Where oil prices are headed

Oil Oil prices rose on Friday on optimism that the U.S. Federal Reserve will ends its tightening cycle, buoying the economy and boosting fuel demand. Brent futures for March delivery gained 48 cents, or 0.6%, to $86.64 a barrel by 0113 GMT, while U.S. crude advanced 54 cents to $80.87 per barrel, a 0.7% gain. The benchmarks were on track for a second straight week of gains. Both closed 1% higher on Thursday, near their highest closing levels since Dec. 1. According to most economists in a Reuters poll, the Fed will end its tightening cycle after a 25 basis point hike at each of its next two policy meetings, and then likely hold interest rates steady for at least the rest of the year. Federal Reserve Bank of New York President John Williams said on Thursday the U.S. central bank has more rate hikes ahead, and sees signs inflationary pressures might be starting to cool off from torrid levels. A number of other Fed officials have expressed support for a downshift in the … [Read more...] about Oil prices climb on hopes for Fed slowing interest rate hikes

Oil Oil prices drifted lower in early trade on Monday, thinned by the Lunar New Year holiday in east Asia, but held on to most of last week's gains on the prospect of an economic recovery in top oil importer China this year. Brent crude futures retreated by 46 cents, or 0.5%, to $87.17 at 0031 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 40 cents, also down 0.5%, to $81.24 a barrel. Last week Brent rose 2.8%, while the U.S. benchmark logged a 1.8% gain. Data shows a solid pick-up in travel in China after COVID-19 curbs were eased, ANZ commodity analysts said in a note, pointing to a 22% jump in road traffic congestion so far this month from a year earlier in the country's 15 key cities. International Energy Agency head Fatih Birol on Friday said energy markets could tighten this year if the Chinese economy rebounds the way financial institutions expect. Read More "I wouldn't be too relaxed about the markets, and 2023 may well be a year … [Read more...] about Oil prices fall but remain buoyed by China outlook

Oil prices reversed earlier gains on Friday as indications of strong Russian oil supply offset better than expected U.S. economic growth data, strong middle distillate refining margins and hopes of a rapid recovery in Chinese demand. Brent futures were down 51 cents, or 0.6%, at $86.96 a barrel by 11:29 a.m. EDT (1629 GMT.) U.S. crude fell 65 cents, or 0.8%, to $80.37. Both benchmarks rose by more than $1 earlier in the session but are now poised to break a three-week run of gains. Oil loadings from Russia's Baltic ports are set to rise by 50% this month from December as sellers try to meet strong demand in Asia and benefit from rising global energy prices, traders said and Reuters calculations showed. Urals and KEBCO crude oil loadings from Ust-Luga over Feb. 1-10 may rise to 1.0 million tonnes from 0.9 million in the plan for the same period of January, traders also. "If Russian supply remains strong heading into next month, oil is probably going to continue to trend … [Read more...] about Oil prices fall on profit taking, strong Russian supply

Oil prices were set to post a second straight weekly gain on Friday, spurred largely by brightening economic prospects for China which should boost fuel demand in the world’s second-biggest economy. Brent futures for March delivery gained 26 cents, or 0.3 percent, to $86.42 a barrel by 0655 GMT, while U.S. crude advanced 43 cents to $80.76 per barrel, a 0.5 percent gain. Both closed 1 percent higher on Thursday, near their highest closing levels since Dec. 1. Chinese November oil demand climbed to the highest level since February, data from the Joint Organisations Data Initiative showed on Thursday. OPEC said on Tuesday that Chinese oil demand would rebound this year due to relaxation of the country’s COVID-19 curbs and drive global growth. Oil prices were also supported by hopes that the U.S. central bank will soon end its tightening cycle. Federal Reserve Bank of New York President John Williams said on Thursday the U.S. central bank is seeing signs of inflationary … [Read more...] about Oil prices set for second week of gains on brighter China outlook

The expected surge in demand comes as the market braces for further sanctions on Russian oil Petrol and diesel prices held steady across metro cities on January 23, the latest price notification issued by fuel retailers showed. Petrol and diesel in Delhi cost Rs 96.72 per litre and Rs 89.62 a litre, respectively. In Mumbai, petrol is being sold for Rs 106.31/litre and diesel for Rs 94.27/litre. Petrol and diesel are priced at Rs 102.63/litre and Rs 94.24/litre in Chennai and at Rs 106.03/litre and Rs 92.76/litre in Kolkata, respectively. Oil prices drifted lower in early trade on January 23, thinned by the Lunar New Year holiday in east Asia, but held on to most of last week's gains on the prospect of an economic recovery in top oil importer China this year. Brent crude futures retreated by 46 cents, or 0.5 percent, to $87.17 at 0031 GMT, while US West Texas Intermediate (WTI) crude futures fell 40 cents, also down 0.5 percent, to $81.24 a barrel. Read More … [Read more...] about Fuel prices on January 23: Check petrol, diesel rates in Delhi, Mumbai and other cities

