Published: Sun, February 25, 2018
Markets | By Erika Turner

Oil price holds up well despite volatility and uncertainty

Oil price holds up well despite volatility and uncertainty

Meanwhile, U.S. crude exports jumped to more than 2 million barrels per day (bpd), close to the record 2.1 million bpd in October.

USA crude inventories had been forecast to rise 1.8 million barrels.

Hedge funds and money managers upped their bullish wagers on U.S. crude oil for the first time in four weeks, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Other analysts pointed to the shape of the oil price curve as the reason for the stock draw.

US West Texas Intermediate (WTI) crude futures were at $62.74 a barrel at 0750 GMT, down 3 cents from their last settlement.

"As net imports of crude oil and petroleum products into the United States continue to decline, this requirement can be met with lower SPR inventory levels", the EIA reported. The government's economic recovery and growth plan is hinged on a higher oil output backed by increase in global oil prices.

The Organization of the Petroleum Exporting Countries and other producers including Russian Federation agreed to cut output by about 1.8 million bpd from January 2017, removing nearly 2 percent of global supply from the market, to end a supply glut that had triggered an oil price collapse.

Apple iOS update fixes 'text bomb' bug
This time, two specific Telegu Indian language Unicode symbols crashed any Apple device when used. Apple recently had a big problem with the Telugu language.

In a market structure called backwardation, prompt crude prices are higher than forward prices, discouraging storage.

‧ The US oil rig count rose for a fifth week, up by one to 799, the highest since April 2015, according to Baker Hughes Inc data on Friday.

A member of Vitol's executive committee, Chris Bake agreed that production cuts from OPEC and friends, coupled with strong demand have led to "a visible track down in oil inventories". Thursday's EIA data showed exports of USA crude jumped to just above 2 million bpd, close to a record 2.1 million hit in October.

"I hope and I sincerely hope the market would have attained stability by then and there will be no need to go further on the agreement on production cut, and you can then produce freely", said Kachikwu.

Speaking about the lack of investment in the industry in recent years, Mazrouei said a sum of US$10 trillion will be needed to guarantee oil supply to 2040. Oil prices, which fell below $30 a barrel in 2016, have since more than doubled to nearly $70 a barrel.

Getting the balance right in the market will always be a challenge, but OPEC and friends are determined to stay the course.

Like this: