World Mozaic - Oil Prices Start Positive Trends.
Oil prices ended unchanged on Friday (15/09/2017), the biggest weekly gain since late July. This is in line with expectations of rising global demand and declining world crude supplies.
Harvey's storm is fading as a short-term factor, the market is seeing closer long-term bullish developments on both and the sides of the US market, "said Robbie Fraser, a commodities analyst at Schneider Electric, in a note.
"For OPEC, the report showed a strong recovery for the overall level of overall production compliance in August, adding credibility is moving forward," added Fraser.
The International Energy Agency reported on Wednesday that global oil supplies fell in August and increased demand this year. "On the US side, the number of rigs that are constantly declining recently has increased the likelihood of U.S. production gains being stuck, with current output still holding below pre-Harvey levels," he continued.
Baker Hughes on Friday reported that the number of active US oil rigs fell for the second week in a row, down 7 to 74 rigs.
West Texas Intermediate's crude oil price on the New York Mercantile Exchange for October settled at $ 49.89 a barrel after hitting an intraday high above US $ 50. Traded as high as US $ 50.50 on Thursday (14/09/2017), highest level since May.
Brent for November on ICE Futures Europe rose 15 cents, or 0.3%, to $ 55.62 a barrel. WTI crude oil increases 5.1% weekly. Brent ended about 3.4% higher this week, with both benchmarks marking the strongest weekly gains since the week ending July 28.
Oil rose for a week as refineries and other facilities started operations after Hurricane Harvey, which damaged several facilities on Texas Gulf Coast.
US and global benchmarks show gains in each of the past four sessions, with the latest North Korean missile tests providing a brief rationale for oil investors to pull back the touch.
In a note, Wood Mackenzie said that if there is a military conflict on the Korean Peninsula, shipping line handling one-third of global seaborne trade in crude oil may be disrupted. Half of Asia's refining capacity can be risky.
Meanwhile, WTI crude oil narrows its discount to Brent this week. The price difference between the two has widened in recent months and appears to lead to a "new equilibrium" between US $ 4 to US $ 5 per barrel, according to analysts at Vienna-based JBC Energy in a note.
"A much better economic arbitrage could see US crude exports soar above 1 million barrels per day every week in the coming weeks, with October potentially setting a new monthly record for US crude exports," the note said.
On the Nymex, gasoline for October rose 3.3 cents, or 2%, to $ 1.662 a gallon, holding about 0.9% higher this week. October heating oil gained 2.1 cents, or 1.2 percent, to $ 1.799 a gallon, for a weekly gain of 1.9 percent.
Natural gas for October fell 4.6 cents, or 1.5 percent, to $ 3.024 per million UK thermal units, rising weekly to 4.6 percent. Among exchange-traded products, the US rose 0.7%. Prepare for a weekly gain of 4.8%.
Oil prices ended unchanged on Friday (15/09/2017), the biggest weekly gain since late July. This is in line with expectations of rising global demand and declining world crude supplies.
Harvey's storm is fading as a short-term factor, the market is seeing closer long-term bullish developments on both and the sides of the US market, "said Robbie Fraser, a commodities analyst at Schneider Electric, in a note.
"For OPEC, the report showed a strong recovery for the overall level of overall production compliance in August, adding credibility is moving forward," added Fraser.
The International Energy Agency reported on Wednesday that global oil supplies fell in August and increased demand this year. "On the US side, the number of rigs that are constantly declining recently has increased the likelihood of U.S. production gains being stuck, with current output still holding below pre-Harvey levels," he continued.
Baker Hughes on Friday reported that the number of active US oil rigs fell for the second week in a row, down 7 to 74 rigs.
West Texas Intermediate's crude oil price on the New York Mercantile Exchange for October settled at $ 49.89 a barrel after hitting an intraday high above US $ 50. Traded as high as US $ 50.50 on Thursday (14/09/2017), highest level since May.
Brent for November on ICE Futures Europe rose 15 cents, or 0.3%, to $ 55.62 a barrel. WTI crude oil increases 5.1% weekly. Brent ended about 3.4% higher this week, with both benchmarks marking the strongest weekly gains since the week ending July 28.
Oil rose for a week as refineries and other facilities started operations after Hurricane Harvey, which damaged several facilities on Texas Gulf Coast.
US and global benchmarks show gains in each of the past four sessions, with the latest North Korean missile tests providing a brief rationale for oil investors to pull back the touch.
In a note, Wood Mackenzie said that if there is a military conflict on the Korean Peninsula, shipping line handling one-third of global seaborne trade in crude oil may be disrupted. Half of Asia's refining capacity can be risky.
Meanwhile, WTI crude oil narrows its discount to Brent this week. The price difference between the two has widened in recent months and appears to lead to a "new equilibrium" between US $ 4 to US $ 5 per barrel, according to analysts at Vienna-based JBC Energy in a note.
"A much better economic arbitrage could see US crude exports soar above 1 million barrels per day every week in the coming weeks, with October potentially setting a new monthly record for US crude exports," the note said.
On the Nymex, gasoline for October rose 3.3 cents, or 2%, to $ 1.662 a gallon, holding about 0.9% higher this week. October heating oil gained 2.1 cents, or 1.2 percent, to $ 1.799 a gallon, for a weekly gain of 1.9 percent.
Natural gas for October fell 4.6 cents, or 1.5 percent, to $ 3.024 per million UK thermal units, rising weekly to 4.6 percent. Among exchange-traded products, the US rose 0.7%. Prepare for a weekly gain of 4.8%.