Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Oil prices settle up 2%, post weekly loss on stockpile releases

Commodities Apr 08, 2022 04:06PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Pump Jacks are seen at sunrise near Bakersfield, California, October 14, 2014. REUTERS/Lucy Nicholson/ 2/2
 
JPM
-0.79%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
-1.68%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Arathy Somasekhar

HOUSTON (Reuters) -Oil prices rose 2% on Friday but notched their second straight weekly decline after countries announced plans to release crude from their strategic stocks.

Brent crude futures settled up $2.20, or 2.19%, at $102.78 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose $2.23 to $98.26.

For the week, Brent dropped 1.5% while WTI slid 1%. For several weeks, the benchmarks have been at their most volatile since June 2020.

Trading was choppy all day and the contracts spiked higher just before settlement as traders covered short positions ahead of the weekend, said John Kilduff, a partner at Again Capital LLC.

Member nations of the International Energy Agency (IEA) will release 60 million barrels over the next six months, with the United States matching that amount as part of its 180 million barrel release announced in March.

"There's some concern that by artificially lowering prices, you are only going to increase demand and that's going to burn off that supply pretty quickly," said Phil Flynn, an analyst at Price Futures Group.

The release could also deter producers, including the Organization of the Petroleum Exporting Countries (OPEC) and U.S. shale producers, from accelerating output increases even with oil prices around $100 a barrel, ANZ Research analysts said in a note.

The commitment of the OPEC+ group of oil exporting nations to output targets have contributed to absorbing an excess of supply in the market, Iraq's state-news agency cited the oil ministry as saying on Friday.

PVM analyst Stephen Brennock said doubts remained on whether the supply from emergency reserve releases will address the shortfall in Russian crude.

JPMorgan (NYSE:JPM) expects the reserves release to "go a long way in the short term" to offsetting the 1 million barrels per day of Russian oil supply it expects to remain permanently offline.

"However, looking forward to 2023 and beyond, global producers will likely need to ramp up investment to both fill the Russia-sized gap in supply and restock IEA strategic reserves," the bank said in a note.

U.S. producers added 13 oil rigs in the week to April 8, data from oil services firm Baker Hughes showed, a third straight week of gains.

While Russia has found Asian buyers, Western buyers are shunning cargoes since the start of the conflict in Ukraine.

The Kremlin on Friday said Russia's "special operation" in Ukraine could end in the "foreseeable future."

Russia's production of oil and gas condensate fell to 10.52 million barrels per day (bpd) for April 1-6 from a March average of 11.01 million bpd, two sources familiar with the data told Reuters on Thursday.

The U.S. Congress voted to ban Russian oil on Thursday, while the European Union is considering a ban.

Germany might be able to end Russian oil imports this year, Chancellor Olaf Scholz said.

On Thursday, European Union countries approved a ban on Russian coal imports, adding the bloc will now discuss sanctions on oil.

But demand uncertainties kept a lid on prices Friday after Shanghai extended its lockdown to contend with fast-rising COVID-19 infections.

Further pressure came from the strengthening U.S. dollar, after signals that the U.S. Federal Reserve could raise the federal funds rate another 3 percentage points by the end of the year.

Money managers cut their net long U.S. crude futures and options positions in the week to April 5 by 3,147 contracts to 266,727, the U.S. Commodity Futures Trading Commission (CFTC) said.

Oil prices settle up 2%, post weekly loss on stockpile releases
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (6)
USD INR
USD INR Apr 08, 2022 2:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I am seeing Reuter's multiple posts about Oil going down....but it went up and up...Reuter's analyst should study more before posting such things.
Meru Pet
Meru Pet Apr 08, 2022 2:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yeah but no ... it went sideways imo, but you are right for the narrative thing
Rr Bb
Rr Bb Apr 08, 2022 2:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yeah like Q3 and Q4 of 2021. EIA is like "oh, it'll average at 73" when it skyrockets to $130
Charles Sturrock
Charles Sturrock Apr 08, 2022 1:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If a Reuter's article suggests you should go long, then go short. If a Reuter's article suggests you should go short, then go long. It's that easy.
Darren Hunt
Darren Hunt Apr 08, 2022 4:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Piss through our reserve only for oil prices to rise again. Just a bandaide for a bullet wound.
Calvin Sky
Calvin Sky Apr 08, 2022 3:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
all i know inflations+ war means oil prices are going down any time soon !
Ying Yu
Ying Yu Apr 08, 2022 12:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The oil price are collapsing. As such highest oil price is only accelerate inflation in US and European countries. It becomes a political game now. Most of countries are suffered from such highest oil price. They want it down. The energy sectors will be going down quickly as it happened this morning.
Meru Pet
Meru Pet Apr 08, 2022 12:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sorry but it's a bit wishful thinking. Btw i wonder if covid can be "weaponized" to make oil go down or to stop the CO2 production of an area ...
Lowell Bull
Lowell Bull Apr 08, 2022 12:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
way off mark
Steven Kilgore
Steven Kilgore Apr 08, 2022 12:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A coule problems with this…. First its not sustainable as Biden has now either emptied or commited to empty a little less than 50% the strategic reserve. Eventually this amout will need to be replaced, which will have a devastating effect. With the current administration doing everything it can to cut down on oil & gas production in 6-9 months we will be in for a world of hurt. No new additional producrion will come online between now and then. Biden is really betting the farm something monumental will happen between now and the next 180 days.
Trevor Roberts
LimitUp Apr 08, 2022 12:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Its only about the polls today, he will lie his way out later
marlow seay
marlow seay Apr 08, 2022 12:35AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Trevor Roberts he will lose
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email