something interesting

<  BACK TO Market Analysis

Oil hovers above $52

Oil futures pushed to session highs on Tuesday, adding to more than a week straight of gains which have allowed the U.S. benchmark to move back above $50 a barrel for the first time in two months, lifted by growing optimism that the market is tightening.

Analysts say a swath of positive news the past two weeks, such as ebbing U.S. inventories and slowing production, has polished investor confidence in oil, which has been in the doldrums due to a large persistent glut.

That as data due Wednesday are expected to show U.S. crude stockpiles fell further last week. A “steady strengthening in demand expectations” have also lifted oil prices recently, said the Federal Reserve Bank of New York in its recent oil report.

“I think this rally will sustain a little while longer because the attitude is changing,” said Grace Liu, the head of petrochemical research at Guotai Junan International, pointing to Saudi Arabia’s “rebalance-first” approach as the main driver behind recent optimism.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in September CLU7, +0.16%  recently traded up 11 cents, or 0.2%, at $50.27 a barrel in the Globex electronic session. October Brent crude LCOU7, +2.19% on London’s ICE Futures exchange was steady at $52.65.

For nearly three years, the kingdom and other members of the Organization of the Petroleum Exporting Countries, together with Russia, have pumped crude at high rates in a bid to drown out smaller US producers. The result: prices plunged to a 13-year low and global inventories surged. It also tipped the global supply-demand balance, causing economic woes for some nations as their usual stream of oil revenue shrank.

To reset, OPEC and a handful of non-US oil players have been cutting output this year. But prices have continued to fall, and many are still skeptical of the long-term effect of imposing a cap on production when American output has been rebounding. In May, total U.S. crude production grew 0.6% from April to hit the highest daily average for a month this year, the Energy Information Administration said Monday.

Still, the same data also reveal growth might be sputtering, bolstering views that high-cost producers in the U.S. might be pulling back amid still-low prices. May’s growth was the second slowest of 2017.

But it might still be premature to assume shale production will cool into year-end because capital-spending reductions the past several years have largely been a function of companies “being able to get more for every dollar invested,” said Energy Aspects.

Investors remain in wait-and-see mode over whether the U.S. will impose sanctions against Venezuela — a member of OPEC and a major exporter of U.S. to the U.S. — after a referendum over the weekend that gave Venezuelan President Nicolás Maduro overwhelming power to redraft the country’s constitution.

The vote was widely condemned, and the U.S. Treasury on Monday said it has frozen the assets of Maduro, but stopped short of imposing new sanctions on the country’s oil industry.

Among refined products, Nymex September diesel gained 0.3% to $1.6724 a gallon, reformulated gasoline blendstock rose 0.2% to $1.68 and August ICE gasoil climbed 1.2% to $495 per metric ton.

Source: marketwatch.com

Oil futures pushed to session highs on Tuesday, adding to more than a week straight of gains which have allowed the U.S. benchmark to move back above $50 a barrel for the first time in two months, lifted by growing optimism that the market is tightening.

Analysts say a swath of positive news the past two weeks, such as ebbing U.S. inventories and slowing production, has polished investor confidence in oil, which has been in the doldrums due to a large persistent glut.

That as data due Wednesday are expected to show U.S. crude stockpiles fell further last week. A “steady strengthening in demand expectations” have also lifted oil prices recently, said the Federal Reserve Bank of New York in its recent oil report.

“I think this rally will sustain a little while longer because the attitude is changing,” said Grace Liu, the head of petrochemical research at Guotai Junan International, pointing to Saudi Arabia’s “rebalance-first” approach as the main driver behind recent optimism.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in September CLU7, +0.16%  recently traded up 11 cents, or 0.2%, at $50.27 a barrel in the Globex electronic session. October Brent crude LCOU7, +2.19% on London’s ICE Futures exchange was steady at $52.65.

