Crude's rally falters as run-up to $70 just doesn't stick

Crude Oil Prices to Remain Bid as Overbought Conditions Persist

Feb. WTI oil gains 23 cents, or 0.4%, to settle at $63.80/bbl, having briefly jumped above $64.

Williams added: "Looking at the global oil picture it seems as if the glut of oil stocks is disappearing due to the production cuts imposed by OPEC along with non-member Russian Federation as the United States' crude oil inventories have fallen for eight weeks in a row".

Despite trading mostly higher by Friday's trading session and from previously trading above $70 per barrel, Brent crude futures are now at around $69.26 which is six cents shy from previously touching a three year high from the highest price seen since December 2014.

"Oil inventories in the U.S. and the rest of the world continue to show ongoing declines", said Giovanni Staunovo, a commodity analyst at UBS Group AG in Zurich.

A rally that began in June accelerated in December, with prices rising about 15 percent over roughly the last month.

Data from the U.S. Commodity Futures Trading Commission shows the size of the short position for swap dealers has climbed into record territory, an indication of increased producer hedging.

The higher USA prices are driven by continued declines in the amount of crude oil in the nation's commercial stockpiles.

WTI is still in the February contract, while Brent moved into March.

Crude oil production from the United States is expected to increase more than in any other country.

Florida House Passes Sanctuary Policy Ban
The Florida House has overwhelmingly approved a ban against sanctuary policies. "Let's talk about the rule of law". "Do your duty. It would impose fines of up to $5,000 a day on local governments that refuse to cooperate with immigration detainers.

Bannon to Appear Before House Committee for Russia Probe
The path of the Senate Judiciary Committee is uncertain as Feinstein and Grassley have disagreed on the focus of the probe. Republicans have indicated they want to wrap up the investigation in the first part of 2018. "Those Democrats, Sen.

Former Klan Leader Dies In Prison
Chaney, Schwerner and Goodman were shot on a rural road near Killen's home and then buried 15 feet deep in an earthen dam. The jury was unable to agree on a verdict for Killen with the hold-out juror saying she could never convict a preacher.

It will also be a boon for BHP Billiton Limited (ASX: BHP) as it will likely get a higher price for its unconventional oil and gas assets that it is shopping around.

In addition to the Opec and non-Opec production cuts of 1.8-million barrels per day (bpd) that are expected to last until the end of 2018, oil prices have found support from eight consecutive weeks of USA crude inventory drops.

United States crude stockpiles fell to 419.5 million barrels last week, the lowest level since August 2015, according to EIA data Wednesday. USA production fell 290,000 barrels per day (BPD), to 9.5 MMBPD, EIA said.

On January 10, oil prices were supported by API data.

As shale oil development trends are rather uncertain, it is possible that the upward trend in crude oil prices will continue.

Deadly protests in Iran, the third largest member of the Organization of Petroleum Exporting Countries (OPEC), have lifted oil prices to start 2018 as traders grow concerned over potential supply risks.

"But if short-term influencers like the Iranian protests and Venezuela production issues were to be sorted out, a sharp price reversal could very well be in the cards".

The Brent-WTI price spread averaged more than $3.33/b in 2017. Yet for the oil majors it could hamper recovery at a time when higher crude prices and lower costs are finally seeing them return to profits.

Related:

  • Samsung begins mass production of 2nd-generation HBM2 memory

    Samsung begins mass production of 2nd-generation HBM2 memory

    Samsung on Thursday announced it has started mass production of its second-generation 8GB High Bandwidth Memory-2 (HBM2). Known as Aquabolt , this premium memory solution is the direct successor of the first HBM2, known as Flarebolt.
    Dark Souls Is Coming To The Nintendo Switch

    Dark Souls Is Coming To The Nintendo Switch

    It seems that despite listings saying quite the opposite, Dark Souls Remastered will not feature HDR on PS4 Pro after all. Game Dark Souls: Remastered will be available on PC, PS4, Xbox One and Nintendo Switch already since may 25, 2018.

    Alibaba Group Holding Ltd (BABA) Shares Bought by Private Asset Management Inc

    The current 50-day Moving Average is 181.27, the 200-day Moving Average is 155.95, and the 7-day is noted at 189.30. Standpoint Research initiated Alibaba Group Holding Limited (NYSE: BABA ) on Monday, August 24 with "Buy" rating.
  • Could The Vikings Be Set To Win Their First Ever Super Bowl?

    Could The Vikings Be Set To Win Their First Ever Super Bowl?

    Mariota was consistently on the big stage in college, and he looked prepared for the intensity that came with postseason play. The Wentz-less Birds will have a tough task this Saturday, as the Falcons are one of the hottest teams around the league.
    More claim sexual inappropriateness against James Franco

    More claim sexual inappropriateness against James Franco

    While chatting in the the auto , Franco surprised her by suddenly taking his penis out, she said, and putting her hand on it. Hilary Dusome and Natalie Chmiel , former students of Franco's at Playhouse West in North Hollywood, told the L.A.
    Rory McIlroy reveals heart 'irregularity' stemming from 2016 virus in China

    Rory McIlroy reveals heart 'irregularity' stemming from 2016 virus in China

    It is what will be driving the four-time Major victor when he kick starts his 11th season in the pay-for-pay ranks. He says doctors told him it was caused by a viral infection he suffered in China 18 months ago.
  • Ancient Meteorites Found To Contain The Building Blocks For Life

