EconomyVN - At the close on New York Exchange, US light sweet crude oil for September delivery rose to $43.49.
World oil prices yesterday (11th of August) rose more than 4%, after Saudi Arabia's energy minister left open the possibility that this oil-producing country can implement moves to rebalance globally the "black gold" market.
At the close on New York Exchange, US light sweet crude for September delivery rose to $43.49. On London Exchange, Brent oil rose to $ 46.04.
Earlier, Energy Minister Khalid al-Falih of Saudi Arabia stated that during the meeting of the Organization of Petroleum Exporting Countries (OPEC) expected to take place in September, the country can negotiate "any appropriate actions".
The experts supposed that most likely the future move of Saudi Arabia can completely reverse the current data on crude oil output.
EconomyVN - On August 8th, OPEC announced that they have convened an informal meeting of the Member States in September in Algeria to find ways to stabilize the oil market.
The meeting convened by Organization of Petroleum Exporting Countries (OPEC) will take place on the sidelines of the International Energy Forum in Algeria on 26 - 28th of September.
OPEC emphasizes they will continue to closely monitor market developments and are always cautious in discussing with all Member States on ways and measures to restore stability and the number of orders in the oil market.
Al-Sada - OPEC President reaffirmed the organization's view that oil demand in the world will increase in the third and fourth quarters of this year. Mr. Al-Sada stressed to need to invest more in oil production to meet rising demand and offset declining output at oil wells.
Shortly after OPEC meeting was announced, world oil prices have rebounded on 8th of August. Brent oil price has increased by 66 cents in October compared with the end of the trading day on Friday last week, up to $ 44.94/barrel. Light sweet crude for September delivery rose 53 cents, to $ 42.33 USD/barrel.
U.S. crude's slide below $40 a barrel this week has hardened the resolve of oil market bears to drive prices lower, with oversupply, refining cutbacks and a breakdown in the oil/dollar trade spelling an end to this year's rally.
On Tuesday, crude oil prices dared to rebound further during Asia trade from overnight dips as market participants took advantage of steep drops on global oversupply.
In New York, September delivery crude futures soared 0.35%, being worth $40.20 per barrel. Market participants are looking ahead to estimates of American crude as well as refined product stockpiles close to the end of the previous week from the American Petroleum Institute late on Tuesday. These figures are followed by more Wednesday’s closey-watched data from the American Department of Energy.
In London, on the ICE Futures Exchange, October delivery Brent crude futures earned 0.57%, trading at $42.38 a barrel.
Overnight, crude prices rebounded towards April minimums during Monday’s North American trade, thus reapproaching bear market territory as signals of surging production in America and soaring output among members of the OPEC countries weighed.
Gold stays at 3-week peak
Gold prices were still at their three-week peaks during European trade as market participants waited for new indications regarding the timing of a probable US interest rate hike this year.
December delivery gold futures sagged 0.03%, trading at $1,359.20 per troy ounce, just below a three-week high of $1,362.00 achieved last Friday. Yesterday, gold gained about 0.15%.
Market participants looked ahead to major US data later Tuesday in order estimate the overlal health of the world's greatest economy and whether it’s sturdy enough to warrant a rate lift later this year.
The Commerce Department is going to issue its June’s core personal consumption expenditure index along with personal income and spending for this month too.
The U.S. dollar index, gauging the greenback’s power against a trade-weighted basket of six key counterparts, slumped 0.2% being worth 95.56.
The greenback has been under great pressure during recent trading sessions amid waning hopes that the Fed will increase interest rates soon.
On Monday, during European trade gold prices slumped as market participants considered buying into surging equity markets rather than buying safe-haven assets, though prices kept to three-week peaks amid waning hopes that the Fed will lift interest rates a bit later soon.
In New York, December delivery gold futures slumped 0.18%, being worth $1,355.05 per troy ounce.
On Friday, gold prices leapt to a daily high of $1,362.00, the greatest value since July 11, after data demonstrated that the American economy surged much slower than expected during the second quarter, thus bringing the greenback to five-week minimums and helping market players to roll back hopes for a rate lift from the Federal Reserve.
