Crude oil hits $100 a barrel for the third time this year
Crude-oil futures hit $100 a barrel for the third time this year on Tuesday, as concerns that the Organization of Petroleum Exporting Countries may cut production boosted prices. Crude for March delivery soared nearly 5% to $100.10 a barrel in late afternoon trading on the New York Mercantile Exchange. Crude touched $100 a barrel in the first session of January and topped the historic mark in the second session.
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Sourse: Crude oil hits $100 a barrel for the third time this year
Iran to Launch Oil And Gas Exchange on Feb. 27
Iran will launch a commodities exchange for oil, petrochemicals and natural gas on February 27, the Islamic Republic’s oil minister said on Wednesday.
Gholam-Hossein Nozari told Iran’s Press TV satellite channel the opening ceremony of the Oil Bourse would be attended by Minister of Economy and Financial Affairs Davoud Danesh Jaafari, who will head the bourse.
He said earlier the Oil Bourse will be located on the Persian Gulf island of Kish and that all financial settlements will be made in Iran’s national currency, the rial.
The minister said his country’s oil revenue will reach $63 billion by the end of this Iranian year, which ends on March 20.
He said oil sales reached $55 billion in the first 11 months of the year, and that “if crude prices stand at the current level, next year’s oil revenues will be the same as this year.”
Nozari announced last week that Iran’s crude oil production had reached 4.184 million barrels per day, the highest level since the 1979 Islamic Revolution.
Source RIA Novosti
Oil Futures Jump $3.66
… in a long-running battle with rebels intent on hurting the nation’s oil industry infrastructure. Crude oil prices jumped $3.66 to $91.77 a barrel on the Mercantile Exchange on expectations of …
Sourse: Oil Futures Jump $3.66
Crude slips on demand concerns
Prices fall as ISM data ignites recession concerns
Crude prices slipped today, Tuesday, 5 February, 2008 as weak economic data fuelled recession concerns and this led to questioning of the demand for crude in coming months. Prices slipped ore than $1.5/barrel.
Crude-oil futures for light sweet crude for March delivery today closed at $88.81/barrel (lower by $1.66/barrel or 1.8%) on the New York Mercantile Exchange. Prices are 51% higher than a year ago. Earlier it fell to a low of $87.5/barrel.
The Institute for Supply Management’s index of non-manufacturing plummeted to 41.9 from 54.4 in December, its largest monthly decline on record. The decline in the index reignited fears that the U.S. economy was in a slowdown.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
Brent crude oil for March settlement today fell $1.66 (1.8%) to $88.81 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
Natural gas advanced amid speculation a revised forecast for lower temperatures next week will lift demand in the regions of highest use. Natural gas for March delivery rose 7.3 cents (0.9%) to settle at $7.942 per million British thermal units
Against this backdrop, March reformulated gasoline dropped 4.7 cents to $2.2647 a gallon and March heating oil declined 4.38 cents to $2.4465 a gallon.
Last week, Organization of Petroleum Exporting Countries decided to keep current output levels unchanged.
At the MCX, crude oil for February delivery closed at Rs 3,489/barrel, lower by Rs 66 (1.8%) against previous day’s close. Natural gas for February delivery closed at Rs 313.8/mmtbu, higher by Rs 2.9/mmtbu (0.93%).
Tomorrow, EIA will report the inventory status of crude and fuel products.
Sourse: Crude slips on demand concerns
Crude ends week lower
Prices slip more than 3% on Friday on weak non farm payroll report
Crude prices ended lower for the week that ended on Friday, 01 February, 2008. Prices ended lower by $1.75 (1.9%). Price rose initially earlier in the week on anticipation of rate cuts from Federal Reserve. A lower interest rate has chances of helping the US economy warding off recession and thus boosts energy demand. But then, prices slipped on the last two days of the week. Price fell during the later part on weak economic reports.
For the week ending Friday, 01 February, crude-oil futures for light sweet crude for February delivery closed at $88.96/barrel (lower by $2.79) on the New York Mercantile Exchange for the day. Prices fell to $88.25 during intra day trading.
On 30 January, 2008, the Federal Reserve lowered interest rates 0.5% point to 3% today. This was after the 75 bps rate cut to 3.5% that Fed did last week. The interest rate cuts are to avoid the US economy from plunging into recession. Prices gained almost $2 during the early part of the week.
But on the last two days of the week, crude lost almost $3.37/barrel. On Friday, Labor Dept reported that U.S. employers cut back their hiring in January for the first time in more than four years. Nonfarm payrolls fell by an estimated 17,000 in January, the Labor Department said. This is the first decline since August 2003. Crude tumbled by almost 3% on that day.
