Latest news with #Hvalbye
Time of India
a day ago
- Business
- Time of India
Oil jumps over 7% after Israel's strikes on Iran
Oil prices jumped more than 7per cent on Friday, trading near multi-month highs after Israel launched widescale strikes against Iran, sparking Iranian retaliation and raising worries about disrupted oil supplies. Brent crude futures jumped $5.1, or around 7.4per cent , to $74.46 a barrel by 0843 GMT after hitting an intraday high of $78.50, the highest since January 27. US West Texas Intermediate crude was up $5.1, or 7.5per cent , at $73.15 a barrel after hitting a high of $77.62, its highest level since January 21. Friday's gains were the largest intraday moves for both contracts since 2022, after Russia's invasion of Ukraine caused a spike in energy prices. Israel said it targeted Iran's nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon. Iran's nuclear facility in Natanz was damaged, the country's atomic energy organisation said in a statement, but investigations have not shown any radioactive or chemical contamination outside the site. The primary concern was around whether the latest developments would affect the Strait of Hormuz, said SEB analyst Ole Hvalbye. The key waterway had been at risk of impact from increased regional volatility previously but had not been affected so far, Hvalbye said. There was also no impact to oil flow in the region so far, he added. About a fifth of the world's total oil consumption passes through the strait, or some 18 to 19 million barrels per day (bpd) of oil, condensate and fuel. Under a worst case scenario, JPMorgan analysts said on Thursday that closing the strait or a retaliatory response from major oil producing countries in the region could lead to prices surging to the $120-130 a barrel range, nearly double their current base case forecast. The $10 a barrel price gain in the past three days had yet to reflect any drop in Iranian oil production, let alone an escalation that could involve disruption to energy flows through the Strait of Hormuz, Barclays analyst Amarpreet Singh said in a note. US Secretary of State Marco Rubio called Israeli strikes against Iran a "unilateral action" and said Washington was not involved while also urging Tehran not to target US interests or personnel in the region. "The key question now is whether this oil rally will last longer than the weekend or a week - our signal is that there is a lower probability of a full-blown war, and the oil price rally will likely encounter resistance," said Janiv Shah, analyst at Rystad. "Fundamentals show nearly all Iranian exports going to China, so Chinese discounted purchases would be most at risk here. OPEC+ spare capacity can provide the stabilizing force," he added. In other markets, stocks dived and there was a rush to safe havens such as gold and the Swiss franc. "A key question is whether the Iranian retaliation will be limited to Israel or if the leadership will seek to internationalize the cost of tonight's action by targeting bases and critical economic infrastructure across the wider region," RBC Capital analyst Helima Croft said in a note.
Business Recorder
a day ago
- Business
- Business Recorder
Oil jumps over 7% after Israel's strikes on Iran
Oil prices jumped more than 7% on Friday, trading near multi-month highs after Israel launched widescale strikes against Iran, sparking Iranian retaliation and raising worries about disrupted oil supplies. Brent crude futures jumped $5.1, or around 7.4%, to $74.46 a barrel by 0843 GMT after hitting an intraday high of $78.50, the highest since January 27. US West Texas Intermediate crude was up $5.1, or 7.5%, at $73.15 a barrel after hitting a high of $77.62, its highest level since January 21. Friday's gains were the largest intraday moves for both contracts since 2022, after Russia's invasion of Ukraine caused a spike in energy prices. Israel said it targeted Iran's nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon. Iran's nuclear facility in Natanz was damaged, the country's atomic energy organisation said in a statement, but investigations have not shown any radioactive or chemical contamination outside the site. The primary concern was around whether the latest developments would affect the Strait of Hormuz, said SEB analyst Ole Hvalbye. The key waterway had been at risk of impact from increased regional volatility previously but had not been affected so far, Hvalbye said. There was also no impact to oil flow in the region so far, he added. About a fifth of the world's total oil consumption passes through the strait, or some 18 to 19 million barrels per day (bpd) of oil, condensate and fuel. Under a worst case scenario, JPMorgan analysts said on Thursday that closing the strait or a retaliatory response from major oil producing countries in the region could lead to prices surging to the $120-130 a barrel range, nearly double their current base case forecast. The $10 a barrel price gain in the past three days had yet to reflect any drop in Iranian oil production, let alone an escalation that could involve disruption to energy flows through the Strait of Hormuz, Barclays analyst Amarpreet Singh said in a note. Oil prices drop as traders gauge ME tensions US Secretary of State Marco Rubio called Israeli strikes against Iran a 'unilateral action' and said Washington was not involved while also urging Tehran not to target US interests or personnel in the region. 'The key question now is whether this oil rally will last longer than the weekend or a week - our signal is that there is a lower probability of a full-blown war, and the oil price rally will likely encounter resistance,' said Janiv Shah, analyst at Rystad. 'Fundamentals show nearly all Iranian exports going to China, so Chinese discounted purchases would be most at risk here. OPEC+ spare capacity can provide the stabilizing force,' he added. In other markets, stocks dived and there was a rush to safe havens such as gold and the Swiss franc. 'A key question is whether the Iranian retaliation will be limited to Israel or if the leadership will seek to internationalize the cost of tonight's action by targeting bases and critical economic infrastructure across the wider region,' RBC Capital analyst Helima Croft said in a note.
