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Showing posts from November, 2018

Oil prices poised for worst month in 10 years on spectre of supply glut - Livemint

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Futures in New York are set to drop about 21 percent in November, falling for a second month. Photo: Reuters London: Oil’s was on track for its worst month in a decade on growing fears over a global supply glut that’s been exacerbated by American waivers to Iranian crude buyers. Futures in New York are set to drop about 21 percent in November, falling for a second month. While Russia showed a willingness to join Saudi Arabia in curbing output, the outcome of an OPEC meeting in Vienna next week is still unclear as the group is under pressure from President Donald Trump to lower prices. Meanwhile, the specter of expanding U.S. crude stockpiles has also been haunting the market.After reaching a four-year high in early October, crude has collapsed more than 30 percent, marking the worst crash since 2015. While oversupply concerns were fueled by American exemptions on sanctioned Iranian oil, a trade dispute between the U.S. and China has threatened to hurt demand. Oil has remained in an ove…

Can Saudi Arabia Stop the Slide in Crude Prices? - 24/7 Wall St.

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The meeting of the G20 developed economies that began in Buenos Aires Friday has plenty on its agenda, not least of which is what two of the world’s top three crude oil producers plan to do to stop the decline in oil prices that has lopped more than 20% off the price in just two months. Russian President Vladimir Putin and Saudi Arabian Crown Prince Mohammed bin Sultan are scheduled to meet on the sidelines of the G20 meeting to discuss their next steps that are likely to be announced at next week’s meeting in Vienna of OPEC and its partners, including Russia.Ever since late 2015 when the Saudis persuaded the Russians to join an OPEC production cut in an effort to raise prices, the two countries have pretty much acted in concert when it comes to trying to get oil prices to a level high enough to fill their coffers while at the same time not so high that the price results in permanent demand destruction. The Saudis were able once virtually to dictate what the price of oil would be, but …

US Oil, Gas Reserves Hit Record Highs | OilPrice.com - OilPrice.com

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Higher prices and continued shale resource development helped push U.S. crude oil and natural gas proved reserves to new record highs in 2017, the Energy Information Administration (EIA) said in a report on Thursday.Proved reserves of U.S. crude oil jumped by 19.5 percent in 2017 from the end of 2016, reaching 39.2 billion barrels and beating the previous record of 39.0 billion barrels set in 1970.Crude oil reserves reached an all-time in 2017, as higher prices typically raise reserve estimates because exploration and production companies believe that more of their resource bases can be produced. Last year, the average WTI Crude spot price rose by 20 percent compared to 2016, exceeding $60 a barrel for the first time since June 2015 and helping to drive increases in reserves, the EIA noted.In its report for 2016, EIA said that the development in the Permian led to Texas showing the largest net increase in proved reserves of crude oil and lease condensate of all U.S. states, although t…

The Biggest Winners Of The Oil Price Slump | OilPrice.com - OilPrice.com

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Brent crude has sunk to US$60 a barrel with WTI down to US$52 and, not surprisingly, talk about Brent hitting US$100 a barrel by the end of the year is suddenly scarce. Importers are breathing a sigh of relief, no doubt, and exporters are probably beginning to worry slightly.Overall, the news about lower oil prices is good. It’s good for the emerging markets, as a Bloomberg review of the lower-price situation showed and as common sense would suggest. Every US$10 drop in the price of oil translates into a 0.5-0.7-percent of GDP increase in income in the biggest oil importers, an estimate by Capital Economics cited by Bloomberg revealed.Now, economic growth in these same emerging markets slowed down this year, prompting a number of forecasters to revise down their oil demand projections. Lower oil prices would probably spur more demand, especially if the U.S. dollar weakens, as right now the strong greenback is serving as a deterrent to oil demand growth.More demand is good for producer…

