equitieswatch
Friday, June 2, 2023
About us
Advertise
  • Home
  • Stock Market
  • Finance
  • Cryptocurrency
  • Commodities
No Result
View All Result
Equitieswatch.com
No Result
View All Result

Oil Tops $120 on Blowout U.S. Consumption, Russia Supply Scare  By Investing.com

by equitieswatch
March 23, 2022
in Commodities

YOU MAY ALSO LIKE

Oil Sinks Further Amid China Concerns, Weakened Economic Prospects By Investing.com

Gold Pressured Near $1,650, Copper Muted on Economic Fears By Investing.com


© Reuters.

By Barani Krishnan

Investing.com — Oil breached $120 a barrel on Wednesday after U.S. government data showed weekly consumption far beyond market estimates, while major producer Russia continued to cite outages on the Caspian pipeline that played on the nerves of traders.

London-traded , the global benchmark for oil, settled up $6.12, or 5.3%, at $121.60. Supply scares had already pushed Brent up by a net 7% in the past two sessions, giving it a week-to-date gain of 13% that would be its biggest since the 20% rally during the week that marked the start of Russia’s invasion of Ukraine.

U.S. crude’s , or WTI, benchmark settled up $5.66, or 5.2%, at $114.93. WTI was up about 9% on the week.

Wednesday’s rally came after data from the U.S. Energy Information Administration’s in crude, gasoline and distillate stockpiles.

In Russia, Energy Minister Alexander Novak reiterated the caution from a day ago that oil supplies by the Caspian Pipeline Consortium, which ships around 1.2 million barrels per day of Kazakh and Russian oil combined, may be completely stopped for up to two months due to storm-damaged berths on the Black Sea terminal.

In a throwaway to oil bulls, Novak also said he was unaware of any member of OPEC+ — the 23-member oil producing alliance jointly shepherded by Saudi Arabia and Russia — with plans to raise output beyond quotas set by the group to ensure its monthly exports growth doesn’t exceed 400,000 barrels per day. 

There had been talk earlier this month that the United Arab Emirates — the only OPEC+ producer other than Saudi Arabia with the capacity to add meaningfully to output — might export beyond its quota to alleviate the global tightness in crude supply. But Saudi disapproval, implied rather than expressed, had quickly dissuaded the Emirates from doing anything to disrupt OPEC+ harmony in sticking together as a group and milking the most out of oil prices.

“It’s OPEC+’s version of the ‘maximum pain strategy’, aimed at consuming countries,” said John Kilduff, founding partner at New York energy hedge fund Again Capital. 

US fell by 2.51 million barrels last week, after a build of 4.35 million reported during the prior week to March 11. Analysts tracked by Investing.com had expected crude inventories to continue rising in the week to March 18, by some 144,000 barrels on average.

On the front, a drawdown of 2.95 million barrels added to the 3.62 million run down in the week prior. Analysts had forecast a gasoline consumption of 1.99 million barrels on the average for last week. Automobile fuel gasoline, also known as petrol outside the United States, is America’s most-consumed oil product, seeing drawdowns for seven straight weeks now.

With , the drawdown was 2.07 million barrels versus the previous week’s build of 332,000. Analysts had estimated a distillates drop of 1.39 million barrels during the week to March 18. Distillates, which are refined into diesel for trucks, buses, trains and ships as well as fuel for jets, have been the strongest growth component of the US oil complex for months, seeing virtually non-stop inventory declines since mid-January.

Source link

ShareTweetPin

Search

No Result
View All Result

Recent News

Oil slips further on demand, financial market worries By Reuters

Oil Sinks Further Amid China Concerns, Weakened Economic Prospects By Investing.com

October 25, 2022
Gold Up, Set for Second Weekly Gain as Dollar Falls from 20-Year High By Investing.com

Gold Pressured Near $1,650, Copper Muted on Economic Fears By Investing.com

October 25, 2022
Explainer-What would be the impact of Russian oil sanctions in Europe? By Reuters

Oil prices edge higher as U.S. dollar eases By Reuters

October 25, 2022
Equitieswatch.com

Equitieswatch.com is your Stock Market, Finance, Forex, Cryptocurrency, Business, NFT News Website. We provide you with the latest breaking news and videos straight from the Business industry.

  • Home
  • About us
  • Contact
  • Privacy Policy

© 2022 www.equitieswatch.com

No Result
View All Result
  • Home
  • Stock Market
  • Finance
  • Cryptocurrency
  • Commodities

© 2022 www.equitieswatch.com