Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexEconomic EventsPress releases

Oil hits highest since mid-2015 but settles down as outages abate

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/03/2018 | 12:24am CET
 A view shows the French oil giant Total refinery in Donges

Oil prices hit mid-2015 highs in early trading on Tuesday but dipped to settle slightly lower as major pipelines in Libya and the UK restarted and U.S production soared to the highest level in more than four decades.

It was the first time since January 2014 that the two crude oil benchmarks opened a year above $60 per barrel. Prices were buoyed by large anti-government rallies in Iran and supply cuts led by OPEC and Russia.

U.S. West Texas Intermediate (WTI) crude futures <CLc1> settled 5 cents lower at $60.37 a barrel. In early trading WTI hit $60.74, the highest level since June 2015.

Brent crude futures <LCOc1>, the international benchmark, settled 30 cents, or 0.5 percent lower at $66.57 a barrel. The session high of $67.29 was the highest since May 2015.

The spread between U.S. crude and Brent <WTCLc1-LCoc1> hit the narrowest in nearly two weeks.

The 450,000 barrel per day (bpd) capacity Forties pipeline system in the North Sea returned to full operations on Dec. 30 after an unplanned shutdown.

Repairs have been completed on a Libyan oil pipeline damaged in a suspected attack last week and production is restarting gradually, engineers said.

"The resolution of the North Sea pipeline issue is having the expected result that the Brent-WTI spread is narrowing today," David Thompson, executive vice-president at Powerhouse, an energy-specialized commodities broker in Washington.

Thompson added that traders have been returning to work from the holidays, boosting volumes.

"Despite the day's price weakness, both Brent and WTI remain in solid, long-term bullish trends - $58.95 is nearby support on WTI front-month futures and $65.60 is the corresponding support on front-month Brent futures."

Iran's Supreme Leader on Tuesday accused the country's enemies of stirring unrest, as the death toll rose to 21 from anti-government demonstrations that began last week.[nL8N1OX0XY]

Iran is OPEC's third-largest crude producer. Iranian oil industry and shipping sources said protests have had no impact so far on oil production or exports.

"Geopolitical risks are clearly back on the crude oil agenda after having been absent almost entirely since the oil market ran into a surplus in the second half of 2014," Bjarne Schieldrop, chief commodities analyst at SEB, said, also citing Kurdistan and Libya.

Oil prices have been supported by production cuts led by the Organization of the Petroleum Exporting Countries and Russia. The cuts are scheduled to cover all of 2018.

U.S. commercial crude oil inventories have fallen by almost 20 percent from their historic highs last March, to 431.9 million barrels.

Strong demand growth, especially from China, has also been supporting crude.

However, rising U.S. production, which is on the verge of breaking through 10 million bpd, has tempered the bullish outlook.

"We think U.S. tight oil production growth warrants close monitoring as it could spoil OPEC's market-balancing efforts, pushing the market into surplus in 2018," Barclays bank said.

October U.S crude production rose 167,000 barrels per day to 9.64 million bpd, according to the EIA's monthly production report. If the figure is not revised next month, it would be the highest monthly level since May 1971.

(Additional reporting by Henning Gloystein in Singapore; editing by David Gregorio and Susan Thomas)

By Dmitry Zhdannikov and Devika Krishna Kumar

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
09:28p Saudi Arabia asks banks for proposals to refinance $10 billion loan, raise more debt
09:14p Lawmakers Struggle to Find Compromise as Government Shutdown Continues
09:12p Europe readies riposte to Trump's 'America First' push in Davos
08:07p Davos organizer still counting on Trump to attend
07:48p U.S. House would accept bill funding government to Feb. 8 - Ryan
07:48p Republicans, Democrats dig in for fight as shutdown enters second day
07:09p MEDIA ADVISORY : Coast Guard, U.S. Army Corps of Engineers spokespersons holding media event as barge removal process begins
06:29p TECHNION ISRAEL INSTITUTE OF TECHNOLOGY : The Body’s Golden Gate to Iron Traffic
05:58p Davos Offers Modi Stage to Push Muscular Vision for India
05:53p New York governor vows to reopen Statue of Liberty as shutdown enters Day 2
Latest news "Economy & Forex"
Advertisement