How Much Lower Can WTI Go? | OilPrice.com - OilPrice.com

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West Texas Intermediate yesterday fell to US$50 a barrel, after the Energy Information Administration reported yet another weekly inventory build with production at record highs, making the United States the biggest oil producer globally. Under other demand circumstances, this would have been cause for celebration. But with demand prospects lukewarm, traders rushed to the exit once again, reinforcing the price decline.The EIA reported a weekly inventory build of 3.6 million barrels yesterday, the tenth in a row. Normally, this shouldn’t be a big deal. Winter is weaker demand season, so inventory increases are normal. However, ten consecutive weekly builds are making traders nervous, especially amid growing worry about an oversupply that forced OPEC to start talking about cuts again.Speaking of OPEC and cuts, that’s another factor that has been pressuring prices in the last few days. Saudi Arabia was the first to mention cuts, but this week, Khalid al-Falih made it clear that the Kingd…

Oil's wild price swings keep stock investors on the sidelines of energy sector - CNBC

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Energy stocks are the worst-performing equities over the last three months, but there's one small concession for the sector. At the very least, it hasn't plummeted as much as the oil market.Oil prices have tumbled about 30 percent after hitting four-year highs at the start of October, with U.S. crude tumbling below $50 a barrel on Thursday after reaching nearly $77 weeks ago. Meanwhile, the S&P 500 energy sector is down roughly 15 percent over the same period.Analysts and portfolio managers say it makes sense that energy stocks fell less than oil prices over the last eight weeks. Since the sector didn't run up as much as crude futures during September's oil market rally, energy stocks weren't poised for such a precipitous fall.But the wild swings in the oil market over the last few months explain in part why the moves in energy stocks are less pronounced: The oil price volatility has encouraged stock investors to play wait and see."If you don't have co…

Crude Oil Price Chart Hints at Bounce Ahead of Key G20 Summit - DailyFX

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CRUDE OIL & GOLD TALKING POINTS:Crude oil price chart hints at rebound before G20 summitGold prices at risk if US/China de-escalation boosts yieldsOPEC+ output cuts may be offset by US production swellCrude oilprices rose following Reuters reports suggesting Russia is becoming convinced of the need to join another OPEC-led coordinated output cut effort. The news agency cited unnamed sources as saying that Moscow a deal may be unveiled at the cartel’s meeting held December 6-7 but negotiation cartel leader Saudi Arabia is still on-going.Goldprices edged narrowly higher, building onWednesday’spotent climb.G20 SUMMIT IN FOCUS, EIA OUTPUT DATA DUELooking ahead,EIA monthly output datamay cap near-term crude gains if it underscores that OPEC+ output reduction efforts will face a potent counterweight in swelling US production. News-flow from theG20 summitin Argentina might dominate the spotlight however as the participating country’s leaders – including the heads of China, Russia and the…

Crude oil prices plunge, propelling gas to lowest prices of the year - CBS News

Falling Crude Prices Test Big Oil’s New Financial Discipline - The Wall Street Journal

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Big oil companies maintain they are better positioned for price declines than they were years ago—a claim that will be tested if crude’s recent slump continuesOil giants like Exxon Mobil Corp., Chevron Corp. and Royal Dutch Shell PLC have slashed costs and cut spending in recent years in an effort to convince investors they can be resilient—and profitable—even when oil prices are volatile.Those...

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Heating oil prices lag behind decline in crude oil prices - Mainebiz

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by StaffThe Governor's Energy Office conducted its weekly heating fuel price survey on Monday and found the current statewide average cash price for No. 2 heating oil was $2.99 per gallon, down 2 cents from last week and the lowest average price since mid-October.The average statewide kerosene price is also 2 cents lower than last week ($3.58 per gallon). The average propane price declined 1 cent, and now stands at $2.88 per gallon (for heating customers).The office reported that after several weeks of price escalations (during September and early October), global crude oil prices have retreated from four-year highs of between $75 ( the North American benchmark price) and $85 (the European benchmark) per barrel. During November, crude oil prices have dropped sharply and currently range between $51 (North America) and $59 (Europe) per barrel, a decline of approximately 30% since the heating season began. According to Bloomberg, prices have not been this volatile since early 2016.Th…

