News Update for CFDs

Oil rises and falls in face of global oversupply fears

Oil prices hovered around a two-week low in course of North American trading hours today. The movement of oil prices comes as Libya and Nigeria begin to export oil again with fears of global oversupply mounting.

On the ICE Futures Exchange in London, Brent oil for November delivery got to a session low of $45.68 a barrel. Brent oil have not fallen this low since September 2.

Just yesterday, London-traded Brent futures had dropped down by $1.25, falling by a margin of 2.65%. So far oil prices have been down by 5% this week as news come from Libya and Nigeria that these major producers will be resuming oil exports as conflicts in these countries calm down.

Going by reports coming from the U.S. Energy Information Administration, diesel last week had gone up by 4.619 million barrels. This exceeds hopes of an increase of 1.543 million barrels. This will be the highest biggest weekly build since the beginning of this year.

 

Oil goes down over ongoing supply worries


Oil had dropped down today over worries of supply with U.S. rig count data showing an increasing number of rigs. The amount of rigs which run in the United States had gone up by seven jumping up to 414 in the week to September 9. This number will be the biggest we have seen so far in almost eight months.

On the other hand, investors were watching for reports on U.S. consumer price inflation as well as US consumer sentiment which was impressive. Following a disappointing US retail sales data, it became important to know from US consumer sentiment when the US Federal Reserve would increase interest rates.

The Commerce Department had announced yesterday that U.S. retail sales had dropped down by 0.3% for last month falling below hopes that the data wouldn't decline by more than 0.1%. Although the fall in US retail sales will be the first we are having in over four months now.

U.S. crude thus fell down by 72 cents, this amounts to 1.64%, dropping down to $43.19 while Brent crude fell by a margin of 1.67%, declining to $45.81.

 

Oil drops badly to fresh 6-week lows with investors focusing on U.S. supply report

Oil prices failed to recover from its overnight losses in North American trade today. The losses oil suffered brought prices down to its least level in about six weeks. Investors are already shifting their attention to weekly data which will be published from the U.S. concerning stockpiles of refined products as well as crude.

Crude oil for November delivery on the New York Mercantile Exchange thus declined to $43.12 a barrels which is a daily low. In fact oil prices have not fallen this low since August 11. Thus for today, prices were last at $43.23 by 9:35AM ET (13:35GMT), this amounts to a decrease of 63 cents, such that prices fell down by 1.44%.


Tomorrow, we will be having official data from the Energy Information Administration. According to expectations from analysts, we could see an increase of 2.3 million barrels in crude stocks. Also from the calculations, gasoline inventories could slide down by 1.5 million barrels.

 

Oil leaps up by over 2 percent with Norway strike

Oil had risen up today following an unanticipated draw in U.S. crude stocks coupled with oil service workers going on strike in Norway.

Thus today U.S. crude had risen up by 96 cents. This increase amounts to a climb of 2.18%, such that US crude rose up to $45.01. On the other hand, Brent crude had gone up by 2.03%, jumping up to $46.81. American Petroleum Institute data had shown a draw of 7.5 million barrels in U.S. crude which brings it to 507.2 million.

This will be the third consecutive week U.S. crude inventories will be falling. Analysts had predicted an increase of 3.4 million barrels. The dollar index also fell down as the Federal Reserve brings little hopes of rates increase on the near term. So far when the dollar loses strength and gets weaker, commodities like oil appreciate and such was the case this Wednesday. Although major producers like Nigeria and Nigeria are putting plans in place to increase production, the strike of oil workers in Norway for now helped to push up oil prices.

 

Oil still climbing despite doubts of OPEC meeting success

Oil prices still maintained its increase today, marking the second day oil prices have been on a rise. The rise in oil prices so far has been supported with U.S. government data which revealed a rather unexpected crude inventory decline. The rise in oil prices of late has been commendable though investors are quite disturbed that OPEC would not realize an arrangement to cut down on oversupply of oil.

So far oil prices have been boosted by the decline in the US dollar following the decision of the Federal Reserve to introduce no changes in US interest rates.

U.S. West Texas Intermediate (WTI) crude futures (CLc1) had gone up by a dollar rising up to $46.34 for a barrel. Brent on the other hand had risen up by 65 cents, which amounts to 1.4% bringing it up to $47.48.

Some days earlier, oil prices had fallen down owing to disappointing discussions in Vienna among delegates of the OPEC Countries which brought forward no promise of cutting down oil oversupply.

 

Oil springs up by 4% as major oil producers meet

Oil sprang up today by over 3% as the biggest global producers of oil meet in Algeria. The top nations in oil production will be holding talks on how to support prices. Traders are very wary of the outcome of the meeting as it is very crucial they arrive at a decision so oil prices don't collapse further due to looming oversupply of oil.