As per the weekly inventory report by the Energy Department this week, U.S. crude inventories rose for a third week, up 3.6 million barrels to 293 million barrels in the week ended 25 January. Crude imports averaged about 10.1 million barrels per day last week, down 100,000 barrels per day from the previous week.
EIA also reported that U.S. gasoline supplies rose by 3.6 million barrels to 223.9 million in the week under review, while distillate supplies, which include heating oil and diesel, fell by 1.5 million barrels to 127 million. U.S. refineries operated at 85% of their operable capacity, down from the previous week’s 86.5%.
Also on Friday, Organization of Petroleum Exporting Countries decided to keep current output levels unchanged.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
Sourse: Crude ends week lower
Crude prices at two week high
Prices rise after another spate of interest rate cut by Federal Reserve
Crude prices ended higher for the fifth consecutive day today, Wednesday, 30 January, 2008. Another spate of interest rate cut by Federal Reserve pushed crude prices to two week high. A lower interest rate has chances of helping the US economy warding off recession and thus boosts energy demand.
Crude-oil futures for light sweet crude for February delivery today closed at $92.33/barrel (higher by $0.69/barrel or 0.8%) on the New York Mercantile Exchange. Prices are 62% higher than a year ago. The contract traded between the range of $92.71 and $91.05.
The Federal Reserve lowered interest rates 0.5% point to 3% today. This was after the 75 bps rate cut to 3.5% that Fed did last week. The interest rate cuts are to avoid the US economy from plunging into recession.
In the currency markets today, the dollar weakened against most of its major counterparts after the Fed rate cut. The dollar index, which tracks the performance of the greenback against six other major currencies, declined 0.6% at 75.125.
EIA also reported the weekly inventory report today. U.S. crude inventories rose for a third week, up 3.6 million barrels to 293 million barrels in the week ended 25 January. Crude imports averaged about 10.1 million barrels per day last week, down 100,000 barrels per day from the previous week.
EIA also reported that U.S. gasoline supplies rose by 3.6 million barrels to 223.9 million in the week under review, while distillate supplies, which include heating oil and diesel, fell by 1.5 million barrels to 127 million. U.S. refineries operated at 85% of their operable capacity, down from the previous week’s 86.5%.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
Natural gas, gasoline and heating oil – all rise
Brent crude oil for March settlement today rose $0.53 (0.6%) to $92.53 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
Natural gas in New York rose on expectations that an interest-rate reduction by the Federal Reserve would boost the U.S. economy and lift demand for energy. Gas for March delivery rose 10.2 cents (1.3%) to settle at $8.045 per million British thermal units.
Against this backdrop, March reformulated gasoline rose 0.55 cents to $2.377 a gallon and March heating oil gained 1.12 cents to $2.544 a gallon.
Members of the OPEC left production targets unchanged at the 5 December meeting in Abu Dhabi. The group, which produces 40% of the world’s oil, will review output at a 1 February, 2008 meeting in Vienna. The cartel is expected to increase production.
At the MCX, crude oil for February delivery closed at Rs 3,608/barrel, higher by Rs 33 (0.92%) against previous day’s close. Natural gas for January delivery closed at Rs 315.4/mmtbu, higher by Rs 5.1/mmtbu (1.6%).
Tomorrow, EIA will report the inventory status of natural gas.
Sourse: Crude prices at two week high
Brazil to Become Major Oil Producer
Brazil is expected to become a major oil producer whose production will become increasingly important to the United States over the next decade.
Petrobras, Brazil’s top oil exploration and oil and gas production company, announced in November, 2007 that it had made a major discovery some 300Km off the Brazilian coast off the Rio de Janeiro State coast. The Tupi field discovery is equivalent to the world’s most important ones and probably the most significant new field discovery in the past thirty years.
Only about two weeks after the Tupi field discovery Petrobras announced another large discovery of the natural gas and condensate field in the area called Jupiter. There are distinct similarities between the Tupi and Jupiter dimensions. “This new field’s geological structure indicates an area of 1,200 square kilometers, similar to Tupi’s.” The pioneer well, 1-BRSA-559-RJS (1-RJS-652), called Jupiter, is nestled at a final depth of 5,252 meters, 290 km off the Rio de Janeiro State coast, and 37 km from the Tupi area, at a water depth of 2,187 m.
While both of these discoveries are at a tremendous depth they are expected to produce superior light sweet crude oil that will demand a premium price on the world market which will help offset the cost of production. Petrobras leads the world in deep oil field production technologies.
The discovery and planned production from these two enormous fields by 2010 to 2011 will likely change the relationship between the US and Brazil to a considerable degree. Brazil will likely emerge as one of the world’s premier oil and gas producers and have surplus oil to export in large amounts.
