Latest news with #IrinaSlav
Yahoo
23-05-2025
- Business
- Yahoo
Oil Set for Weekly Dip on OPEC+ Output Plans
Crude oil prices were set for a weekly decline today, following a report that OPEC+ was planning to add another 411,000 barrels daily to its output in July in an extension of its accelerated rollback of output controls. At the time of writing, Brent crude was trading at $64.06 per barrel, with West Texas Intermediate at $60.80 per barrel. Both were down by some 2% from Monday. According to a Reuters report, a stronger U.S. dollar contributed additionally to the weekly trend in oil prices. The dollar rally came on the back of Congress passing the 'one big, beautiful deal' for the federal budget, which features significant spending cuts, notably in the energy department and even more notably in the energy transition department. The budget bill puts an end to most transition subsidies including wind, solar, and EVs, which, according to commentators and the industry will effectively put an end to the transition in the United States. Yet the news was good for the U.S. currency as the bill also envisages substantial tax cuts, which markets took as good news. In further bearish news for crude oil prices, Reuters reported that demand for crude oil storage capacity in the U.S. had ballooned in recent weeks as traders anticipate an increase in OPEC+ supply. Citing data from storage broker The Tank Tiger, Reuters reported demand for storage had almost doubled over the past month, with June demand seen at 3 million barrels. 'We have not seen this kind of an uptick in crude storage demand since the COVID-19 pandemic,' the chief operating officer of The Tank Tiger told Reuters. In further negative news for prices, U.S. crude oil inventories booked another weekly climb, which invariably sours trader sentiment as it is automatically taken to mean weaker demand regardless of size. For last week, the EIA reported a stock build of 1.3 million barrels. By Irina Slav for More Top Reads From this article 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
Yahoo
22-05-2025
- Business
- Yahoo
Oil Prices Fall as Uncertainty Clouds Market Outlook
Crude oil prices, which had been on the rise earlier this week, retreated partially following a report of an inventory build in the United States that traders apparently did not expect as well as uncertainty surrounding geopolitical developments in the Middle East. At the time of writing, Brent crude was trading at $64.82 per barrel and West Texas Intermediate was changing hands for $61.50 per barrel, both down from Wednesday's close. The dip followed the U.S. Energy Information Administration's latest weekly inventory report, released yesterday, which revealed builds across the board. Crude oil inventories added 1.3 million barrels, the EIA said, and gasoline and middle distillates rose by 800,000 barrels and 600,000 barrels, respectively. Despite the modest build in fuel inventories, the trajectory pressured oil benchmarks. 'While rising U.S. inventories have raised concerns, some investors expect the summer driving season starting after Memorial Day weekend to draw down stocks, limiting further downside,' Nissan Securities analyst Hiroyuki Kikukawa told Reuters. According to Bloomberg, the prospect of an end to the war in the Ukraine and the 'fast-faltering nuclear talks' between Washington and Tehran also applied downward pressure on oil prices. Both developments would have bearish implications for oil prices, indeed. However, both of them are far from guaranteed in the immediate term. Earlier in the week, prices moved higher on reports that Israel's government had plans for direct strikes on Iranian nuclear facilities. The reports were attributed by CNN to U.S. intelligence community members and government officials, one of whom told the media that the likelihood of such strikes 'has gone up significantly in recent months.' The news report about these plans pushed oil 1% higher. The next round of U.S-Iran talks begins tomorrow in Rome. The outcome remains uncertain as the two sides appear to still have irreconcilable differences with regard to Iran's nuclear plans. By Irina Slav for More Top Reads From this article 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
Yahoo
20-05-2025
- Business
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Goldman Raises Oil Demand Outlook
Goldman Sachs analysts have revised their outlook for global oil demand upwards, now expecting growth of 600,000 barrels daily this year and 400,000 barrels daily in 2026. The bank, however, maintained its oil price forecast at $60 per barrel of Brent crude and $56 per barrel of West Texas Intermediate for this year, Reuters reported, citing a new note. Brent crude was trading at over $65 per barrel at the time of writing, and WTI was trading at over $62. Goldman's analysts expect the benchmarks to fall further next year, to $56 for Brent crude and $52 for WTI. A big reason for the bearish outlook is the nuclear deal between the U.S. and Iran that recently became a more distinct possibility than it was until now. Last Thursday, President Trump the two sides were really close to sealing such a deal. The news dealt a blow to oil prices. Later updates, however, tamed any optimism as they revealed persistent differences between the two sides on what conditions they would accept. The U.S. side insists on Iran committing to stop any uranium enrichment activities. The Iranian side considers its uranium-enrichment activities non-negotiable. However, the prospect of a shorter rather than longer tariff war has improved the outlook for global growth, which could offset any bearish supply effect stemming from a U.S.