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July 4 (Reuters) - Oil prices rose on Tuesday as markets weighed supply cuts for August by top exporters Saudi Arabia and Russia against the backdrop of an uncertain global economic outlook. Instead, the uncertain macro outlook is what the market is focused on," ING analysts said in a client note. Saudi Arabia on Monday said it would extend its voluntary cut of 1 million barrels per day (bpd) from output to August, the kingdom's state news agency reported. The cuts amount to 1.5% of global supply and bring the total pledged by OPEC+ oil producers to 5.16 million bpd as Riyadh and Moscow look to prop up prices. However, the weaker economic growth demand still suggests demand for merchandise remains weak, which would weigh on distillates consumption, ANZ analysts said in a client note.

Persons: Brent, Alexander Novak, Morgan, Arathy Somasekhar, Trixie Yap, Tom Hogue, Gerry Doyle Organizations: . West Texas, ING, bbl, OPEC, of, Petroleum, U.S, ANZ, Thomson Locations: Saudi Arabia, Russia, U.S, Riyadh, Moscow, China, Europe, Houston, Singapore

July 4 (Reuters) - Oil prices held steady early on Tuesday as markets weighed supply woes from cuts for August by top exporters Saudi Arabia and Russia against mixed analyst views on economic data that could hint at weak crude demand. Instead, the uncertain macro outlook is what the market is focused on," ING analysts said in a client note. Saudi Arabia on Monday said it would extend its voluntary cut of 1 million barrels per day (bpd) from output to August, the kingdom's state news agency reported. Russia will also reduce its oil exports by 500,000 bpd in August, Deputy Prime Minister Alexander Novak said. The cuts amount to 1.5% of global supply and bring the total pledged by OPEC+ oil producers to 5.16 million bpd as Riyadh and Moscow look to prop up prices.

Persons: Brent, Alexander Novak, Morgan, Arathy Somasekhar, Trixie Yap, Tom Hogue, Gerry Doyle Organizations: Brent, . West Texas, ING, bbl, OPEC, of, Petroleum, U.S, ANZ, Thomson Locations: Saudi Arabia, Russia, U.S, Riyadh, Moscow, China, Europe, Houston, Singapore

☆ Brent oil set to notch first monthly gain this year on supply fears
▼ + stars: | 2023-06-30 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

June 30 (Reuters) - Brent crude oil prices were little changed in early trading on Friday, but were set to notch their first monthly gain this year as a steep drawdown in oil stocks and OPEC+ plans to cut output outweighed demand fears stemming from rising interest rates. Brent crude futures for September delivery fell 19 cents, or 0.3%, to $74.32 at 0015 GMT. Both benchmarks settled marginally higher on Thursday and were on track to gain more than 2% for the month. That followed Saudi Arabia's plans to cut its output by 1 million barrels per day from July and a broader OPEC+ deal to limit supply into 2024. U.S. oil rig count data, an indicator of future supply, will also be released later in the day.

Persons: Jerome Powell, Yuka Obayashi, Leslie Adler Organizations: Brent, . West Texas, U.S . Energy Information Administration, Federal, Thomson Locations: Saudi, OPEC, U.S

U.S. West Texas Intermediate crude (WTI) fell 5 cents or 0.1% to $69.81. While it would be Brent's first monthly gain for 2023, it would mark a second for WTI after a gain in April. Despite the probable monthly gain, on a quarterly basis, Brent looks set for a loss of about 6% while WTI appears headed for a decline of about 7%. The oil price gains on Friday were, however, capped by weak Chinese economic data and fears of higher interest rates. U.S. oil rig count data, an indicator of future supply, will be released later in the day.

