Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

Oil prices rise amid Gulf of Mexico storm, Middle East tensions

Published Jul 12, 2019 06:38AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A oil pump is seen at sunset outside Scheibenhard
 
LCO
-2.37%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
-2.58%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
005930
-0.27%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Bozorgmehr Sharafedin

LONDON (Reuters) - Oil prices hovered near six-week highs on Friday and was on track for a weekly gain as U.S. oil producers in the Gulf of Mexico cut more than half their output because of a tropical storm and as tensions continued to simmer in the Middle East.

However, an International Energy Agency (IEA) forecast for a global oil surplus capped the gains. The agency on Friday predicted that surging U.S. oil output will outpace sluggish global demand and lead to a large stocks build around the world in the next nine months.

OPEC also predicted on Thursday the return of a surplus next year despite an OPEC-led pact to restrain supplies.

Brent crude (LCOc1) futures were up 36 cents at $66.88 a barrel by 1022 GMT. The international benchmark settled 0.7% down on Thursday after hitting its highest since May 30 at $67.65.

U.S. West Texas Intermediate (WTI) crude (CLc1) futures were up 18 cents at $60.38. In the previous session the U.S. benchmark touched $60.94, its highest since May 23.

Brent prices have climbed 4.5% this week while WTI prices have gained 5.5%. Both registered declines last week.

"It is fair to say that OPEC’s best-laid plans to rebalance the oil market have, so far this year, fallen flat," said Stephen Brennock, analyst at PVM Oil Associates.

"The oil cartel has led from the front in curbing supply since the start of 2019, yet it has failed to quash stubborn oversupply."

U.S. crude oil inventories have declined for four weeks and prices were also supported by oil companies in the Gulf of Mexico cutting production because of Tropical Storm Barry.

Companies cut more than 1 million barrels per day (bpd) of output -- 53% of the region's production -- as the storm headed for possible landfall on the Louisiana coast on Saturday.

The storm was forecast to become a category one hurricane with winds of at least 74 mph (119 kmh).

The market remained on edge as tensions intensified between Iran and the West. Tehran on Friday said that Britain was playing a "dangerous game" after last week's seizure of an Iranian tanker on suspicion it was breaking European sanctions by taking oil to Syria.

"As things stands, market players are clearly not envisaging a supply shock in the region. Only time will tell whether this turns out to be a case of wishful thinking but one thing is clear: geopolitical risks are here to stay," said Stephen Brennock, analyst at PVM Oil Associates.

Oil prices rise amid Gulf of Mexico storm, Middle East tensions
 

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.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

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.
 
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