|Day's range||43.85 - 47.03|
The U.S. Department of Energy said on Friday it will sell up to 12 million barrels of oil from the Strategic Petroleum Reserve in compliance with the 2015 budget act. The reserve, held in underground salt caverns on the Texas and Louisiana coasts, currently holds 635 million barrels of oil, more than required under international agreements. Up to 6 million barrels will be offered from the Bryan Mound, Texas site and up to 3 million barrels will be offered from both the Big Hill, Texas and West Hackberry, Louisiana sites.
Faced with a slump in demand and plunging oil prices, OPEC’s top producer and de facto leader Saudi Arabia is asking members of the OPEC+ group to consider an additional collective cut of 1 million bpd
Gold is currently trading inside a value zone defined as $1628.10 to $1604.80. Watch the price action and read the order flow on a test of this zone to determine if buying is taking place.
Oil has shed nearly 30% from January highs, with U.S. crude dropping below $50 a barrel after the virus hit demand in China, the world's top oil importer, and sparked concerns about excess global supply. "In the first quarter, we expect economic disruptions caused by the outbreak to weigh heavily on oil demand and prices," Capital Economics analyst Caroline Bain said. Analysts expect global oil demand to grow by about 0.7-1.1 million barrels per day (bpd) this year, compared with last month's prediction of 0.8-1.5 million bpd.
Crude is having a dismal week and has fallen over 14 percent. With the coronavirus taking a toll on the global economy, the crude slide could continue.
Such a step by Reliance, which operates the world's biggest refining complex, and Nayara - part owned by Russian oil major Rosneft - would severely curtail purchases by one of Venezuela's last big export destinations. India accounted for about a third of Venezuela's oil shipments in January.
We’re going to learn a lot about how investors feel about this market by how they react to 2876.75 to 2753.75. I know it’s a day early, but I wouldn’t be surprised by a major reversal to the upside following a test of this value zone. It there is no reversal then we could see an attempt to build a support base.
Oil prices slumped for a sixth day in a row on Friday to their lowest in more than a year, causing futures to drop by the most in a week since 2016, as the spread of coronavirus stoked fears that a slowing global economy would hit energy demand. The coronavirus spread further, with cases reported for the first time in six countries across three continents, battering markets and leading the World Health Organization (WHO) to raise its impact risk alert to "very high." The most active Brent future for May delivery fell $2.06, or 4.0%, to settle at $49.67 a barrel, its lowest since July 2017.
Despite its relatively small hydrocarbon reserves, Oman appears to be seeking to solidify its image as a relative regional safe-haven in order to achieve this financial goal
Russia continues to be little communicative about its willingness to deepen oil output cuts, but does admit that the coronavirus has hit demand more than expected
(Bloomberg) -- OPEC and its allies are displaying a “renewed commitment” to reach an accord that will stabilize oil markets hit hard by the coronavirus, the group’s top official said.All eyes will be on the group’s meeting next week after crude prices slumped to a one-year low below $46 a barrel in New York. The disease has slashed fuel demand in China and threatens global economic growth, but the 23-nation coalition has so far appeared divided over its response, with Saudi Arabia pressing for production cuts and Russia taking a more cautious stance.Saudi Aramco is supplying China with 500,000 barrels a day less than normal in March due to the outbreak, according to a person familiar with the matter.“There is a renewed commitment” in the alliance “to build the consensus for a joint action in mitigating the current hyper volatility in the market,” Secretary-General Mohammad Barkindo said in an interview from Saudi Arabia, where he has interrupted a religious pilgrimage in Mecca to help co-ordinate the Organization of Petroleum Exporting Countries’ upcoming meeting.The group intends to proceed with talks scheduled for March 5-6, and has distributed health guidelines to staff at its Vienna secretariat as well as national delegations with advice on preventing infections.Commodities are caught in an unrelenting slump as gloomy headlines over the impact of the deadly coronavirus pile up. In addition to the plunge of more than 20% in oil since the start of the year, copper and nickel slid, while a gauge of grain prices was set for the first back-to-back monthly loss since August. Investors fleeing risk have found a haven in gold. Brent, the global crude benchmark, kept falling on Friday and is now down around 12% this week.Saudi Arabia wants OPEC producers including Russia to agree to collective production cuts of an additional 1 million barrels per day, the Financial Times reported, citing five people familiar with the talks.Resource-dependent economies are under pressure, yet over the past month Russia has rebuffed pressure from Saudi Arabia for an emergency meeting of the OPEC+ alliance, saying it preferred to take time to analyze the situation. A more diversified economy enables Moscow to weather the slump in oil prices more easily than the Arab kingdom.Nonetheless, Russian Energy Minister Alexander Novak rejected speculation that the two producers who spearhead OPEC+ are at odds, saying on Thursday that he’s “very satisfied” with the level of cooperation.Barkindo said the OPEC+ partnership has proved effective in balancing world crude markets since it was founded in late 2016, and will do so again.The group “is a tested and proven market mechanism that restored the oil markets to stability in the last three years,” he said. “This framework will be applied in addressing the current volatility in the oil markets.”Oil prices may in any case be on track to rebound because the losses have been excessive, Barkindo said.“Looking at the broader macroeconomic picture, it’s clear that there is an over-reaction” with “energy assets in general being under-priced,” he said.(Updates with Financial Times report in 7th paragraph.)\--With assistance from Javier Blas and Andrew Janes.To contact the reporter on this story: Grant Smith in London at email@example.comTo contact the editors responsible for this story: James Herron at firstname.lastname@example.org, David Marino, Pratish NarayananFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Silver has resumed its losing ways, as investors are concerned that turbulent economic conditions will result in lower demand for silver as an industrial component. Will the slide continue?
The drop in Treasury yields means investors want a rate cut, the rise in gold indicates traders expect a rate cut in April, but the Fed doesn’t always give the markets what they want.
Crude continues to slide and is down over 10 percent this week. As the coronavirus continues to spread, oil prices could fall even further.
The majors are set for another fall at the open as the markets face the ever-growing prospect of a global pandemic and even greater disruption to trade.
Cold is coming, but it’s not expected to last. There will be a bump in natural gas demand, however, and cash prices are likely to be firm.
At 15:30 GMT, the U.S. Energy Information Administration (EIA) will release its latest weekly inventory numbers. Traders are predicting a 2.3 million barrel build.