Crude Oil Analysis: WTI breaches $50, Bears Eye Critical Support - DailyFX

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Oil PriceAnalysis and NewsPressure on OPEC to Cut is BuildingUS Stockpiles Rise for 10thConsecutive WeekFor a more in-depth analysis on Oil Prices, check out theQ4Forecast for OilPressure on OPEC to Cut is BuildingThe decline in oil prices persists with WTI and Brent crude breaking below $50 and $58 respectively. Given that there are little signs of the sell-off abating, OPEC+ members will be under increasing pressure to carry out a fresh round of oil cuts. However, judging by the recent commentary, a sizeable cut may be in doubt. Yesterday, the Nigerian Oil Minister echoed similar comments made by the Kuwaiti Oil Minister, that it is too early to say that they would be willing to participate in any cuts, while other members, including Libya and Iraq had also appeared unwilling.Production Cut Options for December 6th:500kbpd: A cut of this size would not be enough to lift oil and would most likely see oil prices resuming its selling. This in turn may see WTI test $42/bbl with Brent at…

Crude Oil Slips but Gas Surges - Rigzone

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by  Matthew V. Veazey| Rigzone Staff | Wednesday, November 28, 2018

At one point Wednesday, the January WTI crude oil price was just 7 cents above the $50 mark. At one point Wednesday, the January West Texas Intermediate (WTI) crude oil price was just seven cents above the $50 mark. After making a slight recovery, however, the WTI settled at $50.29 a barrel – a $1.27 day-on-day decline. The WTI peaked at $52.56 during the midweek session.Also losing ground Wednesday was the January Brent futures price, which fell by $1.45 to settle at $58.76 a barrel.“The weekly chart for WTI crude oil shows the market breaking our major support levels earlier this month,” said Jerry Rafferty, president and CEO of Rockville Center, N.Y.-based Rafferty Commodities Group, Inc. “The close below the 6400 area was significant and had caused us to turn bearish.”Shortly after the sub-6400 close, Rafferty on Nov. 7 told Rigzone “it would not surprise us to see the WTI market retest the 5450 level which was the o…

Crude Oil Analysis: WTI breaches $50, Bears Eye Critical Support - DailyFX

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Oil PriceAnalysis and NewsPressure on OPEC to Cut is BuildingUS Stockpiles Rise for 10thConsecutive WeekFor a more in-depth analysis on Oil Prices, check out theQ4Forecast for OilPressure on OPEC to Cut is BuildingThe decline in oil prices persists with WTI and Brent crude breaking below $50 and $58 respectively. Given that there are little signs of the sell-off abating, OPEC+ members will be under increasing pressure to carry out a fresh round of oil cuts. However, judging by the recent commentary, a sizeable cut may be in doubt. Yesterday, the Nigerian Oil Minister echoed similar comments made by the Kuwaiti Oil Minister, that it is too early to say that they would be willing to participate in any cuts, while other members, including Libya and Iraq had also appeared unwilling.Production Cut Options for December 6th:500kbpd: A cut of this size would not be enough to lift oil and would most likely see oil prices resuming its selling. This in turn may see WTI test $42/bbl with Brent at…

Crude Oil Slips but Gas Surges - Rigzone

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by  Matthew V. Veazey| Rigzone Staff | Wednesday, November 28, 2018

At one point Wednesday, the January WTI crude oil price was just 7 cents above the $50 mark. At one point Wednesday, the January West Texas Intermediate (WTI) crude oil price was just seven cents above the $50 mark. After making a slight recovery, however, the WTI settled at $50.29 a barrel – a $1.27 day-on-day decline. The WTI peaked at $52.56 during the midweek session.Also losing ground Wednesday was the January Brent futures price, which fell by $1.45 to settle at $58.76 a barrel.“The weekly chart for WTI crude oil shows the market breaking our major support levels earlier this month,” said Jerry Rafferty, president and CEO of Rockville Center, N.Y.-based Rafferty Commodities Group, Inc. “The close below the 6400 area was significant and had caused us to turn bearish.”Shortly after the sub-6400 close, Rafferty on Nov. 7 told Rigzone “it would not surprise us to see the WTI market retest the 5450 level which was the o…

Even If OPEC Cuts, Oil Prices Could Still Fall in 2019 - Bloomberg

Spotlight on oil prices, supply & demand and industry trends - Oil and Gas Middle East

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Oil prices have seen strong fluctuations in the past two months, hitting a four-year peak of $86 per barrel of Brent crude in early October, as fear and speculation about potential supply losses rose ahead of the reimpositions of sanctions against Iran by the US government.Today, oil prices sit below $60 per barrel. Badar Munir Chaudhry, head of energy at Mashreq Bank, spoke to our editor about oil price fluctuation, supply and demand, and industry trends in different oil price environments.Watch the full video below, and subscribe to our YouTube channel for the latest upstream news and analysis.[embedded content]What should we discuss in our next video? Leave a comment on Facebook or LinkedIn, or send us a tweet on Twitter and let us know!

