Iran Sanctions, Moderate Gasoline Prices Not Possible: Kemp
The White House can drive Iran’s oil exports to zero, or it can have moderate U.S. gasoline prices, but it probably cannot have both. The awkward tension between the administration’s foreign policy priority (tough Iran sanctions) and its electoral calculation (to keep gasoline prices low) explains its increasingly frequent comments about oil prices. President Donald Trump has already blamed the Organization of the Petroleum Exporting Countries for the sharp rise in prices that has pushed the average cost of U.S. gasoline close to $3 per gallon.
Saudi Arabia Halts Red Sea Oil Exports after Tanker Attacks
Saudi Arabia said on Thursday it was suspending oil shipments through a strategic Red Sea lane after Yemen's Iran-aligned rebels attacked two tankers in the waterway, underscoring the risk of an escalation in tensions in the region.Brent crude futures rose 59 cents to $74.52 a barrel by 1008 GMT, extending their rally into a third day but falling from a 10-day high in earlier trading.Saudi Arabia and arch-foe Iran have been locked in a three-year proxy war in Yemen, which lies on one side of the Bab al-Mandeb strait at the southern mouth of the sea…
U.S. EPA Chief Pruitt Resigns
U.S. Environmental Protection Agency chief Scott Pruitt, who pleased President Donald Trump by rolling back environmental regulations but came under fire for travel and security expenses and a condo arrangement, has resigned, Trump said on Thursday. "I have accepted the resignation of Scott Pruitt as the Administrator of the Environmental Protection Agency," Trump said on Twitter. He said EPA Deputy Administrator Andrew Wheeler would become acting chief of the agency on Monday. Reporting by Eric Beech
Over-extended Oil Prices Were Primed For a Fall
Pay attention to what traders actually do, not what they say, is one of the most important principles for successful oil market analysis.Despite all the bullish commentary around oil prices in recent weeks, there was plenty of forewarning prices were primed for a setback.By the middle of April, hedge funds had accumulated a near-record net long position in crude and products futures and options equivalent to 1.4 billion barrels.Bullish long positions outnumbered bearish short positions by an unprecedented ratio of almost 14:1…
Saudi Refinery Exports First Gasoline Barrels to U.S.
A refinery in Saudi Arabia has shipped its RBOB gasoline to the United States for the first time, a potential precursor for more deliveries to a region where prices are currently at seasonal three-year highs.The 400,000 barrels-per-day Jubail Satorp refinery, a joint venture between Saudi Aramco and French company Total, said in its verified Twitter account that it sent the shipment of reformulated blendstock gasoline - commonly called RBOB - to the United States. It did not say whether those barrels had arrived yet…
Oil Market Enters Post-OPEC Era: Kemp
Saudi Arabia and Russia started to raise their oil production several weeks before the formal decision to increase output was taken by OPEC and its allies towards the end of June.Saudi Arabia increased its production to 10.49 million barrels per day (bpd) in June from 10.03 million in May and 9.87 million bpd in April, according to government data submitted to OPEC.Russia’s Rosneft also started to raise output from late May, anticipating a relaxation of the supply curbs, according to an investor presentation…
Oil Up On Supply Concerns Ahead of OPEC Meeting
Oil prices rose on Friday ahead of a meeting of OPEC and other large crude exporters that will focus on production increases as U.S. sanctions restrict Iranian exports.OPEC and its allies are scheduled to gather in Algeria on Sunday to discuss how to allocate higher supply to offset the shortage of Iranian supplies.Brent crude oil was up 90 cents at $79.60 a barrel by 1340 GMT. U.S. light crude was up 65 cents at $70.97.Brent is close to four-year highs, trading just below $80 a barrel, as investors bet that the Organization of the Petroleum Exporting Countries will be unable to compensate fully for the loss of oil from Iran…
Oil Nears 3-1/2-year High on Middle East Sabre Rattling
OPEC supply cuts since 2017 have tightened market; oil has also risen on U.S. sanctions threat against Iran. Oil traded near its highest in 3-1/2 years on Thursday, boosted by potential disruptions to flows from Iran and the Middle East despite a fresh demand from U.S. President Donald Trump that OPEC cut prices. Brent crude futures were at $78.12 a barrel at 1050 GMT, down 12 cents. U.S. crude futures were up 32 cents at $74.46, within sight of Tuesday's 3-1/2-year high above $75. "If Trump continues to believe that OPEC are not doing enough…
Why Trump is Pressing Saudis to Lower Oil Prices: Kemp
The United States and Saudi Arabia appear to have reached an understanding: Washington will reduce or eliminate Iran’s oil export revenues and in return Riyadh will guarantee oil supplies and stabilise prices. The basic deal is well understood by policymakers in both countries, with U.S. President Donald Trump repeatedly emphasising his great personal relationship with the Saudi king and crown prince. But strong personal relationships between the leaders and agreement on the overall deal obscure disagreement on some key details, not least the desirable level for oil prices.
Trump Renews Attack on OPEC, Says Oil Prices Too High
U.S. President Donald Trump on Wednesday renewed his attack on OPEC and again criticized the coalition of petroleum producing countries for rising oil prices."Oil prices are too high, OPEC is at it again. Not good!" Trump wrote in a post on Twitter.(Reporting by Susan Heavey and Doina Chiacu)
Oil Tumbles as Hedge Funds Quit Crude: Kemp
Hedge fund managers were busy reducing bullish positions in petroleum well before OPEC and its allies indicated in the middle of last week that they would consider relaxing output curbs. Hedge funds and other money managers reduced their net long position in the six major petroleum futures and options contracts in each of the five weeks to May 22 by a total of 108 million barrels. The reduction has been concentrated in crude, where net long positions in Brent and WTI were cut by 169 million barrels over those five weeks (https://tmsnrt.rs/2LBbW8l).
