Crude Oil Price

President Donald Trump told OPEC on Thursday that its members should start pumping more oil, marking his second warning to the producer group this year as crude prices continue to rise.tweetTrump's latest tweet comes as OPEC and a group of allies led by Russia are cutting production following a collapse in oil prices in the final months of 2018. The output curbs by the so-called OPEC+ group have played a major part in the rebound in the oil market this year.Oil prices briefly fell nearly 2 percent after Trump's tweet, but soon rebounded, settling just pennies below Wednesday's closing price. The last time Trump tweeted at OPEC, oil prices tanked about $2 a barrel, or more than 3 percent."I would say that it is apparent that the oil market has concluded that the OPEC+ group has put President Trump's Twitter account on mute," said John Kilduff, founding partner at energy hedge fund Again Capital.Analysts say pressure from the Trump administration last year — pu…

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Business/Economy PageIf global oil price sustains its growth, Nigeria may find it comforting in implementing the benchmarks of 2019 budget, provided things go well with production levels, writes Chineme OkaforOil prices have continued to rise after member countries of the Organisation of Petroleum Exporting Countries (OPEC) announced their intention to continue on the voluntary supply cuts they agreed to roll over in 2018, but Nigeria’s production level has not followed the same direction.To underscore how significant the OPEC-led supply cut has been, recently, crude oil prices rose marginally, driven by comments from Saudi Arabian oil minister, Khalid al-Falih, that an end to the voluntary cuts was unlikely before June. This equally indicated that the cartel and its allies led by the Russian Federation could consolidate the successes they’ve reportedly made in this regard.Based on the January 2019 report of the Joint Ministerial Monitoring Committee (JMMC) of the OPEC and non-OPEC pr…

Dubai — Saudi Arabia’s economy grew in the fourth quarter of 2018 at its fastest rate since early 2016 due to an expansion in the oil sector, while non-oil growth was sluggish, statistics agency data showed on Sunday.Fourth-quarter GDP grew 3.59% from a year earlier. In the third quarter, annual growth was 2.5%.“The oil sector led the recovery in the final quarter, reflecting stronger production, particularly at the beginning of the quarter,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank.Oil dependentThe Saudi economy has suffered in recent years because of low oil prices and austerity measures aimed at reducing a huge budget deficit. In 2017, the economy shrank for the first time since the global financial crisis almost a decade earlier. The data on Sunday showed how the kingdom’s economic recovery still heavily relies on oil output.While the oil sector grew almost 6% year on year, growth in the non-oil sector — key for Saudi Arabia’s efforts to diversify its econom…

Petrol will rise by R1.34/l for 93 octane and R1.31/l for 95 octane in inland provinces.Energy minister Jeff Radebe announced the increase which will kick on from Wednesday.This means consumers will pay over R15/l."April is an important month in the fuel price calendar to revise road and pipeline tariffs as well as fuel and Road Accident Fund (RAF) levies, to be implemented into the price structures of petrol, diesel and illuminating paraffin (IP)," Radebe said.Radebe said the fuel price was going up because of:The rand depreciating against the US dollar ($) from R13.80/$ to R14.36/$;The Brent Crude oil price increasing from $64.04 to $66.01 a barrel;The fuel and Road Accident Fund levies rising; andAn increase in transport costs, including an average annual increase of 10.96% in road transport tariffs and 10.95% in pipeline transport costs announced by the National Energy Regulator of South Africa (NERSA) on March 16.

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Oil companies will this year increase their investments in offshore drilling for the first time after five years of spending cuts as optimism for this segment of the industry returns and the spotlight shifts away from shale.Bloomberg quotes industry executives attending the Scotia Howard Weil Energy Conference in Louisiana this week as saying the recovery in offshore drilling was already underway and not somewhere in the future. A big part of the reason is that offshore drilling in some parts of the world is now cheaper than drilling in the Permian.Hess Corp’s chief executive John Hess must have raised some shale-loving eyebrows at the conference when he compared the production costs of the Permian and its own Liza project offshore Guyana. To pump the equivalent of 120,000 bpd, Hess said, you’d need to spend US$12.8 billion in the Permian versus US$3.7 billion in Guyana. While this stark difference is not universal across offshore prospects and fields, it certainly gives investors som…