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Crude Oil Price Chart Hints at Bounce Ahead of Key G20 Summit - DailyFX

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CRUDE OIL & GOLD TALKING POINTS:Crude oil price chart hints at rebound before G20 summitGold prices at risk if US/China de-escalation boosts yieldsOPEC+ output cuts may be offset by US production swellCrude oilprices rose following Reuters reports suggesting Russia is becoming convinced of the need to join another OPEC-led coordinated output cut effort. The news agency cited unnamed sources as saying that Moscow a deal may be unveiled at the cartel’s meeting held December 6-7 but negotiation cartel leader Saudi Arabia is still on-going.Goldprices edged narrowly higher, building onWednesday’spotent climb.G20 SUMMIT IN FOCUS, EIA OUTPUT DATA DUELooking ahead,EIA monthly output datamay cap near-term crude gains if it underscores that OPEC+ output reduction efforts will face a potent counterweight in swelling US production. News-flow from theG20 summitin Argentina might dominate the spotlight however as the participating country’s leaders – including the heads of China, Russia and the…

As Oil Prices Plunge, China Is Grabbing Every Cargo It Can Get - Bloomberg

[unable to retrieve full-text content]As Oil Prices Plunge, China Is Grabbing Every Cargo It Can GetBloombergAs oil prices plunge, there are plenty of signs that China is buying the dip -- and in potentially large volumes -- if shipping and trade data are any guide.

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Crude oil prices continuing to drop - KMID - Local 2 News

Airlines Keep the Gains From Lower Oil Prices, for Once - Barron's

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Photograph by KT Airlines are holding fast with higher fares and fees even as fuel prices slide, which could be a good sign for the stocks.Where we were: Long considered a value trap, airlines have become more attractive in recent years.Where we’re headed: Good times are here to stay, says Macquarie, given airline managements’ improved strategy and growing profits.Air travel has been possible for over a century, but something truly remarkable has happened in the past decade or so. The stocks may have finally become investable.For many years this wasn’t the case, as high fixed costs and relentless expansion held down profits and marred balance sheets. Yet more recently, the industry has turned over a new leaf. Bears will argue that this has coincided with a secular increase in demand for air travel amid a robust economy and carrier consolidation. Yet more and more analysts are willing to believe that it really is different this time.Newsletter Sign-up Add Macquarie’s Susan Donofrio to th…

Crude Oil Price Forecast - crude oil markets showing signs of support via Russia - FX Empire

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WTI Crude OilThe WTI Crude Oil market initially broke down below the $50 level during trading on Thursday but has turned around to form a bit of a supportive looking candle, perhaps something akin to a bit of a hammer. The $50 level will of course attract a lot of attention anyway, so it makes sense that we could perhaps see the market rally a bit from here, because quite frankly we are oversold. However, if we can close on the daily chart below the $50 level, that could open up much lower pricing with $47.50 being the initial target.Crude Oil Forecast Video 30.11.18[embedded content]BrentBrent markets also fell during the day but turned around of form a bit of a hammer as we said just below the $60 level at the time of writing. The downtrend line above was previously the supportive line, and now I think that signs of exhaustion between here and there should be selling opportunities. However, if we break above the top of that line, then I think the market probably goes towards the $67…

