OPEC Global Oil Trader News and Analysis: How Big Is the #UAE Output Breach? - Bloomberg

OPEC Global Oil Trader News and Analysis: How Big Is the UAE Output Breach? - Bloomberg:

Just when OPEC seemed to have finally mastered the long-running problem of members breaching their oil-output targets, a new offender is emerging.

The United Arab Emirates -- traditionally a loyal partner of group leader Saudi Arabia -- pumped a little bit over its agreed limit in July, according to OPEC data. It has admitted doing so again in August.

Now, many traders are turning their attention to data showing the Gulf state’s excess may be far greater than previously believed, contributing to the drop in crude prices to a two-month low.

The strongest signal that something was amiss came last month from the International Energy Agency, which estimated in its closely watched oil market report that the UAE pumped 3 million barrels a day in July. According to Petro-Logistics SA, which tracks international oil-shipping movements, the country supplied even more than that in August.

Oil ends lower for second week as stockpiles rise, demand weakens | Reuters

Oil ends lower for second week as stockpiles rise, demand weakens | Reuters:

Oil prices were little changed on Friday, but posted their second straight weekly loss as stockpiles rise around the world and fuel demand struggles to rebound to pre-coronavirus levels.

Both Brent and U.S. crude lost about 6% on the week after a series of signals that showed markets still have an abundance of supply. Saudi Arabia and Kuwait cut official selling prices to Asia, U.S. stockpiles rose and traders are booking vessels for storage.

Brent LCOc1 ended the session down 23 cents, or 0.6%, at $39.83 a barrel while U.S. crude CLc1 settled up 3 cents at $37.33 a barrel.

Coronavirus infections are growing in several countries, led by India, where the health ministry reported a record daily jump of 96,551 new cases on Friday, taking the official total to 4.5 million.

Oil steady as U.S. stock market slides, inventories rise | Reuters

Oil steady as U.S. stock market slides, inventories rise | Reuters:

Oil prices were steady on Friday, but were on track for a second weekly fall after U.S. stock markets tumbled and U.S. stockpiles rose unexpectedly.

Brent LCOc1 was down 2 cents, or less than 0.1%, at $40.04 a barrel by 1128 GMT, while U.S. crude CLc1 was up 12 cents, or 0.3%, to $37.42 a barrel.

Both benchmarks were 6% down for the week.

“Financial markets are continuing to set the tone, including on the oil market. The renewed slide on U.S. stock markets dragged oil prices down with it,” Commerzbank analyst Eugen Weinberg said.

Cold Winter Forecasts Have Traders Hoping LNG Rally Lives On - Bloomberg

Cold Winter Forecasts Have Traders Hoping LNG Rally Lives On - Bloomberg:

The world’s natural gas traders are hoping for a brutal winter to help sustain a price rally back from a record-setting slump.

Fresh in their minds are memories of the previous two winters, when milder temperatures curbed consumption, leaving inventories brimming and spot prices reeling. Suppliers and traders fear recent gains, which are expected for this time of year, could be erased if colder weather doesn’t materialize to help solidify demand.

Benchmarks for liquefied natural gas in North Asia and Europe have only recently returned to pre-pandemic levels after trading near historic lows for most of the year. The rally has been supported by unplanned outages and canceled deliveries, coupled with a tepid increase in spot buying as some of the biggest economies recovered from lockdowns.

“There is a lot of uncertainty about this winter, with the risk of a serious second wave of coronavirus, and temperatures still being the most sensible variable for gas demand,” said Julien Hoarau, gas market analyst at Engie EnergyScan. “Many of the bullish drivers we are seeing now are expected to vanish in the next months.”

Global Crude Oil News and Analysis for WTI, Brent Prices on September 11, 2020 - Bloomberg

Global Crude Oil News and Analysis for WTI, Brent Prices on September 11, 2020 - Bloomberg:

Oil headed for its first back-to-back weekly losses since April’s price rout as swelling U.S. stockpiles added to signs that the global energy demand recovery will take longer than previously anticipated.

Futures in New York were steady near $37 a barrel and are down around 6% this week. U.S. crude inventories rose for the first time in seven weeks and stockpiles at the storage hub at Cushing reached the highest since May, according to Energy Information Administration data. Drops in gasoline and distillate supplies provided some grounds for optimism, however.

The U.S. crude benchmark has fallen around 13% this month as the end of the U.S. summer driving season, a stalling Asian demand recovery and evidence the virus is making a comeback in Europe all weighed on sentiment. A retreat in global stocks has also put more downward pressure on energy markets.

The demand outlook is weakening as the OPEC+ alliance gradually adds more barrels to the market, leading to widening contangoes and the possible return of floating-storage plays. Saudi Aramco slashed oil prices to Asia at the start of the week, while S&P Global Platts became the latest market forecaster to chime in with a gloomy prediction, saying oil consumption is unlikely to get back to 2019 levels before 2022.