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Showing posts from December, 2018

US crude ends 2018 down 25%, settling at $45.41, first annual loss since 2015 - CNBC

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Oil prices were little changed on the final day of the year, but posted their first annual drop in three years as fears of a slowing global economy and emerging supply glut outweighed impending production cuts from OPEC nations.Both oil benchmarks are down more than a third this quarter, the steepest decline since the fourth quarter of 2014. For the year, U.S. crude has lost almost 25 percent, while Brent is off by nearly 20 percent.A tweet by U.S. President Donald Trump claiming progress on a possible U.S.-China trade deal pushed crude prices up more than 2 percent in early trading on Monday. But oil lost ground as traders focused to data showing sluggish Chinese manufacturing activity in December, analysts said."That's raising concerns about demand growth," said Phil Flynn, an oil markets analyst at Price Futures Group in Chicago. "Everybody is convinced the trade war is going to slow down global economic growth and demand for oil." U.S. West Texas Intermediat…

Crude Oil Prices Rise As EIA Oil Data Ease Oversupply Fears - Investor's Business Daily

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U.S. crude oil prices rose Friday, adding to recent gains as analysts were bullish about oil in 2019. Domestic crude oil inventories edged lower, countering a report suggesting another big build.XU.S. crude oil inventories fell by 46,000 barrels last week, while gasoline supplies swelled 3 million barrels, the Energy Information Administration said Friday morning. Domestic crude oil production rose slightly to 11.7 million barrels per day. The EIA data were delayed from Wednesday due to the Christmas holiday.The crude oil inventories drop was less than the 1.4-million-barrel decline forecast by S&P Global Platts. But late Thursday, the American Petroleum Institute reported a 6.92 million-barrel increase in U.S. crude stockpiles, fueling oversupply worries.Ahead of the EIA data release, Phil Flynn, a senior market analyst at Price Futures Group, said the API report appeared to be "out of whack.""The numbers seemed to be out of whack and it is most likely because they…

Shandong's Crude Imports Hit New High In December | OilPrice.com - OilPrice.com

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Shandong’s crude imports hit an all-time high in December, as some independent refiners tried to use up their quotas for 2018.About 12 million metric tonnes of imported crude reached Shandong in December, which doubled the province’s monthly import in the third quarter, JLC shipping schedules show.The biggest buyer was China National Chemical Corporation, taking in 1.40 million mt of crude oil.Dongming Petrochemical ranked second with about 1.3 million mt of imported crude in December, including two 260,000-mt cargoes of Upper Zakum crude, the shipping schedules indicate. The company also bought a 270,000-mt cargo of Castila crude from Colombia, and shipments of Mandji, Napo, Urals and Kissanje crude, respectively.Hongrun Petrochemical took about 1.16 million mt and Chambroad Petrochemical received about 800,000 mt. Other noteworthy buyers included Lijin Petrochemical, Landbridge Petrochemical, Hulian Petrochemical, and Changyi Petrochemical.As cargo arrivals peaked in December but in…

Canadian Rig Count Slumps At Year-End | OilPrice.com - OilPrice.com

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Canada’s drilling rig count fell by 61 rigs in the last week of December from a week earlier, with the annual decline at 66 rigs, per the latest weekly rig count report by Baker Hughes. As Canadian drillers gear up for winter season, the rig count usually drops before the end of the year, this year, the figures add a more grim shade to the landscape of the Canadian oil industry, which this year suffered a major slump of the local benchmark, Western Canadian Select, to West Texas Intermediate, at one time dipping to a discount of over US$50 to WTI.Over the last two weeks of the month and the year, according to the data, the number of active drilling rigs deployed in Canada fell by a combined 104 to just 70, highlighting the effect of low local oil prices but also the obligatory production cuts enforced by the Albertan government to arrest the slide in prices and clear excessive crude oil inventory.The production cut will begin at a rate of 325,000 bpd, to be reduced to 95,000 bpd once …

Shale Drillers Cut Budgets as Oil Prices Drop - The Wall Street Journal

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Some frackers are scaling back next year’s drilling plans amid weak crude prices, a quick reversal for an industry that months earlier expected 2019 to be a banner year.Still, the cuts so far have been modest and shale drillers remain on track to push U.S. crude production to new highs next year, further pressuring a global market straining because of oversupply.Producers...

https://on.wsj.com/2EU5vwl

Low Oil Prices Could Cripple Texas Job Growth | OilPrice.com - OilPrice.com

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Job growth in Texas is not exactly screeching to a halt, but low oil prices could start to lead to weaker employment figures. “The Texas labor market will likely tighten further in the months ahead; however, if oil prices continue to linger around $50 per barrel, job growth in the state may begin to decelerate. Texas exports are also likely to weaken,” the Federal Reserve Bank of Dallas said in a report.The oil and gas sector was one of the key drivers of job growth in Texas in 2018. But the crash of oil prices since October could throw sand in the gears of the Texas growth engine. The biggest question is how long the bust will last. If WTI rebounds in 2019, the impact on employment might not be that large. But the longer WTI wallows below $50, the more likely the energy sector will see layoffs.The Dallas Fed notes that large changes in oil prices impact Texas job growth on a roughly six-month lag. So, we have not seen the impact yet. “This pattern suggests that if oil prices remain l…

Crude Oil Price Update – Needs to Clear Weekly Fibonacci Level at $50.03 to Generate Upside Momentum - Yahoo Finance

Oil Set For First Annual Drop In Three Years | OilPrice.com - OilPrice.com

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Despite a slight recovery in oil prices on the last day of 2018, benchmarks are set for their first overall annual decline since 2015, Reuters reports, noting since the start of trading in Asia today, Brent crude and West Texas Intermediate had gained around 1 percent each.There seem to be too many uncertainties around oil for a stronger recovery, after prices began sliding in early October, after earlier this year rallying to above US$80 a barrel for Brent, albeit briefly. Concern about global economic growth and the next moves in the U.S.-China trade war are among the top factors at play. OPEC’s latest decision to begin cutting production from January is also a consideration, although the price trends from the past couple of months suggest the market was disappointed with the level of cuts.President Trump has indicated a deal with China may be in the works, but uncertainty will likely persist until the moment such a deal is announced. A trade deal between the world’s biggest oil pro…

OPEC will cut output further if oil prices fail to recover: Algerian energy minister - S&P Global Platts

Algiers — Algeria's energy minister said he was confident oil prices will return to between $65 and $70 a barrel by April, but stressed that the OPEC alliance would cut production further if the market had not responded by then.Not registered?Receive daily email alerts, subscriber notes & personalize your experience.Register Now "If the situation requires a further reduction, we will do it," Algerian energy minister Mustapha Guitouni said Sunday in Algiers, according to the official APS agency, in response to the plunge in oil prices which has seen benchmark Brent crude drop from $86 a barrel in October to close to $50 a barrel at the end of 2018.OPEC, Russia and nine other non-OPEC allies agreed earlier this month to a combined 1.2 million b/d supply reduction for the first six months of 2019, to shore up what many expect to be weakening market fundamentals ahead. They plan to meet in April to assess market conditions, given the surge in US shale production -- which …

Brent Crude Oil Price Update – Headed to Multi-Year Lows if $50.31 Fails as Support - Yahoo! Finance News

