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Zawya
a day ago
- Business
- Zawya
Oil leaps more than 3% after OPEC+ keeps output increase unchanged
LONDON - Oil prices jumped by about 3% 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 3.63%, to $65.06 a barrel by 1118 GMT. U.S. West Texas Intermediate crude was up $2.45, or 4.03%, at $63.24. 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. "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. "Given the circumstances of a loss in market share and the almost too honest admission from Kazakhstan that it would not cut output, there does seem little choice," PVM analyst John Evans said of the OPEC+ decision. 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.
CNA
2 days ago
- Business
- CNA
Oil leaps more than 3% after OPEC+ keeps output increase unchanged
LONDON :Oil prices jumped by about 3 per cent 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 3.63 per cent, to $65.06 a barrel by 1118 GMT. U.S. West Texas Intermediate crude was up $2.45, or 4.03 per cent, at $63.24. Both contracts lost more than 1 per cent 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. "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. "Given the circumstances of a loss in market share and the almost too honest admission from Kazakhstan that it would not cut output, there does seem little choice," PVM analyst John Evans said of the OPEC+ decision. 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.
CNA
2 days ago
- Business
- CNA
Oil jumps 3% after OPEC+ keeps output increase unchanged
LONDON :Oil prices jumped by about 3 per cent 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 $1.74, or 2.77 per cent, to $64.52 a barrel by 0827 GMT. U.S. West Texas Intermediate crude was up $1.94, or 3.19 per cent, at $62.73. Both contracts lost more than 1 per cent 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. "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. "Given the circumstances of a loss in market share and the almost too honest admission from Kazakhstan that it would not cut output, there does seem little choice," PVM analyst John Evans said of the OPEC+ decision. 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. Meanwhile, low U.S. fuel inventories have stoked supply jitters ahead of what is expected to be a more active than usual hurricane season, analysts said. "More encouraging was a huge spike in gasoline implied demand going into what's considered the start of the U.S. driving season," ANZ analysts said in a note, adding that the gain of nearly 1 million bpd was the third-highest weekly increase in the past three years.
Globe and Mail
13-05-2025
- Business
- Globe and Mail
Oil prices edge higher as market weighs U.S.-China trade developments
Oil prices rose on Tuesday, with gains capped by rising supplies and caution over whether the pause in the U.S.-China trade war will lead to a longer-term deal. Brent crude futures gained 50 cents, or about 0.8 per cent, to $65.46 a barrel by 1054 GMT. U.S. West Texas Intermediate (WTI) crude was up 53 cents, or about 0.9 per cent, at $62.49. The two benchmarks rose by about 4 per cent or more in the previous session after the U.S. and China agreed on sharp reductions to tariffs for at least 90 days, which also boosted Wall Street stocks and the dollar. The market is now evaluating the impact of the trade truce, said PVM analyst Tamas Varga. 'Coupled with the scheduled steep increase in OPEC+ supply in May and June, the upside might prove limited.' The Organization of the Petroleum Exporting Countries (OPEC) has raised oil output by more than previously expected since April, with May output likely to increase by 411,000 barrels per day. Meanwhile, source told Reuters that Saudi Arabia's crude oil supply to China will hold steady in June after hitting its highest in more than a year in the previous month after an OPEC+ decision to increase output. It is the second-largest crude supplier to China behind Russia. Elsewhere, signs broadly point to demand for refined fuel remaining strong. 'Despite the deteriorating outlook for crude demand, positive signals from the fuel markets cannot be overlooked,' JPMorgan analysts said in a note. 'Although international crude prices have declined by 22 per cent since their peak on January 15, both refined product prices and refining margins have remained stable.' Reduced refining capacity – mostly in the U.S. and Europe – is tightening gasoline and diesel balances, increasing reliance on imports and raising susceptibility to price spikes during maintenance and unplanned outages, they added.
The Star
13-05-2025
- Business
- The Star
Oil prices steady as market weighs US-China trade developments
LONDON: Oil prices held steady on Tuesday, weighed down by rising supplies and caution over whether the pause in the U.S.-China trade war will lead to a longer-term deal. Brent crude futures gained 9 cents, or 0.14%, to $65.05 a barrel by 0803 GMT. U.S. West Texas Intermediate (WTI) crude was up 11 cents, or about 0.2%, at $62.06. The two benchmarks rose by about 4% or more in the previous session after the U.S. and China agreed on sharp reductions to tariffs for at least 90 days, which also boosted Wall Street stocks and the dollar. The market is now evaluating the impact of the trade truce, said PVM analyst Tamas Varga. "Coupled with the scheduled steep increase in OPEC+ supply in May and June, the upside might prove limited." The Organization of the Petroleum Exporting Countries (OPEC) has raised oil output by more than previously expected since April, with May output likely to increase by 411,000 barrels per day. There are signs, however, that demand for refined fuel remains strong. "Despite the deteriorating outlook for crude demand, positive signals from the fuel markets cannot be overlooked," JPMorgan analysts said in a note. "Although international crude prices have declined by 22% since their peak on January 15, both refined product prices and refining margins have remained stable." Reduced refining capacity - mostly in the U.S. and Europe - is tightening gasoline and diesel balances, increasing reliance on imports and raising susceptibility to price spikes during maintenance and unplanned outages, they added. - Reuters
