Fidelity bank banner UBA banner
Oil price hits $60 per barrel

By News Express on 28/10/2017

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

Views: 832


 Oil prices jumped about 2 percent on Friday, with global benchmark Brent crude rising above $60 per barrel, on support among the world’s top producers for extending a deal to rein in output and as the dollar retreated from three-month peaks.

Saudi Arabia and Russia declared their support for extending an OPEC-led deal to cut supplies for another nine months, the Organization of the Petroleum Exporting Countries’ secretary general said ahead of the group’s next policy meeting on Nov. 30. The pact currently runs to March 2018.

Brent futures LCOc1 rose $1.14, or 1.9 percent, to settle at $60.44 a barrel after hitting a session peak of $60.53, the highest since July 2015 and more than 35 percent above 2017 lows touched in June.

U.S. West Texas Intermediate crude oil (WTI) CLc1 ended the session up $1.26, or 2.4 percent, at $53.90 after reaching a session peak of $53.98 a barrel, the highest since early March.

For the week, Brent was 4.6 percent higher, notching its third straight weekly gain. U.S. crude rose 4.7 percent for the week.

U.S. crude’s gains have lagged the global benchmark amid rising domestic output.

Oil prices have been hovering near their highest levels for this year amid signs of a tightening market, renewed support this week of an extension of production cuts and tensions in Iraq.

However, the announcement on Friday of a ceasefire between Iraqi forces and the Peshmerga from the country’s autonomous northern Kurdish region eased some concerns.

“What is interesting is that the pop in WTI futures moved above the Sept. 28 high,” said David Thompson, executive vice president at Powerhouse, an energy-specialised commodities broker in Washington.

“So even though the dollar is giving back some of its move, crude may now be trading off of a new driver, the technical breakthrough to a new high.”

The dollar trimmed its earlier gains versus a basket of currencies .DXY following a Bloomberg report that U.S. President Donald Trump is leaning toward Federal Reserve Governor Jerome Powell as his pick to head the U.S. central bank.

A weaker dollar makes greenback-denominated commodities, including oil, cheaper for holders of other currencies.

“I think the combination of short-covering and Chevron and Exxon both missing their production guidance for the third quarter has resulted in the market strength today,” said Scott Shelton, energy futures broker with ICAP in Durham, North Carolina.

TransCanada Corp (TRP.TO) said in a filing on Thursday that it is seeking to raise the temporary discounted spot rate for light crude on its 700,000 barrel-per-day Marketlink pipeline. That sent WTI’s discount to global marker Brent WTCLc1-LCOc1 to the widest in a month.

OPEC and other major producers including Russia have pledged to reduce production by around 1.8 million barrels per day (bpd) to drain a global supply glut.

“If OPEC and their non-OPEC partners can agree to extend their production curtailments through 2018, then we estimate the oil market will remain in modest under-supply until 2019,” U.S. investment bank Jefferies said.

Rising U.S. crude production remains an issue for OPEC as it strives to clear a global supply overhang.

Government data showed that U.S. crude production rose 1.1 million bpd last week to 9.5 million bpd after a decline due to Hurricane Nate, while U.S. oil exports hit a new record four-week average of 1.7 million bpd. [EIA/S]

U.S. drillers added one oil rig in the week to Oct. 27, but the rig count, an indicator of future production, fell by 13 for the month, the biggest such decline since May 2016, data showed.

Hedge funds and other money managers raised their bullish wagers on U.S. crude futures and options in the week to October 24, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

“Momentum may take us a little further here but longer term, I would expect a supply response here domestically,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.

“It’s a market we feel is rangebound (for U.S. crude) in the mid-$40s to mid-$50s.” (Reuters)

Source News Express

Posted 28/10/2017 10:08:57 AM

 

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


 

CLASSIFIED ADS

 

You may also like...
Breaking News: Top clergyman kidnapped near Obasanjo Farms...

Outcasts in Imo now free

U.S. spends $420m to fight malaria in Nigeria...

Anambra set to flush out quacks in alternative...

Hope rises for improved power supply as NNPC...

Airtel wins Best Company in Education CSR Award...

More Chibok girls to regain freedom: Buhari

Delta pays pensioners N1.2 billion monthly —Uduaghan

Onitsha shoe dealers protest non-allocation of land 5...

Fiscal Commission and HURIWA tango over identity of...

Fulani herdsmen on killing spree in Adamawa

Intersociety canvasses ethnic balancing in police appointments and...

 

Latest News Why Buhari may lose 2019 presidential election — APC chieftain Bayelsa, Rivers, Akwa Ibom win landmark case against oil majors •Verdict a victory for Niger Delta, Nigeria — Dickson Politicians stockpiling arms in Benue — Police Commissioner Peter Obi a gift from Ndi-Igbo to Nigeria; South-East governors not against his selection as Atiku’s running mate — Ikpeazu CHRSJ petitions security agencies over foreign ports workers mismanagement of N3b monthly subvention, maltreatment of Nigerian workers DTSG puts smiles on pensioners’ faces •Approves work on 5 roads, appointment of 3 traditional rulers 2019 Presidential Election: Atiku assures Turaki of collaboration Woman kills herself, 2 kids after husband fakes his death Ijaw youths demand sack of NDDC Chairman, MD 2019: Only eight parties have submitted candidates’ lists, 24 hours to deadline — INEC US pledges more support for EFCC PSC approves promotion of 3 AIGs to DIGs, 4 CPs to AIGs

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (407,241 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (382,652 views) Shameless Genevieve Nnaji exposes breasts in public (315,013 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (257,367 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (237,607 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (224,416 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (204,229 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (185,707 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (170,350 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (165,970 views) Lagos plane crash: Journalist releases victims’ names (161,605 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (149,381 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (67) Business & Economy (3,685) Business Verdict (52) Columnists (947) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (559) Features (659) Global Business Monitor (304) International (2,541) Interview (165) Live Commentary (28) Love Matters (145) News (39,710) Opinion (1,124) Pidgin (13) Politics (7,273) Religion (881) Sports (1,732) Stock Watch (35) AMA & Al Jazeera Global Update

 

NLNG Prize for Literature 2018

Zenith Zero Balance

CBN banner

Firstmobile banner

 

 

 

NEWS EXPRESS TV

LIBYA vs NIGERIA 2-3 Goals Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement