Oil little changed as Saudi comments offset USA output, exports

Oil little changed as Saudi comments offset USA output, exports

Oil little changed as Saudi comments offset USA output, exports

Crude oil prices were stable to mixed early Thursday. The pact runs to March 2018 and they are considering extending it. Brent prices rose 4.66% this week and West Texas Intermediate, the USA benchmark, rose 3.97%.

Crude traders demonstrated on Thursday demonstrated their ability to focus exclusively on the vaguest hint of good news rather than an abundance of clearly-defined bad news by causing Brent to close at a 27 month high of $59.30 on an 86 cent rise; West Texas Intermediate also rose, by 46 cents, to settle at a six month high of $52.54.

Kurdish authorities on Wednesday offered to suspend their independence drive, but Baghdad said it would continue its offensive to retake Kurdish territory. "If it goes too high, it is an indication to US shale producers to produce more oil", a development that could undermine the oil market rebalancing under way, he said.

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

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

The company said its production growth so far was "robust".

Metal Gear Survive Release Date Announced For North America And Europe
Metal Gear Survive will be released in North America on February 20, 2018 for the Xbox and PS4, Konami confirmed on Wednesday. Metal Gear Survive will feature a single-player campaign and a co-op mode that supports up to four players.

TransCanada Corp 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.

Since the start of October, Saudi oil exports to the USA have been 3.2 million barrels below shipments from Iraq.

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

"We continue to highlight a near record level of crude exports that appears sustainable near 2 (million bpd) through next month due to a widening Brent-WTI spread that pushed above US$6 per barrel resistance in yesterday's trade", Jim Ritterbusch, president of Chicago-based energy advisory firm Ritterbusch & Associates, said in a note.

Prices also drew support from expectations US crude inventories will show a drop of 2.5 million barrels in the latest weekly supply reports, which would be the fifth straight week of declines and a sign the OPEC-led cut is working.

"It's a market we feel is rangebound (for USA crude) in the mid-$40s to mid-$50s".

Related news