Oil Higher in Monday Trade - DTN The Progressive Farmer

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Despite the early gains, sentiment for oil futures remains bearish, with WTI futures settling at a 1-1/2 year low on the spot continuous chart on Christmas Eve. Brent and ULSD futures each ended at nearly 1-1/2 year spot lows last week, while RBOB futures registering its lowest settlement on the spot continuous chart since late February 2016.Nymex February WTI futures were up $0.35 near $45.70 barrel (bbl), while down nearly $15 or 20% on a spot continuous basis in 2018. ICE March Brent futures were up $0.65 near $53.85 bbl, with Brent set to register a 16% decline in value on the spot chart in 2018.Nymex January ULSD futures were up 2.8 cents near $1.6930 gallon, with the February contract trading at a 0.8 cents discount to the expiring contract. ULSD futures are down nearly 40.0 cents or 16% in 2018. Nymex January RBOB futures are up $0.95 near $1.3355 gallon, with the February contract trading at a 3.5 cents discount to January delivery. RBOB futures are poised to drop more than 0.…

Oil prices rise, but set for first annual decline since 2015 - Livemint

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Brent crude futures - the international benchmark for oil prices - rose 17 cents, or 0.3 percent, to $53.38 a barrel. Photo: Bloomberg Singapore: Oil prices edged higher on the last trading day of the year on Monday, taking a cue from firmer stock markets, but remain on track for the first yearly decline in three years amid concerns of a supply glut. Hints of progress on a possible US-China trade deal helped bolster sentiment, which has been battered by concerns over a weaker global economic outlook.Brent crude futures - the international benchmark for oil prices - rose 17 cents, or 0.3 percent, to $53.38 a barrel by 0115 GMT. Brent has shed about 20 percent in 2018 following two years of successive growth. U.S. West Texas Intermediate (WTI) crude futures were at $45.52 a barrel, up 19 cents, or 0.4 percent, from their last close. WTI is down nearly 25 percent this year.Crude prices have been closely tracking equity markets during volatile trading for both asset classes last week.“Inve…

'We live and die by the price of oil': Texas business executives sound off on Trump, tariffs, and more in.. - Business Insider

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Henry Romero/ReutersThe outlook among manufacturing business executives in Texas worsened in December, underscoring frustrations around trade-related uncertainty within the manufacturing sector nationwide.The latest survey from the Federal Reserve Bank of Dallas showed both its general business activity index and company outlook index plunged to their lowest levels since mid-2016.Data for the survey was collected between December 18 and 26, during a particularly volatile time in the financial markets. "We face great uncertainty for the near future," one respondent wrote. "The economic policies of President Trump are causing unnecessarily volatile pricing and unpredictable outcomes." Executives in Texas have grown more negative in their overall business outlooks, according to the latest reading from the Federal Reserve Bank of Dallas, accentuating broad tariff-related concerns across the manufacturing sector nationwide.Several measures of business activity dipped in…

Petrol prices cut today, diesel rates fall to lowest in 9 months - Livemint

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Petrol today retailed at Rs 68.84 a litre in Delhi and diesel Rs 62.86. New Delhi: Petrol and diesel prices continued their downward trend, with rates cut around 19 paise to 25 paise per litre in top cities. Petrol prices fell to their lowest level in 2018, after rates were cut by 19-21 paise. Diesel rates, cut around 23-25 paise today, fell to their lowest in nine months. In Delhi petrol retailed at Rs 68.84 a litre, in Kolkata Rs 70.96, in Mumbai Rs 74.47, in Chennai Rs 71.41, in Bengaluru Rs 69.39 and in Noida Rs 69.04.Similarly, in Delhi diesel retailed at Rs 62.86 a litre, in Kolkata Rs 64.61, in Mumbai Rs 65.76, in Chennai Rs 66.35, in Bengaluru Rs 63.2 and in Noida Rs 62.44. Tracking a fall global oil prices, domestic petrol and diesel prices have been on a decline over three months. The retail selling price of petrol and diesel is dependent on the international prices of benchmark fuel and the rupee-US dollar exchange rate as a large proportion of the country’s requirement is m…