The second quarter GDP boasted a 1.2% annualized growth rate, which is below hopes for a 2.6% surge, as the Commerce Department reported on Friday. as for the first quarter GDP, it got revised lower from 1.1% to 0.8%.
The disappointing data lessened the overall threat of an early interest rate hike from the Federal Reserve.
U.S. crude breaks below $40 as oil ends down 4 percent on glut
Reuters - U.S. crude tumbled below $40 per barrel on Monday for the first time since April, as oil prices settled down nearly 4 percent on heightened worries of a crude glut despite peak summer fuel demand.
A near 15-percent slump in U.S. crude prices in July, the worst monthly loss in a year, also triggered liquidation as trading began for August.
U.S. West Texas intermediate (WTI) crude plumbed $39.86, its lowest since April 20, before settling at $40.06, down $1.54, or 3.7 percent.
Brent crude closed down $1.39, or 3.2 percent, at $42.14 a barrel, after a session low of $41.87.
Not all oil statistics are bearish. A Reuters poll on Monday showed U.S. crude stockpiles may have fallen last week for the first time in 10 weeks.
Other data from last week showed the United States added 44 oil drilling rigs in July, the most for a month in two years, intensifying concerns that global production could again get to unmanageable levels like in 2014-2015.
Crude prices remain nearly 55 percent above 12-year lows of $26 to $27 hit in the first quarter.
But WTI and Brent have also slipped into bear market territory since last week after losing more than 20 percent from the 2016 highs above $50 that were hit in June.
On Monday, crude-oil prices kicked off August in rather a choppy trade because ongoing glut in refined and crude oil keeps exerting pressure on crude prices.
In New York, September delivery light and sweet crude futures traded at $41.75 a barrel, showing a $0.14 rise. Meanwhile, the October contract of Brent crude gained up to $0.18, being worth $43.71 per barrel after the initial dip at the start of the trading session.
The market appears to be more volatile also erratic ahead of the expiry of a contract because market participants are on the verge of rebalancing their books by simply covering their long or short trading positions.
However, supply and demand trends in the crude market are still lopsided, while prices are most likely to move sideway in the nearer future especially considering the absence of strong push or pull factors.
Over the weekend, American crude prices clawed back some ground after the major American currency got sold heavily.
Asian shares hit one-year high
Asian stocks managed to hit a one-year peak, following gloom American economic growth data, which ruined hopes that the Fed would lift interest rates in the nearer months.
American GDP surged at a 1.2% annual rate during the April-June period, which is less than a half of a 2.6% growth rate economists had expected.
Market participants have been shifting their money to Asia, that’s likely to be least influsenced by Brexit, while the Fed appears to be in no hurry to increase its interest rates.
MSCI's broadest index of Asia-Pacific stocks outside Japan soared 1.3%, getting to the highest level for about a year.
European shares are supposed to head north, with spread betters looking at surge of 0.7% in Germany's DAX as well as 0.4% in the UK’s FTSE.
Asian markets demonstrated quite limited reaction to a better-than-expected private poll on China's factory sector.
Meanwhile, the Caixin/Markit Manufacturing Purchasing Managers' index or PMI ascended to a 1 1/2-year peak of 50.6, thus beating market expectations for 48.7.
On Friday, crude prices remained around April minimums as slowing economic growth threatened to drastically worsen ongoing oversupply of oil as well as refined products.
International Brent crude oil futures were worth $42.78, showing a 8 cent surge from their previous close. Meanwhile, US West Texas Intermediate crude futures traded at $41.16, rising 2 cents.
Brent achieved its lowest value since April during last trading session, hitting $42.56, while WTI boasted another minimum of $40.95 per barrel on Friday. Currently, both crude benchmarks are down approximately 20% since their last high in June.
Due to ongoing oversupply, American bank Goldman Sachs told this week that it didn’t expect a huge recovery in prices any time soon.
Financial experts are still expecting that crude prices will stay within a $45 per barrel to $50 per barrel trading range in mid-2017.
Besides this, some experts told that recent price drops in oil had been heavily overdone, especially as demand is still strong notwithstanding worries over future economic growth.
Gold soars as BOJ notes downside risks to economy
Gold grew during Asia trade as Japan’s number one financial institution moved cautiously in its recent policy review, but indicated that it might act in the future if required.