Persons: Brent, WTI, Yeap, Rong, Novorossiisk, Robert Carnell, Jerome Powell, Arathy Somasekhar, Muyu Xu, Edwina Gibbs, Robert Birsel Organizations: Brent, . West Texas, U.S . Energy Information Administration, IG, ING, Federal Reserve, Thomson Locations: U.S, Saudi Arabia, That's, OPEC, Primorsk, Ust, Houston, Singapore

☆ Oil ticks down on interest rate hike fears
▼ + stars: | 2023-06-29 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

Summary Rate hike expectations boost fears of slow economic growthWeak economic data in China weighs on sentimentHOUSTON, June 29 (Reuters) - Oil prices edged lower on Thursday, as fears that rising interest rates could dent global economic growth and crude demand offset a bigger-than-expected fall in U.S. inventories. Brent crude futures fell 38 cents, or 0.5%, to $73.66 a barrel by 1127 a.m. Investors were concerned about rising interest rates and economic growth after Federal Reserve Chair Jerome Powell reiterated that he expects the moderate pace of interest rate decisions to continue in the coming months. "Crude traders remain torn between rising interest rates with fears of a global recession against elevated travel demand and shrinking crude supplies," said Dennis Kissler, senior vice president of trading at BOK Financial. "The lack of prospects for fuel demand growth has limited the gain in oil prices, even with supply curbs by oil producers," said Tetsu Emori, CEO of Emori Fund Management Inc.

Persons: Jerome Powell, Dennis Kissler, Christine Lagarde, Tetsu Emori, Ahmad Ghaddar, Yuka Obayashi, Jason Neely, David Evans, Barbara Lewis, David Gregorio Our Organizations: Brent, . West Texas, U.S . Energy Information Administration, Investors, Federal Reserve, BOK Financial, European Central Bank, Emori Fund Management Inc, Thomson Locations: China, HOUSTON, European, Saudi Arabia, OPEC, London

☆ Chevron offers to sell oil and gas properties in New Mexico, Texas
▼ + stars: | 2023-06-29 | by ( ) www.reuters.com time to read: +1 min

HOUSTON, June 29 (Reuters) - Chevron (CVX.N) is offering to sell several oil and gas properties in New Mexico and Texas, according to marketing documents seen by Reuters, as the U.S. oil major looks to cull acreage after major shale acquisitions. The second-largest U.S. oil and gas producer last month agreed to buy shale firm PDC Energy Inc (PDCE.O) in a stock-and-debt deal worth $7.6 billion. In 2020, it acquired Noble Energy in a move that boosted its U.S. shale and international gas holdings. Chevron has been divesting properties in the Permian Basin of West Texas and New Mexico, where it is the largest publicly-traded oil and gas producer and the largest property owner with 2.2 million acres. Production at the larger parcel on offer was estimated at about 770,000 barrels of oil and gas net and the smaller parcel was estimated to be about 1,818 barrels of oil and gas equivalent (boe) per day, according to the documents.

Persons: Arathy Somasekhar Organizations: Chevron, Reuters, Energy Inc, Noble Energy, Thomson Locations: New Mexico, Texas, U.S, West Texas, Houston

☆ Oil rises on large US stock draws, but rate hike fears linger
▼ + stars: | 2023-06-28 | by ( Mohi Narayan | Thomson Reuters | Reports On Everything How Asia S Fuel Use Recovers The Fallout Of To Tracking How The Global Energy Transition Impacts Refinery Expansion Plans | ) www.reuters.com time to read: +3 min

June 28 (Reuters) - Oil prices edged higher on Wednesday after industry data showed a larger-than-expected drawdown of U.S. inventories, signalling robust demand from the world's biggest oil consumer, but the gains were limited by worries over interest rate hikes. Both contracts had fallen by about 2.5% in the previous session on signals that central banks may not be done with interest rate hikes. "Tuesday's slump took Brent and WTI close to support levels that have held through the price dives of the past couple of months," said Vandana Hari, founder of oil market analysis provider Vanda Insights. Higher interest rates can weigh on economic activity and oil demand. Analysts said that markets have struggled to shake off fears that higher interest rates will weigh on global growth and oil demand.

Persons: Brent, WTI, Vandana Hari, Hari, Christine Lagarde, Mohi Narayan, Arathy Somasekhar, Muralikumar Anantharaman, Jamie Freed, Gerry Doyle Organizations: Brent, U.S, West Texas, Vanda Insights, American Petroleum Institute, Analysts, European Central Bank, Federal Reserve, National Australia Bank, Thomson Locations: Saudi, China

☆ Oil ticks up as drop in US crude and gasoline stocks exceeds view
▼ + stars: | 2023-06-28 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +1 min

June 28 (Reuters) - Oil prices edged higher on Wednesday as markets worried about supply tightness in the U.S., the world's biggest oil consumer, after data showed a larger-than-expected draw in its crude and gasoline inventories. Both contracts had fallen about 2.5% in the previous session on signals that central banks may not be done with interest rate hikes. That comes after a clash between Moscow and Russian mercenary group Wagner led to concern about possible oil supply disruptions and as markets await Saudi Arabia's pledged oil output cut from July. A rise in U.S. consumer confidence in June also worried markets that the Federal Reserve will likely have to continue raising interest rates. Markets also awaited data due on Wednesday on China's industrial profits to gauge the strength of the world's second-biggest economy.

Persons: Wagner, Christine Lagarde, Arathy Somasekhar, Muralikumar Organizations: Brent, U.S, West Texas, American Petroleum Institute, Analysts, Saudi, European Central Bank, Federal Reserve, Thomson Locations: U.S, Moscow, Russian

☆ Oil higher on large US stock draws, but rate hike fears linger
▼ + stars: | 2023-06-28 | by ( Mohi Narayan | Thomson Reuters | Reports On Everything How Asia S Fuel Use Recovers The Fallout Of To Tracking How The Global Energy Transition Impacts Refinery Expansion Plans | ) www.reuters.com time to read: +3 min

June 28 (Reuters) - Oil prices edged higher on Wednesday after industry data showed a larger-than-expected drawdown of U.S. inventories signalling robust demand from the world's biggest oil consumer, but the gains were limited by worries over interest rate hikes. Both contracts had fallen by about 2.5% in the previous session on signals that central banks may not be done with interest rate hikes. "Tuesday's slump took Brent and WTI close to support levels that have held through the price dives of the past couple of months," said Vandana Hari, founder of oil market analysis provider Vanda Insights. Higher interest rates can weigh on economic activity and oil demand. Analysts said that markets have struggled to shake off fears that higher interest rates will weigh on global growth and oil demand.

Persons: Brent, WTI, Vandana Hari, Hari, Christine Lagarde, Mohi Narayan, Arathy Somasekhar, Muralikumar Anantharaman, Jamie Freed Organizations: Brent, U.S, West Texas, Vanda Insights, American Petroleum Institute, Analysts, European Central Bank, Federal Reserve, National Australia Bank, Thomson Locations: Saudi, China

☆ Oil dips on demand worries as more rate hikes likely
▼ + stars: | 2023-06-23 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

More U.S. interest rate hikes also seemed likelier. San Francisco Federal Reserve Bank President Mary Daly said two more rate hikes this year was a "very reasonable" projection. The Bank of England rate rise triggered fund liquidation and energy producers were moving to a "hedge now" mentality, Kissler added. Higher interest rates increase borrowing costs for businesses and consumers, which could slow economic growth and reduce oil demand. Risk-aversion among investors also boosted the value of the U.S. dollar, which pressures oil prices by making the commodity more expensive for other currency holders.

Persons: Brent, Mary Daly, Dennis Kissler, China's, Alex Lawler, Sudarshan, Philippa Fletcher, Kirsten Donovan, Louise Heavens, David Gregorio Our Organizations: Fed's Daly Bank of, HOUSTON, . West Texas, Bank of England, San Francisco Federal Reserve Bank, EU, BOK, The Bank of, U.S ., Thomson Locations: Norway, Switzerland, San, China, Saudi, OPEC

June 23 (Reuters) - Oil prices fell for a second straight session and were headed for a weekly decline of more than 3% on Friday, as a higher-than-expected interest rate hike in Britain and warnings about looming rate rises in the U.S. ignited concerns over demand. An increase in the value of the dollar, which has risen 0.3% this week, can weigh on oil demand by making the fuel more expensive for holders of other currencies. Federal Reserve Chair Jerome Powell said the central bank would move interest rates at a "careful pace" from here as policymakers edge towards ending their historic round of monetary policy tightening. Higher interest rates increase borrowing costs for businesses and consumers, which could slow economic growth and reduce oil demand. Fears of hikes by major central banks have clouded the fuel demand outlook for the rest of the year.

Persons: Brent, Tina Teng, Jerome Powell, Edward Moya, Arathy Somasekhar, Sonali Paul, Jamie Freed Organizations: U.S, West Texas, CMC, Bank of England, Energy Information Administration, Energy, OANDA, Thomson Locations: Britain, U.S

☆ Oil eases on uncertain demand, market eyes US inventory data
▼ + stars: | 2023-06-22 | by ( Jeslyn Lerh | ) www.reuters.com time to read: +2 min

Higher interest rates ultimately increase borrowing costs for consumers, which could slow economic growth and reduce oil demand. Oil prices held on to most of the previous session's gains as the market kept a lookout for fresh drivers, including signs of Chinese demand optimism and the latest U.S. inventory data. "China's economic rebound is still the focus of oil traders. More stimulus measures by the Chinese government could improve the oil demand outlook," said Tina Teng, markets analyst at CMC, adding that data next week on Chinese factory activity could steer oil price moves. Meanwhile, official inventory data from the U.S. Energy Information Administration is due later on Thursday.

Persons: Brent, Jerome Powell, Tina Teng, Jeslyn Lerh, Arathy Somasekhar, Sonali Paul Organizations: Inc, SINGAPORE, Federal, U.S, West Texas, CMC, U.S . Energy, Administration, American Petroleum Institute, Thomson

☆ US crude inventories post surprise draw, fuel stocks rise, EIA says
▼ + stars: | 2023-06-22 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

Crude inventories (USOILC=ECI) fell by 3.8 million barrels to 463.3 million barrels in the week to June 16, compared with analysts' expectations in a Reuters poll for a 300,000-barrel rise. Crude stocks at the Cushing, Oklahoma, delivery hub (USOICC=ECI) fell 98,000 barrels, EIA said. U.S. crude oil exports climbed to 4.5 million barrels per day last week, while imports fell about 50% to 1.6 million barrels per day. "A rebound in crude exports, dip in imports, and ongoing strength in refining activity have encouraged a draw to crude inventories," said Matt Smith, a lead oil analyst at Kpler. Refinery crude runs (USOICR=ECI) fell by 116,000 barrels per day in the last week, EIA said.

Persons: Andrew Lipow, Matt Smith, Arathy Somasekhar, Stephanie Kelly, Jan Harvey Organizations: Energy Information Administration, Cushing, . West Texas, Brent, Lipow Oil Associates, EIA, Thomson Locations: Oklahoma, Houston . U.S, U.S, Houston, New York

☆ US shale's muted reply to OPEC oil cuts to limit supply, executive says
▼ + stars: | 2023-06-21 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

U.S. energy firms have cut domestic oil and gas drilling activity to the lowest level since April 2022 with declines from Texas to Pennsylvania. Analysts expect further cuts this year with oil and gas prices off from last year's strong levels. "We are more constructive on where oil prices could go." Global benchmark Brent crude was trading at $77.10, while U.S. natural gas prices were trading around $2.58 per million British thermal units. It expects to flatten drilling activity there and turn more to Ohio's Utica and Wyoming's Powder River Basin, he added.

Persons: Lloyd Helms, Morgan, Helms, Arathy Somasekhar, Matthew Lewis Organizations: Global, Brent, Organization of, Petroleum, U.S . Energy Information Administration, Thomson Locations: ., Texas, Pennsylvania, U.S, Saudi Arabia, New Mexico, Utica, Houston

NEW YORK, June 21 (Reuters) - U.S. crude oil inventories at the Cushing, Oklahoma, storage hub have risen to their highest in two years, as outages at Midwestern refiners crimp demand and higher flows from Canada add to supply. Stockpiles at Cushing, the delivery point for U.S. crude oil futures, have climbed for eight consecutive weeks after falling earlier this year. Overseas demand for U.S. crude and an end to refinery outages should reverse the build, said analysts. "We're going to be sending more (oil exported) abroad," said Phil Flynn, an analyst at Price Futures Group. Canadian crude may have been sent toward Cushing as feedstock for a restart of the Toledo refinery, which had a fire last year, said Matt Smith, lead oil analyst for the Americas at Kpler.

