WTI Clears $70 Level on Speculative Buying

08 May, 2018, 00:55 | Author: Eric Barnett
  • An oil well is seen at the Sindbad oil field near the Iraqi Iranian border in Basra

"It seems that the bureaucratic wheels are turning in Washington to prepare for a sanctions snapback", RBC Capital Markets analyst Helima Croft said in a note, adding that "the extraterritorial nature of USA sanctions, which cover energy, shipbuilding, finance, trade, insurance, etc., means that.Iran's oil exports could credibly be curtailed by 200,000-300,000 bpd".

Crude prices started the week in an upbeat mood on Monday, reaching their strongest level in nearly four years as traders increased their bets the US would pull out the Iran nuclear deal, raising the potential for tighter global oil stockpiles. Prices climbed 0.3% last week.

But US output has soared by more than a quarter in the past two years to 10.62-million barrels per day and is likely to rise further in 2018 as energy companies keep drilling.

President Hassan Rouhani said on Sunday Iran had plans to respond to any move by Trump and the USA would regret a decision to exit the accord. The timing couldn't be any better for them given the May 12 Iranian nuclear deal deadline that is putting President Trump in a very troubling position on whether to reimpose sanctions that would reduce Iranian oil exports, which would send oil prices even higher.

US gasoline and product prices will also rise. Energy stocks rose as crude oil prices traded above $70 a barrel for the first time since November 2014.

Brent for July settlement rose $0.73 to $75.60/bbl on the London-based ICE Futures Europe exchange. Shannon Rivkin, investment director of Australia's Rivkin Securities, said that oil prices had been driven up due to "growing concerns over the economic collapse of Venezuela and its oil industry, plus possible new sanctions against Iran from the Trump administration".

While refusing to reveal what he will do on Saturday, Trump reiterated his belief the existing accord is "a disgusting agreement for the United States", but "that doesn't mean I wouldn't negotiate a new agreement".

"If Trump abandons the deal, he risks a spike in global oil prices", said Ole Hansen, head of commodity strategy at Saxo Bank, adding that reintroducing USA sanctions could remove 300,000-500,000 bpd of Iranian oil from global supplies. America's European allies continue to back the deal, saying it has been essential to reining in Iran's nuclear program. A recent report by the International Energy Agency shows that global demand expanded by 1.5 million barrels per day a year ago, representing a 1.6 per cent annual increase. The last time the United Nations imposed similar sanctions on Iran in 2006, the price of oil shot up from $60 to $145 USA, the bank noted - although there were other factors at play at the time, too. Since sanctions were eased as of January 2016, Iran's crude production has nearly doubled and its exports soared last month to record levels.

In other data, the United States rig count increased by nine to a total of 834 producing oil rigs.


  • Timelapse video captures lava flowing from Hawaii's Kilauea Volcano

    Timelapse video captures lava flowing from Hawaii's Kilauea Volcano

    At the same time, erupting lava has already reached the city and began to destroy buildings and local infrastructure. Stovall says there is no indication when the lava flow may stop. "There's more magma in the system to be erupted".
    Black and Hispanic Unemployment in America Reach Record Lows

    Black and Hispanic Unemployment in America Reach Record Lows

    Manufacturing employment has risen by 245,000 over the year, with about three-fourths of the growth in durable goods industries. Consumer prices rose at a year-over-year pace of 2.4 percent in March, the sharpest annual increase in 12 months.
    Trump to attend the NRA conference in Dallas

    Trump to attend the NRA conference in Dallas

    In reality, the NRA was not responsible for the decision to bar attendees from carrying guns at the 2018 Leadership Forum. Guns were also banned during Trump's appearance at the NRA's annual meeting in Atlanta a year ago .
  • West Ham and Leicester City among clubs scouting top match tonight

    West Ham and Leicester City among clubs scouting top match tonight

    West Ham go into their game against Leicester City knowing a win would be huge in securing Premier League football next term. Within an hour, it seemed, it was out there for public consumption, which is also disappointing.
    Disney Joke Wasn't Allowed In Deadpool 2

    Disney Joke Wasn't Allowed In Deadpool 2

    The song is called " Ashes " and its music video features the singing sensation and the superhero himself, dressed to the T. While speaking with Starnews Korea , Reynolds let fans know that there might not be a Deadpool 3 as folks envision it.
    Fresh quakes rock Hawaii's Big Island after volcano erupts

    Fresh quakes rock Hawaii's Big Island after volcano erupts

    Close-up footage shot by a drone showed lava emerging from a fissure in a wooded residential neighbourhood and oozing down a road. Rhea Lee-Moku, a spokeswoman for the company, said: "It's kind of like being on some kind of carnival ride if you will".
  • WWE Backlash: The Two Superstars To Join The Preview Show

