NewsExpress advert FCMB banner Fidelity bank banner NewsExpress advert
Oil soars above $50 per barrel

By News Express on 09/09/2016

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 1,400


Oil prices surged over 4 percent on Thursday, with Brent briefly touching $50 (37.5992 pounds) a barrel for the first time in two weeks, after a surprisingly huge drawdown in U.S. crude stocks as Gulf Coast imports slumped to a record low.

Brent (LCOc1) rose $2.01, or 4.2 percent, to settle at $49.99 a barrel, its highest close in almost three weeks.

U.S. crude (CLc1) ended at $47.62 per barrel, up $2.12, or 4.7 percent, the biggest daily percentage gain for U.S. futures since April.

U.S. crude stocks dropped 14.5 million barrels last week to 511.4 million barrels, the biggest weekly drop in stockpiles since January 1999, according to government data.

Imports into the U.S. Gulf Coast fell to 2.5 million barrels per day, the lowest since data collection began in 1990. [EIA/S]

Traders said the imports fell as ships delayed offloading cargos in Texas and Louisiana due to Tropical Storm Hermine.

Hermine, which threatened the Gulf Coast refining hub last week, scuttled some U.S. oil production and limited imports and shipping, ultimately did not harm Gulf facilities.

“The market missed the imports but I think the price increase is temporary as opposed to a new uptrend,” said Dominick Chirichella, senior partner at Energy Management Institute in New York.

“The vast majority of the crude stock decline will be made up in next week’s numbers when we should see a big bump up in imports,” he said.

Key U.S. oil spreads remained little changed after the EIA report. Tariq Zahir, spreads trader at Tyche Capital in New York, said the “drawdown may be viewed as a one-off situation.”

Gasoline futures (RBc1) jumped over 5 percent after the data release, on higher than expected draws and rising refinery utilisation in the Midwest, traders said. Gasoline margins (1RBc1-CLc1) also rose sharply.

Oil prices drew support earlier when Chinese trade data showed crude imports in August surged nearly 25 percent from a year ago to the second-highest ever, as independent refiners took advantage of low oil prices before import quotas expire in December.

On the bearish side, Russian average oil production rose close to 11 million bpd during Sept. 1-7, industry sources told Reuters, from 10.71 million bpd in August.

The increased output – which may not be sustained throughout the month – comes as Russia and Saudi Arabia are talking about cooperation to stabilise global oil markets.

On Monday, crude prices jumped after both major producers agreed to cooperate on stabilising the oil market. Uncertainty remains over the chances that producer nations will agree on an output freeze. An April meeting in Doha, Qatar, failed to reach an agreement.

The Organisation of the Petroleum Exporting Countries and non-OPEC producers such as Russia are expected to discuss the issue at informal talks in Algeria Sept. 26-28.

“Implementation remains highly questionable and current OPEC production already approaches levels we had not anticipated until 2018,” Macquarie Research analysts said in a note. (Reuters)

Source News Express

Posted 09/09/2016 05:52:14 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
EFCC seals 8 properties belonging to Maina

Alaafin names Aregbesola ‘Omoluabi of Yorubaland’

Osun PDP senatorial candidate attacked

EFCC arraigns Directors, firm over N735m subsidy scam...

APC mourns late Mayor of Port Harcout, berates...

NLNG confirms explosion along gas transmission system right...

Troops launch fighting patrols in Bauchi, kill armed...

Lagos to expand tax net, LIRS boss woos...

Akwa United FC now to plays Premier League...

NAF commences daily feeding of school children in...

Dokubo vs David-West: EX-MILITANT LEADER STRIKES AGAIN (Dokubo...

Breaking news: Gunfire rocks Maiduguri as soldiers, Boko...

 

Latest News BREAKING NEWS: Senate calls for Buhari’s impeachment APC shifts congresses, National Convention Big Brother Naija sponsor, Payporte, in N23m debt mess, begs court to dismiss winding up suit Democracy under threat: Southern, Middle Belt leaders IGP Ibrahim Idris disrespecting me and the Senate — Saraki Shell profits jump as oil prices soar Troops nab militias in Nasarawa, recover arms Abnormal herdsmen behind Benue killings — Presidency Umahi orders arrest of policeman over alleged killing of Okada rider INVESTIGATION: Former DG NEMA, Sidi Ali, maintained 20 bank accounts — Reps Revenue discrepancies: FAAC meeting fails to hold again 2019: Senator Abe joins Rivers guber race

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (340,130 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (335,221 views) Shameless Genevieve Nnaji exposes breasts in public (268,195 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (220,540 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (202,336 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (198,424 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (173,152 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (155,503 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (147,320 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (139,310 views) Lagos plane crash: Journalist releases victims’ names (137,107 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (129,776 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (36) Business & Economy (3,077) Business Verdict (40) Columnists (839) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (485) Features (570) Global Business Monitor (267) International (1,929) Interview (149) Live Commentary (28) Love Matters (116) News (34,771) Opinion (917) Pidgin (10) Politics (4,823) Religion (724) Sports (1,487) Stock Watch (28) AMA & Al Jazeera Global Update

 

Firstmobile banner

 

 

NEWS EXPRESS TV

Boko Haram commanders surrender

 

APO Group Partner

 

 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement