Crude Oil Dips In Asia Ahead Of OPEC, API Inventory Reports

Opec and other producers including Russia pledged to reduce oil output by about 1.8 million barrels a day through March

Harry Tchilinguirian, global head of commodity markets at BNP Paribas, said the market was still determining the extent of the damage of Hurricane Harvey on oil refineries, while anticipating the effect of Hurricane Irma, which made landfall in the us over the weekend.

Power has been cut to 4 million homes in Florida as millions fled the state as Hurricane Irma moved up the coast.

Irma hit Florida on Sunday morning as a unsafe Category 4 storm, the second highest level on the five-step Saffir-Simpson scale, but by afternoon it weakened to a Category 2 with maximum sustained winds of 110 miles per hour (177 kph).

Brent, the global benchmark, rose 45 cents, or 0.84%, to $54.29 a barrel.

OPEC and other producers, including Russia, Mexico and Kazakhstan pledged in late 2016 to reduce output by about 1.8 million barrels a day to eliminate a global surplus that was depressing prices. The U.S. dollar, meanwhile, has declined steadily, something the head of Russian oil major Rosneft said recently was contributing to the rise in crude oil prices.

Commenting on the impact on oil production of hurricane Harvey, OPEC said "the USA energy industry appears to be rebounding quickly".

The Organization of Petroleum Exporting Countries and its allies may keep output cuts in place well into the second half of next year, according to people familiar with the matter. But market sources in North Asia say North Korea now takes about 6 million barrels/year of Chinese crude.

OPEC said inventories were falling and that an increase in the price of Brent crude for immediate delivery to a premium to that for later supplies raised hopes that a rebalancing is under way. "Due to the demand-focused impact of Irma, we find that, by the end of September, gasoline and distillate stocks respectively are only -8 million barrels and -13 million barrels lower respectively than they otherwise would have been". It is also costing them market share to rivals, including partner Russian Federation and the U.S.

After Hurricane Harvey halted nearly a quarter of the nation's refining capacity, crude prices in NY slumped as gasoline prices soared.

"Over the next two to three weeks, the EIA inventory numbers will be rather sloppy because you have production disrupted, refineries going offline and online", he said, noting that OPEC figures are a better signal of market stabilization, "That's why you have to look out further".

Non-Opec Kazakhstan is aiming for a stand-alone deal with Opec on restraining its crude production due to a need to crank up output at its Kashagan field, a Kazakh official said last week.

Related:

  • Cancelled Cruise Count Rises to 19

    Cancelled Cruise Count Rises to 19

    Susquehanna International Ltd Liability Partnership accumulated 94,138 shares. 18,876 were reported by Horizon Kinetics Ltd Com. The company reported $3.20 earnings per share for the quarter, topping the Zacks' consensus estimate of $3.10 by $0.10.
    What Got Mark Hamill to Return to the Star Wars Galaxy?

    What Got Mark Hamill to Return to the Star Wars Galaxy?

    While Luke will probably have a key role to play in the new movies, it’s certain the new actors will dominate the storyline. He felt he needed to know what all those years have done to Luke even if the material doesn’t get told in the actual movie.
    Do you know how to get rich on bets?

    Do you know how to get rich on bets?

    How to do that a lot of people knows, but not everyone knows how to do it correctly and with minimal losses. The main desire of all players who make bets - is an opportunity to win as soon as possible.
  • Tit for Tat: Furious Ankara Issues Travel Warning for Turks in Germany

    Tit for Tat: Furious Ankara Issues Travel Warning for Turks in Germany

    Some 50,000 people have been jailed and 150,000 have lost their jobs, while private companies have been seized. Turkey has declared a state of emergency following the failed military coup, in effect until October.
    Wise casino advices

    Wise casino advices

    Tips casino players online You need to understand the difference between traditional casinos and online casinos. Still, the main goal, anyway, is to get a prize and the opportunity to become rich without putting an effort.
    Weekend that could determine the destination of the Premier League title

    Weekend that could determine the destination of the Premier League title

    Many neutrals are hoping to see a fitting ending to what has been a fairytale story that may even be turned into a box office film, such has been the feat of their achievements.
  • Ander Herrera opens up about new Man United signing: He's so hungry

    Man United is unlikely to have much trouble getting through in a group that features Benfica, FC Basel and CSKA Moscow . Mourinho said he had "no complaints" about how English football was set up and that he had the option to rest players.
    Bachelor party in Kiev — unforgettable impressions are guaranteed

    Bachelor party in Kiev — unforgettable impressions are guaranteed

    Spectacular dancers will complement the spectacular dance of any composition, leaving an unforgettable impression in your memory. A special chic to the club is given by colorful and incendiary performances, over which a professional choreographer works.
    As the confetti settles and the clean-up from Cleveland’s first major professional sports championship parade in over 50 years begins, attention turn to next season.

    As the confetti settles and the clean-up from Cleveland’s first major professional sports championship parade in over 50 years begins, attention turn to next season.

    We’ve already seen the green shoots of something great this term and look like they could make a playoff push next season. Cavs have work cut out The defending champs have their work cut out keeping the title winning roster together this summer.
  • Teva gets new CEO, reports positive fremanezumab study - shares jump

    Teva gets new CEO, reports positive fremanezumab study - shares jump

    The Company is involved in developing, producing and marketing generic medicines and a portfolio of specialty medicines. The value in dollars increased from $133,000 to $351,000,000 a change of 263,809.8% quarter over quarter. (NASDAQ:LSTR).
    Jose begins Atlantic loop

    Jose begins Atlantic loop

    Only three days earlier, Antigua and Barbuda had been devastated by a peak-strength Category 5 Irma, packing 185-mph winds. On late Monday afternoon, the NHC announced that Hurricane Jose continues to move far northeast of the Bahamas.
    Booker joins Bernie Sanders' crusade

    Booker joins Bernie Sanders' crusade

    Democratic activists believe the GOP's failed attempt to repeal Obamacare has strengthened the resolve of the nation's leftists. In telling her side of the story, Clinton takes jabs at Sen. "I think health care should be a right to all ", said Booker.

Comments

Other news