Home » Money

Oil Prices Slip On US Crude Report

27 January, 2018, 16:46 | Author: Samuel Sharp
  • Oil Prices Slip On US Crude Report

Thanks to a combination of broad-based USA dollar weakness, expectations for stronger global growth, ongoing production limits from OPEC and non-OPEC producers and signs that global crude markets are tightening, Brent crude - the global benchmark - now tops $70 a barrel, extending its rally from early 2016 to 161%.

U.S. benchmark West Texas Intermediate (WTI) oil was up 0.93 percent to $66.22 per barrel. It rose as high as $70.43 on Wednesday, setting a fresh three-year high.

The Energy Information Administration reported yesterday that overall oil production in the Untied States had hit 9.75 million barrels daily last week, up by 258,000 bpd from the previous week and a whopping 806,000 bpd from a year earlier. The oil for delivery in March was trading higher by Rs 70 or 1.69 per cent at Rs 4,201 per barrel in 114 lots.

The drop also comes at a time of synchronized global economic growth that is raising hopes about demand for oil.

Also supporting oil prices was a 0.7 per cent drop in the USA dollar after Treasury Secretary Steven Mnuchin's comments that a weaker currency was positive for American trade.

As Vivek Dhar, Mining and Energy Commodities Analyst at the Commonwealth Bank, points out, there's any number of factors out there to explain why crude prices continue to rally.


The U.S. dollar index hit a new three-year low on Wednesday after Treasury Secretary Steven Mnuchin said a weaker greenback is good for the country.

While the biggest threat to market stability is how quickly shale oil production will be back on line now that oil company coffers are filling up again, expectations are that demand for the black gold is not going to stop rising.

Gasoline inventories rose by 3.1 million barrels and stocks of distillate fuels, which include diesel, were up by 639,000 barrels.

In November 2016, the OPEC summit was held in Vienna, where OPEC members reached an agreement on reducing oil output by 1.2 million barrels per day.

World oil prices have renewed their highs since December 2014 amid the publication of data from the U.S. Energy Department on reducing raw material reserves in the country, the OPEC + agreement and the weakening of the dollar. While the OPEC cut agreements have been extended for a number of times now, the rising USA crude production during the second half of 2017 have offset the recovery of the oil prices sooner.

DBS Vickers Securities is maintaining its "overweight" stance on the oil and gas (O&G) sector given the recent oil price rally, which has driven up O&G stocks to directly benefit oil majors leading the rally.

Recommended:

  • 10 facts everyone needs to know about cervical cancer

    10 facts everyone needs to know about cervical cancer

    The symptoms of cervical cancer aren't always obvious and it may not cause symptoms at all until it's reached an advanced stage. Women who have had the HPV vaccine still need to have regular Pap tests. "We have studies that say that's not true".
    You Will Soon Be Able To See Snapchat Stories On The Web

    You Will Soon Be Able To See Snapchat Stories On The Web

    Instead, three types of stories will be available to share outside of the app: Official Stories , Our Stories and Search Stories . Snapchat is an app that I've been trying to avoid for some time, but it looks like that quest will soon be much more hard .
    How will Alexis Sanchez compare to Manchester United's post-Ferguson big deals?

    How will Alexis Sanchez compare to Manchester United's post-Ferguson big deals?

    Mkhitaryan , 29, moves in the opposite direction to Sanchez after scoring 13 goals in 63 appearances for United . Arsenal have confirmed the arrival of Henrikh Mkhitaryan from Manchester United in exchange for Alexis Sanchez .
  • Reliance Jio Republic Day offer

    Reliance Jio Republic Day offer

    If you are puzzled which telco offers better benefits on a prepaid connection, your answer lies right here. Rs 498 plan: Subscribers can avail 182GB of data for a period of 91 days with a limit of 2GB data per day.
    Bitcoin Spurned By Stripe

    Bitcoin Spurned By Stripe

    We may also think of steller if its use continues to grow while Bitcoin Cash and light coin would also be highly considered. And of the businesses that are accepting Bitcoin on Stripe, we've seen their revenues from Bitcoin decline substantially.

