OPEC could take 'further steps' on oil output, White House official says | Reuters
OPEC countries have capacity to take "further steps," White House National Security Advisor Jake Sullivan said on Monday, when asked about the U.S. view of the group's ability increase oil production.
"There is a capacity for further steps that can be taken," he said, ahead of U.S. President Joe Biden's trip this week to the Middle East, and after some countries, including Saudi Arabia, have said they are limited in how much they can increase production.
On the trip, "We will convey our general view…that we believe that there needs to be adequate supply in the global market to protect the global economy and to protect the American consumer at the pump," Sullivan added.
Biden will make a stop in Saudi Arabia, pushing energy policy into the spotlight as the United States and other countries face soaring fuel prices that are driving up inflation.
Sullivan did note that U.S. officials would discuss energy security with leaders from the Organization of the Petroleum Exporting Countries during the trip.
Monday, 11 July 2022
Oil steadies as China COVID fears face tight supply concerns | Reuters
Oil steadies as China COVID fears face tight supply concerns | Reuters
Oil prices were little changed on Monday as markets balanced an expected drop in demand due to mass testing for COVID-19 in China against ongoing concerns over tight supply.
Brent futures for September delivery gained 8 cents, or 0.1%, to settle at $107.10 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 70 cents, or 0.7%, to settle at $104.09.
With the U.S. Federal Reserve expected to keep raising interest rates, open interest in New York Mercantile Exchange (NYMEX) futures fell on July 7 to its lowest since October 2015 as investors cut back on risky assets.
Last week, oil speculators cut their net long futures and options positions on the NYMEX and Intercontinental Exchanges to their lowest since April 2020.
"The oil market is being pulled in two directions with exceedingly tight physical fundamentals set against forward-looking demand concerns and signs of price-induced demand destruction," analysts at EBW Analytics said in a note.
The market was rattled earlier in the session by news that China had discovered its first case of a highly transmissible Omicron subvariant in Shanghai that could lead to another round of mass testing, which would hurt fuel demand. read more
Oil prices were little changed on Monday as markets balanced an expected drop in demand due to mass testing for COVID-19 in China against ongoing concerns over tight supply.
Brent futures for September delivery gained 8 cents, or 0.1%, to settle at $107.10 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 70 cents, or 0.7%, to settle at $104.09.
With the U.S. Federal Reserve expected to keep raising interest rates, open interest in New York Mercantile Exchange (NYMEX) futures fell on July 7 to its lowest since October 2015 as investors cut back on risky assets.
Last week, oil speculators cut their net long futures and options positions on the NYMEX and Intercontinental Exchanges to their lowest since April 2020.
"The oil market is being pulled in two directions with exceedingly tight physical fundamentals set against forward-looking demand concerns and signs of price-induced demand destruction," analysts at EBW Analytics said in a note.
The market was rattled earlier in the session by news that China had discovered its first case of a highly transmissible Omicron subvariant in Shanghai that could lead to another round of mass testing, which would hurt fuel demand. read more
Oil slides on China COVID worries | Reuters
Oil slides on China COVID worries | Reuters
Oil prices fell in volatile trade on Monday, reversing most of the previous session's gains as markets braced for an expected drop in demand because of mass testing for COVID-19 in China, which outweighed ongoing concern over tight supply.
Brent crude futures fell $2.08, or 1.9%, to $104.94 by 1221 GMT after climbing 2.3% on Friday. U.S. West Texas Intermediate (WTI) crude futures declined by $2.55, or 2.4%, to $102.24, paring a 2% gain from Friday.
The market was rattled by news that China had discovered its first case of a highly transmissible Omicron subvariant in Shanghai and that new cases had jumped to 63 in the country's largest city from 52 a day earlier. read more
The discovery of the new subvariant and the highest number of daily new cases in Shanghai since May could lead to another round of mass testing, which would hurt fuel demand.
Oil prices fell in volatile trade on Monday, reversing most of the previous session's gains as markets braced for an expected drop in demand because of mass testing for COVID-19 in China, which outweighed ongoing concern over tight supply.
Brent crude futures fell $2.08, or 1.9%, to $104.94 by 1221 GMT after climbing 2.3% on Friday. U.S. West Texas Intermediate (WTI) crude futures declined by $2.55, or 2.4%, to $102.24, paring a 2% gain from Friday.