The ongoing turf war between U.S. president Donald Trump and OPEC+ where the oil market needs to be heading is again heating up.With a barrage of accusations, Trump has resorted again to Twitter to call upon OPEC+ to reopen its valves and bring more crude on to the market to counter increasing prices. The reaction of OPEC+ has been muted, which goes to show that Saudi Arabia, Russia and the UAE are not at all inclined to answer Trump’s demands any longer. At the same time, the effects of Trump’s Twitter war with OPEC and Russia are also waning, as analysis is showing that the market reacts violently to a Trump tweet on OPEC but very quickly recovers to its old price levels. Trump’s anti-OPEC rhetoric is clearly losing importance and impact.While OPEC and Russia (OPEC+) have decided not to convene before June 2019, the market is in flux. Reported statements that the oil market is still oversupplied, while worries about demand growth are increasing, are suddenly under scrutiny. Some ana…

I suppose to most people, the definition of the “perfect trade” is one that makes you a ton of money, but without the benefit of a crystal ball that can identify those, I prefer another definition. To me, the perfect trade is one where fundamental and technical factors combine to suggest a trade with a very good chance of success, but where there exists an opportunity to severely limit, or even better still, eradicate losses should it not work out. Right now, it looks like there is such an opportunity in the volatile world of maritime shipping.Stocks in that industry have, probably deservedly, been receiving a bad rap lately. The massive swings in Dryships (DRYS) that followed a devastating series of reverse splits, for example, left many with the distinct impression that that stock was being manipulated. The swings were less drastic at Navios Maritime (NM), but there too, reverse split followed reverse split as the stock collapsed last year.In fact, pick almost any maritime shipping …

Average daily crude oil production slipped during the month of January for the first time in nearly six months, according to the Energy Information Administration’s latest report published on Friday.January oil production for the United States averaged 11.871 million bpd for January—down from 11.961 million bpd in the month prior. The last decrease in oil production came in May 2018, when production fell to 10.464 million bpd from 10.475 million bpd in April 2018.The decrease was seen in almost all PADDs across the board including in PADD 2, PADD 3, PADD 4, and PADD 5. Some of the largest production declines were seen in Texas, Colorado, and California.Not many states increased oil production in January, with just Pennsylvania, North Dakota, and Alaska North Slope gaining that distinction.Despite January’s decline, oil production in the United States is up significantly year on year, up 1.876 million bpd since January 2018, or almost 19 percent, but as oil prices faltered toward the l…

U.S. President Donald Trump and the Saudi government have closely aligned views on most issues but they disagree significantly on the desirable level for oil prices, which could become a source of volatility in 2019/2020.In keeping with his iconoclastic approach to governing, Trump has kept up a public commentary on oil prices and the role of Saudi-led OPEC in messages on Twitter as well as television interviews.So far in 2018/19, the president’s interventions have revealed his preference for a benchmark oil price below $70 per barrel (using front-month Brent futures as a benchmark).He has normally restricted himself to generalised criticism of the Organization of the Petroleum Exporting Countries (OPEC) when prices have been below $75 per barrel.However, when prices have moved above that level, Trump has sharpened his criticism, singling out Saudi Arabia and other Gulf states, and noting that they benefit from an expensive U.S. security umbrella.The United States is increasingly both…

Protests that erupted six weeks ago in Algeria have now transformed into a million-strong force against aging Algerian strongman President Abdelaziz Bouteflika, with Exxon having already called the political unrest endgame when it stalled talks over a major Algerian shale deal just over a week ago.For investors in this oil- and gas-rich venue that is critical most immediately to Europe, the uncertainty is high enough to put everything on hold.Mass protests across Algeria erupted when Bouteflika announced he would run for a fifth term as president. Those protest forced him to rescind that decision, but the momentum against him failed to subside. Instead, it has increased and intends to do so until he steps down entirely.On Friday, news wires around the world reported that a million had gathered to protest against the president’s rule, with fighting a losing battle using tear gas.But what signals Bouteflika’s doom more than anything is the fact that the million-strong protests were cove…

