Oil prices are stable on Thursday morning as the OPEC pact that was signed to limiting the oil output rate may be prolonged. The quotes had been showing an active decline for four sessions in a row because of the high level of oil production in the U.S. (далее…)
Oil prices are flat on Thursday, although the market remains supported by the weekly data on oil stocks reduction in the U.S. and possible extension of the OPEC pact. During the morning trade, Brent crude rose by 0.02% to $58.16 per barrel. Futures for the American WTI were at $52.01 per barrel – 0.06% lower than the previous close.
The Energy Information Administration (EIA) data indicated that the U.S. oil inventories declined by 5.73 million barrels to 456.49 million last week, while analysts predicted a 4.2 million barrel decrease. U.S. oil production fell by 11% to 8.4 million barrels per day, which was the lowest level since June 2014. Analysts think the production decline was caused by the tropical storm “Nate” that hit the Gulf of Mexico.
Another factor affecting quotes is positive data on China’s GDP growth. GDP grew in the third quarter by 1.7% on a quarterly basis and by 6.8% year-on-year. The volume of industrial production rose by 6.6% in September, although experts expected an increase by 6.2%. China is considered the world’s second-largest oil import country, and a sharp increase in demand from Chinese oil refineries in the third quarter may support prices.
Oil supply from the northern provinces of Iraq to the Turkish port of Ceyhan fell to 240,000 barrels on Wednesday, while the regular rate is about 600,000 barrels per day. The decline was caused by the fact that the government forces have taken control over the fields, while the pipelines are controlled by the Iraqi Kurdistan.
The oil market is also supported by the possible extension of the OPEC oil agreement till the end of 2018. The Organization of Petroleum Exporting Countries and some countries outside the cartel, agreed last year to cut the level of oil output to stabilize the oil market. The agreement expires in March 2018, and experts still doubt its effectiveness, so the chances for its extension are high.
On Nymex, gasoline futures rose by 0.5 cents to $1.655 a gallon, heating oil was traded at $1.803 a gallon. Natural gas futures moved to $2.877 per million British thermal units ahead of the weekly inventories data.
Oil prices stabilized on Thursday on expectations that Saudi Arabia and Russia will reduce oil output. Nevertheless, a record level of export from the U.S. and the resumption of supplies from the Libyan field both put pressure on the market. (далее…)
Saudi Arabia is going to decrease oil shipments in August to increase its summer domestic consumption, provide balance, and remain within OPEC cut deal terms. Saudi industry source also informed that the mentioned decrease could reach over 600,000 barrels per day. (далее…)