Forecast: Brent price may rise to $64 - AzerNews

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By  TrendThere is an uptrend on the hourly chart of Brent crude oil and an attempt to consolidate the price above $60 per barrel, reads the daily report of the Azerbaijani investment company InvestAZ.The company’s analysts recommend to be cautious when trading in oil futures.The company believes that if the Brent crude price stays above $60, a further rise in price is possible to $62.29 and $64.49 per barrel.Alternatively, the analysts believe that in case if the oil price breaks through the level of $58.4 per barrel in a downward direction, a further decrease in the price to $56.9 and $54.93 per barrel is possible.As of 16:57 (GMT +4), the price of Brent was $60 per barrel.The rise in oil prices on Nov. 28 is supported by media reports that the Buzzard oil field in the North Sea, with the production of 150,000 barrels per day, was temporarily closed after corrosion of pipes was detected.---Follow us on Twitter @AzerNewsAz

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Crude Oil Slips but Gas Surges - Rigzone

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by  Matthew V. Veazey| Rigzone Staff | Wednesday, November 28, 2018

At one point Wednesday, the January WTI crude oil price was just 7 cents above the $50 mark. At one point Wednesday, the January West Texas Intermediate (WTI) crude oil price was just seven cents above the $50 mark. After making a slight recovery, however, the WTI settled at $50.29 a barrel – a $1.27 day-on-day decline. The WTI peaked at $52.56 during the midweek session.Also losing ground Wednesday was the January Brent futures price, which fell by $1.45 to settle at $58.76 a barrel.“The weekly chart for WTI crude oil shows the market breaking our major support levels earlier this month,” said Jerry Rafferty, president and CEO of Rockville Center, N.Y.-based Rafferty Commodities Group, Inc. “The close below the 6400 area was significant and had caused us to turn bearish.”Shortly after the sub-6400 close, Rafferty on Nov. 7 told Rigzone “it would not surprise us to see the WTI market retest the 5450 level which was the o…

Oil Price Fundamental Daily Forecast – Counter-Trend Buyers Pinning Hopes on Production Cuts, Trade Deal - FX Empire

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading higher shortly before the regular session opening, reversing earlier weakness. Although today’s early sell-off contributed to the largest one-month decline in crude oil since the financial crisis of 2008, the intraday technical reversal is the first sign in weeks that the buying may be greater-than-the-selling at current price levels.At 1300 GMT, January WTI crude oil is trading $50.97, up $0.68 or +1.35% and January Brent crude oil is at $59.42, up $0.66 or +1.12%.Fundamentally, investors remain concerned about the continuous flow of U.S. supply along with new worries that Saudi Arabia is insisting that it will not cut production on its own to stabilize supply and prices.Yesterday’s huge stock market rally and the plunge in the U.S. Dollar offered no relief from the selling in the dollar-denominated commodity.Russian President Vladimir Putin contributed to the weakness when he said he was sat…

Putin: Russia Is Fine With $60 Oil | OilPrice.com - OilPrice.com

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Russia is comfortable with the current level of oil prices at around $60 a barrel, Russian President Vladimir Putin said at an investment forum on Wednesday, also thanking Saudi Arabia and its Crown Prince Mohammed bin Salman for the OPEC-Russia cooperation in managing the oil market.Russia is comfortable with $60 oil, as its budget is balanced at $40 oil price, and for next year, that budget-balance oil price is calculated at $43 a barrel, Putin said today, a week ahead of the OPEC+ meeting in Vienna and just a few days before the G-20 summit in Buenos Aires, at which Putin is expected to meet separately with U.S. President Donald Trump and with the Saudi Crown Prince.“We are now in contact with OPEC and if needed, we will continue this joint work,” Putin said, referring to the OPEC cooperation with non-OPEC nations led by Russia.  Just two weeks ago, speaking to reporters about the OPEC+ deal, Putin said:“As for the need to limit production or not, I will not say anything about this…

