Oil Archives - DigitalMedia

Oil Languishes Below $80 as Recession Fears Outweigh Tighter Supply

7Dec

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Oil

Oil Languishes Below $80 as Recession Fears Outweigh Tighter Supply

Oil hovered near a one-year low on Wednesday as increasing concerns over U.S. economic health and the Federal Reserve largely offset positive supply-side signals from a bigger-than-expected draw in crude inventories. A growing number of Wall Street banks warned of a potential recession in 2023, especially if interest rates keep rising and if inflation proves to be stickier than expected. Strong U.S. economic data this week suggested that upward pressure on inflation is likely to persist in the near-term, a trend that could invite even more hawkish moves by the Federal Reserve. Brent oil futures fell 0.3% to $79.51 a barrel, while West Texas Intermediate crude futures sank 0.1% to $74.16 a barrel in early Asian trade. Both contracts plummeted to a one-year low on Tuesday. While the Fed is e...

Oil rally Stalls on Weak Chinese Data, Uncertainty Over OPEC Cut

1Dec

By Administrator_IndiaNo Comments

Oil

Oil rally Stalls on Weak Chinese Data, Uncertainty Over OPEC Cut

Oil prices were muted on Thursday, cutting short a three-day rally after data highlighted growing economic cracks in major crude importer China, while markets also speculated over whether the OPEC’s last meeting for the year will result in a supply cut. Chinese manufacturing activity- a bellwether for the economy- weakened substantially in November, official and private surveys showed this week. This largely offset optimism over the country’s scaling back of some COVID-19 curbs in two major cities, following widespread protests. Beijing has also given no indication that it plans to scale back the lockdown measures that weighed heavily on China's economy this year, denting its appetite for crude. Brent oil futures were steady around $86.83 a barrel, while West Texas Intermediate crude futur...

Oil Surges As Speculation Over OPEC Cut Outweighs China concerns

29Nov

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Oil

Oil Surges As Speculation Over OPEC Cut Outweighs China concerns

Oil prices jumped on Tuesday as traders bet that recent weakness in the market will invite more supply cuts by the OPEC, while anti-government protests in China and hawkish signals from the Federal Reserve worsened the outlook for demand. Oil marked a volatile start to the week, initially tumbling as much as 3% as Chinese protests against the government’s strict zero-COVID policy intensified. But prices recovered later in the session, ending Monday a shade higher as markets bet that the Organization of Petroleum Exporting Countries (OPEC) will step in to support prices. The cartel is set to meet on December 4, its last meeting for the year, to decide on production. Brent oil futures jumped nearly 1% to $84.09 a barrel, while West Texas Intermediate crude futures were flat around $77.27 a b...

Oil Rises on Saudi Supply Signals, But Demand Fears Cap Gains

22Nov

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Oil

Oil Rises on Saudi Supply Signals, But Demand Fears Cap Gains

Oil prices rose on Tuesday following commitments to tightening supply from Saudi Arabia and the Organization of Petroleum Exporting Countries (OPEC), although concerns over slowing demand in China and a potential U.S. recession kept gains muted. Crude markets reversed sharp losses in a volatile session on Monday after Saudi Arabia, the leader of the OPEC said reports suggesting that the cartel planned to hike supply in December were false. Instead, the OPEC will commit to its 2 million barrel per day supply cut until the end of 2023, and also stands ready to support prices with more cuts, Saudi Energy Minister Abdulaziz bin Salman said.While his comments helped crude prices recover sharply from a 10-month low, they still remained well below highs hit earlier this month, amid growing concer...

Oil Sinks Further as China COVID Concerns outweigh Tightening Supply

17Nov

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Oil

Oil Sinks Further as China COVID Concerns outweigh Tightening Supply

Oil prices fell further on Thursday as increasing COVID-19 cases in China brewed more doubts over slowing crude demand, even as data showed U.S. inventories dropped far more than expected and as supply appeared to be tightening. China reported over 20,000 daily new cases this week, its highest rise in roughly seven months. While the number is a fraction of the country's population, it was large enough to brew concerns over new restrictions under the country’s strict zero-COVID policy. Industrial production and retail sales data released this week showed that the country’s economy is once again under pressure from the pandemic, heralding even more weakness in its appetite for commodities. Renewed COVID curbs also appeared to have sparked civil unrest in parts of the country, even as China w...

