Hedge funds cut bullish bets on U.S. crude as demand outlook worsens | Reuters:
Hedge funds and money managers cut bullish wagers on U.S. crude, data showed on Friday, as rising coronavirus cases around the world weakened the demand outlook, and a rise in OPEC output last month also weighed on the market.
The speculator group cut its combined futures and options position in New York and London by 4,619 contracts to 297,896 in the week to Oct. 6, the lowest in nearly a month, the U.S. Commodity Futures Trading Commission (CFTC) said.
U.S. crude prices CLc1 rose about 3.5% during the period while Brent climbed LCOc1 nearly 4%, though most of the gains came from the final day of the week.
In the United States alone the pandemic has infected more than 7.2 million and killed more than 206,000.
Friday, 9 October 2020
Oil prices slip over 1% after Norway oil worker strike ends | Reuters
Oil prices slip over 1% after Norway oil worker strike ends | Reuters:
Oil prices slipped more than 1% on Friday after an oil worker strike in Norway ended, which should boost crude output even as Hurricane Delta forced U.S. energy firms to cut production.
Brent futures LCOc1 fell 49 cents, or 1.1%, to settle at $42.85 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 fell 59 cents, or 1.4%, to settle at $40.60.
Despite Friday’s price slide, both benchmarks gained about 9% this week, their first increase in three weeks and the biggest weekly rise for Brent since June.
Oil futures climbed earlier in the week due to concerns the strike in Norway and the hurricane headed for the U.S. Gulf Coast would cut crude output.
Oil prices slipped more than 1% on Friday after an oil worker strike in Norway ended, which should boost crude output even as Hurricane Delta forced U.S. energy firms to cut production.
Brent futures LCOc1 fell 49 cents, or 1.1%, to settle at $42.85 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 fell 59 cents, or 1.4%, to settle at $40.60.
Despite Friday’s price slide, both benchmarks gained about 9% this week, their first increase in three weeks and the biggest weekly rise for Brent since June.
Oil futures climbed earlier in the week due to concerns the strike in Norway and the hurricane headed for the U.S. Gulf Coast would cut crude output.
J.P. Morgan sees #SaudiArabia offering deeper oil cuts | Reuters
J.P. Morgan sees Saudi Arabia offering deeper oil cuts | Reuters:
A worsening global oil demand outlook will prompt OPEC to reverse a planned easing of oil cuts in 2021 with Saudi Arabia offering deeper cuts below its current quota, J.P. Morgan said in a research note.
“Against relatively bearish investor sentiment on the near-term demand outlook as COVID-19 potentially accelerates infections into winter, we highlight the potential for Saudi to drive incremental cuts at the Nov. 30 OPEC meeting,” analysts including Christyan Malek said in a note.
“Our base case is a reversal of the 1.9 million barrels per day output increase slated for 2021 with an upside scenario of a deeper cut whereby Saudi reduces its own quotas even lower (in the event of a worsening demand outlook),” J.P. Morgan said.
A worsening global oil demand outlook will prompt OPEC to reverse a planned easing of oil cuts in 2021 with Saudi Arabia offering deeper cuts below its current quota, J.P. Morgan said in a research note.
“Against relatively bearish investor sentiment on the near-term demand outlook as COVID-19 potentially accelerates infections into winter, we highlight the potential for Saudi to drive incremental cuts at the Nov. 30 OPEC meeting,” analysts including Christyan Malek said in a note.
“Our base case is a reversal of the 1.9 million barrels per day output increase slated for 2021 with an upside scenario of a deeper cut whereby Saudi reduces its own quotas even lower (in the event of a worsening demand outlook),” J.P. Morgan said.
Oil prices head for 11% weekly jump on North America, Norway outages | Reuters
Oil prices head for 11% weekly jump on North America, Norway outages | Reuters:
Oil prices inched up on Friday, setting both benchmark contracts on track for their biggest weekly gains since early June, on the back of supply outages caused by a storm in the Gulf of Mexico and a strike of offshore workers in Norway.
Brent was up 16 cents at $43.50 a barrel by 0748 GMT. U.S. West Texas Intermediate (WTI) crude rose 14 cents to $41.33.
Both contracts are on track for gains of around 11% this week, the first weekly rise in three weeks.
Brent’s six-month contango, a market structure where the front-month Brent futures are trading at a discount to later contracts implying current oversupply, has shrunk to around $1.90 a barrel from $3.24 less than a month ago.
Oil prices inched up on Friday, setting both benchmark contracts on track for their biggest weekly gains since early June, on the back of supply outages caused by a storm in the Gulf of Mexico and a strike of offshore workers in Norway.
Brent was up 16 cents at $43.50 a barrel by 0748 GMT. U.S. West Texas Intermediate (WTI) crude rose 14 cents to $41.33.
Both contracts are on track for gains of around 11% this week, the first weekly rise in three weeks.
Brent’s six-month contango, a market structure where the front-month Brent futures are trading at a discount to later contracts implying current oversupply, has shrunk to around $1.90 a barrel from $3.24 less than a month ago.
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