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☆ Oil rises 2% in retreat from 15-mth low as banking fears subside
▼ + stars: | 2023-03-22 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

"Fears of a banking crisis and a recession have eased, brightening the oil demand outlook at least for now," said Fiona Cincotta, Senior Financial Markets Analyst at City Index. Wall Street indexes also closed sharply higher on Tuesday as fears over liquidity in the banking sector abated and market participants eyed the Fed. Meanwhile, U.S. crude oil inventories rose by about 3.3 million barrels last week, according to market sources citing American Petroleum Institute figures. OPEC+ sources told Reuters the drop in prices reflects banking fears rather than supply and demand. The CEO of energy trader Gunvor, Torbjorn Tornqvist, said he expected oil prices to move higher toward year end as rising Chinese demand tightens the market further.

Oil futures have fallen over 8% since last Friday as the collapse of SVB Financial (SIVB.O) and peer Signature Bank (SBNY.O) prompted concerns of a wider banking crisis. Investors in the oil market, including oil producers, have rushed to buy put options, used to either bet on or protect against downside movement. For U.S. crude futures options open interest, the ratio of puts to calls is the highest since August 2022. The discount of later-dated oil futures contracts to the front-month contract tightened on Wednesday, indicating that market participants were less confident in short-term demand. That short-term uncertainty should buoy put buying, Price Futures Group's Flynn said.

☆ Oil slumps $5/bbl to lowest in more than a year as banking fears mount
▼ + stars: | 2023-03-15 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

"Nobody wants to go home with a big position on anything today ... you have nowhere to hide really." Both crude benchmarks hit their lowest since December 2021 and have fallen for three straight days. U.S. West Texas Intermediate crude (WTI) was down $4.51, or 6.3%, at $66.84, breaking through technical levels of $70 and $68 and extending the sell off. Wednesday's monthly report from the International Energy Agency provided support by flagging an expected boost to oil demand from China, a day after OPEC increased its Chinese demand forecast for 2023. "We definitely have seen the oil market separate themselves from oil inventories and we’re more focused on a larger meltdown of the global economy," said Phil Flynn, an analyst at Price Futures Group.

☆ Oil steadies after dipping on China outlook; investors await Fed clues
▼ + stars: | 2023-03-06 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

SummarySummary Companies China's growth outlook down from last year's targetFed chair speaks to Congress this weekU.S. February jobs report also in focusHOUSTON, March 6 (Reuters) - Oil prices were steady on Monday as top oil executives debated supply tightness at an oil conference in Houston. Oil market and logistics are tight and vulnerable to any unexpected supply disruption, as Russian oil is still getting to the market, but at different costs, oil major Chevron Corp (CVX.N) Chief Executive Mike Wirth said at the CERAWeek energy conference. Trading company Gunvor's CEO Torbjorn Tornqvist said crude prices may rise in the second half of the year as Chinese demand returns to the market, adding that the oil market has stabilised. China's closely watched growth outlook, announced on Sunday, was lower than last year's 5.5% target for gross domestic product (GDP) growth. At the same time, oil prices are likely to be affected by increases to interest rates across the world as global central banks tighten policy over fears of rising inflation.

REUTERS/Sergei Karpukhin/File PhotoHOUSTON, Feb 16 (Reuters) - Russia's decision to cut crude oil production by 500,000 barrels per day reflects its inability to sell all of its oil, Ben Harris, a U.S. Treasury Department Assistant Secretary, said on Thursday. Russia's Deputy Prime Minister Alexander Novak last week said it would voluntarily cut production beginning next month following the start of Western price caps on Russian oil and oil products on Feb. 5. Poland, Latvia, Lithuania and Estonia have pushed for lowering the crude oil cap. There have been no American companies involved in trading Russian oil above the price cap, he said. Phillips 66's (PSX.N) Chief Executive Mark Lashier said the company's base assumption is that Russia's crude and oil products will find their way into the marketplace.

