Latest news with #BjarneSchieldrop
Business Recorder
a day ago
- Business
- Business Recorder
Oil leaps 4% after OPEC+ keeps output increase unchanged
LONDON: Oil prices jumped by about 4% on Monday after producer group OPEC+ kept output increases in July at the same level as the previous two months. Brent crude futures climbed by $2.28, or 3.6%, to $65.06 a barrel by 1335 GMT. U.S. West Texas Intermediate crude was up $2.99, or 4.9%, at $63.78. Both contracts lost more than 1% last week. The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, decided on Saturday to raise output by 411,000 barrels per day (bpd) in July, the third consecutive monthly increase of that amount, as it looks to wrestle back market share and punish members that have produced more than their quotas. Sources familiar with OPEC+ talks said on Friday that the group could discuss an even larger increase. Oil traders said the 411,000 bpd increase had already been priced in to Brent and WTI futures. Oil prices fall on demand concerns in volatile session 'Had they gone through with a surprise larger amount, then Monday's price open would have been pretty ugly indeed,' Onyx Capital Group analyst Harry Tchilinguirian wrote on LinkedIn. Kazakhstan has informed OPEC that it does not intend to reduce oil production, Russia's Interfax news agency reported on Thursday, citing Kazakhstan's deputy energy minister. Oil prices would need to fall to $58 a barrel or lower to make it unprofitable for Kazakhstan to overproduce its quota, said Bjarne Schieldrop, SEB's chief commodities analyst. Goldman Sachs analysts expect OPEC+ to implement a final 410,000 bpd production increase in August. 'Relatively tight spot oil fundamentals, beats in hard global activity data and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6,' the bank said in a note. Morgan Stanley analysts also said they expect 411,000 bpd to be added back each month up to a total of 2.2 million bpd by October. 'With this latest announcement, there is little sign that the pace of quota increases is slowing,' the bank's analysts said. Prices were also supported by the increased geopolitical risk premium after Ukrainian drone strikes against Russia over the weekend, said Rystad Energy's Jorge Leon.
Time of India
a day ago
- Business
- Time of India
Oil leaps 4% after OPEC+ keeps output increase unchanged
Oil prices jumped by about 4% on Monday after producer group OPEC+ kept output increases in July at the same level as the previous two months. Brent crude futures climbed by $2.49, or 3.97%, to $65.27 a barrel by 1220 GMT. U.S. West Texas Intermediate crude was up $2.70, or 4.44%, at $63.49. Both contracts lost more than 1% last week. The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, decided on Saturday to raise output by 411,000 barrels per day (bpd) in July, the third consecutive monthly increase of that amount, as it looks to wrestle back market share and punish members that have produced more than their quotas. Sources familiar with OPEC+ talks said on Friday that the group could discuss an even larger increase. Live Events Oil traders said the 411,000 bpd increase had already been priced in to Brent and WTI futures. "Had they gone through with a surprise larger amount, then Monday's price open would have been pretty ugly indeed," Onyx Capital Group analyst Harry Tchilinguirian wrote on LinkedIn. Kazakhstan has informed OPEC that it does not intend to reduce oil production, Russia's Interfax news agency reported on Thursday, citing Kazakhstan's deputy energy minister. Oil prices would need to fall to $58 a barrel or lower to make it unprofitable for Kazakhstan to overproduce its quota, said Bjarne Schieldrop, SEB's chief commodities analyst. Goldman Sachs analysts expect OPEC+ to implement a final 410,000 bpd production increase in August. "Relatively tight spot oil fundamentals, beats in hard global activity data and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6," the bank said in a note. Morgan Stanley analysts also said they expect 411,000 bpd to be added back each month up to a total of 2.2 million bpd by October. "With this latest announcement, there is little sign that the pace of quota increases is slowing," the bank's analysts said. Prices were also supported by the increased geopolitical risk premium after Ukrainian drone strikes against Russia over the weekend, said Rystad Energy's Jorge Leon.
Economic Times
a day ago
- Business
- Economic Times
Oil leaps 4% after OPEC+ keeps output increase unchanged
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Oil prices jumped by about 4% on Monday after producer group OPEC+ kept output increases in July at the same level as the previous two months. Brent crude futures climbed by $2.49, or 3.97%, to $65.27 a barrel by 1220 GMT. U.S. West Texas Intermediate crude was up $2.70, or 4.44%, at $ contracts lost more than 1% last Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, decided on Saturday to raise output by 411,000 barrels per day (bpd) in July, the third consecutive monthly increase of that amount, as it looks to wrestle back market share and punish members that have produced more than their familiar with OPEC+ talks said on Friday that the group could discuss an even larger traders said the 411,000 bpd increase had already been priced in to Brent and WTI futures."Had they gone through with a surprise larger amount, then Monday's price open would have been pretty ugly indeed," Onyx Capital Group analyst Harry Tchilinguirian wrote on has informed OPEC that it does not intend to reduce oil production, Russia's Interfax news agency reported on Thursday, citing Kazakhstan's deputy energy prices would need to fall to $58 a barrel or lower to make it unprofitable for Kazakhstan to overproduce its quota, said Bjarne Schieldrop, SEB's chief commodities Sachs analysts expect OPEC+ to implement a final 410,000 bpd production increase in August."Relatively tight spot oil fundamentals, beats in hard global activity data and seasonal summer support to oil demand suggest that the expected demand slowdown is unlikely to be sharp enough to stop raising production when deciding on August production levels on July 6," the bank said in a Stanley analysts also said they expect 411,000 bpd to be added back each month up to a total of 2.2 million bpd by October."With this latest announcement, there is little sign that the pace of quota increases is slowing," the bank's analysts were also supported by the increased geopolitical risk premium after Ukrainian drone strikes against Russia over the weekend, said Rystad Energy's Jorge Leon.