Oil Set For First Annual Drop In Three Years | OilPrice.com - OilPrice.com

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Despite a slight recovery in oil prices on the last day of 2018, benchmarks are set for their first overall annual decline since 2015, Reuters reports, noting since the start of trading in Asia today, Brent crude and West Texas Intermediate had gained around 1 percent each.There seem to be too many uncertainties around oil for a stronger recovery, after prices began sliding in early October, after earlier this year rallying to above US$80 a barrel for Brent, albeit briefly. Concern about global economic growth and the next moves in the U.S.-China trade war are among the top factors at play. OPEC’s latest decision to begin cutting production from January is also a consideration, although the price trends from the past couple of months suggest the market was disappointed with the level of cuts.President Trump has indicated a deal with China may be in the works, but uncertainty will likely persist until the moment such a deal is announced. A trade deal between the world’s biggest oil pro…

Low Oil Prices Could Cripple Texas Job Growth | OilPrice.com - OilPrice.com

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Job growth in Texas is not exactly screeching to a halt, but low oil prices could start to lead to weaker employment figures. “The Texas labor market will likely tighten further in the months ahead; however, if oil prices continue to linger around $50 per barrel, job growth in the state may begin to decelerate. Texas exports are also likely to weaken,” the Federal Reserve Bank of Dallas said in a report.The oil and gas sector was one of the key drivers of job growth in Texas in 2018. But the crash of oil prices since October could throw sand in the gears of the Texas growth engine. The biggest question is how long the bust will last. If WTI rebounds in 2019, the impact on employment might not be that large. But the longer WTI wallows below $50, the more likely the energy sector will see layoffs.The Dallas Fed notes that large changes in oil prices impact Texas job growth on a roughly six-month lag. So, we have not seen the impact yet. “This pattern suggests that if oil prices remain l…

This Supermajor Is Leading The Energy Sector | OilPrice.com - OilPrice.com

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ConocoPhillips is the best-performing energy stock on the S&P 500 Energy Index this year. The news is all the more impressive because it is the only stock with a positive performance on the index in the year to date, Bloomberg reported this week, adding that the S&P 500 Energy Index has itself booked a 25-percent slide since the beginning of 2018, on track to finish with the worst annual performance since the 2008 crisis. Conoco clearly stands out.In fact, the supermajor has been standing out in the oil crowd for a while now. Earlier this year, when the company announced it would be parting with some of its acreage in the Permian and South Texas, some were confused: wasn’t everyone flocking to the Permian? But Conoco made it clear it’s not an “at all costs” situation for it. The company offloaded some non-core assets worth US$250 million to focus on its priorities, among them higher shareholder returns and a focus on higher-return projects.As of April this year, Conoco’s avera…

Oil Markets Brace For A Rebound | OilPrice.com - OilPrice.com

What changed your markets while you were sleeping - Economic Times

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NEW DELHI: Domestic stock indices look set to open on a strong note amid firm cues from Asian markets. Will they manage to breach the crucial resistance levels on technical charts to ring in the New Year on an optimistic note? Let's check out what all might matter to Dalal Street on Monday:Singapore trading sets stage for gap-up start
Nifty futures on the Singapore Exchange were trading 42.50 points, or 0.39 per cent, higher at 10,964, indicating a gap-up for the Nifty50.Tech view: Nifty forms small bullish candle
Nifty50 on Friday climbed for a third straight session and formed a small bullish candle on the daily chart. The index made higher high higher low formation for the second in a row, suggesting momentum was shifting in favour of the bulls. That said, the tug of war with the bears is evenly balanced. Levels around 10,890 would be crucial for Nifty, a breach of which may intensify buying momentum.Asian shares trade higher
Asian stocks crept higher on Monday as hints of prog…