Persons: Phil Flynn, Hillary Stevenson, Cushing, Stevenson, Enbridge, Flanagan, John Coleman, Wood Mackenzie, Matt Smith, Stephanie Kelly, Nia Williams, Arathy, Jonathan Oatis Organizations: YORK, Cushing, Price Futures, Energy, IIR Energy, BP, Phillips, North, Americas, Kpler, Thomson Locations: Oklahoma, Canada, Cushing, U.S, Toledo, Ohio, Texas, Wood

☆ Oil up on strong China refinery data
▼ + stars: | 2023-06-15 | by ( Rowena Edwards | ) www.reuters.com time to read: +2 min

Companies United States of America FollowLONDON, June 15 (Reuters) - Oil prices rose on Thursday after a plunge the previous day, as data showed a jump in refinery runs in top crude importer China though a weak economic backdrop capped gains. The market saw support after data on Thursday showed China's oil refinery throughput in May rising 15.4% from a year earlier, hitting its second highest total on record. Also capping price gains were fears that higher interest rates would slow economies in the United States and Europe, and lower oil demand. Analysts, however, expect oil prices to see support later in the year as voluntary cuts by OPEC+ countries implemented in May, and from Saudi Arabia in July, coincide with robust demand. "Once these deficits become visible in on-land oil inventories, we expect oil prices to trend higher," the bank said in a note on Thursday.

Persons: Rowena Edwards, Jeslyn Lerh, Emelia Sithole, Jason Neely Organizations: Brent, . West Texas, Kuwait Petroleum, U.S . Federal Reserve, European Central Bank, Bank of England, UBS, Thomson Locations: States, America, China, Kuwait, United States, Europe, Saudi Arabia, London, Singapore, Houston

☆ Oil prices tick up as markets look to key Chinese economic data
▼ + stars: | 2023-06-15 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

Companies United States of America FollowJune 15 (Reuters) - Oil prices edged higher on Thursday, recovering some ground from the previous day's plunge on worries about future U.S. interest rate hikes, with markets now looking to key Chinese economic data for demand indications. Both benchmarks fell 1.5% on Wednesday after the U.S. Federal Reserve projected more rate hikes this year, triggering fears a higher interest rate environment would slow the economy and lower oil demand. Attention on Thursday turned to China, the world's top oil importer, set to announce key May economic data, including retail sales and industrial production. Investors are looking for signs of improvement in the country's patchy economic recovery or further stimulus from Beijing. In another bearish sign on oil demand, U.S. crude oil stocks rose by about 8 million barrels in the week ended June 9, according to data from the Energy Information Administration.

Persons: Brent, Arathy Somasekhar, Sonali Paul Organizations: . West Texas, U.S . Federal Reserve, U.S, European Central Bank, Bank of England, Energy Information Administration, Analysts, Thomson Locations: States, America, U.S, China, Beijing

☆ Oil prices dip after unexpected rise in US crude stocks
▼ + stars: | 2023-06-14 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

SummarySummary Companies U.S. crude oil stocks rise by 1 mln barrels last week -APIMarkets watching Federal Reserve meetingOPEC+ grants Russia slightly higher oil production baselineComing up: EIA data on U.S. stockpiles at 1430 GMTJune 14(Reuters) - Oil prices inched lower on Wednesday after industry data showed an unexpected rise in U.S. crude stocks, signalling weak demand to markets already worried about recession and disappointing Chinese economic data. Prices fell by 4% on Monday on concerns about the Chinese economy after disappointing economic data last week. U.S. crude oil stocks rose by about 1 million barrels in the week ended June 9, according to market sources citing American Petroleum Institute figures on Tuesday, contrary to the average estimate for a 510,000 million barrel decline according to analysts polled by Reuters. Market participants were also closely watching a Federal Reserve meeting, which has no pre-determined interest rate hike on the table. Meanwhile, OPEC+ has granted Russia a slightly higher oil production baseline, meaning Russia can produce more under the latest quotas than previously agreed.

