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Time of India
29-05-2025
- Business
- Time of India
Oil prices rise after OPEC+ keeps output policy unchanged
Oil prices gained more than $1 on Wednesday as OPEC+ agreed to leave their output policy unchanged and as production shut-ins from Canada raised supply concerns, while investors anticipated members of OPEC+ would agree to a production increase later this week. Brent crude futures rose $1.15, or 1.79%, to $65.24 a barrel by 12:07 pm EDT (1607 GMT), while US West Texas Intermediate crude gained $1.27, or 2.09%, to stand at $62.16 a barrel. The Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, agreed on Wednesday to establish a mechanism for setting baselines for its 2027 oil production. The meeting did not make any changes to the group's output policy. Most of the oil producing countries at the Wednesday meeting do not have the spare capacity to take barrels on and off the market, said Bob Yawger, director of energy futures at Mizuho. "They were hoping to slow the pace of production increases and stop the slide in price. But that's not the way it panned out," he added. A separate meeting on Saturday of eight OPEC+ countries is expected to decide on an increase in oil output for July. Goldman Sachs analysts see the group of eight keeping production steady after the July hike on new projects entering the market later this year, slowing economic growth and a build-up of oil stocks. "However, we see the risks to our OPEC8+ supply path as skewed to the upside, especially if compliance doesn't improve or if hard demand data surprise further to the upside," they added.
Business Times
28-05-2025
- Business
- Business Times
Oil gains on supply concerns, investors await July Opec+ output decision
[NEW YORK] Oil prices gained more than 1 per cent on Wednesday on supply concerns as Opec+ agreed to leave their output policy unchanged and as the US barred Chevron from exporting Venezuelan crude. Investors previously anticipated members of Opec+ would agree to a production increase later this week. Brent crude futures settled up 81 cents, or 1.26 per cent, to US$64.90 a barrel. US West Texas Intermediate crude gained 95 cents, or 1.56 per cent, to stand at US$61.84 a barrel. Opec+, the Organization of the Petroleum Exporting Countries and allies, did not change output policy. It agreed to establish a mechanism for setting baselines for its 2027 oil production. Most oil-producing countries at the meeting do not have flexibility to adjust their output, said Bob Yawger, director of energy futures at Mizuho. 'They were hoping to slow the pace of production increases and stop the slide in price. But that's not the way it panned out,' he added. A separate meeting on Saturday of eight Opec+ countries is expected to decide on an increase in oil output for July. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Goldman Sachs analysts saw the group of eight keeping production steady after the July hike. 'However, we see the risks to our Opec8+ supply path as skewed to the upside, especially if compliance doesn't improve or if hard demand data surprise further to the upside,' they added. Coming demand for the summer driving season is significant, and with non-Opec+ crude output flat in the first half of the year, coupled with risks of Canadian wildfires hurting supply, the call on crude is stronger from Opec+, said Janiv Shah, vice-president of oil commodity markets analysis at Rystad Energy. On Wednesday, Chevron terminated the oil production, service and procurement contracts it had to operate in Venezuela, but it plans to retain its direct staff in the country, sources said. Both benchmarks ticked up in the previous session on concerns of tighter supply after the US barred Chevron from exporting crude from Venezuela under a new authorisation on its assets there. Analysts also said prices could respond positively if there was progress on global trade talks or resolving US-Iranian friction. Iran's nuclear chief Mohammad Eslami said on Wednesday it might allow the UN nuclear watchdog to send US inspectors to visit nuclear sites if Tehran's talks with Washington succeed. US crude stocks fell by 4.24 million barrels last week, market sources said, citing American Petroleum Institute figures on Wednesday. Market participants now await government data on crude inventories due on Thursday. REUTERS
Business Times
14-05-2025
- Business
- Business Times
Oil falls after US crude inventories rise
[NEW YORK] Oil prices eased on Wednesday after government data showed US crude oil stockpiles rose unexpectedly last week, prompting investor concerns of excess supplies. Brent crude futures settled 54 cents, or around 0.81 per cent, lower to US$66.09 a barrel. US West Texas Intermediate crude slipped 52 cents, or 0.82 per cent, to US$63.15. Both benchmarks traded close to their highest in two weeks in the previous session, lifted by a temporary cut in US-China tariffs. The benchmarks fell after data from the Energy Information Administration showed crude stockpiles rose by 3.5 million barrels to 441.8 million barrels last week. Analysts in a Reuters poll had expected a 1.1 million-barrel draw. Net US crude imports rose last week by 422,000 barrels per day, the EIA said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up API industry data also showed a large build of 4.3 million barrels in crude stocks last week, market sources said on Tuesday. 'Definitely, the crude build in the API numbers was not of help,' UBS analyst Giovanni Staunovo said of Wednesday's oil price fall. The Organization of the Petroleum Exporting Countries and allied producers, known as Opec+, has been increasing supply to the market. On Wednesday, however, Opec trimmed its forecast for growth in oil supply from the United States and other producers outside the wider Opec+ group this year. 'They are not changing their demand profile but adding more barrels,' said Bob Yawger, director of energy futures at Mizuho. 'At some point, supply is just going to swamp out demand and drill the market lower.' A rebound in the US dollar also weighed on prices on Wednesday. A stronger greenback makes dollar-denominated oil more expensive for investors holding other currencies, hurting demand. REUTERS