The Organization of the Petroleum Exporting Countries as well other exporters who are presided over by top producer Russia will be gathering in a meeting informally alongside the International Energy Forum. The International Energy Forum will be holding in Algeria from today to Wednesday.

Iran which is a major OPEC member and occupies the position of the 4th biggest crude exporter is not really serious about the success of the meeting. Iran's lack of hope in the meeting is as a result of its plans to raise output to levels it was operating before the sanctions from the West back in 2012.

Thus today Brent crude futures (LCOc1) went up by $1.75, which is an increase of 3.8% moving up to $47.64 for a barrel.

 

Oil goes down by almost 3% as Iran and Saudi Arabia oil ministers doubt OPEC meeting success

Oil prices deeply went down by almost 3% in course of North American hours today thus failing to recover from its overnight losses. The decline of oil prices is majorly because of tension between both Iran and Saudi Arabia who had expressed their lack of hope in success of the upcoming meeting between OPEC and non-OPEC members. This meeting is well expected to lead to an official decision of a deal to freeze or cut oil production at the closely watched informal OPEC meeting taking place tomorrow.

The Oil ministers of Iran and Saudi Arabia today said that discussions between non- OPEC as well as OPEC oil producers in Algiers are "consultative". This reduces the possibility of the meeting resulting in the much needed policy decision.

On the ICE Futures Exchange in London, Brent oil for December delivery had lost $1.38, dropping down by almost 3% falling to $46.55 for one barrel.

Tomorrow OPEC members presided over by Saudi Arabia as well a number of major Middle East crude exporters, including as Iran and Iraq; will getting together in meeting with non-OPEC producers led by Russia. The meeting will be at the event of International Energy Forum holding in Algeria.

 

Oil prices go down a bit as excitement over OPEC deal drops

Oil prices were going down gradually in course of during North American hours today. The slight decline comes following the rapid increase of prices by an amazing 6% yesterday. The decline comes as the initial excitement that immediately followed the preliminary OPEC agreement on oil output, died down over new fears as to what approach the OPEC would take in implementing the agreement.

Just yesterday oil prices had greatly jumped when OPEC members rather unexpectedly came to an agreement to reduce oil output. This would be the very first time we were having such a deal in almost eight years. Investors were really surprised with the successful outcome of the meeting as before now two major participants Iran and Saudi Arabia had both expressed doubts over the success of the meeting. The meeting comprising of 14 participants however chose to postpone talks of concluding plans to the proposed cuts till November.

Thus for today Brent oil for December delivery on the ICE Futures Exchange in London had dropped down by 15 cents, this amounts to a fall 0.3%, bringing down Brent to $49.09 for a barrel.

 

Oil halts rise as investors rush to take profit with dollar getting stronger

Oil prices dropped down today as the US dollar got stronger with investors choosing to quickly take profits from the wonderful 6% one-day rise in oil prices which occurred on Wednesday. The rise followed the success of OPEC members to reach a deal on cutting production. The deal makes it the very first time in over seven years to reduce the decline in oil prices with the decline already in its second year.

Today the Global benchmark Brent crude futures (LCOc1) had gone down today by 33 cents falling down to $48.91 for a barrel. Yet this is about 6% above where prices had fallen to prior to the OPEC agreement which was reached on Wednesday. On the other hand, U.S. crude (CLc1) also fell down by 6 cents dropping to $47.77 a barrel, this also is still around 6% above where US crude was prior to the OPEC deal.

The OPEC had reached an unexpected agreement to reduce output from about 33.5 million barrels per day (estimated by Reuters to be the production level for the month of August) to 32.5-33.0 million barrels per day. By the next November OPEC meeting, details which also included the quotas for the individual members will be concluded.

 

Oil prices decline as Iran and Libya increase output threatening OPEC deal

Oil prices dropped down today following news that Libya and Iran went on to push up production. The increase in production from these two countries had weakened hopes in the OPEC succeeding in reaching a deal to reduce output levels. This deal is almost necessary to cut down the prolonged decline in oil prices which has been extending into two years.

Benchmark Brent crude oil futures (LCOc1) had gone down by 22 cents falling to $50.67 for a barrel. Iran’s condensate sales as well as crude have gone up towards levels it has not gotten to since 2011. This was actually prior to the West sanctioning Iran.

Iran have been given permission to produce "maximum levels that make sense" as a constituent of a deal reached by the Organization of the Petroleum Exporting Countries when they had their meeting the previous week.

In another signal that Iran could still increase production further, the country today signed its first new style contract with a domestic company with arrangements being put in place to develop two of its oil fields.