    Ancient Meteorites Found To Contain The Building Blocks For Life

    There are also structural clues of an impact-perhaps by a small asteroid fragment impacting a larger asteroid, Chan said. The crystal fragments analysed were just a fraction of the width of a human hair, monitored in a dust-controlled room.
    This may be a bad flu season, especially around the holidays

    This may be a bad flu season, especially around the holidays

    That's partially because flu vaccines tend to be less effective against H3N2 compared to other strains of the virus . Mike Campbell has been CEO of La Esperanza for 13 years and for him this flu season is one that stands out.
    Meghan Markle's Family Drama Escalates Just in Time for the Royal Wedding

    Meghan Markle's Family Drama Escalates Just in Time for the Royal Wedding

    She said, "I'd be lying to say that I wouldn't be hurt if I didn't get an invite but that's really up to her". Samantha, who now lives in Florida, says the last time she spoke to Meghan was in 2014.
  • President Kovind, PM Modi pay tributes to Swami Vivekananda

    President Kovind, PM Modi pay tributes to Swami Vivekananda

    He recalled that during Mann Ki Baat in December 2017, he had called for organising Mock Parliaments in the districts. Speaking on the occasion, Adityanath said only the youth could change the system with new innovations.
    49ers LB Reuben Foster is arrested for marijuana possession

    49ers LB Reuben Foster is arrested for marijuana possession

    Foster played at Alabama, where he was a first-team All-America pick and won the Butkus Award as the nation's top linebacker. Alabama officials released the booking photo for San Francisco 49ers linebacker Reuben Foster Friday evening.
    What a Rare Snow in the Sahara Looks Like From Space

    What a Rare Snow in the Sahara Looks Like From Space

    Before that snow was last seen in Ain Sefra on February 18, 1979, when the snow storm lasted just half an hour. While snow is historically scant in the desert area, a similar snow phenomenon happened just previous year .

Comments

Latest news

Obstruction debate heats up in Big Bash
These two sides meet again in the BBL in four days' time, which will hopefully provide more entertaining and record-breaking highlights.

Chris Brown could face jail over 'monkey business'
The baby capuchin monkey, named Fiji , was the cause of backlash from people who thought it belonged in the wild. TMZ reports that the singer never got a permit for said monkey, and the animal has since been confiscated.

Switzerland rules lobsters must be stunned before they are boiled
The new law comes after an abundance of evidence has shown that lobsters, crabs, prawns and other invertebrates feel pain. Elwood hopes to discourage the practice of not only boiling but also dismembering while the animal is alive.

Traders Secrets on Progress Software Corporation (PRGS), Omnicom Group Inc. (OMC)
Walleye Trading Limited Liability holds 0% of its portfolio in Progress Software Corporation (NASDAQ: PRGS ) for 5,038 shares. The software maker reported $0.67 earnings per share for the quarter, topping the consensus estimate of $0.54 by $0.13.

Trust Co Has $949000 Holdings in Western Digital Corporation (WDC)
Inside the closing six months period the stock's performance declined -11.37% while overall yearly performance gained 15.12%. On Wednesday, August 16 Sivaram Srinivasan sold $263,330 worth of Western Digital Corporation (NASDAQ:WDC) or 3,098 shares.

Iran foreign minister ridicules Trump 'blunder' at UN
The United States and Israel have expressed support for the protesters, but deny allegations of fomenting them. Something that of course will only see to further anger not only protesters but the government in Tehran too.

Critical Flaw Found in Intel Processors May Surrender Complete Control of Laptop
Coming fast on the heels of Spectre and Meltdown is a security vulnerability in Intel's Active Management Technology (AMT ). Sintonen stumbled upon the issue in July 2017, and notes that another researcher* also mentioned it in a more recent talk.

Nadal, Halep named top seeds for Australian Open
Rarely have so many top players begun the season either carrying injuries or taking the early steps back from lengthy absences. Although she will play no part at Melbourne Park over the next two weeks, Williams' sparkling record can not be ignored.

Trump has received physical checkup as president
The president gets little physical exercise and uses a cart during his frequent golf outings. "It's a very sad situation". She said that if it were up to her, she would insist on a much more comprehensive exam for Trump .

Carillion crisis deepens after reports construction firm's lenders rejected rescue plan
A government spokesperson said: "We can confirm that a ministerial meeting took place yesterday, 11 January". But it is perhaps best known for being one the largest suppliers of services to the public sector.

London Family Could Derail New £1 Billion Stamford Bridge
The Crosthwaite family live in a cottage right on the outskirts of Stamford Bridge and have been doing so for 50 years. A three-bedroom property on the same street as the Crosthwaites sold for £1.18m previous year .

Winfrey highlights story of black woman raped by white men
It was very important for her because it would be the first time people heard from her in any detail about the Me Too movement . King, who attended the awards ceremony alongside Winfrey and Graham , said being in the room was 'electrifying'.

Saudi women to enter stadiums for first time to watch soccer
The kingdom has also announced that starting in June women will be allowed to drive, lifting the world's only ban on female drivers.

Investors Buy UnitedHealth Group (UNH) on Weakness
It is negative, as 46 investors sold MRK shares while 619 reduced holdings. 118 funds opened positions while 525 raised stakes. ValuEngine lowered UnitedHealth Group from a "buy" rating to a "hold" rating in a research report on Thursday, December 7th.

Carrie Underwood and Ludacris score a touchdown with Super Bowl song
Following a brief teaser during an National Football League playoffs commercial last weekend (Jan. 7), Carrie Underwood shared a new anthemic jam " The Champion ", which features rap veteran Ludacris .

Other news