Oil prices edge down on concerns of slowing economic growth

CNBC

  • Oil prices fell on Monday over concerns of slowing economic growth.
  • International Brent crude oil futures were at $71.59 per barrel at 0413 GMT, down 24 cents from their last close.
  • U.S. West Texas Intermediate (WTI) crude futures were down 24 cents, at $65.67 per barrel.

Oil prices fell on Monday as concerns over slowing economic growth weighed on markets.

Brent crude futures, which act as a benchmark for international oil prices, were at $71.59 per barrel at 0413 GMT, down 24 cents, or 0.3 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were down 24 cents, or 0.4 percent, at $65.67 per barrel.

Reuters technical commodity analyst Wang Tao said Brent and WTI would likely come under pressure soon, testing support at $70.62 per barrel and $64.83 per barrel respectively.

“Disappointing industrial data out of China along with concerns over emerging market economies centered on Turkey weighed on commodities,” Edward Bell of Emirates NBD bank said in a note on Sunday.

In the United States, U.S. energy companies last week kept the oil rig count unchanged at 869, according to the Baker Hughes energy services firm.

“The recent softening in benchmark prices should temper the pace of growth in U.S. exploration and production activity, and lead to slower overall output growth,” Bell said.

Outside the United States, traders said U.S. sanctions against Iran could soon impact prices.

The U.S. government has introduced financial sanctions against Iran which, from November, will also target the country’s petroleum sector.

Iran produced around 3.65 million barrels per day of crude in July, according to a Reuters survey, making it the third biggest producer within the Organization of the Petroleum Exporting Countries (OPEC), behind Saudi Arabia and Iraq.

Oil prices edge up as Saudi cuts output, but looming demand slowdown drags 

CNBC

  • Oil prices rose on Tuesday after a report from OPEC confirmed that top exporter Saudi Arabia had cut production to avert looming oversupply.

An oil pumpjack operates near Williston, North Dakota.

Andrew Cullen | Reuters
An oil pumpjack operates near Williston, North Dakota.

Oil prices rose on Tuesday after a report from OPEC confirmed that top exporter Saudi Arabia had cut production to avert looming oversupply.

Front-month Brent crude oil futures were at $72.87 per barrel at 0111 GMT, up 26 cents, or 0.4 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were up 32 cents, or 0.5 percent, at $67.52 per barrel.

In July, Saudi Arabia told the producer group of the Organization of the Petroleum Exporting Countries (OPEC) that it had cut production by 200,000 barrels per day (bpd) to 10.288 million bpd.

OPEC’s monthly report published on Monday, which uses data from secondary sources, confirmed the Saudi cut, which traders said triggered crude’s upward move early on Tuesday.

That came despite the Saudi move coming in anticipation of a slowdown in oil demand.

Oil prices down on demand fears amid Turkey crisis

Oil prices down on demand fears amid Turkey crisis  

The OPEC report said it expected world oil demand to grow by 1.43 million bpd in 2019, down from 1.64 million bpd in 2018.

OPEC said the demand slowdown would come on the back of potentially lower economic growth as a result of trade disputes between the United States and China as well as emerging market turmoil.

Despite this, OPEC said overall oil demand would likely remain healthy.

Oil prices rebound slightly after heavy declines over trade dispute

CNBC

  • Oil prices recovered on Thursday following heavy losses after the U.S.-China trade dispute escalated.
  • Global benchmark Brent traded at $72.52 a barrel by 0355 GMT, after a decline of more than 3 percent on Wednesday.
  • The U.S. Energy Information Administration also reported that crude inventories fell 1.4 million barrels in the latest week, less than half of the 3.3 million-barrel draw analysts predicted.

Oil prices rebounded on Thursday after heavy losses in the previous session that came as the China-U.S. trade dispute escalated, with official Chinese data indicating energy demand in the world’s top importer has yet to recover its strength.

Brent crude futures were up 24 cents, or a third of a percent, at $72.52 a barrel by 0355 GMT, following a decline of more than 3 percent on Wednesday.

U.S. West Texas Intermediate (WTI) crude futures had gained 7 cents to $67.02 a barrel, after dropping 3.22 percent the previous session.

China is slapping tariffs of 25 percent on a further $16 billion in imports from the United States, from fuel and steel products to autos and medical equipment.

The ongoing trade war is rattling global markets and investors fear any slowdown in the world’s two largest economies would slash demand for commodities.

China’s crude imports recovered slightly in July after two months of decline, but were still among the lowest this year due to a drop-off in demand from smaller independent refineries.

China, the world’s top importer of crude, took 8.48 million barrels per day (bpd) last month, up from 8.18 million bpd a year earlier and June’s 8.36 million bpd, customs data showed.