For nearly three years, the kingdom and other members of the Organization of the Petroleum Exporting Countries, together with Russia, have pumped crude at high rates in a bid to drown out smaller US producers. The result: prices plunged to a 13-year low and global inventories surged. It also tipped the global supply-demand balance, causing economic woes for some nations as their usual stream of oil revenue shrank.

To reset, OPEC and a handful of non-US oil players have been cutting output this year. But prices have continued to fall, and many are still skeptical of the long-term effect of imposing a cap on production when American output has been rebounding. In May, total U.S. crude production grew 0.6% from April to hit the highest daily average for a month this year, the Energy Information Administration said Monday.

Still, the same data also reveal growth might be sputtering, bolstering views that high-cost producers in the U.S. might be pulling back amid still-low prices. May’s growth was the second slowest of 2017.

But it might still be premature to assume shale production will cool into year-end because capital-spending reductions the past several years have largely been a function of companies “being able to get more for every dollar invested,” said Energy Aspects.

Investors remain in wait-and-see mode over whether the U.S. will impose sanctions against Venezuela — a member of OPEC and a major exporter of U.S. to the U.S. — after a referendum over the weekend that gave Venezuelan President Nicolás Maduro overwhelming power to redraft the country’s constitution.

The vote was widely condemned, and the U.S. Treasury on Monday said it has frozen the assets of Maduro, but stopped short of imposing new sanctions on the country’s oil industry.

Among refined products, Nymex September diesel gained 0.3% to $1.6724 a gallon, reformulated gasoline blendstock rose 0.2% to $1.68 and August ICE gasoil climbed 1.2% to $495 per metric ton.

