.49, or 1.8%, to $85.55 a barrel, WTI was up $1.37, or 1.8%, at $78.08.
2022, September, 27, 16:40:00
RUSSIAN OIL FOR CHINA UP
The share of imports from Russia has likely risen because of lower imports into China and shifting trade patterns following Russia’s full-scale invasion of Ukraine. Western economic sanctions have reduced demand for Russian crude oil, and as a result, have left Russia to look for alternative export destinations.
2022, September, 22, 16:35:00
OIL PRICE: BRENT NEAR $92, WTI NEAR $85
Brent were up 70 cents, or 0.78%, to $90.53, WTI was up 71 cents, or 86%, at $83.65.
2022, September, 21, 14:15:00
OIL PRICE: BRENT NEAR $93, WTI NEAR $86
Brent rose $2.28, or 2.5%, to $92.90 a barrel, WTI was at $86.16 a barrel, up$2.22, or 2.6%.
2022, September, 21, 14:00:00
INCREASING RUSSIA SANCTIONS
G7 countries have also agreed to finalize a price cap for Russian crude. The US Treasury has indicated that three separate price caps will be introduced -- for crude, high-value refined products and low-value refined products.
2022, September, 19, 13:10:00
OIL PRICE: BRENT NEAR $90, WTI NEAR $84
Brent fell $1.17, or 1.3%, to $90.18, WTI dropped $1.14, or 1.3%, to $83.97.
2022, September, 19, 13:05:00
RUSSIAN OIL EXPORTS DOWN
Russia is still the biggest source of the trade bloc's shipped crude with more than 1.2 million b/d of imports landing in the region in early September, the data shows, little changed on the month.
