Oil Rises As US Refineries Restart, Irma Wanes

13 September, 2017, 00:40 | Author: Dustin Murphy
  • A worker adjusts a valve of an oil pipe in Zubair oilfield in Basra Iraq

Oil prices edged up on Monday after the Saudi oil minister discussed possibly extending a pact to cut global oil supplies beyond March 2018 with his Venezuelan and Kazakh counterparts.

OPEC and Russian Federation have also said they would cut oil production by 1.8 million barrels per day, as a supply glut continues and Iran prepares to boost its output.

"Irma will have a negative impact on oil demand but not on oil production or processing", Goldman analysts said in a note, Oil Price reported.

USA crude for October delivery was up 41 cents, or 0.9 percent, at $47.89 a barrel by 0648 GMT, having tumbled 3.3 percent on Friday.

Oil prices still gain some degree of support from expectations of firm global demand and the potential for OPEC output cuts to be extended.

Brent crude LCOc1 settled up 43 cents or 0.8 percent to $54.27 per barrel.

Hurricane Irma knocked out power to over 7.3 million in Florida, Georgia, South Carolina and Alabama, according to state officials and utilities on Monday. Production had been on the rise over the summer, raising concerns OPEC's deal to cut output wasn't working. Mark Zandi, the chief economist at Moody's Analytics, said the US economy could suffer lost revenue from the storms and the estimate for third-quarter gross domestic product could drop a half point to 2.5 percent as a result.

The deal aims to curb a glut that has weighed on crude prices for more than three years.

US inventories data will be closely watched over the next two days amid uncertainties over the impact of recent hurricanes.

US crude stockpiles likely rose by 4.82 million barrels last week, according to a Bloomberg survey ahead of Energy Information Administration data released Wednesday.

"The market is looking for a significant build in oil inventories", said Ric Spooner, chief market analyst at CMC Markets in Sydney.

The latest inventories data will come back into focus with the API data due for release after Tuesday's NY close with the latest EIA data on Wednesday.

Four of the world's top oil producers agreed to keep all options "on the table" in order to ensure stability in the oil market, including the possibility of prolonging the output cuts that were already in force, beyond their expected end-date of March 2018. "A similar production level is also anticipated for September", the Saudi ministry said.



West Ham vs Huddersfield Preview in Monday Night Football
Tom Ince hit the bar in the closing stages but West Ham saw out a scrappy victory - not that Bilic will be caring how it was achieved.

Alabama vs. Colorado State
The interception led to a Pappanastos 22-yard field goal, pushing the Tide lead to 34-3 with 7:08 left in the game. Alabama fans got a glimpse of the future, but the present is still very much the Jalen Hurts show.

UFC 215 Results: Did Main Event Disappoint?
Johnson threw a straight right hand that landed just behind the ear of Martins, knocking him out cold at:49 of the third round. Following the loss, Clarke announced his retirement from the UFC in his post-fight interview with Joe Rogan.

Google Takes Fight Over Record Antitrust Fine to EU Courts
These concern the contracts for its AdSense advertising service and the licensing of its Android mobile phone operating system. The Commission is reviewing its Google Shopping decision in light of the ECJ's Intel ruling, according to Reuters .

Trump on Irma: 'We've never seen anything like this'
Rick Scott of Florida, where Irma made landfall early Sunday as a category 4 storm with winds up to 130 miles per hour . The first time was to provide a list of shelters, road closures, and evacuation routes.

Aaron Donald ends holdout but won't play Week 1
ESPN's Adam Schefter reported Donald and the Rams have yet to agree to a new contract and will continue negotiations. In 2017, Donald has a $1.8 million base salary and will carry a $3.2 million cap hit.

Brewers Ace Jimmy Nelson Out For Remainder of Season
Milwaukee Brewers starter Jimmy Nelson left Friday night's 2-0 victory over the Chicago Cubs after jamming his right shoulder. The Chicago Cubs will look to salvage a win and avoid the sweep when they take the field on Sunday.

Hundreds of Gap and Banana Republic stores prepare to close
While comparable sales at Gap fell by 1% and Banana Republic's sales were down 5%, Old Navy saw a 5% increase. Gap's moves are the latest to reinvent the chain and are being spearheaded by Peck, who took the helm in 2015.

Keselowski wins fourth Xfinity race at Richmond
If we had ran like that all year, like we did over the last several years, we would have made it. Keselowski has competed in eight Xfinity races this year, winning just one of them.

Kylian Mbappe: PSG will realise Champions League dream
Once the transfer becomes official, he will become the second most expensive player of all time, behind his new teammate Neymar . Kylian Mbappe was presented to the media in an event at Parc des Princes this morning in the French capital.