According to Jeff Currie, Goldman Sachs’ global head of commodities research, Brent crude oil could touch $110 a barrel in the third quarter if China and other Asian economies fully reopen from COVID curbs. The economic headwinds blowing towards India’s economy could get stronger towards the third quarter as crude oil prices are likely to touch $110 a barrel. According to Jeff Currie, Goldman Sachs’ global head of commodities research, Brent crude oil could touch $110 a barrel in the third quarter if China and other Asian economies fully reopen from COVID curbs. The course of China’s reopening after the Lunar New Year celebrations will provide the cues for global oil market. “What is idled? Planes, trains and automobiles. You turn them all back on, that’s going to be a big pop in oil demand,” Currie said in an interview to Bloomberg Television. Oil market has found support amid global recessionary fears from the easing of COVID curbs in China following a wave of … [Read more...] about Crude oil at $110 a barrel? Goldman’s forecast could be a challenge for India’s economy

Oil Oil prices were steady on Thursday after U.S. crude stocks climbed less than expected, while investors awaited further clarity on supply drivers, including an OPEC+ meeting and the looming EU ban on Russian refined products. Brent crude futures dipped 4 cents, or 0.1%, to $86.08 per barrel by 0400 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 18 cents, or 0.2%, to $80.33. "The market awaits to get more clarity on the upcoming EU embargo on Russian refined products and the subsequent reshuffle of trade flows, while OPEC+ delegates head into their next meeting," Citi analysts said in a note Thursday. "The upcoming EU embargo on Russian refined products remains a major source of concern for the market, with widespread dislocations expected to materialize," the Citi analysts added. Oil prices were also little changed after data showed a build in U.S. crude inventories which was less than expected. Read More Crude inventories edged higher … [Read more...] about Oil steady as market awaits more supply clarity

LONDON/SINGAPORE  – Stocks and oil prices dipped on Thursday after weak U.S. consumer data rekindled global recession worries, while Japan’s yen reared up again as traders took fresh punts that the Bank of Japan will soon be tightening policy. An early 0.5 percent slide in Europe after a bad day for the Nikkei meant the all-world share indexes were facing their first three-day losing streak of the year. Wall Street futures were pointing down 0.3 percent, while Benchmark 10-year U.S. Treasury yields, which tend to drive global borrowing costs and fall when bond prices rise, hit their lowest since September. Oil prices dropped back over 1 percent after a 10- percent rally so far this year and industrial metal copper skidded from a six-month high that has been fuelled by resource-hungry China abandoning COVID-19 restrictions. “We actually think that the recession and the corporate earnings season that we are just at the start of … are going to weigh on the markets,” Close Brothers … [Read more...] about Stocks and oil slide on rekindled recession worries

Representative Image Oil fell sharply on Wednesday after slumping in the previous session, weighed down by concerns about weak demand due to the state of the global economy and China's rising COVID cases. Brent futures fell $1.88 to $80.22 a barrel, a 2.3% loss, by 1032 GMT. U.S. crude dropped $1.68, or 2.2%, to $75.25 per barrel. Both benchmarks plunged more than 4% on Tuesday, with Brent suffering its biggest one-day loss in more than three months. "Worries about the state of the global economy are front and centre of traders’ minds and will remain so for the foreseeable future," PVM Oil analyst Stephen Brennock said. The Chinese government also increased export quotas for refined oil products in the first batch for 2023, signalling expectations of poor domestic demand. Top oil exporter Saudi Arabia may further cut the prices for its flagship Arab Light crude grade to Asia in February, after they were set at a 10-month low for this month, as concerns of oversupply … [Read more...] about Oil falls again as concerns grow over global economy, China COVID cases

India and China have become a crucial destination for Russian oil (Representative image/Reuters) India’s oil processors are open to buying even more Russian crude if the price is right, said refinery executives, potentially providing a bigger outlet for Moscow almost a year after its invasion of Ukraine. The South Asian nation increased Russian oil imports in 2022, ending the year with record monthly volumes as discounted barrels enticed buying. Executives said more cheap crude may be available to India from early next month, with a European Union ban on seaborne Russian fuel shipments possibly weighing on refining rates in the key OPEC+ producer. India and China have become a crucial destination for Russian oil after many others shunned shipments due to the war in Ukraine . Indian refiners are able to turn cheap Russian crude into fuels such as diesel and then sell to regions including Europe, boosting profit margins for processors. The impending EU sanctions are … [Read more...] about Russian oil exports to India may hit new highs as interest grows