 

Oil climbs up to four-month highs as OPEC prioritizes reduction in output

Oil went up by 1% rising up to highs of four months today. The increase in oil prices comes as news went around the market of an informal OPEC meeting focusing on reducing output. The increase in oil prices was also supported by an unexpected drop in U.S. crude stocks,
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Among the principal key OPEC representatives to hold meeting with non-OPEC member Russia, are Saudi, Iranian and Iraqi energy ministers. The crucial meeting will be holding alongside an energy conference convening the following week in Istanbul.

So far, Oil has prices have added over $6 for a barrel since the OPEC Countries released an announcement of informal discussions held by Sept. 28 in Algeria where the body maintained hopes to cut down output to 32.5 million-33 million bpd.

Thus today Brent crude (LCOc1) had gone up by 54 cents, amounting to a rise of 1%, this brings it to $52.40 for a barrel. U.S. West Texas Intermediate (WTI) crude (CLc1) on the other hand went up by 48 cents climbing up to $50.31.

 

Oil drops lower but U.S. crude stays above $50 on hopes of cut in output

Oil dropped down a bit today as U.S. crude managed to stay above $50 with traders holding tightly on hopes that the OPEC would cut output by November. OPEC officials are holding many meetings which are quite unusual in the next six weeks. These dedicated moves from the OPEC are aimed at formally arriving at a deal to reduce production as planned last week when its key oil ministers met in Algiers.

These series of unusual meetings, between OPEC officials begin next week with ministers in Istanbul. This is a strong indication that contrary to what we saw in the beginning of the year, this time around, the OPEC is very serious about coming to a deal with fears of global oversupply mounting with declining oil prices.

U.S. crude had gone down today by 15 cents, this amounts to a decline of 0.30%. But still U.S. crude managed to stay above $50 at $50.29. On the other hand, Brent crude went down by 0.48% dropping down to $52.26. The next meeting to hold between OPEC members is next month ending by November 30. The meeting will be holding in Vienna. We expect that the major oil producers agree to cut output down to 32.5-33 million bpd.

 

Crude oil prices drop down from one-year high on comments of Russian Oil chief


Igor Sechin who happens to be the most powerful Russia oil executive as well as the head of Rosneft (MM:ROSN), in his statement with Reuters, said his company is unwilling to abide to the proposed cuts in oil production which has been the primary push of the OPEC.

Sechin's remarks follow statements made by Russian President Vladimir Putin over the arranged production cuts. Mr.Putin had earlier said that a freeze in output by the big producers is in the right decision which would make declining oil prices more stable.

Also Russian Energy Minister Alexander Novak today confirmed the willingness of Russia to work hands in hands with OPEC to realize the proposed output freeze.

OPEC which is a producer body comprising of Saudi Arabia as well as other large oil producers like Libya, Iran, Nigeria, Iraq, Kuwait and others; is looking forward to realizing a cut in output by 700,000 bpd, dropping global output down to 32.5-33.0 million bpd by November.

 

Oil prices get more stable hovering around 4-month high


U.S. oil futures didn't make big changes today. Prices hovered around a previous high of four months. This movement comes as investors anticipate new round of discussions between other big oil exporters and OPEC producers with the aim of stabilizing crashing oil prices.

OPEC is arranging discussions with other big producers outside the OPEC body over the further arrangements which could be adopted to realize a cut in global oil production. The discussions focus on reducing production among the major producers by a minimum of six months. Earlier on, the Russian President Mr. Putin had given his support that Russia is set to contribute to the success of the deal to cut output. Although many investors are yet to be convinced that Russia will keep to its words. Especially when a Russian oil chief expressed his reluctance to comply to freeze arrangements.

U.S. crude futures for the month of November delivery got steadier at $50.80 for a barrel; this is well closer to the four-month high of $51.60 for one barrel oil prices had recorded on Monday.

 

Oil slides down below $52 as fears of oversupply set in again

Oil dropped down today below $52 for a barrel. This decline clears the gains oil prices had recorded earlier. The decline today comes as almost excessive crude supplies outweighed declining U.S. fuel inventories with traders getting less excited by OPEC's plans to bring down global output.

Brent crude had earlier on jumped up to its peak this year, near $54 at the beginning of this week. The remarkable increase was well boosted by hopes of investors in the arrangements been made by the OPEC as regards the Sept. 28 deal of the body to cut global oil production. But then recent figures from the OPEC still outline the possibility of supply far beating daily demand with OPEC’s own numbers showing increasing oil production among the big exporters.

Global benchmark Brent went down today, falling by over 3 cents dropping to $51.99 at 1328. U.S. crude however gained 20 cents climbing up to $50.64.
U.S. crude inventories overall had gone up by 4.9 million barrels, this marks the first time it is rising in over five weeks, according to data released by the US government's Energy Information Administration. OPEC is yet focused on its plans to chop down supply to between 32.5 million bpd and 33 million bpd. This OPEC hopes could bring balance between supply and demand and eventually stabilize oil prices.

