Crude oil futures nudged higher Monday morning as Saudi Arabia said it is open to another supply quota extension. Saudi Arabia and Venezuela are prepared to make cuts "beyond the first quarter of 2018, if needed," the Saudi ministry said in one of the statements.?An extension "would be considered in due course as market fundamentals may dictate." Crude oil was up 20 cents at $47.65 a barrel. A number of refineries remain offline after Hurricane Harvey.
Oil Prices Retreat as Trades Weigh U.S. Hurricane Impact
Oil prices fell on Tuesday as traders assessed the impact of Hurricane Irma on demand against the resumption of refinery operations in the aftermath of Hurricane Harvey that should result in more crude oil processing. The Brent crude traded down 14 cents or 0.3 percent at $53.70 per barrel from its previous finish. Meanwhile, the U.S. WTI crude fell by 12 cents or 0.3 percent at $47.95 per barrel.
U.S. refineries have begun to resume operations. Motiva Enterprises, the biggest U.S. refinery, has restarted production at the start of the week after being offline for around two weeks as Harvey devastated the U.S. Gulf coast. After Harvey, Hurricane Irma hit Florida on Sunday.
Analysts estimate that U.S. crude inventories likely increased in the previous week in the wake of the hurricane impact, while refined product stockpiles were projected to have fallen. The API data is slated to be released later today while the EIA report will be released on Tuesday. Meanwhile, amid concerns of global oversupply, Saudi Arabia's Energy Minister Khalid al-Falih had discussed with his counterparts in Venezuela and Kazakh the possibility of prolonging a deal to cap production beyond March 2018.
Crude Oil Making Another Charge At $50 Post-Harvey
rude oil prices rose further Wednesday morning after the world's energy watchdog said that global oil supplies fell in August for the first time in four months.
Interruptions from Hurricane Harvey, dwindling OPEC production and seasonal maintenance caused output to come down by 720,000 barrels a day last month from July, to 97.7 million barrels a day, the International Energy Agency said Wednesday.
Meanwhile, The American Petroleum Institute (API) reported a build of 6.181 million barrels last week. WTI light sweet crude oil rose 48 cents to $48.71 a barrel.
Crude oil futures were just above $50 a barrel Friday morning ahead of a deluge of economic data. WTI light sweet crude oil was up 15 cents at $50.04 a barrel, having surges to its highest in six weeks.
Prices have risen sharply this week on U.S. gas shortages and OPEC's production cuts. The Baker Hughes North American rig count that tracks weekly changes in the number of active operating oil & gas rigs will be published at 1.00 pm ET.
The North American Rig Count in the prior week was 1146 and the U.S. rig count was 944. The Commerce Department's Retail Sales report for August will be issued at 8.30 am ET.
The economists are looking for growth consensus of 0.1 percent, down from 0.6 percent in the previous period. The New York Fed's Empire State Manufacturing Survey for September will be published at 8.30 am ET.
The consensus is for 19.0, down from 25.2 in August. Fed's Industrial Production for August will be released at 9.15 am ET. The consensus is for growth of 0.1 percent, slightly down from 0.2 percent in the prior period.
The Commerce Department's Business Inventories for July is expected at 10.00 am ET. The consensus is for 0.2 percent, while it recorded 0.5 percent in the previous month.
U.S. Crude Prices Rises beyond $50 Mark on Strong Demand
Prices of U.S. crude oil climbed above the $50-per-barrel threshold on Monday and hovered near the previous week's multi-month highs as the number of rigs drilling for new supply declined and refineries continued to resume operations after getting shuttered by Hurricane Harvey.
U.S. WTI crude futures traded up 10 cents or 0.2 percent at $49.99 per barrel. Earlier,the U.S. benchmark rose above the $50-per-barrel mark and scaled towards the over three-month peak of $50.50 hit last week Thursday.
Brent oil crude futures stood at $55.66 per barrel, 4 cents higher from its last closing. The international benchmark crude contract's prices were also close to the near five-month high of $55.99 hit on Thursday.
ANZ note the demand outlook from OPEC and IEA continued to uplift sentiment in the market. It added refineries are also posting a much better recovery from the recent hurricanes. Oil refineries across the Gulf of Mexico and the Caribbean were resuming their operations after being knocked off when Hurricane Harvey and Irma hit the region in the last three weeks.
Crude oil futures were lower Monday morning, once again unable to hold the $50 a barrel mark. Oil prices have jumped sharply in September amid tough talk from OPEC.
The cartel vows to keep supplies in check until the oil market is re-balanced and the global supply glut is erased. Meanwhile, demand for crude oil in the U.S. is expected to rise as refineries get back to normal following two hurricanes.
The U.S. rig count dropped for second week in a row, Baker Hughes said Friday. WTI light sweet crude oil was down 37 cents to $49.52 a barrel. On the economic front, the Housing Market Index for September will be released at 10.00 am ET. The economists are looking for consensus of 65, compared to 68 in the previous month.
Crude Oil Stuck Near $50 Despite OPEC Supply Quota
Crude oil futures rose Wednesday morning amid hopes that OPEC will extend its supply quota plan in an effort to end the global supply glut. Quotes from a key oil conference in the Middle East indicate that Saudi Arabia, Iraq and others are prepared to cut production by another 1 or 2% this year.
Meanwhile, U.S. crude oil stockpiles are on the rise, keeping prices in check. The American Petroleum Institutes said oil inventories were up 1.4 million barrels last week, as refineries were getting back to normal after Hurricane Harvey.
The Energy Information is out with its official inventories report this morning. WTI light sweet crude oil was up 53 cents at $50 a barrel, having been unable to hold that mark over the past few weeks.
Oil Prices Retain Gains as Producers Say Markets Poised for Rebalancing
Oil prices were flat on Monday, maintaining the majority of the gains from the prior session to remain near their highest levels in months, as producers meeting in Vienna declare that the market was well underway towards rebalancing. London Brent crude futures fell 0.3 percent to trade at $56.83 per barrel, close to the highest level since March.
Meanwhile, U.S. crude futures fell 8 cents to trade at $50.58, after rising 0.2 percent on Friday. OPEC and other major crude producers have agreed to limit production by around 1.8 million bpd since the start of the year, helping to prop-up prices by around 15 percent in the last three months.
The leader of the Joint Ministerial Monitoring Committee, Kuwaiti Oil Minister Essam al-Marzouq, said the supply reductions were helping to lower global crude inventories down to their five-year average, which is the cartel's target.
Russia's energy minister said that there was no finalized decision to prolong the production curbs past the end of March ahead of January, but other ministers indicated that such decision could be considered before the end of the year.