[1/2] A Pilot Flying J travel center is pictured, as motor fuel retailer has expanded into oil and petroleum trading, transportation and biofuels, in Channelview, Texas, U.S., October 31, 2021. REUTERS/Gary McWilliams/File PhotoFeb 14 (Reuters) - U.S. fuel retailer Pilot Company is trimming its energy trading operation, according to three people familiar with the matter, days before billionaire investor Warren Buffett is expected to take majority control of the firm. About 15 employees were released on Monday, most tied to an expansion two years ago into crude oil trading, said two of the people. "Pilot Company is committed to sustained growth and innovation across our travel center network and energy division," Konar said. That year, Pilot expanded its fuel trading business by adding financial trading and a Mexico trading specialist to gain better insight into the market and sell fuel it did not need for its own operations.

☆ U.S. gas producers skimped on price hedges and now face a reckoning
▼ + stars: | 2023-02-14 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +5 min

HOUSTON, Feb 14 (Reuters) - A rout in natural gas prices will hurt first-quarter earnings and cash flows at gas producers as hedges - the industry's version of price insurance - were inadequate to offset the expected losses, analysts and industry experts said. About 36% of 2023 gas production was hedged at the end of September, according to consultancy Energy Aspects, which tracked 40 publicly traded gas producers. EQT Corp (EQT.N), the top U.S. producer of natural gas, last month said it expects a $4.6 billion loss on derivatives for 2022, and net cash settlements of $5.9 billion. These transactions have a producer buy an agreement to sell natural gas at one price, called a put, while also selling a put at a lower price in hopes of pocketing the premium from its buyer. Were gas prices to average $2.36 per mmcf, the company would pay out 14 cents per mmcf, reducing the gains from the hedge.

☆ U.S. energy regulators questioned on oversight of Freeport, Texas, LNG plant
▼ + stars: | 2023-02-11 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

Companies Freeport LNG Development LP FollowFREEPORT, Texas, Feb 11 (Reuters) - U.S. energy regulators on Saturday assured Texas residents they are monitoring repairs and the eventual restart of the fire-idled Freeport LNG plant as a vessel this week began taking the first fuel out of its storage tanks in eight months. When fully operational, Freeport LNG processes about 2 billion cubic feet per day of natural gas and exports up to 15 million tonnes of LNG per year. Methane is the main component of natural gas and a potent greenhouse gas. Freeport LNG was invited to send a representative to Saturday's meeting, PHMSA said. Reporting by Arathy Somsekhar in Freeport, Texas Editing by Matthew LewisOur Standards: The Thomson Reuters Trust Principles.

☆ U.S. crude stocks rise as production climbs to highest since April 2020
▼ + stars: | 2023-02-08 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

HOUSTON, Feb 8 (Reuters) - U.S. crude oil stocks rose last week to their highest level since June 2021, helped by higher production, the Energy Information Administration said on Wednesday. Crude inventories (USOILC=ECI) rose by 2.4 million barrels in the week ended Feb. 3 to 455.1 million barrels, close to the 2.5 million-barrel rise that analysts expected in a Reuters poll. U.S. oil production rose 100,000 barrels to touch 12.3 million, its highest since April 2020. Crude stocks at the Cushing, Oklahoma, delivery hub (USOICC=ECI) rose by 1 million barrels in the last week while net U.S. crude imports (USOICI=ECI) rose by 367,000 barrels per day, the EIA said. U.S. gasoline stocks (USOILG=ECI) rose by 5 million barrels to 239.6 million barrels, the EIA said, far surpassing the 1.3 million barrel rise that analysts expected in a Reuters.

"Judging by the customs statistics, some of the benefit was captured by refiners in India and China, but the main beneficiaries must be oil shippers, intermediaries and the Russian oil companies," he added. As a further complication, some Russian oil grades, including Pacific grade ESPO, are also worth more than Urals. After decades of low profits or losses, sections of the global shipping industry are enjoying a financial boom from moving Russian oil. A year ago, a similar journey would have cost a seller of Russian oil $0.5-$1.0 million depending on shipping rates. Nayara is 49%-owned by Russian state oil major Rosneft, run by Putin's ally Igor Sechin, meaning some of the profits are indirectly captured by Russia.