 

Oil goes down as traders look up to OPEC

Oil prices went down today in face of arrangements being put in place for a reduction in oil production by OPEC countries. Hopes that the OPEC reaches success are pretty high as traders are waiting for U.S. inventory data.

Crude oil for November delivery on the New York Mercantile Exchange today sold a barrel for $49.97. Earlier on it had traded at $50.53. Brent oil for December delivery on the ICE Futures Exchange in London had gone for $51.48 a barrel, falling down from a previous high of $52.09.

Earlier on, investors were really excited that the OPEC had made concrete progress in arrangements to bring oil prices down to an agreed range of 32.5 million to 33.0 million barrels per day. These arrangements had been made alongside an energy conference in Algeria late at the end of September. But with mixed reactions coming from Russia as regards the planned cut, the success of the deal is not very certain. OPEC expects to finalize the deal when it meets next month ending in Vienna.

 

Oil drops down by over 2% as traders rush to take profits

Oil prices dropped down today. The decline comes as traders rush to withdraw profits after prices went up. Prices had gone up earlier. Against what we expected, U.S. oil inventory fell down greatly last week as hopes were still solid that the major producers would reach a deal to cut production.

The decline in U.S. crude oil inventories last week brings it down to 468.7 million barrels according to reports from the EIA. The reports were released after industry group which is the American Petroleum Institute announced some two days back that U.S. crude oil stocks dropped down unexpectedly last week by 3.8 million barrels. The drop in oil inventories had increased the hopes of traders who are eagerly looking forward to a cut in output by major producers.

U.S. crude oil today traded at $50.54 for a barrel, owing to a drop of $1.28 which amounts to 2.49% from its last close. Global benchmark Brent futures on the other hand traded at $51.33 a barrel. Brent had fallen by $1.33 which amounts to 2.51%.

 

Crude prices go up, maintaining its spot above $50 following Russian comments

Crude prices went up after reports surfaced in the market indicating the readiness of Russia to honor output cut agreement. Today, US Oil went up moving around the boundary of $50 for a barrel despite a strengthening US dollar weakening further gains in commodities.

Crude prices went up today following the speeches of Russian Energy Minister Alexander Novak who restated the necessity of an oil production freeze deal as it was a strong basis of support for oil prices. The Russian energy minister went on to promise he would submit proposals this weekend to his colleague from Saudi Arabia. The Organization of the Petroleum Exporting Countries is making arrangements to meet by November 30 so as to finalize the complete details of the proposed cut in global output.

Thus today U.S. crude futures for December delivery had gone up to $50.81 a barrel amounting to 0.36%. This is not distant from its four-month high of $51.94 a barrel it had recorded on Wednesday. On the ICE Futures Exchange in London, the December Brent had gone up to $51.67 for a barrel.

 

Oil prices drop as Iraq gets reluctant to join output cut

Oil prices went down today. The decline is as a result of Iraq expressing its opinion to be excluded from the OPEC deal to chop down production. But then prices didn't fall too much as Iran went on to calm growing fears in the market by saying it would support other members who choose to enter into the agreement and cut output.

Brent crude futures (LCOc1) today declined by 18 cents; dropping down to $51.60 a barrel while U.S. West Texas Intermediate (WTI) crude (CLc1) were also down by 37 cents falling down to $50.48.

Iraqi oil minister Jabar Ali al-Luaibi had announced Baghdad wishes to be excluded from any plans to cut production already been arraigned by the Organization of the Petroleum Exporting Countries. Falah al-Amiri, who is the head of Iraqi state oil marketer SOMO, had also chipped in that the market share of Iraq had been greatly affected by the series of fighting Iraq has been embattled with since the 1980s.

Russian Energy Minister Alexander Novak had today expressed his opinion that a temporary reduction in oil output would stabilize prices which have been moving up and down of late.

 

Oil prices pick themselves up despite Russia being reluctant to cut output


Oil prices went up in course of North American hours today. This takes prices a distance from the previous low of three weeks it had recorded earlier. The increase in oil prices resurrected hopes concerning the success of the arranged deal by OPEC to cut oil production.

Saudi Arabia as well as it counterparts from the Gulf OPEC are expressing their readiness to join in a slash of 4% from their peak oil production. This was confirmed by ministers from producing countries located in the Gulf region to the energy minister of Russia. This was also encouragingly confirmed by Reuters.

Yet there seem to be little hitches as Russian Energy Minister Alexander Novak has declared Russia is reluctant to reduce production but would more readily freeze it at the present production levels.

Brent oil for December delivery on the ICE Futures Exchange in London thus today added 35 cents, this amounts to 0.7%, climbing up to $50.33 a barrel. Just yesterday it had gone down to $49.65. This noticeably is the least Brent has fallen to since October 3.