Time of India
a day ago
- Business
- Time of India
Oil jumps over 7% after Israel's strikes on Iran
Oil prices jumped more than 7% on Friday, trading near multi-month highs after Israel launched widescale strikes against Iran, sparking Iranian retaliation and raising worries about disrupted oil supplies. Brent crude futures jumped $5.1, or around 7.4%, to $74.46 a barrel by 0843 GMT after hitting an intraday high of $78.50, the highest since January 27. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: 1 simple trick to get all TV channels Techno Mag Learn More Undo U.S. West Texas Intermediate crude was up $5.1, or 7.5%, at $73.15 a barrel after hitting a high of $77.62, its highest level since January 21. Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Friday's gains were the largest intraday moves for both contracts since 2022, after Russia's invasion of Ukraine caused a spike in energy prices. Israel said it targeted Iran's nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic weapon. Live Events Iran's nuclear facility in Natanz was damaged, the country's atomic energy organisation said in a statement, but investigations have not shown any radioactive or chemical contamination outside the site. The primary concern was around whether the latest developments would affect the Strait of Hormuz, said SEB analyst Ole Hvalbye. The key waterway had been at risk of impact from increased regional volatility previously but had not been affected so far, Hvalbye said. There was also no impact to oil flow in the region so far, he added. About a fifth of the world's total oil consumption passes through the strait, or some 18 to 19 million barrels per day (bpd) of oil, condensate and fuel. Under a worst case scenario, JPMorgan analysts said on Thursday that closing the strait or a retaliatory response from major oil producing countries in the region could lead to prices surging to the $120-130 a barrel range, nearly double their current base case forecast. The $10 a barrel price gain in the past three days had yet to reflect any drop in Iranian oil production, let alone an escalation that could involve disruption to energy flows through the Strait of Hormuz, Barclays analyst Amarpreet Singh said in a note. U.S. Secretary of State Marco Rubio called Israeli strikes against Iran a "unilateral action" and said Washington was not involved while also urging Tehran not to target U.S. interests or personnel in the region. "The key question now is whether this oil rally will last longer than the weekend or a week - our signal is that there is a lower probability of a full-blown war, and the oil price rally will likely encounter resistance," said Janiv Shah, analyst at Rystad. "Fundamentals show nearly all Iranian exports going to China, so Chinese discounted purchases would be most at risk here. OPEC+ spare capacity can provide the stabilizing force," he added. In other markets, stocks dived and there was a rush to safe havens such as gold and the Swiss franc. "A key question is whether the Iranian retaliation will be limited to Israel or if the leadership will seek to internationalize the cost of tonight's action by targeting bases and critical economic infrastructure across the wider region," RBC Capital analyst Helima Croft said in a note.
Economic Times
a day ago
- Business
- Economic Times
Oil jumps over 7% after Israel's strikes on Iran
Oil prices surged following Israeli strikes on Iran. Concerns arose about potential disruptions to oil supplies. Brent crude futures and U.S. West Texas Intermediate crude both experienced significant increases. The Strait of Hormuz, a crucial oil transit route, is under close watch. Analysts are assessing the long-term impact on oil prices and regional stability. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Oil prices jumped more than 7% on Friday, trading near multi-month highs after Israel launched widescale strikes against Iran, sparking Iranian retaliation and raising worries about disrupted oil crude futures jumped $5.1, or around 7.4%, to $74.46 a barrel by 0843 GMT after hitting an intraday high of $78.50, the highest since January 27.U.S. West Texas Intermediate crude was up $5.1, or 7.5%, at $73.15 a barrel after hitting a high of $77.62, its highest level since January gains were the largest intraday moves for both contracts since 2022, after Russia's invasion of Ukraine caused a spike in energy said it targeted Iran's nuclear facilities, ballistic missile factories and military commanders on Friday at the start of what it warned would be a prolonged operation to prevent Tehran from building an atomic nuclear facility in Natanz was damaged, the country's atomic energy organisation said in a statement, but investigations have not shown any radioactive or chemical contamination outside the primary concern was around whether the latest developments would affect the Strait of Hormuz, said SEB analyst Ole Hvalbye. The key waterway had been at risk of impact from increased regional volatility previously but had not been affected so far, Hvalbye was also no impact to oil flow in the region so far, he a fifth of the world's total oil consumption passes through the strait, or some 18 to 19 million barrels per day (bpd) of oil, condensate and a worst case scenario, JPMorgan analysts said on Thursday that closing the strait or a retaliatory response from major oil producing countries in the region could lead to prices surging to the $120-130 a barrel range, nearly double their current base case $10 a barrel price gain in the past three days had yet to reflect any drop in Iranian oil production, let alone an escalation that could involve disruption to energy flows through the Strait of Hormuz, Barclays analyst Amarpreet Singh said in a note.U.S. Secretary of State Marco Rubio called Israeli strikes against Iran a "unilateral action" and said Washington was not involved while also urging Tehran not to target U.S. interests or personnel in the region."The key question now is whether this oil rally will last longer than the weekend or a week - our signal is that there is a lower probability of a full-blown war, and the oil price rally will likely encounter resistance," said Janiv Shah, analyst at Rystad."Fundamentals show nearly all Iranian exports going to China, so Chinese discounted purchases would be most at risk here. OPEC+ spare capacity can provide the stabilizing force," he other markets, stocks dived and there was a rush to safe havens such as gold and the Swiss franc."A key question is whether the Iranian retaliation will be limited to Israel or if the leadership will seek to internationalize the cost of tonight's action by targeting bases and critical economic infrastructure across the wider region," RBC Capital analyst Helima Croft said in a note.