Prices are drawing some support from U.S. sanctions introduced on Tuesday against Iran, third-biggest producer in the Organization of the Petroleum Exporting Countries.

The renewed sanctions won’t directly target oil until November, but U.S. President Donald Trump has said he wants as many countries as possible to cut their imports of Iranian crude to zero.

The U.S. Energy Information Administration, meanwhile, reported that crude inventories fell 1.4 million barrels in the latest week, less than half the 3.3 million-barrel draw analysts had expected.

Gasoline stocks notched a surprise rise as well of 2.9 million barrels, not the 1.7 million-barrel drop analysts had predicted in a Reuters poll.

Oil trades higher after two days of heavy losses

CNBC

  • Oil prices rose on Thursday and recouped a portion of the losses over the last two days that were driven by reports showing surprise gains in U.S. inventories of crude.
  • U.S. crude traded at $67.92 a barrel and global benchmark Brent was at $72.64.
  • U.S. crude inventories rose 3.8 million barrels last week as imports jumped, the government’s Energy Information Administration said.

Oil prices rose on Thursday, recouping a portion of the losses of the last two days that were driven by reports showing surprise gains in U.S. inventories of crude, along with mounting concern over trade friction between the U.S. and China.

Brent crude futures were up 25 cents, or 0.4 percent, at $72.64 a barrel by 0055 GMT, after dropping 2.5 percent on Wednesday.

U.S. West Texas Intermediate (WTI) crude futures increased by 26 cents, or 0.4 percent, to $67.92 a barrel. They fell $1.6 percent in the previous session.

U.S. crude inventories rose 3.8 million barrels last week as imports jumped, the government’s Energy Information Administration said.

Analysts polled by Reuters had expected a decline of 2.8 million barrels.

There were some bullish elements in the report, notably gasoline stocks declining by 2.5 million barrels.

Also, crude stocks at the Cushing, Oklahoma, delivery hub for WTI futures were down, dropping by 1.3 million barrels, EIA data showed.

On Tuesday, the EIA reported that U.S. crude production fell 30,000 barrels per day to 10.44 million bpd in May.

Nonetheless, the tough talk from Washington on trade with China has put pressure on oil prices.

U.S. President Donald Trump sought to ratchet up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports, his administration said on Wednesday.

China said it would hit back if the United States takes further steps on trade.

Brent prices fell more than 6 percent and U.S. crude slumped about 7 percent, the biggest monthly declines for both benchmarks since July 2016.

Brazilian oil exports hit a record in July, nearly three times its shipments in June and 50 percent higher than a year earlier, government data showed on Wednesday.

Iraq exported 3.543 million barrels per day (bpd) of crude from its southern ports in July, slightly above the June average, the oil ministry said on Wednesday.

Russian oil production last month was on average above the level Moscow promised following the Organization of the Petroleum Exporting Countries and non-OPEC meeting in June, energy minister Alexander Novak indicated on Wednesday.

Novak said that higher production was needed to maintain the market’s stability.

Oil extends decline after biggest monthly slump in two years

CNBC

  • Oil prices fell after industry data showed U.S. stockpiles of crude unexpectedly rose, starting the new month in negative territory after the largest monthly decline in two years in July.

Oil pumps wells Monterey Shale fracking

Getty Images

Oil prices fell on Wednesday after industry data showed U.S. stockpiles of crude unexpectedly rose, starting the new month in negative territory after the largest monthly decline in two years in July.

October Brent crude futures dropped 29 cents, or 0.4 percent, to $73.92 a barrel by 0044 GMT, adding to a 1.8 percent loss in the previous session.

U.S. crude futures were down 44 cents, or 0.6 percent, at $68.32 a barrel, having dropped nearly 2 percent on Tuesday.

Brent fell more than 6 percent in July, while U.S. crude futures slumped about 7 percent, the biggest monthly decline for both benchmarks since July 2016.

Data from the American Petroleum Institute showed domestic crude inventories rose by 5.6 million barrels last week. A Reuters poll had forecast a fall of 2.8 million barrels.

Official data from the U.S. Energy Information Administration is due later on Wednesday.

Signs that a supply disruption in the Bab al-Mandeb Strait in the Red Sea could be resolved also weighed on prices.

Yemen’s Houthi group said it was ready to unilaterally halt attacks in the Red Sea to support peace efforts. Saudi Arabia suspended oil shipments through the strait last week after the Houthis attacked two Saudi oil tankers.

A Reuters poll showed that oil prices are likely to hold fairly steady this year and next as increased output from OPEC and the United States meets growing demand led by Asia and helps to offset supply disruptions.

OPEC has pledged to offset the loss of supply from Iran, the group’s third-biggest producer.

Looming U.S. sanctions have already started to cut Iranian exports, with buyers from its biggest customers in Asia cutting imports to a seven-month low in June.