Tuesday, November 13, 2018

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Iran Sanctions, Moderate Gasoline Prices Not Possible: Kemp

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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

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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…

Oil Down After Trump Urges OPEC Not to Cut Supply

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Oil prices fell more than 2 percent on Tuesday after U.S. President Donald Trump put pressure on OPEC not to cut supply to prop up the market.Brent dropped $1.97 a barrel, or 2.8 percent, to a low of $68.15 before recovering to around $68.52, down $1.60, by 1420 GMT. U.S. light crude was $1.35 lower at $58.48.Both crude benchmarks have fallen more than 20 percent since peaking at four-year highs in early October."The market now increasingly looks concerned about the prospect of too much supply," said Norbert Ruecker…

U.S. EPA Chief Pruitt Resigns

Scott Pruitt (Credit: State of Oklahoma)

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

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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

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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

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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

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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.

Oil Higher as Stocks Rebound, Saudi Signals Intervention

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Crude stockpiles rising at U.S. futures delivery point; Saudi Arabia says oil market could shift to oversupply in Q4.Oil prices rose 1 percent on Thursday, following the U.S. stock market higher a day after Wall Street's biggest drop since 2011 and as Saudi Arabia's energy minister signaled major producers may have to intervene in crude markets to support prices.Brent crude futures rose 72 cents to settle at $76.89 per barrel as U.S. equities rose amid strong corporate earnings. The global benchmark has lost almost $10 a barrel since hitting a high of $86.74 on Oct. 3.U.S.

Trump Hopes OPEC Won't Cut Production

(Official White House Photo by Joyce N. Boghosian)

U.S. President Donald Trump on Monday said he hoped there would be no oil output reductions, after Saudi Arabia said OPEC was considering cutting oil supply next year, citing softening demand."Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!" Trump wrote on Twitter, referring to the Organization of the Petroleum Exporting Countries.(Reporting by Lisa Lambert, Editing by Rosalba O'Brien)

NNPC, BP Swap Crude for Products

Nigeria's state oil firm NNPC said it had signed a crude-for-product swap deal with oil major BP.In its brief statement on Twitter late on Wednesday, NNPC said more details would be provided later. BP and NNPC did not immediately respond to requests for comment on Thursday.NNPC imports about 70 percent of Nigeria's fuel needs, mainly gasoline, via swap contracts. NNPC has contracts, known as Direct Sale Direct Purchase, with 10 consortiums that include trading houses Vitol, Trafigura, Mercuria and oil major…

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

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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

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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

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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

Trump's Revenge: US Oil Floods Europe, Hurting OPEC, Russia

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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

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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.