Yahoo
20-05-2025
- Business
- Yahoo
OPEC+ Did Not Lift Production to Kill the Oil Price, SEB Says
This article was first published on Rigzone here OPEC+ did not lift production by 400,000 barrels per day in May and June to kill the oil price and to go full throttle on an oil price war. That's what Bjarne Schieldrop, Chief Commodities Analyst at Skandinaviska Enskilda Banken AB (SEB), said in an oil report sent to Rigzone by the SEB team on Friday, adding that the group did it to meet added demand for oil in the Middle East, 'which rise[s] significantly in summertime due to air conditioning and religious pilgrimage to Saudi Arabia'. 'The plan of lifting production by 2.1 million barrels per day by December 2026 has not at all been abandoned,' Hvalbye stated in the report. 'It is still a monthly decision of what to do. Lift production or even reduce production if needed,' he added. 'The global oil market is still tight as of today [Friday] with consumers asking for more than what producers are giving them. Thus, the front-end backwardation,' he continued. 'While there is no sign of a blasting price war emerging between OPEC+ and U.S. shale oil producers, it is still clear that U.S. shale oil producers will have to shed the needed volume to make room for more oil from OPEC+ to December 2026 to the magnitude of 2.1 million barrels per day added supply from the group,' Hvalbye went on to state. In a BMI report sent to Rigzone by the Fitch Group on Friday, BMI analysts said, 'with OPEC+ continuing to increase production at faster pace than earlier guidance the risk of oversupply remains'. The analysts noted in that report that they continue to hold to their current forecast for Brent crude to average $68 per barrel in 2025. In a BofA Global Research report sent to Rigzone on Friday, BofA analysts stated that successive months of accelerated OPEC+ oil production will continue to push demand/supply out of balance. The analysts outlined in the report that, in their view, this 'will push Brent to average <$60 per barrel across 2-3Q25'. Rigzone has contacted OPEC for comment on the SEB, BMI, and BofA Global Research reports. Rigzone has also contacted the American Petroleum Institute (API) and the U.S. Department of Energy (DOE) for comment on the SEB report. At the time of writing, none of the above have responded to Rigzone. Take control of your THOUSANDS of Oil & Gas jobs on Search Now >> A release posted on OPEC's website on May 3 announced that Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman 'will implement a production adjustment of 411,000 barrels per day in June 2025 from [the] May 2025 required production level'. 'The eight OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023 … met virtually on 3 May 2025, to review global market conditions and outlook,' that release noted. 'In view of the current healthy market fundamentals, as reflected in the low oil inventories, and in accordance with the decision agreed upon on 5 December 2024 to start a gradual and flexible return of the 2.2 million barrels per day voluntary adjustments starting from 1 April 2025, the eight participating countries will implement a production adjustment of 411,000 barrels per day in June 2025 from May 2025 required production level,' it added. The release highlighted that 'this is equivalent to three monthly increments' and pointed out that 'the gradual increases may be paused or reversed subject to evolving market conditions'. A release posted on OPEC's website on April 3 announced that Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman 'will implement a production adjustment of 411,000 barrels per day, equivalent to three monthly increments, in May 2025,'. The statement posted on OPEC's site on May 3 revealed that the eight countries will meet on June 1 to decide on July production levels. To contact the author, email More From The Leading Energy Platform: Texas RRC Tightens Permitting Rules for Permian Disposal Wells ADNOC Gas to Join MSCI Emerging Markets Index USA Energy Consumption Will Grow in 2025 Analyst Says Trump Essentially Walked Away from Russia-Ukraine War >> Find the latest oil and gas jobs on << Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
