Oil Slips From Highest Since Mid-2015 Amid Low Trading Volume

Brent and West Texas Intermediate crude futures both slipped after the U.S. benchmark rose 2.7 percent on Tuesday, breaching $60 a barrel for the first time since June 2015. A pipeline run by Waha Oil Company that carries crude to Libya’s Es Sider terminal exploded Tuesday, reducing output by 70,000-100,000 barrels a day. The repair work will take about a week, according to people familiar with the situation. Meanwhile, Saudi Arabia is said to expect oil revenue to jump about 80 percent by 2023 to help the kingdom record its first budget surplus in a decade.

“The market is having a counter-reaction to the jump yesterday,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen. “It remains supported by the news out of Libya but at the same time liquidity is very poor.”

Output in Libya, where oil fields have endured sporadic shutdowns and disruptions due to protests, power blackouts and fighting, earlier this year peaked at just over 1 million barrels a day, the highest level in four years. Any drop in production due to the blast that occurred 130 kilometers (81 miles) south of Sidra will ease pressure on OPEC-led efforts to drain a glut.
more at:  https://www.bloomberg.com/news/articles/2017-12-27/oil-trades-near-highest-since-mid-2015-on-libya-pipeline-blast

Related Posts

US crude oil fails to take out 2017 high as a ‘cruel’ month for energy market begins

U.S. crude prices retreated after coming within striking distance of their 2017 high on Wednesday, raising questions about whether a rally that started in June has reached its peak. On the one hand, the trend of future oil prices suggests that a prolonged global glut of crude is coming to an end. But at these elevated levels, prices are also susceptible to disappointing data points and profit-taking as traders look to cash in on recent gains. Crude futures shed more than $1 a barrel on Wednesday after government data showed U.S. crude stockpiles declined less than earlier industry figures indicated. The Energy Department's report also showed U.S. oil exports hit an all-time high, while the nation's production crept toward record levels. Click Read More below for additional information.

Oil Steady as Tighter U.S. Market Balances OPEC Supply

Oil prices rose steadied on Thursday, supported by signs of a tightening U.S. market but weighed down by ample supplies from OPEC producers. Benchmark Brent crude was up 5 cents at $52.41 a barrel by 1145 GMT. U.S. light crude was 5 cents higher at $49.64.

Oil majors sustain profits despite crude’s slide

Three years into a dramatic slump in oil prices, big oil companies seem to have adapted their businesses to a point where they can still generate cash and reduce debt levels even at current oil prices. European oil giants Royal Dutch Shell PLC, Total SA and Statoil ASA kicked off the sector's second quarter earnings Thursday season with a flurry of reports that highlighted growing cash flow and sustained profits. Though notably better than at the start of 2016 when the price of crude plummeted to $27 a barrel, oil is still more than 50% weaker than in 2014 when prices started to fall. The supply glut that sparked the crash has proved stubbornly persistent despite efforts by the Organization of the Petroleum Exporting Countries and other major producers to limit output, prompting several large banks to cut their oil price forecasts in recent months. Click Read More below for more of the story.
Back To Top
×Close search
Search