    Trump Imposes 30% Solar Panel Import Tariff

    India has recently re-opened a USA dispute, alleging Washington has failed to comply with a ruling on solar power. Those countries export the bulk of washers to the United States.
  • Once in a blue moon

    Once in a blue moon

    But you should prepare yourself for the potential to be underwhelmed by what you see from the roof of your apartment building. The phenomenon known as Blue Moon, the second full moon in a calendar month, will occur on January 31.
    RJD chief Lalu Prasad Yadav found guilty in third fodder scam cas

    RJD chief Lalu Prasad Yadav found guilty in third fodder scam cas

    Earlier, Lalu was convicted in the scam of the Deoghar treasury. "We will appeal against the verdict in high court". The multi-million fodder scam case surfaced in the undivided Bihar in the 1990s.
    Award-winning Sci-fi Author Ursula K. Le Guin Dies At 88

    Award-winning Sci-fi Author Ursula K. Le Guin Dies At 88

    Reaction to the news of the Berkeley native's passing moved swiftly among fans, admirers and fellow writers through social media. Fantasy, she told the Guardian in 2005 , is "about power - just look at Tolkien". "I have had a long career and a good one".
  • Melania Trump Tours Holocaust Museum Ahead of International Holocaust Remembrance Day

    Melania Trump Tours Holocaust Museum Ahead of International Holocaust Remembrance Day

    In addition, after 13 years of marriage, the couple let their wedding anniversary slip quietly by last week. Trump would not make the trip to the summit, citing unspecified scheduling and logistical issues.
    Amla makes lone stand as South Africa close in on India total

    Amla makes lone stand as South Africa close in on India total

    After bundling out India cheaply, South Africa will look to gain a significant first innings lead and dent the visitors further. Bhuvneshwar Kumar has done wonders with the ball too in the first innings and has rattled the South African batting line up.
    IOS 11.2.5 Released With HomePod Support

    IOS 11.2.5 Released With HomePod Support

    Revealed at Apple's Worldwide Developers Conference ( WWDC ) in June 2017 , the HomePod smart speaker is keeping fans waiting. Powering the HomePod is an Apple A8 chip and the speaker is covered in a mesh fabric that looks like a crochet yarn.


Popular

Graphic photos show dog near death after owner uses hair dye
Right, listen up dog owners - no matter how cute you think it would be DO NOT dye your dog purple, or any colour for that matter. Let's all say that together-Do NOT, under any circumstances, use hair color intended for humans on your pets", the post warned.

Microsoft Confirms Xbox Live Games With Gold For February 2018
February is around the corner, and with another group of four games for Xbox One and Xbox 360 owners to snag for free. The other Xbox One title is the 2.5D side-scrolling platform game Assassin's Creed Chronicles: India .

Myanmar to face stronger European Union pressure in Feb over Rohingya crisis
Many in Buddhist-majority Myanmar regard the Rohingya community as illegal immigrants from Bangladesh. It is thought they had been reporting on atrocities committed by security forces in Rakhine.

Apple working on revamped Books app
That follows other Apple services, like iTunes and iTunes Podcasts, that changed into apps like Apple Music and Apple Podcasts. In December Apple hired Kashif Zafar, former senior vice president with Amazon's audio book unit Audible, to lead the effort.

Britain's Princess Eugenie to Marry Boyfriend this Year
The future spouses will say "I do" at the same location where Prince Harry and Meghan Markle will tie the knot in May. Mr Brooksbank's parents said in a short statement: "We could not be more delighted with the news of the engagement".

WWE release Enzo Amore following assault allegations
The Police understands stand the incident occured in a hotel on October 19 previous year , and most probably in the early hours. According to Sheahan, she went to Phoenix authorities days after the alleged rape and Enzo has been under investigation since.

Don't bite your iPhone battery like this guy; it can explode
It only takes a few seconds for the battery to explode, which proves that biting a battery is never a good idea. A video recently surfaced of an explosion after a man bites an iPhone battery in a Chinese electronics store.

The five biggest 2018 NBA All-Star snubs
Horford, Love and Wall will be in their fifth All-Star games while Lowry makes his fourth appearance in the game. Hip-hop group N.E.R.D. announced Friday that it will perform at halftime of the 2018 NBA All-Star Game.

Tesla Crashes Into Fire Truck While Reportedly on Autopilot
Tesla has since beefed up the alerts the vehicle will give a driver if it feels they aren't paying full attention to the road. The safety board did note in its report that the introduction of Tesla's Autosteer software had cut collisions by 40 per cent.

Bud Light to Eagles: Philly Philly!
Johnson responded at the time, tacking on the necessary clinking-beer-mugs emoji at the end. So far, Long and Johnson's tweets have not been answered by the Official NFL Shop account.