    WWE Backlash: The Two Superstars To Join The Preview Show

    For the first time since 2009 Backlash will feature as a dual-branded show as WWE roll into its fifth pay-per-view event in 2018. WWE Backlash , unlike others, will be a 3-hour event, and it will be broadcasted live from Newark, New Jersey on Sunday 6th.
    Gomez Claims GGG Is Scared Of Canelo

    Gomez Claims GGG Is Scared Of Canelo

    However, Golovkin questions if the September fight will happen because Alvarez is not now in a drug testing program. The NSAC suspended Alvarez for six months April 18 for failing two performance-enhancing drug tests in February.
    Jason Day takes lead after Round 3 at Wells Fargo Championship

    Jason Day takes lead after Round 3 at Wells Fargo Championship

    Woods picked up six birdies to reach one-under 212 but finished the round on a sour note with a three-putt bogey on 18. I just haven't made anything. "Today I felt way better on the range, and I knew I was going to have a good day ".
  • LG V35 ThinQ's Design Revealed Through Leaked Renders

    LG V35 ThinQ's Design Revealed Through Leaked Renders

    The next addition to the V-Series is set to be the V35 ThinQ and, right on cue, we may have our first look at the phone . The Super Far-Field Voice Recognition picks voice from up to five meters or 16 feet away, even in noisy environments.
    USA  revives its Second Fleet

    USA revives its Second Fleet

    NATO naval officials in late 2017 also reported Russian submarines probing underseas data cables in the north Atlantic. It had previously assumed responsibility for the North Atlantic after the 2011 disestablishment.
    Markle's father to walk her down aisle at wedding to Prince Harry

    Markle's father to walk her down aisle at wedding to Prince Harry

    Ms Ragland, 61, a yoga teacher and social worker, and Mr Markle, a retired TV lighting director, divorced when Meghan was six. The palace explained: "She has a very close-knit group of friends and she did not want to choose one over the other".


Cops catch man suspected of defecating daily on high school football field
The district said Director of Academics Brian Luciani will step in for Tramaglini, who has served as superintendent since 2015. School officials say for the past couple of weeks they found human feces outside of the school on a daily basis .

Punjab beat RR by six wickets
With four overs remaining in the innings, Rahul had managed only 48 off 43 on a sticky wicket that ensured runs came at a premium. He was dismissed in the following over when he miscued a knuckle ball from Stoinis and the skier was pouched by KL Rahul .

Man United-Ferguson, 2nd Ld-Writethru,178
Warm wishes have flooded in for Sir Alex Ferguson , who is in intensive care after suffering a brain haemorrhage . In a statement on Liverpool's website, a spokesperson said Sir Alex was "a great rival but also a great friend".

The NRA's biggest contribution to gun control is holding its annual convention
The president was addressing the NRA gathering almost three months after a deadly shooting at a high school in Parkland, Florida. The NRA has fiercely defended America's gun ownership rights for many years, citing the Second Amendment.

'Infinity War' to set record, fastest to surpass $1 billion
Both Tully and Bad Samaritan had rather small opening weekends, but they still did well enough to make it into the top 10. Hanging tough in third place was Paramount's A Quiet Place with an estimated $7.6 million from 3,413 screens.

LeBron haunts Raptors with yet another legendary moment
Toronto had the East's best record, the No. 1 seed, home-court advantage and a Cleveland team that appeared very beatable. He inserted 6-foot guard Fred VanVleet and benched forward Ibaka, going with a smaller lineup to push the pace.

Facebook launch new feature
As we noted yesterday , when Facebook launches its service, it wants to make it as noninvasive as possible. It also, apparently, will bypass the embarrassment of asking someone you already know to go on a date.

Twitter urges users to change passwords
Since the best passwords should be hard to remember, consider using a password manager like 1Password or Lastpass. Also, users are advised to change the passwords on any other sites where they have used the same passcodes.

U.S. warns China of 'consequences' over militarization in South China Sea
The new Chinese missiles were reportedly deployed on Fiery Cross Reef, Subi Reef and Mischief Reef, according to CNBC. Further, Pentagon chief spokeswoman Dana White reaffirmed the United States' commitment to the global waters.

Iowa Bans All Abortions After Point of Detection of Fetal Heartbeat
Acknowledging this, Reynolds said that her actions on Friday were "bigger than just a law", and that she will not be backing down. State GOP lawmakers signed the "beating heart" abortion ban this week with no Democrats voting for it.