Day: August 4, 2017

Oil retreats on concerns about OPEC oversupply

Oil prices fell on Thursday, as cautious buying dried up after U.S. crude rose to near $50 a barrel, with concern about high crude supplies from producer club OPEC offsetting the previous day’s data showing record U.S. gasoline demand. Benchmark Brent crude settled down 35 cents a barrel at $52.01 a barrel. U.S. light crude was 56 cents lower at $49.03. U.S. crude traded at a session high of $49.96 a barrel. OPEC crude oil exports rose to a record high in July, driven largely by soaring exports from the group’s African members, according to a report by Thomson Reuters Oil Research. U.S. light crude has remained below $50 a barrel, capped by robust domestic supplies. “The market needs continuing signs of improvement in the inventory picture to really drive the prices highe...

Oil could see downward correction in next quarter, Barclays says

Oil market is expected to see a downward correction this quarter but Brent prices will move higher in the final quarter of this year, according to a research note from Barclays. “Prices have moved higher, due to a perfect combination of a favorable macro environment, a seasonal uptick in consumption, continued inventory drawdowns, and geopolitical unrest,” the note said. “Certain factors that supported prices in July are unlikely to last, and we expect a downward correction during this quarter.” The report, however, forecasts Brent prices going up to $54 a barrel in last three months of the year, based on continued inventory draws, OPEC discipline, and the ongoing decline in output in Venezuela. The report further added that during the recent market rally, prices mo...

Amid Washington dysfunction, lack of big accomplishments, Trumps clings to his shrinking support

As political and legal troubles mount, President Donald Trump holds ever tighter onto a base of support that grows ever smaller. Last night, Trump traveled for the second time in 10 days to West Virginia, the small conservative state that gave him 68 percent of the vote last November. He basked in the applause of the crowd while ridiculing the news that the Justice Department special counsel has impaneled a grand jury in Washington. Last week, after the failure of health-care legislation he championed, the president stood before law enforcement officers and talked about rougher treatment for criminal suspects. His message — which roused blue-collar white backers in 2016 amid high-profile controversies over police use of deadly force against black citizens — was so jarring that police chief...

Saudis and Russians are getting tough with oil exporters. Now they have to back up their words

Top producers Saudi Arabia and Russia have signaled they are ready to get tough with oil producers who are still pumping more than they promised. But it remains to be seen how they will back their rhetoric, analysts say. The two nations have spearheaded a deal to remove 1.8 million barrels of oil a day from the market in a bid to shrink global crude stockpiles and drain a persistent glut of petroleum. Officials from oil producing nations, including Russia and Saudi Arabia, will meet in Abu Dhabi on Monday and Tuesday to figure out how to improve compliance with that deal. The meeting comes as OPEC’s overall production has ticked up in recent months, keeping a lid on oil prices even as falling U.S. crude stockpiles provide support. Following a recent meeting of oil producers in St. Pe...