Oil Holds Above $70 as Geopolitics Eclipses Supply Outlook

Oil rose on Tuesday, holding above $70 a barrel for a third day, supported by concerns that tensions in the Middle East could lead to supply disruptions, although with global output rising fast, investors remained cautious.

Brent crude futures LCOc1 were up 28 cents on the day at$70.40 a barrel by 0848 GMT, while West Texas Intermediate (WTI) crude futures CLc1 were up 19 cents at $65.74 a barrel.

The oil price has risen by more than 7 percent so far this month and by 5.3 percent in the first three months of the year, putting it on track for a third consecutive quarterly gain, something the market has not witnessed since late 2010.

Geopolitics and expectations of the world’s largest exporters controlling supply have helped push Brent above $70 this year for the second time since late 2014, but analysts said this strength may not persist for long.

“The recent rally in oil prices might have taken some by surprise as the underlying fundamental picture does not justify Brent being close to $70/bbl. This view is based on the simple fact that non-OPEC oil supply growth will trump the increase in global oil demand this year,” PVM Oil Associates analyst Tamas Varga said.

read more/source: https://www.reuters.com/article/us-global-oil/oil-holds-above-70-as-geopolitics-eclipses-supply-outlook-idUSKBN1H3077

Related Posts

ATA Truck Tonnage Index Decreased 0.7% in May

American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index decreased 0.7% in May after falling 0.6% in April. In May, the index equaled 113.7 (2015=100) compared with 114.5 in April. “Tonnage, despite falling slightly over the last two months, remains well above the lows of last year,” said ATA Chief Economist Bob Costello. “This is no small deal considering that truck tonnage fell significantly less than many other indicators during the depths of the pandemic in the spring of 2020. “One freight segment that is helping tonnage is gasoline as demand for travel, both commuting and vacation related, picks up,” he said. “I’m also expecting retail freight to remain robust as inventories are at historic lows. As retail stocks are rebuilt, it will boost freight. As has been the case for some time, trucking’s biggest challenges are not on the demand side, but on the supply side, including difficulty finding qualified drivers.”

Oil Buoyed by Saudi Talk of Extending Output Cuts into 2019

Oil prices rose on Friday after the Saudi energy minister said OPEC would need to keep coordinating supply cuts with non-member countries including Russia into 2019. Oil’s rise defied a slump in global stock markets, which fell in response to worries about a trade stand-off between the United States and China. Gold XAU=, seen as a safe haven, hit a two-week high. Brent crude futures LCOc1 were at $69.10 per barrel at 1136 GMT, up 19 cents but off a session high of $70. For the week, Brent was up about 4.4 percent, its strongest showing since October. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $64.57 a barrel, up 27 cents but below a session high of $65.42. On the week, WTI was up about 3.6 percent.

AAA Daily Fuel Gauge Report for Friday, 3/29/24

National Average Price for Regular Unleaded Current: $3.537; Month Ago: $3.319; Year Ago: $3.461. National Average Price for Diesel Current: $4.042; Month Ago: $4.069; Year Ago: $4.240.
Back To Top
×Close search
Search