☆ U.S. crude output to rise in 2023, while demand to stay flat -EIA
▼ + stars: | 2023-02-07 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +1 min

Companies U.S. Energy Information Administration FollowNEW YORK/HOUSTON, Feb 7 (Reuters) - U.S. crude production will rise in 2023 even as demand flattens, the U.S. Energy Information Administration (EIA) said on Tuesday in its Short Term Energy Outlook. EIA's latest forecast calls for crude oil production to rise by 590,000 barrels per day, to 12.49 million barrels per day (bpd) in 2023, and by another 160,000 barrels to 12.65 million bpd next year. U.S. petroleum and other liquid fuels consumption will stay flat at 20.3 million bpd this year, the EIA said, while forecasting U.S. economy would contract slightly in the first six months. The agency also forecast Russian production of petroleum and other liquids would decline by about 1 million to 9.9 million bpd in 2023. Brent crude oil prices will decline in the second half of the year to about $82 per barrel from $85 per barrel in the first half as global oil production outpaces demand and leads to inventory builds, EIA added.

☆ Oil rises 1% in choppy trade on China demand hopes
▼ + stars: | 2023-02-06 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

The International Energy Agency (IEA) expects half of this year's global oil demand growth to come from China, the agency's chief said on Sunday, adding that jet fuel demand was surging. A stronger dollar typically reduces demand for dollar-denominated oil from buyers paying with other currencies. Supply concerns continued to affect markets as operations at Turkey's oil terminal in Ceyhan halted after a major earthquake hit the region. The BTC terminal, which exports Azeri crude oil to international markets, will be closed on Feb. 6-8 while operators assess earthquake damage, a Turkish shipping agent said. However, a preliminary Reuters poll showed that U.S. crude oil stockpiles likely rose by about 2.2 million last week.

☆ Freeport to restart liquefaction train at Texas LNG export plant this week
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +2 min

Feb 3 (Reuters) - Freeport LNG, the second-biggest U.S. liquefied natural gas (LNG) exporter, said on Friday it plans to restart one of three liquefaction trains at its long-idled Texas export plant this week. Liquefaction trains turn natural gas into LNG for export. In a filing with Texas environmental regulators, Freeport said it "anticipates the purge and restart of Liquefaction Train 3 will begin on Feb. 3 with Trains 2 and 1 following sequentially." The Freeport plant shut after a fire in June 2022. Despite the planned Freeport restart, however, U.S. gas futures fell about 3% to a 25-month low on Friday due to forecasts for milder weather in February.

☆ Oil falls 2% as rate hikes loom and Russian flows stay strong
▼ + stars: | 2023-01-30 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

HOUSTON (Reuters) -Oil prices dipped 2% on Monday, extending losses as looming increases to interest rates by major central banks weighed on demand and Russian exports remained strong. FILE PHOTO: Pump jacks operate at sunset in an oil field in Midland, Texas U.S. August 22, 2018. REUTERS/Nick Oxford/File PhotoInvestors expect the U.S. Federal Reserve to raise rates by 25 basis points on Wednesday, followed the day after by half-point increases by the Bank of England and European Central Bank. The OPEC+ panel meeting is unlikely to tweak output policy, three OPEC+ delegates told Reuters on Monday. OPEC+ could “surprise markets with a small cut”, oil broker PVM said, adding it was unlikely to tweak policy.

☆ Oil falls 1% as rate hikes loom and Russian flows stay strong
▼ + stars: | 2023-01-30 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

FILE PHOTO: Pump jacks operate at sunset in an oil field in Midland, Texas U.S. August 22, 2018. REUTERS/Nick Oxford/File PhotoInvestors expect the U.S. Federal Reserve to raise rates by 25 basis points on Wednesday, followed the day after by half-point increases by the Bank of England and European Central Bank. The OPEC+ panel meeting is unlikely to tweak output policy, three OPEC+ delegates told Reuters on Monday. OPEC+ could “surprise markets with a small cut”, oil broker PVM said, adding it was unlikely to tweak policy. The world’s biggest crude importer pledged over the weekend to promote a consumption recovery that would support demand.

☆ Oil prices advance on U.S. growth, Chinese recovery hope
▼ + stars: | 2023-01-27 | by ( Sudarshan Varadhan | ) www.reuters.com time to read: +2 min

Jan 27 (Reuters) - Oil prices edged ahead for a second session on Friday, buoyed by stronger-than-expected U.S. economic growth and hopes of a rapid recovery in Chinese demand as COVID-19 cases and deaths plunged from last month's peak levels. Brent futures gained 30 cents, or 0.34%, to $87.77 a barrel by 0321 GMT, while U.S. crude rose 34 cents to $81.35 per barrel, a 0.42% gain. OPEC+ delegates will meet next week to review crude production levels, amid steady support for crude prices from strong demand for jet fuel and diesel. Gains on U.S. crude were limited by a 4.2 million barrel build in stocks at Cushing, the pricing hub for NYMEX oil futures, earlier this week. "The short-term bullish factor is that the recent outage in the U.S. refineries helped push up gasoline prices, though the U.S. crude inventories hit a 16-month high," Teng said.

☆ Oil prices edge up on strong U.S. economic data, Chinese demand hope
▼ + stars: | 2023-01-27 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +1 min

Jan 27 (Reuters) - Oil prices edged marginally higher on Friday, extending for a second session on strong U.S. economic data and strengthening hope that the reopening of the Chinese economy would boost demand. Improving gross domestic product and inflation data in the United States provided hope that the U.S. Federal Reserve could slow its pace of interest rate hikes, reducing fear of curtailment in economic activity and consequent oil demand. The figures point to the normalisation of China's economy, thereby boosting expectations of a recovery in oil demand. Crude prices were also supported by strong demand for jet fuel and diesel as supplies remain tight. Also, the European Commission is proposing the European Union set a $100 per barrel price cap on premium Russian oil products such as diesel and a $45 per barrel cap on discounted products such as fuel oil, EU officials said on Thursday.

☆ Oil falls $2/barrel on economic jitters, U.S. crude stock build
▼ + stars: | 2023-01-24 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

The U.S. economy "still could roll over and some energy traders are still sceptical on how quickly China's crude demand will bounce back this quarter," OANDA analyst Edward Moya said in a note. Euro zone business activity made a surprise return to modest growth in January, S&P Global's flash Composite Purchasing Managers' Index (PMI) showed. Crude oil prices in physical markets have started the year with a rally on increased buying from China after the relaxation of pandemic controls and on trader concern that sanctions on Russia could tighten supply. U.S. oilfield services firm Halliburton Co (HAL.N) said its shale oil-well fracking equipment remains fully booked with oil prices driving increased drilling. Investors have also piled back into petroleum futures and options at the fastest rate for more than two years as concerns over a global business cycle downturn eased.

☆ Oil dips $2 on global economic concerns
▼ + stars: | 2023-01-24 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

SummarySummary Companies U.S. business activity contracts in JanU.S. crude stocks likely to rise - pollOPEC+ panel unlikely to tweak oil policy at Feb. 1 meetingComing up: API inventory data at 2130 GMTHOUSTON, Jan 24 (Reuters) - Crude oil prices slipped on Tuesday on concerns about a global economic slowdown and an expected build in U.S. oil inventories. Euro zone business activity made a surprise return to modest growth in January, S&P Global's flash Composite Purchasing Managers' Index (PMI) showed. Yet British private sector economic activity fell at its fastest rate in two years. U.S. oilfield services firm Halliburton Co (HAL.N) said its shale oil-well fracking equipment remains fully booked with oil prices driving increased drilling. Investors have also piled back into petroleum futures and options at the fastest rate for more than two years as concerns over a global business cycle downturn eased.