Venezuela restates rights after confronting two oil exploration ships - UPI News

Dec. 26 (UPI) -- The Venezuelan government said it rejected an "impertinent" and interventionist comment by the United States State Deparment over its Sunday interception of two exploration ships in its sovereign waters.The two oil explorations ships were "within the projection of the delta of the Orinoco of Venezuela, so they could have never been located in the Economic Exclusive Zone of Guyana," a statement from the Venezuelan foreign ministry issued Tuesday afternoon said. Guyana had earlier said it was only one ship, intercepted on Saturday."The ships left Venezuelan waters after an exchange of communications with the National Bolivarian Navy, which was carried out strictly following international laws and the Bolivarian Peace Diplomacy," the Venezuelan government added.The Venezuelan Foreign Ministry said "it is evident that the U.S. government interferes at its convenience in a matter that is absolutely outside of its incumbency so as to promot…

Buy 5 Dow Stocks to Strengthen Your Portfolio in 2019 - Yahoo Finance

Oil Markets Brace For A Rebound | OilPrice.com - OilPrice.com

What changed your markets while you were sleeping - Economic Times

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NEW DELHI: Domestic stock indices look set to open on a strong note amid firm cues from Asian markets. Will they manage to breach the crucial resistance levels on technical charts to ring in the New Year on an optimistic note? Let's check out what all might matter to Dalal Street on Monday:Singapore trading sets stage for gap-up start
Nifty futures on the Singapore Exchange were trading 42.50 points, or 0.39 per cent, higher at 10,964, indicating a gap-up for the Nifty50.Tech view: Nifty forms small bullish candle
Nifty50 on Friday climbed for a third straight session and formed a small bullish candle on the daily chart. The index made higher high higher low formation for the second in a row, suggesting momentum was shifting in favour of the bulls. That said, the tug of war with the bears is evenly balanced. Levels around 10,890 would be crucial for Nifty, a breach of which may intensify buying momentum.Asian shares trade higher
Asian stocks crept higher on Monday as hints of prog…

Venezuela restates rights after confronting two oil exploration ships - UPI News

Dec. 26 (UPI) -- The Venezuelan government said it rejected an "impertinent" and interventionist comment by the United States State Deparment over its Sunday interception of two exploration ships in its sovereign waters.The two oil explorations ships were "within the projection of the delta of the Orinoco of Venezuela, so they could have never been located in the Economic Exclusive Zone of Guyana," a statement from the Venezuelan foreign ministry issued Tuesday afternoon said. Guyana had earlier said it was only one ship, intercepted on Saturday."The ships left Venezuelan waters after an exchange of communications with the National Bolivarian Navy, which was carried out strictly following international laws and the Bolivarian Peace Diplomacy," the Venezuelan government added.The Venezuelan Foreign Ministry said "it is evident that the U.S. government interferes at its convenience in a matter that is absolutely outside of its incumbency so as to promot…

Buy 5 Dow Stocks to Strengthen Your Portfolio in 2019 - Yahoo Finance

OPEC+ Deal Not Enough To Save The Oil Market | OilPrice.com - OilPrice.com

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If the goal of the OPEC+ cuts was to boost oil prices, then the deal is clearly failing.OPEC+ is scrambling to figure out a way to rescue oil prices from another deep downturn. WTI is now down into the mid-$40s and Brent into the mid-$50s, both a 15-month low. U.S. shale continues to soar, even if shale producers themselves are now facing financial trouble with prices so low. Oil traders are clearly skeptical that OPEC+ is either willing or capable of balancing the oil market.OPEC+ thought they secured a strong deal in Vienna in early December, but more needs to be done, it seems. OPEC’s Secretary-General Mohammad Barkindo wrote a letter to the cartel’s members, arguing that they need to increase the cuts. Initially, the OPEC+ coalition suggested that producers should lower output by 2.5 percent, but Barkindo said that the cuts need to be more like 3 percent in order to reach the overall 1.2 million-barrel-per-day reduction.More importantly, the group needs to detail how much each cou…

Oil Q1 Technical Forecast: WTI Crude Price Range at Best, Bear Breakdown at Worst - DailyFX

