Offbeat Oil Rises to $80 a Barrel in London for First Time Since 2014

13:15  17 may  2018
13:15  17 may  2018 Source:

What Trump's Iran decision means for oil and gas prices

  What Trump's Iran decision means for oil and gas prices President Donald Trump chose a dicey time to crack down on Iran, the world's fifth biggest oil producer. Global oil supplies were already getting tight before Trump vowed on Tuesday to exit the Iran nuclear deal and impose "powerful" sanctions on the OPEC nation.

However, US oil production has remained stubbornly high, rising for the first half of 2015 to 9.6 million barrels per day in June, the highest level since the early 1970s. His firm predicts oil will be back above $ 80 a barrel in the second half of 2016.

On Monday for the first time since November of 2014 , the price of US crude oil rose above per barrel . Currently, crude oil was up in London by 1% to .59 a barrel , having hit a high of Saudi Arabia, which is looking to push its price to $ 80 a barrel to fund the countries economic reforms.

Diverging Paths © Bloomberg Diverging Paths

Oil rose to $80 a barrel in London for the first time since 2014 as U.S. crude inventories fell and traders braced for the impact of renewed sanctions on OPEC member Iran.

Brent futures added as much as 1.1 percent to $80.18 on Thursday. U.S. crude stockpiles slipped for a second week as the summer driving season approaches, government data showed on Wednesday. Goldman Sachs Group Inc. said America’s surging shale output won’t be able to replace the potential drop in Iranian oil shipments after the U.S. reimposed sanctions on OPEC’s third-largest producer.

Crude has rallied this month to the highest level in more than three years after U.S. President Donald Trump withdrew from a 2015 pact between Iran and world powers that had eased sanctions on the Islamic Republic in exchange for curbs on its nuclear program. While the International Energy Agency said a global glut’s been eliminated thanks to output curbs by OPEC, it warned high prices may hurt consumption and cut forecasts for demand growth.

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The price for Brent crude oil on the London market reached a 30-month high of nearly 0 a price of oil on the New York market dropped below $ 80 a barrel for the first time since October 2011. Non-OPEC production was expected to significantly rise in 2014 , by about 1.2 million barrels a day.

Oil prices hit fresh highs on Wednesday, with U.S. crude topping a barrel for the first time in 2½ years, as the broader market got a boost from strong economic data and as a week of unrest in Iran continued.

“Supply concerns are top of mind after the U.S. left the Iran nuclear deal,” said Norbert Ruecker, head of macro and commodity research at Julius Baer Group Ltd. in Zurich. “The geopolitical noise and escalation fears are here to stay.”

Brent for July settlement rose 66 cents to $79.94 a barrel on the London-based ICE Futures Europe exchange at 10:49 a.m. local time, after adding as much as 1.1 percent to $80.18 on Wednesday. The global benchmark crude traded at a $7.66 premium to WTI for July.

West Texas Intermediate crude for June delivery traded at $72.13 a barrel on the New York Mercantile Exchange, up 64 cents. The contract climbed 18 cents, or 0.3 percent, to $71.49 on Wednesday. Total volume traded was 33 percent above the 100-day average.

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The contract settled with a loss of 55 cents, or 1 .4%, at .51—its lowest close since April 7. While oil is often seen leading the equity market, Tuesday’s price action The October contract for Brent crude UK:LCOV6 on London ’s ICE Futures exchange fell 34 cents, or 0.8%, to close at . 80 a barrel .

Visuals. Graphics. L.A. Times en Español. Energy stocks got a boost from U.S. crude oil prices, which closed above a barrel for the first time since November 2014 .

Futures for September delivery on the Shanghai International Energy Exchange gained 1.9 percent to 481.9 yuan a barrel, rising for a third day.

See also: Russia’s OPEC Deal Dilemma Worsens as Idled Crude Capacity Grows

U.S. crude inventories fell 1.4 million barrels last week, while domestic production rose to 10.7 million barrels a day, the Energy Information Administration said on Wednesday. The specter of surging American output, which has topped 10 million barrels a day every week since early February, continues to place a cap on prices and undermine OPEC’s output cuts. Gasoline stockpiles also shrank last week by 3.79 million barrels, the EIA reported.

Members of the Organization of Petroleum Exporting Countries, including Saudi Arabia, Kuwait and the United Arab Emirates, said they have enough capacity to fill in any supply gap if renewed sanctions curtail Iran’s exports. Still, Goldman Sachs said the group won’t proactively replace the lost barrels, given its current narrative that the market isn’t fully re-balanced.

Oil price hits highest level since 2014 as surplus shrinks

  Oil price hits highest level since 2014 as surplus shrinks Crude settled at the highest since 2014 as shrinking U.S. oil, gasoline and diesel stockpiles signaled tightening global supplies. Futures ended Wednesday’s session 0.3 percent higher in New York after fluctuating between gains and losses. An International Energy Agency forecast for less robust energy demand overshadowed a U.S. government tally showing record overseas demand for American crude and declining domestic stockpiles of oil and fuels.

The international standard, Brent crude, was up $ 1 .30 to .17 in London . Analysts said the recent rally in oil prices has been driven mostly by strong demand and limits on production. Eventually fuel prices show up in the costs of all sorts of consumer goods that are hauled by plane, train or truck.

U.S. crude prices topped a barrel for the first time since December 2014 . Oil prices turned higher after the U.S. government reported the tenth straight weekly drop in U.S. crude stockpiles.

Even the U.S. won’t be able to offset Iran’s shipments because shale producers are facing “growing pains” as record production has caused bottlenecks in the nation’s pipelines, Goldman analysts including Jeffrey Currie wrote in a May 16 note.

Oil-market news:

Gasoline futures were up 0.3 percent at $2.22560 a gallon, after gaining 2.1 percent on Wednesday. Since the European Union is unlikely to follow the U.S. in re-imposing sanctions on Iran, the overall impact on the Persian Gulf state’s exports will be “far more muted” than in the past, tanker tracker Petro-Logistics said in a note.

--With assistance from Tsuyoshi Inajima.

To contact the reporters on this story: Heesu Lee in Seoul at;Grant Smith in London at

To contact the editors responsible for this story: James Herron at, Will Kennedy

©2018 Bloomberg L.P.

Oil slips further below $80 a barrel as focus on OPEC intensifies .
Oil prices recorded their largest one-day drop in two weeks on Thursday, with expectations building that OPEC will end an output deal that has been in place since the start of 2017 due to concerns about supplies from Venezuela and Iran. Benchmark Brent futures were down $1.08 at $79.72 a barrel, its largest one-day fall since May 8, while U.S. crude futures dropped 86 cents to $70.98 a barrel."This discussion about possible OPEC supply increases after the June meeting has put a brake on the oil price for the time being, so $80 is a big hurdle to overcome," Commerzbank strategist Carsten Fritsch said.


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