Asharq Al-Awsat
5 days ago
- Business
- Asharq Al-Awsat
Oil Prices Advance as US Court Blocks Trump Tariffs
Oil prices rose on Thursday after a US court blocked most of President Donald Trump's tariffs, while the market was watching out for potential new US sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July. Brent crude futures were up 19 cents, or 0.3%, to $65.09 a barrel at 1215 GMT. US West Texas Intermediate crude was up 24 cents, or 0.4%, to $62.08 a barrel. A US trade court on Wednesday ruled that Trump overstepped his authority by imposing across-the-board duties on imports from US trading partners. The court was not asked to address some industry-specific tariffs Trump has issued on automobiles, steel and aluminium using a different statute, Reuters reported. "Markets are positive since Donald Trump got the setbacks on the tariffs," said Bjarne Schieldrop, chief commodities analyst at SEB. "That's less headwind for the global economy, so more demand for oil because the machine of the global economy moves better and faster." The ruling buoyed risk appetite across global markets, which have been on edge over the impact of the levies on economic growth, but some analysts said the relief may only be temporary given the Trump administration has said it will appeal. "But for now, investors get a breather from the economic uncertainty they love to loathe," said Matt Simpson, an analyst at City Index in Brisbane. On the oil supply front, there are concerns about potential new sanctions on Russian crude. At the same time, the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, could agree on Saturday to accelerate oil production hikes in July. "We're assuming the group will agree on another large supply increase of 411,000 barrels per day. We expect similar increases through until the end of the third quarter, as the group increases its focus on defending market share," ING analysts said in a note. Adding to supply risks, Chevron has terminated its oil production and a number of other activities in Venezuela, after its key license was revoked by the Trump administration in March. Venezuela in April cancelled cargoes scheduled to Chevron, citing payment uncertainties related to US sanctions. Chevron was exporting 290,000 barrels per day of Venezuelan oil, or over a third of the country's total, before that. "From May through August, the data points to a constructive, bullish bias with liquids demand set to outpace supply," Mukesh Sahdev, global head of commodity markets at Rystad Energy, said in a note, expecting demand growth to outpace supply growth by 600,000 to 700,000 bpd. Later on Thursday, investors will be watching for the weekly reports from the American Petroleum Institute and the Energy Information Administration, the statistical arm of the US Department of Energy. According to market sources familiar with the API data, US crude and gasoline stocks fell last week while distillate inventories rose. Meanwhile, a wildfire in the Canadian province of Alberta has forced residents of a small town to evacuate and prompted a temporary shutdown of some oil and gas production, which could reduce supply.
Globe and Mail
6 days ago
- Business
- Globe and Mail
Oil prices climb after U.S. court blocks most of Trump's tariffs
Oil prices rose on Thursday after a U.S. court blocked most of President Donald Trump's tariffs, while the market was watching out for potential new U.S. sanctions curbing Russian crude flows and an OPEC+ decision on hiking output in July. Brent crude futures climbed 27 cents, or 0.4%, to $65.17 a barrel. U.S. West Texas Intermediate crude advanced by 26 cents, or 0.4%, to $62.10 a barrel at 6:45 a.m. ET. A U.S. trade court on Wednesday ruled that Trump overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners. The court was not asked to address some industry-specific tariffs Trump has issued on automobiles, steel and aluminum using a different statute. 'Markets are positive since Donald Trump got the setbacks on the tariffs,' said Bjarne Schieldrop, chief commodities analyst at SEB. 'That's less headwind for the global economy, so more demand for oil because the machine of the global economy moves better and faster.' The ruling buoyed risk appetite across global markets which have been on edge about the impact of the levies on economic growth, but some analysts said the relief may only be temporary given the Trump administration has said it will appeal. Why Canadian energy is a secret bargain, spurring a hostile takeover bid in the oil sands 'But for now, investors get a breather from the economic uncertainty they love to loathe,' said Matt Simpson, an analyst at City Index in Brisbane. On the oil supply front, there are concerns about potential new sanctions on Russian crude. At the same time, the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, could agree on Saturday to accelerate oil production hikes in July. 'We're assuming the group will agree on another large supply increase of 411,000 barrels per day. We expect similar increases through until the end of the third quarter, as the group increases its focus on defending market share,' said ING analysts in a note. Adding to supply risks, Chevron Corp. CVX-N has terminated its oil production and a number of other activities in Venezuela, after its key licence was revoked by the Trump administration in March. Venezuela in April cancelled cargoes scheduled to Chevron, citing payment uncertainties related to U.S. sanctions. Chevron was exporting 290,000 barrels a day of Venezuelan oil or over a third of the country's total before that. 'From May through August, the data points to a constructive, bullish bias with liquids demand set to outpace supply,' Mukesh Sahdev, Global Head of Commodity Markets at Rystad Energy, said in a note, as he expects demand growth outpacing supply growth by 600,000 to 700,000 bpd. Later on Thursday, investors will be watching for the weekly reports from the American Petroleum Institute (API) and the Energy Information Administration, the statistical arm of the U.S. Department of Energy. According to the market sources familiar with the API data, U.S. crude and gasoline stocks fell last week while distillate inventories rose. Meanwhile, a wildfire in Alberta has forced residents of a small town to evacuate and prompted the temporary shutdown of some oil and gas production which could reduce supply.