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Naturally, oil is a key factor in global growth and is acutely sensitive to oversupply given the homogeneity of crude. When global risk markets topped in early October, few saw what was on the horizon before 2018’s end. October brought 2018’s second risk of heart-attack (with first one in February that aggressively brought down risky assets). On October 3, crude traded at a 4-year high of $76.81/bbl, but near the end of December, the market had fallen to the mid-$40/bbl level.Oil Price Chart: Monthly Timeframe (May 2013 to December 2018)Chart Created byTyler Yell, CMTThe chart above begins in H1 2014 before the last oil crash with Ichimoku and Andrew’s Pitchfork applied. Ichimoku is a wonderful trend following indicator that is known for the cloud that acts as support in an uptrend and resistance in a downtrend. Naturally,we’re currently focusingon the latter.Technically, only a break above the cloud that stretches from $53-$60 would shift the view from neutral at best or bearish at w…

WTI Weekly: Sell-Side Breakdown Early Week, Price Discovery To 42.36s, Rejection Of The Low - Seeking Alpha

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In this article, we examine the significant weekly order flow and market structure developments driving WTI price action.23-28 December 2018:As noted in last week’s WTI Weekly, the primary expectation for this week was for price discovery lower within the context of potential development of a structural low within the major cluster, 40s-55s. Our primary expectation played out as last week’s unsecured low and late week selling resulted in an aggressive sell-side breakdown early week amidst the holiday shortened auctions, driving price lower to 42.36s. Buying interest emerged there, rejecting the low, as rotation higher to 47s developed before two-sided trade developed late week, 44.37s-46.22s, before closing at 45.33s. While not yet certain, the structural low development may have begun with this week’s false breakdown and subsequent structural buy excess, 42.36s-44.37s.This week’s auction saw price discovery lower Monday as last Friday’s large selling into the close of the week held a…

US crude falls 3.5%, settling at $44.61, as stock market retreats - CNBC

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Oil prices fell on Thursday after rebounding 8 percent in the previous session, with futures pressured by concerns over a faltering global economy and worries about a glut in crude supply.U.S. light crude oil ended Thursday's session $1.61 lower at $44.61 for a loss of 3.5 percent. Brent crude oil was down $2.45, or 4.5 percent, at $52.02 a barrel by 2:27 p.m. ET.Prices surged on Wednesday, tracking heavily with a spike in the U.S. equities market after President Donald Trump's administration attempted to shore up investor confidence.However, U.S. stocks retreated on Thursday, dragging oil prices down with them."In the absence of major oil specific headlines, the petroleum complex has become 'attached to the hip' of the equities amidst this week's extreme price moves that have been developing in both directions," Jim Ritterbusch, president of Ritterbusch and Associates, said in a note. Both Brent and WTI have lost more than a third of their value since the…

Brent Crude Oil Price Update – Holding $52.95 Pivot Could Trigger Breakout Over $55.58 with $57.11 First Target - Yahoo Finance

Crude Oil Price Update – Needs to Hold $44.68 Pivot to Generate Any Upside Momentum - Yahoo Finance

Oil Prices Set To Rebound In 2019 | OilPrice.com - OilPrice.com

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Crude prices finished off the year with a small rally, and analysts are suggesting oil could climb even higher in the coming months. (Click to enlarge)(Click to enlarge)(Click to enlarge)(Click to enlarge)(Click to enlarge)(Click to enlarge)(Click to enlarge)(Click to enlarge)Wall Street: Oil prices will rebound.Most major investment banks are forecasting a rebound in oil prices in 2019. Price forecasts vary widely, but most have both WTI and Brent above current spot prices. Bank of America Merrill Lync, for instance, sees WTI averaging $59 per barrel in 2019. Citi is at the bearish end with a $49 price target. For Brent, Barclays says the benchmark will average $72, and a half dozen other investment banks have price estimates within a few dollars of that price.Financial volatility continues. After suffering steep losses at the start of the week, financial markets rallied strongly on Wednesday and into Thursday, regaining all the lost ground from Monday. Weak industrial data from Chin…