Persons: Arathy Somasekhar, Stephen Coates Organizations: Brent, . West Texas, American Petroleum Institute, Reuters, Government, Federal Reserve, Bank of Canada, European Central Bank, Bank of Japan, Thomson Locations: Russia, U.S, OPEC

☆ Oil drops 1.5% as Fed projects more rate hikes this year
▼ + stars: | 2023-06-14 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

SummarySummary Companies Federal Reserve leaves interest rates unchangedFed projects more 2023 rate risesU.S. crude stocks rise unexpectedly - EIAIEA upgrades 2023 oil demand growth to 2.4 mln bpdHOUSTON, June 14(Reuters) - Oil prices fell 1.5% on Wednesday after the U.S. Federal Reserve projected more interest rate hikes this year, worrying markets about demand just hours after government data showed an unexpected, large build in U.S. crude oil stocks. "Markets fear that a higher interest rate environment is going to lower oil demand. U.S. crude oil stocks rose by about 8 million barrels in the week ended June 9, according to data from the Energy Information Administration. The IEA, meanwhile, increased its oil demand growth forecast for this year by 200,000 barrels per day (bpd) to 2.4 million bpd, lifting the projected total to 102.3 million bpd. The IEA's 2023 oil demand growth figure is slightly above that of the Organization of the Petroleum Exporting Countries (OPEC).

Persons: Phil Flynn, Brent, Arathy Somasekhar, Ahmad Ghaddar, Andrew Hayley, Elaine Hardcastle, Kirsten Donovan Organizations: Reserve, HOUSTON, U.S . Federal Reserve, Brent, U.S, West Texas, Federal Reserve, Price, Wall, Energy Information Administration, Analysts, Organization of, Petroleum, JPMorgan, Thomson Locations: U.S, Houston, London, Beijing

☆ Oil prices rise as Saudi output cuts outweigh weak demand signals
▼ + stars: | 2023-06-07 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

U.S. crude stocks fell by about 450,000, according to data from the Energy Information Administration, compared with estimates for a 1 million build. Diesel inventories rose by 5.1 million barrels, while markets had estimated a build of 1.33 million. Gasoline inventories also rose more-than-expected at 2.8 million barrels, compared with estimates for a build of 880,000 barrels. Wednesday's data also showed that crude oil imports into China, the world's largest oil importer, rose to their third-highest monthly level in May as refiners built up inventories. A weaker greenback helps demand as oil becomes cheaper for foreign buyers.

Persons: Dennis Kissler, refiners, Morgan, Arathy Somasekhar, Ahmad Ghaddar, Yuka Obayashi, Muyu Xu, David Goodman, Mark Potter, Bernadette Baum, Sharon Singleton Organizations: Brent, U.S, West Texas, Saudi, OPEC, BOK Financial, Energy Information Administration, Federal, Organisation for Economic Cooperation, Development, Thomson Locations: HOUSTON, Saudi, China, Houston, London

Prices rose on Monday after Saudi Arabia said over the weekend it would cut output to around 9 million barrels per day (bpd) in July from about 10 million bpd in May. A stronger dollar can weigh on oil demand by making the fuel more expensive for holders of other currencies. Higher interest rates boost borrowing costs, which can slow the economy and reduce oil demand. EIA also projected U.S. petroleum demand would rise from 20.3 million bpd in 2022 to 20.4 million bpd in 2023 and 20.7 million bpd in 2024. That compares with a record 20.8 million bpd in 2005, according to EIA data going back to 1973.

Persons: Brent, Edward Moya, Scott DiSavino, Rowena Edwards, Arathy, Trixie Yap, David Goodman, Matthew Lewis, Chizu Nomiyama, Richard Chang Organizations: EIA, Saudi, U.S, West Texas, Citi, U.S . Federal Reserve, Bank, Energy Information Administration, American Petroleum Institute, Thomson Locations: Saudi Arabia, Saudi, OPEC, China, U.S, Europe, New York, London, Houston, Singapore

☆ Oil falls as economic fears overshadow Saudi output cut
▼ + stars: | 2023-06-06 | by ( Rowena Edwards | ) www.reuters.com time to read: +2 min

Brent crude futures were down $1.50, or 1.96%, to $75.21 a barrel by 1046 GMT. U.S. West Texas Intermediate crude fell $1.47, or 2.04%, to $70.68 a barrel. Backwardation in Brent crude oil futures — where the current value is higher than in later months — steepened after the weekend announcement with the six-month spread hitting a five-week high of $2.20/bbl on Monday. The U.S. services sector barely grew in May as new orders slowed, and market participants are waiting to see if the U.S. Federal Reserve will hike or hold interest rates in June. Higher interest rates could curb energy demand.

