Sign Up for FREE Daily Energy News
canada flag CDN NEWS  |  us flag US NEWS  | TIMELY. FOCUSED. REVELANT. FREE
  • Stay Connected
  • linkedin
  • twitter
  • facebook
  • instagram
  • youtube2
BREAKING NEWS:
WEC - Western Engineered Containment
Hazloc Heaters
Copper Tip Energy Services
Hazloc Heaters
WEC - Western Engineered Containment
Copper Tip Energy

Oil Slips From 7-Year High With Key U.S. Storage Hub in Focus


English Français 简体中文
These translations are done via Google Translate
(Bloomberg) Oil fell amid a broad-based retreat in industrial commodities, though trader focus was glued to a surging market structure as inventories decline in the U.S.Futures in New York lost 1.2%, declining from their strongest closing price since 2014. Commodities including copper and iron ore slid as the prospect for headwinds to China’s economy grows, while the dollar climbed, making energy and metals priced in the currency less attractive.

Behind weaker headline prices, the structure of the U.S. crude market was soaring as stockpiles continue to drain at the key hub of Cushing, Oklahoma. The closely watched spread between the nearest December contracts topped $10 a barrel Thursday, the strongest since 2013, while nearby spreads have surged to a three-year high.

U.S. crude stockpiles decline the first time in four weeks

The market has tightened significantly recently as coal and natural gas shortages drive greater crude consumption, underpinning a rally in prices. Saudi Arabia said any extra oil from OPEC+ would do little to tame the surging cost of gas, predicting demand may rise as much as 600,000 barrels a day if the northern hemisphere’s winter is colder than normal.

“Modest supply-growth amid recovering demand means that oil inventories are likely to continue to decline over the coming weeks and keep oil prices supported,” UBS Group AG analysts including Giovanni Staunovo wrote in a note.

Prices
  • West Texas Intermediate for December delivery lost 1.2% to $82.89 a barrel at 8:58 a.m. in New York
  • Brent for December settlement dropped 0.8% to $85.15

India became the second major Asian oil importer this week to sound the alarm over high crude prices. The global economic recovery will become fragile if prices aren’t “predictable, stable and affordable,” Oil Minister Hardeep Singh Puri said at the CERAWeek India Energy Forum on Wednesday, echoing the sentiments of Japanese Prime Minister Fumio Kishida.

Other market news:
  • India will empty half of its Mangalore oil reserves by December, according to the Chief Executive of Indian Strategic Petroleum Reserves Ltd.
  • A unit of Exxon Mobil Corp. has temporarily shut in production in Chad after its facilities were attacked over ongoing talks to sell the business to London-based Savannah Energy.
  • For all President Jair Bolsonaro’s talk of privatizing Brazil’s crown jewel, oil giant Petrobras has struggled even to unload a handful of refineries. And its chances have never looked worse.


Share This:



More News Articles


New SHOWCASE Directory Companies

 

Delta Remediation Inc.
The Coverall Shop
Axis Communciations
Muddy Boots
Smart-Project Management Inc. / Trusted Pipeline Advisor
Di-Corp
Payload Technologies Inc.
Vista Projects Limited