WTI Crude OilThe WTI Crude Oil market initially pulled back during the week but then rallied significantly to break above the $60 handle. We found a bit of resistance there but that would be expected as it was the scene of a gap on the daily charts. That being the case, it’s likely that we are continuing to see a buildup pressure to the upside, which would of course proceed some type of explosive move. If we can break out above the top of the weekly candle, it’s likely that we go to the $65 level. Pullbacks continue to be buying opportunities.WTI Video 01.04.19[embedded content]BrentBrent markets initially fell during the week, but then turned around to show signs of life at the 200 week EMA. By turning around the way we have, it looks as if we are continuing to try to break to the upside, perhaps reaching towards the daily gap at the $70 level. Overall, this is a market that has plenty of support down at the $65 level, so it’s not until we break down below there that I would be a sel…

WTI Crude OilThe WTI Crude Oil market initially pulled back during the week but then rallied significantly to break above the $60 handle. We found a bit of resistance there but that would be expected as it was the scene of a gap on the daily charts. That being the case, it’s likely that we are continuing to see a buildup pressure to the upside, which would of course proceed some type of explosive move. If we can break out above the top of the weekly candle, it’s likely that we go to the $65 level. Pullbacks continue to be buying opportunities.WTI Video 01.04.19[embedded content]BrentBrent markets initially fell during the week, but then turned around to show signs of life at the 200 week EMA. By turning around the way we have, it looks as if we are continuing to try to break to the upside, perhaps reaching towards the daily gap at the $70 level. Overall, this is a market that has plenty of support down at the $65 level, so it’s not until we break down below there that I would be a sel…

W&T Offshore, Inc. (NYSE: WTI) experienced a high price of $7 with a low value of $6.73 at the end of the last trading session, which followed after a gain of 1.46% and settled at $6.93 during the course of the last 24 hours for the day. Respectfully, the company now has 147.78M shares after the latest changes, so the present market capitalization sits at $1.02B. The trading volume of W&T Offshore, Inc. shares went over 2,535,188 in a single day during the last trading session in comparison to the average volume of WTI, usually circulating around 2.68M.During the course of the last year, the stock has touched a high of $9.88 and a low of $3.62, which as a result has the increased attention of top market experts who are tracking the progress of the asset as it is getting closer to a notable historic high price or low value.Looking at the latest analyst forecasts, the current earnings-per-share (EPS) consensus estimate is sitting at $0.56 per share. In the preceding year, the co…

Oil producers in the United States are not hedging enough future production while oil prices trend higher, Goldman Sachs has warned.According to the investment bank, drillers were now focusing more on shareholder returns and improving cash flows than locking in future prices in a bid to make sure they don’t get burned as badly as in 2014 if prices were to crash again.“We saw a slight uptick in 2019 hedged oil production with 31% of 2019 oil production (vs. 28% with our previous update) hedged at an average price of $57.50/bbl,” Goldman analysts said in a note to clients earlier this week, adding “2019 hedged oil/liquids production is below historical averages post-4Q earnings update. We also note that 2020 hedges remain modest—only 6% of expected production is hedged vs. 4% post 3Q18 results.”Indeed, U.S. drillers are becoming more cautious. Rig counts are falling and even the Energy Information Administration earlier this month revised down its forecast for average production this ye…

Crude Oil Technicals Talking Points:Technical Forecast for Crude Oil Prices:BullishWith this past Friday’s close, we have not only cleared a week, but the month (March) and quarter as well. From a 30,000-foot view, crude oil’s performance through Q1 was exceptional. In a raw measure of movement, the commodity posted its biggest three-month rally (32 percent) since the second quarter of 2009. That is a remarkable performance for the market and it is easy to project assumptions for next steps. However, it is important to look more closely than just the quarterly candles. Even at this scale, we can tell that the best quarter seems a product of an even more extreme tumble the period before. That registers as reactive rather than productive. Further, previous instances of extreme declines have not prompted equivalent recoveries nor even the ability to fully unwind those preceding losses.Chart of US Crude Oil with 1 Period Rate of Change (Quarterly)On the opposite end of the time frame spec…