Source: marketwatch.com

lastest Articles

Market Analysis
AUD/USD stays neutral and is seen rangebound near term – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
AUD/USD climbs back closer to over 1-week tops, comfortable above 0.71 mark
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD Technical Analysis: Spot poised for some consolidation near term. Resistance at 21-day SMA at 1.1616
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/JPY Technical Analysis: Confirms a bearish breakthrough near 4-week old trading range
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY drops to near 1-month low, farther below 112.00 mark
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US Retail Sales to Support Dollar
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
AUD/USD edges higher to 9-day tops above 0.7130 on improved sentiment
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD keeps targeting 1.3298
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY trims early recovery gains, still comfortable above 112.00 handle
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
AUD/USD should push higher
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD rallies seen struggling around 1.1625
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD Technical Analysis: The Sterling is trapped just above 1.3200
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CAD punches above 1.30 as Canadian dollar sags, CPI next
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD moves higher and approaches 1.1600 ahead of ECB, US CPI
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD Technical Analysis
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
AUD/USD has the fuel for a rally
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD Technical Analysis: Brexit headlines, firm EMAs keeping the Cable bolstered
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil struggles for direction as investors watch Hurricane Michael, weigh Iranian sanctions
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
AUD/USD Technical Analysis: Fails ahead of 200-hour SMA, back below 0.71 mark amid renewed USD buying
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Asia: No currency manipulators
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Emerging economies at risk amid 'complacent' markets
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Sterling weakens as Brexit concerns weigh
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD – Euro under pressure, shrugs off strong German trade surplus
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD hits fresh session lows, around mid-1.3000s
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Why gold prices may have already bottomed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR longs dropped, USD longs remain consolidative
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Fed’s Bullard: Higher US interest rates no longer necessary
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY Technical Analysis: Has eroded a key rising trendline
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FX Week Ahead – Dollar Slows Down After US Jobs Miss
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY Technical Analysis: rolling over in favor of the bears
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD slips below mid-1.1700s, focus remains on FOMC decision
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/GBP Technical Analysis: Consolidating last week’s gains below 0.9000 figure - Bulls can come back soon
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CAD Technical Analysis: Retreats from 200-hour SMA/ascending trend channel confluence hurdle
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US: Strong foreign demand of financial assets - RBS
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY Technical Analysis: A test of 133.50 stays on the cards
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CHF stays offered below 0.9789 – Commerzbank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD seen testing 1.1850 in the short-term – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
AUD/USD fades a spike to 0.7305 – 3-week tops
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD Technical Analysis: bulls looking for one more run at 1.33
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD should find initial support at 1.1624
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY Technical Analysis: Door open for a test of 132.00 and above
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
AUD/USD still neutral, likely to consolidate near term
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
US: Inflationary impact of Chinese tariffs to be modest - TDS
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP futures: up move seen running out of steam
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY positive view unchanged above 110.76 – Commerzbank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD Technical Analysis: holding into bullish pressure despite risk flows
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY Technical Analysis: Still targets the 200-day SMA at 131.11
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Riksbank Minutes amongst market movers today
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD Technical Analysis: Bears waiting near 1.31
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Trade Tensions Return as US Tariffs on China Lift Dollar
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY Technical Analysis: A test of July’s tops beyond 132.00 gains further traction
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR futures: rising odds for extra gains
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD climbs to fresh 6-week tops, further beyond 1.3100 handle
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY aims for extra gains while above 111.35
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD keeps the tight range above 1.1600 post-ECB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
GBP/USD still expected to test 1.13170 – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
ECB and BoE to be the key event today – Danske Bank
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/CAD stays bullish above 1.2997/30
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD fails once again above 1.1600, US PPI eyed
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/USD neutral although a test of lower levels remains on the cards – UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY trades with modest losses, around mid-111.00s
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
EUR/JPY Technical Analysis: Short-term bias still bullish but momentum eases
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
USD/JPY Technical Analysis: Bulls eager to break above 112.00 figure
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Oil rises as U.S. sanctions on Iran squeeze supply
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Wisdom: Good traders liquidate when they are wrong, great traders reverse when they are wrong
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Sterling surges on hopes for Brexit deal, yen dips on chipmaker deal
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Forex Today: sees risk-recovery in Asia, UK earnings in spotlight
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (10.09.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
USD/CHF Technical Analysis: Swissy trapped in ranges
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Sterling edges up after biggest weekly drop in a month
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: On losing-Pig Insider
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Dollar edges higher on trade tensions, Swedish crown rises after vote
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 10.09.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Market Events Ahead
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX WEEK AHEAD : Trade Tensions and Strong US Employment Lift Dollar
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
USD/JPY Technical Analysis: Bulls trying to regain control, eyeing a move beyond 100/200-hour SMA
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: systems and tendencies-Eckhardt
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Dollar in check as investors await August jobs report
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 07.09.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (06.09.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
EUR/USD Initiates Bullish Series Despite Disappointing Euro-Area Data
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: Philip-Fisher-wisdom-trading-quote
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Sterling to float up around 6 percent in a year, but no-deal Brexit would sink it - Reuters poll
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 06.08.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Sterling edges lower for a fifth day on trade war fears
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Wisdom: The Wise Pig on results
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Sterling plunges vs euro as Brexit fears take centre-stage
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 04.09.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Daily Results (03.09.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
US Dollar within range above 95.00
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 03.09.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: If you can’t do a thing better than others are doing it, don’t do it at all
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Sterling falls as Brexit headlines sap demand
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Market Events Ahead
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
PAMM News
Managed Forex Accounts Weekly Results (27.08-01.09.2018)
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
FOREX Week Ahead: US Dollar Mixed on Trade Deal Versus Trade War Balance
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Quips of Wisdom
FOREX Trading Quote: Bruce Kovner - Quote on risk management
https://en.gravatar.com/userimage/34011725/cac48086660b253b9c1e53a8b4a23604.png
Market Analysis
Sterling set for fifth straight monthly drop on Brexit nerves
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
Dollar edges up on latest round of U.S.-China trade tensions
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613
Market Analysis
FOREX Tech Targets 31.08.2018: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/JPY - UOB
https://secure.gravatar.com/avatar/b23a9c274f4a28b6ab7acddb98b80613