☆ Oil dips $1 on global economic concerns
▼ + stars: | 2023-01-24 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

SummarySummary Companies U.S. business activity contracts in JanU.S. crude stocks likely to rise - pollOPEC+ panel unlikely to tweak oil policy at Feb. 1 meetingComing up: API inventory data at 2130 GMTHOUSTON, Jan 24 (Reuters) - Crude oil prices dipped on Tuesday on concerns about a global economic slowdown and expected build in U.S. oil inventories. Euro zone business activity made a surprise return to modest growth in January, S&P Global's flash Composite Purchasing Managers' Index (PMI) showed. Crude oil prices in physical markets have started the year with a rally on increased buying from China after the relaxation of pandemic controls and on trader concern that sanctions on Russia could tighten supply. U.S. oilfield services firm Halliburton Co (HAL.N) said its shale oil-well fracking equipment remains fully booked with oil prices driving increased drilling. Investors have also piled back into petroleum futures and options at the fastest rate for more than two years as concerns over a global business cycle downturn have eased.

Jan 24 (Reuters) - At least one chemical plant and an oil refinery were scrambling to recover from operational upsets on Tuesday after severe weather tore through an oil and gas refining hub outside Houston. Shell (SHEL.L) said it was experiencing an incident at its Deer Park chemicals facility following severe weather, according to a company tweet. Petroleos Mexicanos also reported operational upsets due to weather at its neighboring oil refinery, according to a company alert. The National Weather Service issued a tornado warning for the Houston area on Tuesday afternoon. Exxon Mobil (XOM.N) said operations at its Baytown, Texas, plant were stable following the severe weather, with no injuries reported.

☆ Oil prices climb on hopes for Fed slowing interest rate hikes
▼ + stars: | 2023-01-20 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

Jan 20 (Reuters) - Oil prices rose on Friday on optimism that the U.S. Federal Reserve will ends its tightening cycle, buoying the economy and boosting fuel demand. Both closed 1% higher on Thursday, near their highest closing levels since Dec. 1. A number of other Fed officials have expressed support for a downshift in the pace of rate rises. A rebound in Chinese economy and the Russian oil industry's struggles under sanctions could tighten energy markets in 2023, International Energy Agency (IEA) head Fatih Birol said on Thursday. Reporting by Arathy Somasekhar; Editing by Kenneth MaxwellOur Standards: The Thomson Reuters Trust Principles.

☆ Oil edges higher as petroleum demand set to touch record next year
▼ + stars: | 2023-01-10 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

ETHOUSTON, Jan 10 (Reuters) - Oil prices edged slightly higher on Tuesday as the U.S. government forecast record global petroleum consumption next year and as the dollar hovered at seven-month lows. A weaker dollar can boost demand for oil, as greenback-denominated commodities become cheaper for holders of other currencies. But analysts said a revival of Chinese demand may only give oil prices limited support under downward pressure from the global economy. Goldman Sachs expects that the growing ability of the Organization of the Petroleum Exporting Countries (OPEC) to raise prices without hurting demand too much will limit downside risks to its bullish oil forecast for 2023. Separately, U.S. stockpiles of crude oil and distillates were expected to have fallen last week, a Reuters poll showed.

☆ Oil rises 1% as petroleum demand set to touch record next year
▼ + stars: | 2023-01-10 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

ETHOUSTON, Jan 10 (Reuters) - Oil prices climbed marginally on Tuesday as the U.S. government forecast record global petroleum consumption next year and as the dollar hovered at seven-month lows. Thursday's data "could easily clarify the direction of the financial and oil markets for weeks to come", said Tamas Varga of oil broker PVM. A weaker dollar can boost demand for oil, as greenback-denominated commodities become cheaper for holders of other currencies. But analysts said a revival of Chinese demand may only give oil prices limited support under downward pressure from the global economy. Separately, U.S. stockpiles of crude oil and distillates were expected to have fallen last week, a Reuters poll showed.

Jan 10 (Reuters) - Oil edged lower on Tuesday on expectations that further interest rate hikes in the United States, the world's biggest oil user, will slow economic growth and limit fuel demand. Brent futures for March delivery fell 43 cents to $79.22 a barrel, a 0.5% drop, by 0522 GMT. U.S. West Texas Intermediate crude fell 36 cents, or 0.5%, to $74.27 per barrel. But analysts warned that China's demand revival may play limited role to drive up oil prices under the global economic downward pressure. Separately, U.S. crude oil stockpiles likely fell 2.4 million barrels, with distillate inventories also seen slightly down, a preliminary Reuters poll showed on Monday.

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