Mining for Bitcoin is a unique and modern twist on what has typically been a traditionally non-digital activity that has powered economic growth around the world for centuries – oil mining.Although mining for oil and mining for Bitcoin share few similarities beyond the principle concept, a unique system in place at a Canadian oil field creates an unlikely partnership that essentially generates Bitcoin as a byproduct of oil.Natural Gas to Power Bitcoin Mining OperationsThe operators of a large oil field in Canada are cashing out on the cryptocurrency phenomenon by using the wasted natural gas that results from mining petroleum to power a Bitcoin mining operation.On the oil field, large shipping containers sit side-by-side with oil derricks and other oil-related industrial machinery, forming a symbiotic relationship in which the natural gas that results from the mining operation is directed into a electricity generator that powers a decent sized Bitcoin mining operation.By utilizing the…

Protests that erupted six weeks ago in Algeria have now transformed into a million-strong force against aging Algerian strongman President Abdelaziz Bouteflika, with Exxon having already called the political unrest endgame when it stalled talks over a major Algerian shale deal just over a week ago.For investors in this oil- and gas-rich venue that is critical most immediately to Europe, the uncertainty is high enough to put everything on hold.Mass protests across Algeria erupted when Bouteflika announced he would run for a fifth term as president. Those protest forced him to rescind that decision, but the momentum against him failed to subside. Instead, it has increased and intends to do so until he steps down entirely.On Friday, news wires around the world reported that a million had gathered to protest against the president’s rule, with fighting a losing battle using tear gas.But what signals Bouteflika’s doom more than anything is the fact that the million-strong protests were cove…

--U.S. oil prices rose to a four-month high of $60 a barrel Friday, and posted their biggest quarterly gain since 2009 as global supplies tighten and risk appetite grows amid rising stock markets.--West Texas Intermediate futures, the U.S. oil benchmark, ended 1.4% higher at $60.14 a barrel on the New York Mercantile Exchange. Prices ended the January to March period 32% higher. That’s the strongest quarterly percentage increase since the second quarter of 2009, although the fourth quarter of last year saw oil’s biggest quarterly...

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WTI Crude OilThe WTI Crude Oil market initially pulled back during the week but then rallied significantly to break above the $60 handle. We found a bit of resistance there but that would be expected as it was the scene of a gap on the daily charts. That being the case, it’s likely that we are continuing to see a buildup pressure to the upside, which would of course proceed some type of explosive move. If we can break out above the top of the weekly candle, it’s likely that we go to the $65 level. Pullbacks continue to be buying opportunities.WTI Video 01.04.19[embedded content]BrentBrent markets initially fell during the week, but then turned around to show signs of life at the 200 week EMA. By turning around the way we have, it looks as if we are continuing to try to break to the upside, perhaps reaching towards the daily gap at the $70 level. Overall, this is a market that has plenty of support down at the $65 level, so it’s not until we break down below there that I would be a sel…

Oil rose sharply on Tuesday as OPEC supply cuts and expectations of lower U.S. inventories outweighed concern about weaker demand due to an economic slowdown.The price of global benchmark Brent crude has risen about 25 percent in 2019, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and involuntary losses due to U.S. sanctions on Iran and Venezuela.Brent was up 70 cents at $67.89 a barrel, not far from its 2019 high of $68.69 reached on March 21. U.S. crude added $1, or 1.9 percent to settle at $59.94. WTI traded above $60 earlier in the day."It appears that concerns about demand have taken something of a back seat," Commerzbank analyst Carsten Fritsch said. "Instead, market participants are focusing on the tight supply situation again."Expectations of a further drop in U.S. inventories also supported prices, suggesting the OPEC-led curbs were helping to avert a buildup of excess supplies.The first of this week's …