Oil on Edge as Markets weigh Poland Strike, Sluggish Demand

16Nov

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Oil

Oil on Edge as Markets weigh Poland Strike, Sluggish Demand

Oil prices fell slightly on Wednesday as investors awaited more clarity on a potential Russian missile strike against Poland, while mixed U.S. inventory data and concerns over slowing Chinese demand also brewed more uncertainty in the market Crude markets were focused squarely on the North Atlantic Treaty Organization’s (NATO) response to a Russian-made missile killing two people in the eastern part of Poland. U.S. President Joe Biden said it was “unlikely” that the missile was fired from Russia, and that the source of the strike was still under investigation. Biden convened an emergency meeting of the Group of Seven countries and NATO leaders in Indonesia on Wednesday to discuss the blast. The alleged strike coincided with a series of Russian missile attacks against Ukraine earlier on Wed...

Oil Prices Dip as Demand Outlook Worsens on China woes, OPEC Warning

15Nov

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Oil

Oil Prices Dip as Demand Outlook Worsens on China woes, OPEC Warning

Oil prices fell in choppy trade on Tuesday and nursed steep losses this week as weak economic data from China brewed more concerns over worsening demand, although the prospect of smaller U.S. rate hikes and tightening supply helped limit losses. Crude markets plummeted at the beginning of the week after rising COVID cases in major importer China drummed up concerns over stricter lockdown measures, which could hurt crude demand in the world’s largest oil importer. Data on Tuesday showed that Chinese industrial production and retail sales performed worse than expected in October, heralding continued economic weakness in the country. A series of COVID lockdowns in China ground economic growth in the country to a halt this year, severely crimping its appetite for oil. London-traded Brent oil f...

Oil Extends Gains on China reopening Hopes, Tightening Supply

14Nov

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Oil

Oil Extends Gains on China reopening Hopes, Tightening Supply

Oil prices rose on Monday as markets bet that an eventual scaling back of COVID-19 measures in China will boost the country’s crude demand, while looming curbs on Russian oil shipments also appeared set to tighten supply Crude prices closed last week lower, but rallied sharply on Friday after China said it will loosen some measures under its strict zero-COVID policy for the first time ever. The move drummed up expectations that the world’s largest crude importer is positioning for an eventual scaling back of COVID restrictions. But the country is still struggling with a resurgence in infections, which saw renewed lockdown measures in several economic hubs. This tempered any major gains in oil prices on Monday. Brent oil futures rose nearly 1% to $96.68 a barrel in early Asian trade, while ...

Oil Falls on Weak Chinese Data, Hawkish Fed Also Weighs

3Nov

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Oil, Stock Broker

Oil Falls on Weak Chinese Data, Hawkish Fed Also Weighs

Oil prices retreated from a three-week high on Thursday after weak economic data from China pointed to more trouble in the world’s largest crude importer, while the outlook for demand was also dimmed by the prospect of higher U.S. interest rates A private survey showed that China’s massive services sector shrank for a second straight month in October, heralding more economic weakness for the country as it struggles with containing new COVID outbreaks Speculation over a possible easing of COVID curbs had somewhat brightened sentiment towards China this week. But lack of official word on the matter swiftly reversed this Slowing crude demand in China weighed on oil prices this year, as a series of COVID lockdowns ground local economic activity to a halt. China’s crude imports have fallen stea...

Oil prices rise as weaker dollar offsets China COVID-19 concerns

1Nov

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Oil

Oil prices rise as weaker dollar offsets China COVID-19 concerns

Oil prices rose on Tuesday, paring losses from the previous session, as a weaker U.S. dollar offset widening COVID-19 curbs in China that have stoked fears of slowing fuel demand in the world’s second-largest oil consumer. Brent crude for January delivery rose 73 cents, or 0.8%, to $93.54 a barrel at 0406 GMT. The December contract expired on Monday at $94.83 a barrel, down 1%. U.S. West Texas Intermediate (WTI) crude rose 58 cents, or 0.7%, to $87.11 a barrel, after falling 1.6% in the previous session. The Brent and WTI benchmarks both ended October higher, their first monthly gains since May, after the Organization of the Petroleum Exporting Countries and allies including Russia said they would cut output by 2 million barrels per day (bpd). Oil prices cut early losses as the U.S. dollar...