Fidelity bank card banner Camano banner
Oil cracks $50 a barrel for the first time in three weeks

By News Express on 20/05/2017

Views: 853

U.S. crude surged above $50 a barrel for the first time in more than three weeks, as a report surfaced that OPEC members are considering cutting production more deeply to tackle a persistent supply glut that has weighed on prices.

U.S. West Texas Intermediate crude (New York Mercantile Exchange: @CL.1) futures for June delivery were more than 2 percent higher at $50.40 a barrel shortly by 12:30 p.m. ET. That put WTI above the key level of $50.22 a barrel, the high for the week of April 24 — just before oil prices broke below a number of technical levels, culminating in a “flash crash” to $43.76.

Most of Friday’s trading volume was in futures for July delivery, which will soon take over as the front-month contract. July WTI was trading solidly above $50 a barrel.

Oil prices are now on pace for a second weekly gain. Analysts told CNBC a rally on Monday was primarily driven by short-covering — or closing bets that oil prices would fall further — after top oil producers Russia and Saudi Arabia agreed to extend production cuts among two dozen exporters through March 2018.

Friday’s rally appears to be driven by new bullish bets, as those looking to cover shorts already closed those positions earlier this week, said Andy Lipow, president at Lipow Oil Associates.

“The rally really is all on the back of the anticipation of what OPEC is going to do next week,” he said.

OPEC members meet on Thursday to determine whether to roll over their deal to remove 1.2 million barrels a day from the market in order to shrink historic global crude stockpiles. The goal is to get the worldwide inventory level back down to the five-year average, something OPEC has failed to do so far this year.

“The heavy lifting has been done by Saudi Arabia, so they actually could get more production cuts if the rest of them would comply better with the rest of the original agreement,” Lipow said.

Heading into the high demand months, investors should expect WTI to be trading in the low $50s, said Tom Kloza, global head of energy analysis at Oil Price Information Service.

“The question is how come it’s taken so long?” he said.

“I think the market’s probably going to have enough mojo to retain those low $50s. The problem I have is with everyone who’s in that $60, $70 and $80 neighborhood.”

However, oil prices still remain in a range in which they are vulnerable to profit-taking.

“For the bulls to regain the full upper hand, a close over $50 is what we need,” John Kilduff, partner at energy hedge fund Again Capital, told CNBC earlier this week.

Source News Express

Posted 20/05/2017 1:26:05 PM





You may also like...
Highway robbers kill 20 luxury bus drivers, conductors...

Fire engulfs Overland Airways aircraft at MM1

Hurricane Michael leaves ‘unimaginable destruction’ in US

Saraki seeks improved welfare for security agencies

Breaking: PDP National Chairman Bamanga Tukur finally throws...

Anti-Jonathan prophecy: Bakare disowns journalists

Court seals Skye Bank branches over breach of...

2019 polls: NYSC DG tasks corps members

Bayelsa Polls: PDP cries out over alleged attacks...

Buhari raises hope on economic recovery

MASSOB condemns closure of Igbo businesses at Lagos...

Rio 2016 Olympics qualifier: Okumagba thumbs up U-23...


Latest News Jonathan’s ally joins Bayelsa guber race Father’s Day: Okowa urges parents to build better homes INEC Server: Atiku tackles mischief makers Human trafficking: How organ hunters obtain, sell hearts, human eggs We must join hands to lift our young ones from poverty to prosperity, says Tony Elumelu as he receives honorary doctorate degree Journalist, relief officials escape abduction CAN Presidency: TEKAN President draws battle-line with Ayokunle APC crisis may delay submission of ministerial list to Senate Akeredolu lauds NDDC 4,000 health personnel needed in Borno – Health Union 2019 Elections: How political parties created logistic challenges – INEC A pain has come that will never go, says Dokubo as elder sister is buried


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (494,155 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (425,329 views) Shameless Genevieve Nnaji exposes breasts in public (365,076 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (311,710 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (276,057 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (243,895 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (233,803 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (215,733 views) 10 cars more expensive than Jets (212,392 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (204,309 views) Lagos plane crash: Journalist releases victims’ names (184,413 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (183,760 views)


NNPC Financial reports February 2019

CBN banner advert

UBA Wise Savers Promo


Categories Advertorials (3) African Press Organisation (81) Art & Literature (93) Business & Economy (4,308) Business Verdict (73) Columnists (1,051) Complaints & Requests (95) Enterprise & Opportunities (209) Entertainment (623) Features (759) Global Business Monitor (378) ICT Monitor (53) International (3,591) Interview (184) Live Commentary (30) Love Matters (162) Maggie's Blog (302) News (47,400) Opinion (1,260) Pidgin (17) Politics (11,022) Religion (1,022) Sports (2,043) Stock Watch (39) AMA & Al Jazeera Global Update






APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera