Economy

Oil prices give up earlier gains

Oil prices give up earlier gains

NEW YORK, May 11 (Reuters) - Oil prices rose more than 1 percent on Thursday, as large drawdowns in US inventories and growing support for continued OPEC output cuts boosted confidence that a seemingly insurmountable glut might finally diminish.

The increase from Saudi Arabia comes as OPEC and its allies are likely to extend and possibly deepen their current output cut agreement to remove 1.8 million barrels of oil from the market.

Brent crude futures, the global benchmark for oil prices, were at $49.33 per barrel at 0651 GMT on Tuesday, down from a high of $49.60 earlier in the day and near their last close.

TOKYO: Oil futures rose in Asian trading on Wednesday after Reuters reported Saudi Arabia would cut supplies to the region as OPEC battles against rising US output that is threatening to derail its attempts to end a sustained global glut in crude.

Oil prices had some spring in their step midday Wednesday after US government data confirmed a larger-than-expected fall in USA crude inventories as refineries cut output.

The Saudi oil giant made a decision to cut oil supplies to the Asian market in June by around 7 million barrels, a source told Reuters, as part of a wider OPEC agreement to help buoy prices.

While US oil inventories fell, the country's oil production continued to rise, jumping above 9.3 million bpd last week, in what is now a more than 10 percent increase since its mid-2016 trough. US crude output has grown by over 10% since mid-2016 but didn't let oil prices to surge.

Aramco and other producers typically issue monthly notices to refineries and other buyers with contracted supplies outlining their intended allocations to each customer. Brent Crude, used to price global oils, now trades at around $50 a barrel in London.

The report will add to a debate about the effectiveness of the supply cut pact, which is expected to be extended when producers meet later this month. Russian Federation and 10 other non-OPEC producers agreed to cut half as much.

"The market is getting exhausted of hearing from OPEC how good they are, how compliant (with supply curbs) they are", said Eugen Weinberg, head of commodity research at Commerzbank.

If you are a believer of a successful and prolonged extension of the OPEC and non-OPEC output cut pledges, you can definitely invest in regular and leveraged oil or energy exchange-traded products for gains, at least for the short term.

Two OPEC members are exempt from the cut-Nigeria and Libya- and a third member, Iran, was allowed to boost output to a specified level.

US crude stockpiles have declined for four weeks after reaching the highest level in more than three decades at the end of March.


  • Mauricio Pochettino Issues Transfer Market Warning to Rivals After Spurs Thrash Leicester

    Dele Alli is the top-scoring midfielder in the Premier League with 17 goals, equal with Manchester United's Zlatan Ibrahimovic. Harry Kane was the talk of the town following Tottenham's 6-1 win over Leicester on Thursday night.

    What we know about the global cyberattack

    The infection strikes by encrypting all the files on the PC and then displaying a ransom note demanding US$300 or $600 in bitcoin. Check Point has identified three Bitcoin addresses associated with WannaCry - and this is the cause for concern.

    Derek Jeter, a dream fulfilled

    Carlos Beltran added an RBI double and Carlos Correa lifted a sacrifice fly as Houston improved to 11-3 in its last 14 games. One thing the Yankees know how to do is ceremonies. “Theres rumors out there that Buck suggested I be No. 2, ” Jeter said.
  • Former National Security Adviser Has Not Responded To Subpoena

    That's according to the panel's chairman, Republican Sen. "But we'll figure out on General Flynn what the next step-if any-is". That process could take years due to procedure, Politico reports.

    Fiat Chrysler seeks diesel emission certification from EPA

    Fiat Chrysler, keen to put to rest any allegations of diesel-emissions cheating, will be updating diesel vehicles old and new. Regulators have said that in normal driving they emitted up to 40 times more smog-causing nitrogen oxide than the legal limit.

    'Shadow Brokers' threaten to release more hacking tools in June

    The NSA has not commented on Shadow Brokers since the group emerged previous year , or the contents of past leaks. Shadow broker the hacking group which was behind the last week's Wannacry Ransomware attacks in the world.
  • Snap shares plummet 22% after first earnings report since IPO

    After revealing that the company had a net loss of $2.2 billion for the first quarter, shares of Snap are down over 25% to $17.20. The company generated around $8.3 million from the category in the first quarter of the year, up from $84.5 million in Q4, 2016.

    What Analysts are Predicting For Ross Stores, Inc. (ROST), Allergan plc (AGN)?

    Full-year sales are seen "slightly below" a range of "flat to up slightly" vs. consensus views for a 0.4% uptick. (NASDAQ:ROST). The consensus recommendation by Thomson Reuters analysts is Hold and their mean rating for the stock is 2.83 on scale of 1-5.

    Mourinho: Season not a failure if Man United lose final

    With one eye on their Europa League final date in Stockholm , Mourinho admits he has had to be clever in the way he uses his squad.
  • The Russia-Trump Campaign Investigation May Now Be "Considered a Criminal Investigation"

    He also defended his decision to fire Comey last week, saying it was because of his poor performance and popularity. The bipartisan consensus afterward is that the Trump-Russia investigation has taken on a new level of seriousness.

    Rating Roundup: Coca-Cola Company (NYSE:KO)

    This change led market cap to move at $13.39B, putting the price -23.17% below the 52-week high and 12.42% above the 52-week low. The company reported $0.43 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.44 by $0.01.

    Isaiah Thomas on Wizards: 'We don't like them, they don't like us'

    He was also one of the sparks defensively in that massive third quarter, and he would finish the game with five steals. With two big leads in their loses in Boston, the Wizards still feel as though they can get a victory in Boston.