 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
| . |  |
. |
 by Renzo Pipoli Washington (UPI) Feb 1, 2019
Crude oil prices rose early Friday amid supply concerns related to Venezuela based on reports of smaller-than-expected inventories. Analysts also said Friday that reduced expectations of interest rate increases, which could make the U.S. dollar more expensive in emerging economies, which could push oil prices up as well. West Texas Intermediate prices rose 0.4 percent to $53.99 per barrel as of 9:04 a.m. EST, while Brent prices traded 0.8 percent higher at $61.30 per barrel as of the same time. "Earlier in the week, the API (American Petroleum Institute) reported a smaller-than-expected build in stockpiles, easing oversupply concerns. This adds to production curbs from the OPEC and the U.S. sanctions on Venezuela," FxDailyReport analyst Katrina Ang wrote in a report. The United States this week imposed sanctions against Venezuela by ordering that any crude oil purchases by U.S. companies, including Venezuelan state oil Citgo subsidiary, must be deposited into accounts not accessible to Venezuelan President Nicolas Maduro -- and instead into those accessible by Congress leader Juan Guaido. The move is expected to disrupt Venezuelan oil supplies, as Venezuelan officials search other markets that would assure payment can be collected by Maduro's government. In addition, expectations of a weaker dollar following a Federal Reserve meeting this week is also contributing to higher prices. "It's clear the Fed is going to stop 'riding the brakes' on interest rates and let the economy and markets coast for a while. That means it is content to have a weaker dollar, relative to foreign currencies," said Jeff Yastine, research analyst at Banyan Hill Publishing. "A weak dollar is nearly always a positive for higher oil prices, conducive for faster economic growth -- especially in emerging markets outside the U.S. where oil consumption is rising quickly with growing middle class consumption," he added. Crude oil and crude oil futures are denominated in dollars, which means oil becomes more expensive in other parts of the world when the greenback strengthens. "Slowing economies in China and India have kept a lid on oil demand in recent quarters. But Chinese economic stimulus efforts, the (presumed) resolution of the US-China trade impasse, and a revival of India's economic growth in coming quarters, means oil demand will pick up again," Yastine said. The early Friday rise comes after WTI prices gained nearly 16 percent during January, helped in part by a combination of expected reduction in crude oil supplies from OPEC, optimism that the U.S. and China could reach trade accords, as well as concern about potential disruptions in Venezuela. Crude oil prices have declined from an Oct. 3 peak, when WTI prices reached $76 per barrel and Brent $86 per barrel. Much of the decline resulted from the announcement of waivers by the United States to nations that buy crude oil from Iran. The announcement was made on Nov. 5, just as the sanctions announced six months earlier were set to start. The waivers will expire in March, and if the United States does not renew them prices may increase in response to the reduced supplies.
Oil nearly flat in pause after previous session's gains Washington (UPI) Jan 31, 2019 Crude oil prices were nearly flat Thursday morning in what was seen as a pause after gains in the two previous sessions, while traders weighed the impact of possible geopolitical-related supply and demand issues. "Crude is pausing for breath after yesterday's solid rally," Matthew Smith, director of commodity research at ClipperData, told UPI. West Texas Intermediate crude future prices fell 0.1 percent to $54.18 per barrel as of 8:00 a.m. EST, while Brent crude futures rose about 0.2 to ... read more
|
|||||||||||||
|
|
| The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us. |
del.icio.us
Digg
Reddit
Google