The market was rattled by news that China had discovered its first case of a highly transmissible Omicron subvariant in Shanghai and that new cases had jumped to 63 in the country's largest city from 52 a day earlier. read more
The discovery of the new subvariant and the highest number of daily new cases in Shanghai since May could lead to another round of mass testing, which would hurt fuel demand.
Israel says Biden visit may augur common Mideast market, with Saudis | Reuters
Israel says Biden visit may augur common Mideast market, with Saudis | Reuters
Israeli Finance Minister Avigdor Lieberman said on Monday he hoped a regional visit by U.S. President Joe Biden this week will lead to a common Middle East market that includes Saudi Arabia.
Biden arrives in Israel on Wednesday and continues to Saudi Arabia on Friday. The White House has said the visit's aims include "expanding regional economic and security cooperation".
Asked at an economic conference hosted by Calcalist newspaper what he expects to arise from Biden's visit, Lieberman said: "The creation of a new, common market in the Middle East. That's the big challenge."
"It will change the reality here from end to end, in both the fields of security and of economics. Therefore I hope the emphasis during Biden's visit will be on creating this new market in the Middle East."
Israel normalised relations with four Arab countries under a 2020 U.S. diplomatic drive that received Riyadh's blessing. But Saudi Arabia has stopped short of formally recognising Israel in the absence of a resolution to Palestinian statehood goals.
Israeli Finance Minister Avigdor Lieberman said on Monday he hoped a regional visit by U.S. President Joe Biden this week will lead to a common Middle East market that includes Saudi Arabia.
Biden arrives in Israel on Wednesday and continues to Saudi Arabia on Friday. The White House has said the visit's aims include "expanding regional economic and security cooperation".
Asked at an economic conference hosted by Calcalist newspaper what he expects to arise from Biden's visit, Lieberman said: "The creation of a new, common market in the Middle East. That's the big challenge."
"It will change the reality here from end to end, in both the fields of security and of economics. Therefore I hope the emphasis during Biden's visit will be on creating this new market in the Middle East."
Israel normalised relations with four Arab countries under a 2020 U.S. diplomatic drive that received Riyadh's blessing. But Saudi Arabia has stopped short of formally recognising Israel in the absence of a resolution to Palestinian statehood goals.
Oil drops on China COVID worries | Reuters
Oil drops on China COVID worries | Reuters
Oil prices fell on Monday in volatile trade, reversing some gains from the previous session as markets braced for new mass COVID testing in China potentially hitting demand, a concern that outweighed ongoing concerns about tight supply.
Brent crude futures fell $1.29, or 1.2%, to $105.73 at 0900 GMT, after climbing 2.3% on Friday. U.S. West Texas Intermediate (WTI) crude futures declined by $1.78, or 1.7%, to $103.01, paring a 2% gain from Friday.
The market was rattled by news that China had discovered its first case of a highly transmissible Omicron subvariant in Shanghai and that new cases had jumped to 63 in the country's largest city from 52 a day earlier. read more
"The market's just responding to news flow and China has grabbed the most attention so far," said Commonwealth Bank commodities analyst Vivek Dhar.
Traders were nervous that the discovery of the new subvariant and the highest number of daily new cases in Shanghai since May could lead to another round of mass testing, which would hurt fuel demand, he said.
Oil prices fell on Monday in volatile trade, reversing some gains from the previous session as markets braced for new mass COVID testing in China potentially hitting demand, a concern that outweighed ongoing concerns about tight supply.
Brent crude futures fell $1.29, or 1.2%, to $105.73 at 0900 GMT, after climbing 2.3% on Friday. U.S. West Texas Intermediate (WTI) crude futures declined by $1.78, or 1.7%, to $103.01, paring a 2% gain from Friday.
The market was rattled by news that China had discovered its first case of a highly transmissible Omicron subvariant in Shanghai and that new cases had jumped to 63 in the country's largest city from 52 a day earlier. read more
"The market's just responding to news flow and China has grabbed the most attention so far," said Commonwealth Bank commodities analyst Vivek Dhar.
Traders were nervous that the discovery of the new subvariant and the highest number of daily new cases in Shanghai since May could lead to another round of mass testing, which would hurt fuel demand, he said.
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