In New York, December delivery gold futures edged up 0.45%, being worth $1,347.25 per troy ounce. As for September delivery silver futures, they gained 0.57%, trading at $20.307 per troy ounce. At the same time, September delivery copper futures sagged 0.45%, being worth $2.206 per pound.
Market participants were on the lookout for moderate easing measures. While Japan’s prime minister Shinzo Abe disclosed a broad ¥28 trillion stimulus measure on Wednesday, Reuters posted that the Japanese government might only offer as much as ¥7 trillion in direct fiscal stimulus.
Still if Abe appears to be unable to deliver on his promises of jump starting the national economy with a broad stimulus initiative, then the BOJ could feel extra pressure to lower interest rates more into negative territory.
On Monday, crude prices reversed their early revenues and eased a bit during Asia trade, with the normal weekly data sets in the USA on stockpiles ahead and market participants looking for any demand cues from the Def as well as Bank of Japan this week amid a struggling global economy.
In New York, crude oil for September delivery slumped 0.11%, hitting $44.14 per barrel. Meanwhile, in London, September delivery Brent crude futures dropped 0.11%, being worth $46.06 per barrel.
The previous week, crude futures concluded Friday’s trading session at the lowest value for almost three months, as worries over global oversupply intensified after data showed that the American oil rig count surged for the fourth week in a row the previous week.
Baker Hughes, oilfield services provider informed late Friday that the previous week the overall number of rigs drilling for oil in America soared by 14 to 371, the fourth straight weekly soar and the seventh rise for eight weeks.
EconomyVN News (internet)
EconomyVN - In wednesday's trading session, crude oil prices on the US market dropped to the two-month low after new data showed that gasoline stocks and other energy products increased by US record highs, according to the Wall Street Journal updates.
In recent weeks, WTI light sweet crude price in the market fluctuated in the range from 45 to 50 USD/barrel and it has many gains because investors expect gasoline stocks fell.
However, figures released by US Energy Information Administration (EIA) announced on Wednesday that while crude stocks fell slightly, the reserve of gasoline and other energy products such as diesel hike, in the recent week rose 7.1 million barrels to 1.38 billion barrels, a record high in weekly EIA 26-year data.
Notably, stocks of gasoline and energy products rose too sharply at the time of peak consumption of Americans as well as the summer has just started. It showed the oil excess throughout from 2014 to the present has been producing various kinds of finished products.
On New York market, light sweet crude August delivery WTI fell $2.05 or 4.4% to $44.75/barrel - the lowest level since day 10th of May, 2016.
On London market, Brent crude oil futures fell $2.21 or 4.6% to $46.26/barrel.
Also on Wednesday, gasoline August futures fell 3.6%, diesel prices fell 5.6%, the minimum since May, 2016.
Many analysts warn that in some locations, storage space for refined products could fill up. When storage tanks run out of room to store products, producing companies can reduce strongly to attact more buyers.
"We have very little space left on the East Coast. It's going to be spilling over the top of the tanks. We're marching toward a crisis" vice director at Herbert J. Sims & Co., Donald Morton said.
On the same day, International Energy Agency (IEA) reported that stockpiles of crude oil and energy products of developed countries in the world rose to a record high in May, 2016 and continue to grow again in June, 2016.
IEA identified that supply excess will continue to grow strongly and put tremendous pressure on oil prices. "The tone of the IEA report certainly is quite negative," analyst at Deutsche Bank, Michael Hsueh said.
In Asian trade on Tuesday, crude oil prices compare their losses, while keeping a minimum of two months due to increasing US crude oil drilling operations as well as supply growth elsewhere, firmly defend the view that the rebalance of the crude oil market will take longer than expected.
In New York, August delivery sweet, light crude oil futures lost $0.09, trading at $44.72. September delivery Brent crude costs at $46.25 per a barrel.
In spite of small revenues, both fell more than 3% from the previous week.
Crude oil prices will continue to go down as market participants still concerned the increase of exploration activities in USA will impact crude production.
On Friday, news from industry group Baker Hughes has demonstrated that the number of rigs drilling for oil in the US rose again by 10 to a total of about 351. Factly, the number of rigs is considered as a real sign of future crude output.