OPEC Agrees to Modest Oil Supply Hike
OPEC agreed on Friday on a modest increase in oil production from next month after its leader Saudi Arabia persuaded arch-rival Iran to cooperate, following calls from major consumers to help reduce the price of crude and avoid a supply shortage.However, the decision confused some in the market as OPEC gave opaque targets for the increase, making it difficult to understand how much more it will pump. Oil prices rose as much as 3 percent."Hope OPEC will increase output substantially. Need to keep prices down!" U.S.
Macron Approves Offshore Windpower Projects
Leading executives at French energy groups EDF and Engie said on Twitter that several offshore windpower projects had been "confirmed" by President Emmanuel Macron."Happy to see @EmmanuelMacron confirmed our three parks," EDF executive Bruno Bensasson said in a post on the Twitter messaging network.Engie executive Gwenaelle Huet also said that Macron had approved the windpower projects in a similar Twitter post.The future of the projects had been in some doubt after the French senate earlier this year rejected a government proposal to renegotiate and possibly cancel projects to generate a combined 3,000 megawatts of offshore wi
Brent at Three-Year High on Possible U.S. Syria Response
Rising U.S. output, inventories weigh, however. Oil hit its highest in more than three years on Wednesday after U.S. President Donald Trump threatened to fire missiles at Syria in response to a suspected chemical attack last week. Some major airlines were re-routing flights on Wednesday after Europe's air traffic control agency warned aircraft flying in the eastern Mediterranean to exercise caution due to possible air strikes on Syria. Trump has criticised Moscow for standing by Syrian President Bashar al-Assad. "Russia vows to shoot down any and all missiles fired at Syria.
US Crude Hits Highest Since 2014
Oil prices jumped on Wednesday, hitting their highest in more than three years on Wednesday after Saudi Arabia said it intercepted missiles over Riyadh and U.S. President Donald Trump warned Russia of imminent military action in Syria.Both U.S. crude and global benchmark Brent traded at the highest levels since 2014 as geopolitical concerns overshadowed a surprise build in U.S. crude inventories."A bearish inventory report was quickly negated on word of intercepted rockets over Riyadh, which just adds to the recent spike in geopolitical tensions…
Oil Falls After Trump Criticizes OPEC
Russia committed to cuts until end of year as 2018 demand looks strong (Goldman Sachs). Oil prices fell on Friday after U.S. President Donald Trump criticised OPEC and said oil prices were artificially high, but they were still set for a weekly gain. Brent crude oil futures were at $73.26 per barrel at 1139 GMT, down 52 cents from their last close. U.S. West Texas Intermediate (WTI) crude futures were down 48 cents at $67.81 a barrel. "Looks like OPEC is at it again," Trump wrote in a post on Twitter. "With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High!
Trump Rails Against Oil Prices, OPEC Pushes Back
U.S. President Donald Trump accused OPEC on Friday of "artificially" boosting oil prices, drawing rebukes from some of the world's top energy exporters."Looks like OPEC is at it again. With record amounts of Oil all over the place, including the fully loaded ships at sea. Oil prices are artificially Very High! No good and will not be accepted!" Trump wrote on Twitter.It was unclear what triggered the tweet, Trump's first mention of OPEC on social media during his term.U.S. oil prices are near a three-year high…
Trump's Revenge: US Oil Floods Europe, Hurting OPEC, Russia
U.S. supplies to Europe set for all-time high in April; on course to overtake Russia, Saudi. As OPEC's efforts to balance the oil market bear fruit, U.S. producers are reaping the benefits - and flooding Europe with a record amount of crude. Russia paired with the Organization of the Petroleum Exporting Countries last year in cutting oil output jointly by 1.8 million barrels per day (bpd), a deal they say has largely rebalanced the market and one that has helped elevate benchmark Brent prices close to four-year highs. Now, the relatively high prices brought about by that pact, coupled with surging U.S.
Investigators Work to Determine Cause of Wisconsin Refinery Blast
Investigators on Friday searched for the cause of a blast at a Husky Energy refinery that injured at least 15 people and rocked a northern Wisconsin city, sending smoke billowing into the sky and prompting tens of thousands to evacuate. A massive explosion shook Superior, Wisconsin, a city of about 27,000 people, at about 10 a.m. local time (1500 GMT) on Thursday, local authorities said. At least 15 people were injured, local media reported, and at least 10 people - one seriously injured - were taken to area hospitals, said a spokeswoman for Essentia Health-St.
Rising Oil Prices put 'Demand Destruction' Back on the Agenda
Rising oil prices over the last two years have put the issue of demand destruction back on the agenda, as producers, traders and analysts try to estimate how consumers will respond. Demand destruction always becomes a topic of discussion during this stage of the price cycle, and the current discussion resembles previous episodes of high and rising prices in 2005-2008 and 2011-2014. Brent prices have surged by $47 per barrel (170 percent) from their low point in early 2016 and are now trading close to $75 per barrel. Over the same period, weighted-average U.S.