Oil Falls On Crude Inventory Build | OilPrice.com - OilPrice.com

Natural Gas Prices Fall Below Zero In Texas | OilPrice.com - OilPrice.com

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Surging U.S. oil production in the Permian basin has helped crash oil prices. But the Permian is also home to skyrocketing natural gas production, and output is growing so fast that drillers are trying to give it away for free. When they can’t, they just burn it off into the atmosphere.Unlike in the Marcellus shale, where natural gas is the main target, drilling in the Permian is focused entirely on crude oil. Natural gas is a nice bonus that comes along with the oil. But the drilling frenzy in West Texas and New Mexico has resulted in a glut of this associated natural gas. There is a pipeline bottleneck for crude oil, but there is also a shortage of pipeline space for natural gas.The glut has become so bad that next-day prices for gas at the Waha hub in the Permian have plunged to a record low, falling to as low as 25 cents per MMBtu. In some instances, producers have actually sold some gas at negative prices. That means that a company is paying someone else to take the gas off of th…

Oil Prices Steady After API Reports Crude Build, Gasoline Draw - OilPrice.com

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The American Petroleum Institute (API) reported a crude oil inventory build of 3.453 million barrels for the week ending November 23, compared to analyst expectations that we would see a much more modest build in crude oil inventories of 769,000 barrelsLast week, the API reported a draw, in what was the first draw after six weeks of straight builds as reported by the API. A day later, the EIA had an alternate version of crude oil inventories, reporting a build instead of 4.9 million barrels. Using EIA’s figures, this would make the tenth straight week of inventory builds for crude oil.These weeks and weeks of inventory builds, combined with fears of diminishing demand and Washington’s waivers for eight countries to continue oil purchases from Iran for 180 days have combined to push prices ever lower.Inventories in the Cushing, Oklahoma facility this week had climbed by 1.302 million barrels.Prices rose slightly on Tuesday prior to the data release as optimism grew that OPEC will indee…

Iran Suspends Gas Exports To Iraq After Earthquake | OilPrice.com - OilPrice.com

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Iran halted late on Tuesday gas exports to neighboring Iraq for several days, in order to repair pipeline damages caused by an earthquake near the Iraqi border on Sunday night, Reuters reported on Wednesday, citing a statement from Iraq’s electricity ministry.Major Iraqi power plants are dependent on Iranian natural gas supply.On Sunday night, a 6.3-magnitude earthquake in Iran’s western Kermanshah province near the border with Iraq wounded more than 700 people.Now Iran is trying to repair the damages to the gas pipeline to Iraq, and the halt of exports for a few days would cut supply to Iraq’s power grid by 2,500 MW, according to the Iraqi electricity ministry. Iraq’s oil ministry will supply the stations dependent on Iranian gas with fuel to keep them working during the Iranian supply halt, but there could be power cuts in provinces of the power plants affected, Reuters quoted Iraq’s electricity ministry as saying.Iraq is looking to obtain a U.S. approval to continue importing Irani…

WTI oil price slides under $50 per barrel - ABS-CBN News

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LONDON - One of the world's major oil contracts, New York's WTI, slumped under $50 per barrel on Thursday, reaching the lowest level in nearly 14 months.WTI and Brent North Sea crude, another benchmark contract, have been tumbling for weeks on fears of a supply glut -- despite oil kingpin Saudi Arabia planning an output cut and urging other producer nations to follow suit.WTI hit as low as $49.41 per barrel, the lowest point since October last year.Around 1025 GMT and after a slight recovery, WTI stood at $49.83, down 46 cents compared with Wednesday's close.Brent was down 63 cents at $58.13.

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Crude Oil Price Outlook: WTI Catches Support at $50- Can It Hold? - DailyFX

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In this series we scale-back and look at the broader technical picture to gain a bit more perspective on where we are in trend.Crudeoilhas plummeted a staggering 33% from the yearly highs registered just last month with prices poised to snap a seven-week losing streak after rebounding from nearby confluence support. Here are the keytargets & invalidation levelsthat matter ontheCrude Oil (WTI)weekly chartheading into the close of the month.Review this week’s Strategy Webinarfor an in-depth breakdown of this setup and more.New toOil Trading? Get started with thisFreeHow to Trade Crude Oil Beginners GuideCrude Oil Weekly Price Chart (WTI)Notes:Earlier this month our ‘bottom line’ highlighted thatcrude oil priceswere, “approaching the first major support confluence at 57.45-58.10.” We noted that a break below this zone would risk, “accelerated losses in crude prices with such a scenario targeting the 55-handle backed by the 200-week moving average around ~52.25”Crude broke lower days …