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!(Kitco News) - Gold and silver prices are posting moderate corrective gains in early-morning dealings Friday, following the sharp losses suffered Thursday. Overnight, gold did drop to a three-week low, while silver hit a three-month low. Some mild U.S. inflation data just released is also helping out the precious metals market bulls. April gold futures were last up $6.10 an ounce at $1,295.90. May Comex silver was last up $0.122 at $15.09 an ounce.The just-released U.S. personal income and spending report for February came in at up 0.2%, which was in line with market expectations. The January personal consumption expenditures price index came in at down 0.1% from December and up 1.8%, year-on-year. Personal spending in January came in below expectations, at up 0.1% from December. These numbers f…

Fundamental Crude Oil Forecast: NeutralCrude oil’s uptrend looks solid enoughHowever, it also looks overbought at a time of deep fundamental uncertaintyA consolidation could be coming, assuming no left-field trade newsLooking for a technical perspective on Crude Oil? Check out theWeekly Crude Oil Technical Forecast.Find out what retail foreign exchange traders make of the Australian Dollar’s prospects right now, in real time, at theDailyFX Sentiment PageCrude oil prices head into a new week still very much within the uptrend on their daily chart which has endured since the lows of last December.To be sure clear uncertainties still glower over likely global economic growth. Data from all key regions has disappointed of late, with last week’s softerUS growth numbersonly adding to the sense of deepening malaise.Of course, a feeble global economy will lead inevitably to reduced oil demand, so it’s reasonable to assume that the current up-move remains rooted in expectations of reduced supp…

Light, sweet crude oil prices fell slightly on the New York market Mar. 28 and Brent crude oil for May nudged down by only a penny on the London market while investors watched for more definite indicators regarding future oil supply and demand worldwide.“If OPEC cannot decide on its strategy or its target more than a couple months in advance, the continued absence of a long-term plan will likely lead to sharp price volatility in the lead up to the next meeting in June,” of the Organization of Petroleum Exporting Countries, Barclays said.In a Mar. 29 Blue Drum research note, Barclays’ Michael Cohen said Barclays analysts expected world oil demand will grow 1.3 million b/d in 2019 compared with 2018.“Most of this should come from US, China, India, and Brazil,” Cohen said, adding the biggest downside to Barclays forecast would be a sharper-than-expected slowing of the economies of the world’s largest oil consumers, particularly China.Barclays noted oil demand growth prospects in India an…

The first quarter has been a banner period for Wall Street.The S&P 500 rose 13.1 percent this quarter and notched its best start to a year since 1998. The broad index also posted its biggest one-quarter gain since 2009.Accompanying the S&P 500 in its ride high to start off 2019 are the Dow Jones Industrial Average, Nasdaq Composite and the Russell 2000, which tracks small-cap stocks. The 30-stock Dow gained over 11 percent, while the tech-heavy Nasdaq rallied more than 16 percent. The small-caps Russell shot up 14.2 percent.Leading the way higher for U.S. stocks this quarter was the tech sector, which skyrocketed nearly 20 percent in the period. Tech giants Apple and Microsoft — two of the biggest publicly traded U.S. companies — rose more than 16 percent each for the quarter, but the sector's best performer is an unlikely stock: Xerox. Shares of the copy and fax machine maker are up more than 60 percent to start off the year. They are also among the best-performing stocks…

Venezuela’s largest oil export terminal is has resumed operations and is now operating at 100 percent capacity after a blackout took it offline earlier in the week, according to Reuters sources, but chances are its problems are not over just yet.The most recent blackout was the second such blackout in about as many weeks, straining an already strained oil industry that serves as the lifeblood of Venezuela. The first blackout in early March shuttered the Jose oil port—Venezuela’s largest—after the Guri dam hydropower plant, supposedly responsible for supplying nearly 80% of the country with power, went offline.Some oil production, too, was shut in as a result of both blackouts, which the Maduro regime claims was an act of sabotage at the hands of the United States.While the scale of the recent blackouts is profound, Venezuela’s power blackouts are nothing new, and most experts agree that the blackouts are likely the result of the severe neglect of its infrastructure that has gone on fo…