Crude Oil Prices Surge Higher

09 January, 2019, 08:43 | Author: Eric Barnett
  • S&P Global Ratings slashes Brent oil view to USD 55 per barrel in 2019

Meanwhile, the vice ministerial level talks between USA and Chinese officials are scheduled to commence later in the day at Beijing. "Although growth uncertainty will likely require strengthening physical oil markets to drive this rally, with encouraging evidence that the OPEC cuts are starting", the bank added.

PRICE Futures Group senior analyst Phil Flynn on the outlook for oil prices and the impact on the US soybean market from the tariff tensions with China.

The oil prices in 2018 saw the highest peak till October before giving up and depleting to the lowest value in the a year ago.

The last time crude rallied for this long was the summer of 2017. Futures for the USA benchmark contract posted the lengthiest win streak since an eight-session period ended July 3, 2017.

West Texas Intermediate crude oil for February delivery CLG9, +0.06% rose $1.26, or 2.6%, to settle at $49.78 a barrel on the New York Mercantile Exchange—the highest finish for a front-month contract since December 17, according to Dow Jones Market Data.

Crude prices have been buoyed by supply cuts from the Organization of the Petroleum Exporting Countries including top exporter Saudi Arabia, and allies including Russian Federation.


A separate government report scheduled for release on Wednesday is expected to show American crude stockpiles declined by 2.7 MMbbl last week, according to the median estimate in a survey of analysts by Bloomberg.

The West Texas Intermediate for February delivery increased 0.56 USA dollar to settle at 48.52 dollars a barrel on the New York Mercantile Exchange, while Brent crude for March delivery rose 0.27 dollar to close at 57.33 dollars a barrel on the London ICE Futures Exchange. The global benchmark crude traded at an $8.61/bbl premium to WTI for the same month.

On Monday, U.S. Commerce Secretary Wilbur Ross and China's foreign ministry expressed optimism on resolving the dispute.

"Saudi Arabia will continue to be the decisive factor for the markets this year, just as they were last year", said Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfurt. "Fed's easier stance and Opec's commitment to cut production as well as expectations that inventories should drop are lending a hand to this positive investor sentiment".

As a result, US crude oil production C-OUT-T-EIA rose by a whopping 2 million barrels per day (bpd) previous year to a world record 11.7 million bpd. Nationwide inventories are near their lowest level in nearly two months. "And so we see the potential for Brent crude to go to $70 a barrel over the course of the year".

Recommended:



Popular

Fiji Water Girl gets her ‘Golden Globes’
Cuthbert also thanks "water" saying: "If these celebs weren't so thirsty, I wouldn't have been able to serve the way that I did". The "Fiji Water Girl" , whose red carpet photobombing at yesterday's Golden Globes went viral, has been identified.

Major League Baseball pocket book: White Sox bid huge for Machado
The Blue Jays elected to cut him this offseason and eat the remaining salary left on his multi-year deal . The Philadelphia Phillies and New York Yankees are the main competitors for the duo.

Manafort accused of sharing Trump polling data with Russian operative
The lawyers said Ukraine-related matters "simply were not at the forefront of Mr Manafort's mind during the period at issue". But an unredacted section notes some events occurred while Manafort was managing President Trump's 2016 campaign.

Woman found dead in clothing donation bin
Police said her death is not suspicious and they are investigating the incident as a death by misadventure. There have also been deaths from donation bins in Alberta and Ontario in the last two years.

India’s lower house passes citizenship bill despite protests
"It is the BJP which is responsible for AGP's quitting the alliance and they (BJP) should step down immediately", said the former chief Minister.

Irish PM: Any changes to Brexit cannot undermine backstop
Theresa May's Brexit deal is a bigger threat to Northern Ireland than a no deal, the DUP's Brexit spokesman has warned. The deputy DUP leader pledged to engage in further talks with Mrs May "in the interests of getting a better deal".

Families of patients demand answers following woman in vegetative state giving birth
Following news of a woman in a vegetative state giving birth, families of patients at Hacienda HealthCare are demanding answers. No one has been arrested in connection with the incident, and it's unclear if police have identified any suspects.

Timothy Weah joins Celtic on loan from Paris Saint-Germain
He travelled to Glasgow to meet Rodgers and visit Celtic Park, and believes he has found the ideal place to develop his career. 'Can't wait to get started and get the chance to play in front of those wonderful fans I've heard so much about.

Tua Tagovailoa struggles as Alabama loses title game 44-16
Alabama seemed panicked in the third quarter, running a fake field goal into a waiting Clemson defense instead of kicking from 40. The Tigers scored the final 17 points of the half, led 31-16 at the break, then shut out Alabama in the second half.

Apple greets CES 2019 with snarky iPhone privacy billboard
But the Sunday and Monday before are jam-packed with announcements that set the stage for tech's biggest show of the year. Both Google and Amazon have a less than stellar privacy record.