Oil prices rise 1.5 percent as strong U.S. economic data eases demand concerns - Reuters:
Oil prices gained 1.5 percent on Friday as strong U.S. employment data tempered fears about weakening global crude oil demand, and on expectations that an escalating conflict in Libya could tighten oil supplies.
Optimism that Washington and Beijing are approaching a trade deal also boosted crude prices.
Brent crude futures settled at $70.34 a barrel, up 94 cents, or 1.35 percent. The session high of $70.46 was the strongest since Nov. 12.
U.S. West Texas Intermediate (WTI) crude settled at $63.08 a barrel, up 98 cents, or 1.58 percent. Earlier in the session, WTI hit $63.24, the highest since Nov. 6.
Friday 5 April 2019
Oil Benchmarks Track Fuel Fortunes While Defying Supply Cuts - Bloomberg
Oil Benchmarks Track Fuel Fortunes While Defying Supply Cuts - Bloomberg:
The diverging fortunes of fuel products derived from crude are influencing two oil benchmarks more than the state of supplies in the market.
U.S. sanctions on Venezuelan and Iranian oil as well as output cuts by the Saudi Arabia-led OPEC+ group are creating a shortage of heavy to medium “sour” crude that’s sulfurous and dense. Meanwhile, the American shale boom is generating ample shipments of cleaner and lighter “sweet” supply in the market.
So it stands to reason that prices of scarce sour crude -- reflected in the Dubai oil benchmark -- should gain versus the Brent marker, which represents sweet supplies. Yet the opposite is occurring. A gauge of strength between the two shows the Middle East oil is at its weakest level since December.
The diverging fortunes of fuel products derived from crude are influencing two oil benchmarks more than the state of supplies in the market.
U.S. sanctions on Venezuelan and Iranian oil as well as output cuts by the Saudi Arabia-led OPEC+ group are creating a shortage of heavy to medium “sour” crude that’s sulfurous and dense. Meanwhile, the American shale boom is generating ample shipments of cleaner and lighter “sweet” supply in the market.
So it stands to reason that prices of scarce sour crude -- reflected in the Dubai oil benchmark -- should gain versus the Brent marker, which represents sweet supplies. Yet the opposite is occurring. A gauge of strength between the two shows the Middle East oil is at its weakest level since December.
Exclusive: #SaudiArabia threatens to ditch dollar oil trades to stop 'NOPEC' - sources - Reuters
Exclusive: Saudi Arabia threatens to ditch dollar oil trades to stop 'NOPEC' - sources - Reuters:
Saudi Arabia is threatening to sell its oil in currencies other than the dollar if Washington passes a bill exposing OPEC members to U.S. antitrust lawsuits, three sources familiar with Saudi energy policy said.
They said the option had been discussed internally by senior Saudi energy officials in recent months. Two of the sources said the plan had been discussed with OPEC members and one source briefed on Saudi oil policy said Riyadh had also communicated the threat to senior U.S. energy officials.
The chances of the U.S. bill known as NOPEC coming into force are slim and Saudi Arabia would be unlikely to follow through, but the fact Riyadh is considering such a drastic step is a sign of the kingdom’s annoyance about potential U.S. legal challenges to OPEC.
Saudi Arabia is threatening to sell its oil in currencies other than the dollar if Washington passes a bill exposing OPEC members to U.S. antitrust lawsuits, three sources familiar with Saudi energy policy said.
They said the option had been discussed internally by senior Saudi energy officials in recent months. Two of the sources said the plan had been discussed with OPEC members and one source briefed on Saudi oil policy said Riyadh had also communicated the threat to senior U.S. energy officials.
The chances of the U.S. bill known as NOPEC coming into force are slim and Saudi Arabia would be unlikely to follow through, but the fact Riyadh is considering such a drastic step is a sign of the kingdom’s annoyance about potential U.S. legal challenges to OPEC.
Riyadh aims to counter Tehran’s influence by deepening Iraq ties | Financial Times
Riyadh aims to counter Tehran’s influence by deepening Iraq ties | Financial Times:
Saudi Arabia is intensifying diplomatic efforts to boost ties with Iraq, as the kingdom aims to strengthen its influence on regional rival Iran’s doorstep.
Majid al-Qasabi, the Saudi trade minister, hailed the “beginning of a new phase in the relations” between Riyadh and Baghdad as a delegation of more than 100 Saudi officials arrived in the Iraqi capital this week, wielding a $1bn grant for a sports stadium. Saudi Arabia opened a consulate in Baghdad on Thursday and pledged to open three more across the country.
Adil Abdul Mahdi, Iraq’s prime minister, met Mr Qasabi and other Saudi officials on Wednesday, while a Saudi-Iraq co-operation council, led by Iraq’s oil minister, convened for only the second time. Saudi officials also announced their land border would reopen this year, which they said was a “major step” to promoting trade ties.
Saudi Arabia is intensifying diplomatic efforts to boost ties with Iraq, as the kingdom aims to strengthen its influence on regional rival Iran’s doorstep.
Majid al-Qasabi, the Saudi trade minister, hailed the “beginning of a new phase in the relations” between Riyadh and Baghdad as a delegation of more than 100 Saudi officials arrived in the Iraqi capital this week, wielding a $1bn grant for a sports stadium. Saudi Arabia opened a consulate in Baghdad on Thursday and pledged to open three more across the country.
Adil Abdul Mahdi, Iraq’s prime minister, met Mr Qasabi and other Saudi officials on Wednesday, while a Saudi-Iraq co-operation council, led by Iraq’s oil minister, convened for only the second time. Saudi officials also announced their land border would reopen this year, which they said was a “major step” to promoting trade ties.
Subscribe to:
Posts (Atom)