This will enrich Brazil as a nation and bodes well for investments in Brazil and in the Real, the Brazilian currency. As for the US it will have to look at Brazil in an entirely new way should it become heavily dependent upon importing Brazilian oil and gas. The new relationship that will be forged between Brazil and the US may well make the US far less dependant upon oil from the Middle East.
Should that occur you might imagine that the US relationship with Saudi Arabia will under go significant changes as well. Hopefully the US would no longer have to look the other way and ignore the repressive nature of the Saudi government.
One thing is for certain as the 21st century moves forward. Those nations that have surplus oil are going to prosper and those who depend upon importing large amounts of oil are going to suffer.
Sourse: Brazil to Become Major Oil Producer
Oil Prices Rise Above $90 a Barrel
Oil futures extended recent gains Friday, pushing crude back above $90 a barrel after U.S. government leaders agreed to a stimulus plan in an effort to avert a major slowdown in the world’s largest economy, according to the Associated Press.
Light, sweet crude for March delivery on the New York Mercantile Exchange rose $1.29 to $90.70 a barrel in electronic trading by the afternoon in Europe. The contract gained $2.42 to settle at $89.41 a barrel on Thursday, the largest rise in over three weeks.
Sourse: Oil Prices Rise Above $90 a Barrel
Crude oil firms up
Prices end more than $2 higher as Bush Administration announces stimulus package
Crude prices erased all of yesterday’s gains and prices rallied today, Thursday, 24 December, 2008. Prices rose today after the Bush Administration announced a stimulus package to ward off recession. Prices rose despite Energy Department announcing a rise in crude inventories for week ended 18 January, 2008.
Crude-oil futures for light sweet crude for February delivery today closed at $89.41/barrel (higher by $2.42/barrel or 2.8%) on the New York Mercantile Exchange. Prices are 61% higher than a year ago.
As per the weekly inventory report by the Energy Department, U.S. crude inventories, rose for a second week, increased to 289.4 million barrels in the week ended 18 January. Crude inventories at Cushing, Oklahoma, the delivery point for Nymex-traded crude, fell by 800,000 barrels to stand at 15.7 million barrels. Total commercial petroleum inventories, including crude, motor gasoline, heating oil, increased by 2.2 million to 972.3 million barrels last week, and were in the middle of the average range for this time of year.
EIA also reported that U.S. gasoline supplies rose by 5 million barrels in the latest week, but distillate stocks fell by 1.3 million barrels. U.S. refineries operated at 86.5% of their operable capacity last week, down from the previous week’s 87.1%.
Crude had ended FY 2007 substantially higher by $35 or 57%. It was crude’s biggest yearly gain in five years.
Natural gas caps six days of slipping streak
Last Tuesday, Federal Reserve slashed its benchmark interest rate 0.75% to 3.5% after global equity markets tumbled on concern the slumping U.S. economy will drag down the growth rates of other nations. Federal Reserve’s decision came as a surprise to everyone but Fed took the same as stocks markets worldwide, had been plunging on fear that US economy would be hitting a recession soon. On that day, futures touched $85.42 after the Fed announcement during intraday trading.
Brent crude oil for March settlement today rose $2.45 (2.8%) to $89.07 on the London-based ICE Futures Europe exchange. The London benchmark rose 54% in FY 2007, the most since 1999 when prices more than doubled.
Natural gas advanced today on speculation the U.S. will avoid a recession and fuel demand will increase. Gas for February delivery rose 18.1 cents (2.4%) to settle at $7.802 per million British thermal units. EIA reported today that U.S. natural-gas supplies declined by 155 billion cubic feet to stand at 2.536 trillion cubic feet in the week ended 18 January.
Against this backdrop, February heating oil gained 5.32 cents to $2.4763 a gallon and February reformulated gasoline rose 3.2 cents to $2.2828 a gallon.
Members of the OPEC left production targets unchanged at the 5 December meeting in Abu Dhabi. The group, which produces 40% of the world’s oil, will review output at a 1 February, 2008 meeting in Vienna.
At the MCX, crude oil for February delivery closed at Rs 3,491/barrel, higher by Rs 42 (1.2%) against previous day’s close. Natural gas for January delivery closed at Rs 308.1/mmtbu, higher by Rs 7.9/mmtbu (2.6%).
Sourse: Crude oil firms up
Wheat at new record as recession fears loom
… the US may be unable to avoid a recession in coming months have brought crude oil off this year’s record high of $100 a barrel and gold below an all-time …
Sourse: Wheat at new record as recession fears loom
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