Persons: Brent, Backwardation, — steepened, Ole Hansen, Tamas Varga, PVM, Rowena Edwards, Arathy Somasekhar, Trixie Yap, Sriraj Kalluvila, Jason Neely Organizations: EIA, LONDON, Saudi, Brent, . West Texas, Citi, bbl, PMI, Saxo Bank, The, U.S . Federal, U.S . Energy Information Administration, Thomson Locations: Saudi Arabia, OPEC, U.S, Europe, China, Brent, The U.S, London, Houston, Singapore

☆ Oil prices tick down with OPEC meeting in rear view
▼ + stars: | 2023-06-06 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

Brent crude futures were down 23 cents, or 0.3%, at $76.48 a barrel at 0020 GMT. The voluntary cut, Saudi Arabia's biggest in years, is on top of a broader deal by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia to limit supply into 2024 as OPEC+ seeks to boost flagging oil prices. The OPEC+ pumps around 40% of the world's crude. Market participants are now waiting to see if the U.S. Federal Reserve will hike or hold interest rates in June for more trading cues. Traders pegged the chances of the Fed pausing its interest rate hikes at its June 13-14 meeting at 78%, according to the CME FedWatch Tool.

Persons: Brent, Christine Lagarde, Arathy Somasekhar, Himani Sarkar Organizations: Brent, U.S . West Texas, Saudi Arabia's, Organization of, Petroleum, U.S . Federal, Traders, Central Bank, ECB, Thomson Locations: Saudi Arabia, U.S, Russia, OPEC, Vienna, Nigeria, Angola, Houston

☆ US crude oil exports to gain tail winds from Saudi July output cut
▼ + stars: | 2023-06-05 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

U.S. oil exports touched a record 4.5 million bpd in March with China's growing oil purchases and competitive U.S. pricing lifting demand. The exports are about a third of U.S. production, even as the country's crude oil stocks are down near the low levels recorded at 815 million barrels. Brent traded at about $77.28 on Monday, below the about $80 per barrel that Saudi Arabia needs to fund its government budget. U.S. shale oil production has been inching higher all year, and is forecast to hit 5.71 million bpd this month. "But the near term impact (on drilling) is moderate at best," he added.

Persons: Matt Smith, Paul Sankey, Brent, Mike Oestmann, Arathy Somasekhar, Gary McWilliams, David Gregorio Our Organizations: Saudi, Sankey Research, New York ., U.S, Reuters, Thomson Locations: Saudi Arabia, Europe, Asia, . U.S, Saudi, New York, New York . U.S, City, Texas, WTI, Houston

Brent crude futures rose $2.25, or 3.1%, to $74.85 a barrel by 11:50 a.m. EDT (1550 GMT) . U.S. Federal Reserve officials on Wednesday suggested interest rates could be steady this month and the House passed a bill suspending the government's debt ceiling, improving chances of averting a disastrous default. "The successful debt ceiling negotiations clears that minefield, but the overall demand outlook is still murky - the trucking space is doing poorly, for example," CFRA Research analyst Stewart Glickman said. The oil market is focusing on the June 4 meeting of OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, which will discuss whether to cut oil production further. U.S. crude oil stockpiles rose unexpectedly last week, as imports jumped and strategic reserves dropped to their lowest since Sept. 1983, according to data from the Energy Information Administration.

Persons: Stewart Glickman, Peter McNally, Robert Yawger, Alex Lawler, Rowena Edwards, Arathy Somasekhar, Andrew Hayley, David Goodman, Kirsten Donovan, David Gregorio Our Organizations: Brent, . West Texas, U.S . Federal, Organization of, Petroleum, Reuters, Energy Information Administration, Thomson Locations: China, BENGALURU, Russia, Reuters OPEC, U.S, OPEC, London, Houston, Beijing

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