Business Recorder
14-05-2025
- Business
- Business Recorder
Oil falls after US crude inventories rise
NEW YORK: Oil prices edged lower on Wednesday after government data showed U.S. crude oil stockpiles rose unexpectedly last week, prompting investor concerns of excess supplies. Brent crude futures fell 40 cents, or around 0.6%, to $66.23 a barrel by 12:04 p.m. EDT (1604 GMT). U.S. West Texas Intermediate crude slipped 33 cents, or 0.52%, to $63.34. Both benchmarks, which traded close to their highest in two-weeks in the previous session, fell after data from the Energy Information Administration showed crude stockpiles rose by 3.5 million barrels to 441.8 million barrels last week. Analysts in a Reuters poll had expected a 1.1 million-barrel draw. Net U.S. crude imports rose last week by 422,000 barrels per day, the EIA said. API industry data also showed a large build of 4.3 million barrels in crude stocks last week, market sources said on Tuesday. 'Definitely, the crude build in the API numbers was not of help,' UBS analyst Giovanni Staunovo said of Wednesday's oil price fall. Crude oil climbs more than $1 on tariff cuts The Organization of the Petroleum Exporting Countries and allied producers, known as OPEC+, has been increasing supply to the market. On Wednesday, however, OPEC trimmed its forecast for growth in oil supply from the United States and other producers outside the wider OPEC+ group this year. 'They are not changing their demand profile but adding more barrels,' said Bob Yawger, director of energy futures at Mizuho. 'At some point, supply is just going to swamp out demand and drill the market lower.'
Iraqi News
04-03-2025
- Business
- Iraqi News
Oil prices fall 2% to 12-week low with OPEC+ set to increase output
INA- SOURCES Oil prices fell about 2% to a 12-week low on Monday on reports OPEC+ will proceed with a planned oil output increase in April and worries U.S. tariffs could hurt global economic growth and oil demand. Brent futures fell $1.19, or 1.6%, to settle at $71.62 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.39, or 2.0%, to settle at $68.37. Those were the lowest closes for Brent since December 6 and WTI since December 9. "Crude oil is under siege on multiple fronts and is vulnerable to the latest bearish headline or economic data," Bob Yawger, director of energy futures at Mizuho, said in a report, pointing to the OPEC+ decision, U.S. manufacturing data, Ukraine peace talks and U.S. tariffs. The Organization of the Petroleum Exporting Countries (OPEC) and allies like Russia, known as OPEC+, decided to proceed with a planned April oil output increase, three sources from the producer group told Reuters on Monday. OPEC+ has been cutting output by 5.85 million barrels per day (bpd), equal to about 5.7% of global supply, agreed in a series of steps since 2022 to support the market. Britain said several proposals had been made for a truce in fighting between Ukraine and Russia, after France floated a plan for a one-month pause leading to peace talks, but U.S. President Donald Trump suggested his patience was running out. The U.S., meanwhile, is drawing up a plan to potentially give Russia sanctions relief as Trump seeks to restore ties with Moscow and stop the war in Ukraine. Russia is the third-biggest oil producer behind the U.S. and Saudi Arabia and is a member of OPEC+. U.S. TARIFFS On the trade front, Trump will decide on Monday what levels of tariffs the U.S. will impose early on Tuesday on Canada and Mexico amid last-minute negotiations over border security and efforts to halt the inflow of fentanyl opioids. Trump has vowed to impose 25% tariffs on all imports from Canada and Mexico, with 10% on Canadian energy products. Canada's oilfield drilling and services sector was showing signs of slowing ahead of threatened tariffs. Mexico's President Claudia Sheinbaum said her country was ready for whatever decision Washington reached. In response to U.S. tariffs, China, the second-biggest economy after the U.S., said it was preparing countermeasures to tariffs targeting U.S. agriculture. U.S. manufacturing was steady in February, but a measure of prices at the factory gate jumped to nearly a three-year high and it took longer for materials to be delivered, suggesting that tariffs on imports could soon undercut production. Analysts have said Trump's planned tariffs have also raised inflation worries at the U.S. Federal Reserve. This could lead the Fed to keep interest rates higher for longer, which could slow economic growth and energy demand. Worries about the impact of possible slowing economic growth on oil demand pressured WTI prices, which have declined by around 10% over the past six weeks. That prompted speculators last week to cut their net long U.S. crude futures and options positions on the New York Mercantile Exchange and Intercontinental Exchange to their lowest level since hitting a record low in December 2023. In other U.S. energy markets, the start of the April contract as the new front month cut diesel futures down to a nine-week low toward the end of winter heating season. Gasoline futures soared to a six-month high ahead of the summer driving season. SOURCE: REUTERS