-Iran nuclear deal by improving demand for crude, per Goldman. This was the basis for their upward revision of demand for the second half of the year, or, as they put it, 'Incorporating lower tariffs and higher GDP.' On the other hand, if the tariff war drags on and comes to affect global economic growth in the physical world rather than the realm of forecast, the investment bank expects Brent could drop as far as $40 per barrel in late 2026. For that to happen, OPEC+ must also bring back all the barrels it cut from its combined supply back in 2022, Goldman analysts noted. By Irina Slav for More Top Reads From this article 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
Yahoo
16-05-2025
- Business
- Yahoo
Oil Set For Weekly Gain on China Trade Deal Hope
Crude oil prices were set for a weekly gain after a string of losses on the news of a trade war ceasefire between the U.S. and China, which sparked hopes the two would come to a mutually beneficial understanding that would end the tariff spat. At the time of writing, Brent crude was trading at $64.64 per barrel and West Texas Intermediate was changing hands for $61.72 per barrel, both up, albeit moderately, from the start of the week. According to Reuters, the weekly gain will be about 1%. The modesty of the weekly gain is likely related to a couple of solid bearish new developments on the geopolitical and the forecasting fronts. On the geopolitical front, reports emerged suggesting the U.S. and Iran were closer to a new nuclear deal than they had been for months. On the forecasting front, the International Energy Agency once again injected pessimism into oil markets predicting slower than previously expected oil demand growth—despite the anticipated end to the U.S.-Chinese trade war. Economic headwinds and record electric vehicle sales are set to materially slow down global oil demand growth for the rest of the year, the IEA said on Thursday. World oil demand rose by 990,000 barrels per day in the first quarter of 2025. But the remainder of the year will see demand growth at just 650,000 bpd, the agency said in its closely-watched monthly Oil Market Report for May. The IEA has over the past few years built a reputation for pessimistic forecasts when it comes to oil demand—only to revise them when data from the physical market points in a different direction. In this case, we've seen a rebound in Chinese oil imports at the start of the second quarter of the year and a surge in Indian oil imports, which lifted them to an all-time high in March. In related recent news, Japanese refiners were scaling back their transition plans to refocus on oil. By Irina Slav for More Top Reads From this article on
Yahoo
15-05-2025
- Business
- Yahoo
Venture Global Pushes Regulators To Greenlight LNG Plant
Venture Global, the LNG operator, has asked the Federal Energy Regulatory Commission to greenlight its third liquefaction plant, in Louisiana, by June 26. The company previously said it plans to make the final investment decision on the new facility by mid-2025 but, its chief executive said, it needs the go-ahead from the regulator. FERC had earlier rescinded its approval for the project on the grounds of concern related to its impact on air quality in the area. The concern prompted a second environmental assessment, which the regulator completed last week, concluding there was no danger for air quality, after all. 'We have clearly made the decision to invest our own capital and do everything we can do to move the Project forward... but we need the Commission to act,' Michael Sable said in a letter the company sent to FERC, as quoted by Reuters. Venture Global yesterday reported a twofold increase in revenues for the first quarter of the year, benefiting from strong LNG demand that drove an increase in exports of the superchilled fuel. Income from operations jumped by 75% on the year, Venture Global said, adding that it expects to export 145-150 cargoes from the Calcasieu project and 222-239 cargoes from the Plaquemines project in 2025, including those already shipped in the first quarter. Venture Global gained not-too-positive notoriety recently after half a dozen European energy majors accused it of breaking long-term delivery contracts to sell LNG on the spot market at higher prices. This made Venture Global billions of dollars, while causing losses for the long-term clients, which contributed with the funding of the U.S. company's first LNG plant. The CP2 plant will add 28 million metric tons to the U.S. total LNG export capacity and will become the biggest LNG plant in the country. Currently, Venture Global is the second-largest LNG producer in the U.S., behind Cheniere Energy. Both have benefited from the surge in demand for LNG from Europe after the axing of Russian pipeline imports. By Irina Slav for More Top Reads From this article on
