Oil price volatility driven by supply curbs and worries about economic contraction

Oil price volatility driven by supply curbs and worries about economic contraction

While the recent announcement that Opec and Russian Federation will cut production helps alleviate concerns about oversupply, the pivotal questions in the coming year are whether Opec and Russian Federation will maintain their production discipline and what might happen in June, when the current agreement expires.

China's factory activity falls, adding to concern about economic slowdown and fuel demand.

In physical Crude Oil markets, Top exporter Saudi Arabia is expected to cut February prices for heavier grades sold to Asia by up to 50c bbl due to weaker fuel oil margins, respondents to a Reuters survey said Thursday.

Brent crude futures LCOc1 were at $56.60 per barrel at 0741 GMT, up 65 cents, or 1.2 per cent, from their last close.

As for the latest production figures.

The market will be on the lookout for the American Petroleum Institute's weekly snapshot on USA oil supply-demand for the week ended December 28, ahead of official data on Friday from the Energy Information Administration.

"Oil prices ... registered their first yearly decline in three years on fears of a slowing global economy and concerns of an ongoing supply glut", said Adeel Minhas, a consultant at Australia's Rivkin Securities. In addition, the US oil production will continue to add a bearish tone, separately said independent analyst Lakshan de Silva.

Williams happy with Hopman tune-up, Tennis News & Top Stories
"People talk about her serve so much and I see why it is such a wonderful serve because you just can't read it", Federer said. The much-hyped contest quickly lived up to its billing with Federer nearly running down Williams' smash into the open court.

Traders are “now buying key support and looking ahead to the OPEC cuts that will now go into play, ” Phil Flynn, senior market analyst at Price Futures Group, told MarketWatch.

"We've seen a couple of times where the market's attempted to pick itself up and it seems the selling pressure always returns", said Gene McGillian, market research manager at Tradition Energy in Stamford, Connecticut. United States crude slipped 62 cents to Sh4,479 ($44.79).

"Market expectations for continued strong oil demand growth remain in place, despite concerns about slowing demand growth as a result of weaker economic growth, the impact of tariffs and a strong United States dollar", remraked Steve Wood, the managing director for Oil & Gas at Moody's. Earlier in the week, the U.S. Energy Information Administration said U.S. production hit another all-time high in October at 11.54 million bpd. "Low gas prices are like another Tax Cut!" he wrote on his official Twitter account on Tuesday.

Crude prices had previously fallen after the U.S. followed most other major economies into a manufacturing downturn.

Independent market analyst Greg McKenna said in a note on Wednesday that it was "difficult for traders and investors to ignore what looks like a genuine global economic slowdown".

"OPEC+ strategy for supporting prices over market share is not working, said MUFG bank". "Saudi Arabia is clearly trying to to get the U.S. stockpile number down because it is by far the most visible of all global stockpiles and that is where you go first if you want the market to at least buy into the idea that you are trying to control the market".

Related News:

  • Fabregas bids farewell to Chelsea with missed penalty

    Fabregas bids farewell to Chelsea with missed penalty

    Alvaro Morata scored the two goals but it was not quite the ideal send off for Fabregas, who missed from the penalty spot. He nearly capped off the performance with a goal from the penalty spot, but his effort was saved by Luke Steele .
    Trump mocks Modi over ‘Afghan library’

    Trump mocks Modi over ‘Afghan library’

    Both Modi's Bharatiya Janata Party (BJP) and the main opposition Congress were united in their criticism of the U.S. president. Trump's remarkscame in the course of his rambling speech regarding the failure of the war in Afghanistan .

    Quadrantids meteor shower to take place overnight Thursday into Friday

    Although not as well-known as other meteor showers, the Quadrantid is expected to average 120 meteors per hour at its peak. And if you're lucky, you might be able to catch the result: colorful meteor showers that light up the night sky.
  • A spectacular meteor shower is happening over Canada this week

    A spectacular meteor shower is happening over Canada this week

    The shower peaks Thursday night, though observers may catch sight of stray Quadrantid meteors through the middle of January. The Quadrantid meteor shower rains light over the northern hemisphere this week, particularly on January 3 and 4.
    Fed Chair Jerome Powell says he would not resign if asked

    Fed Chair Jerome Powell says he would not resign if asked

    The Fed has a long history of nonpartisanship saying,"it's had a very strong culture around nonpolitical activity", said Powell. Markets, however, have mostly tumbled since October on fears of a global economic slowdown and the ongoing U.S.
    South African on top as bowlers, Markram hurt Pakistan

    South African on top as bowlers, Markram hurt Pakistan

    He rode his luck before being forced into a surprising dismount when he nicked a peach of a delivery from Shaheen Afridi. Abbas appeared to have had Bavuma caught by Azhar Ali at first slip when the batsman was on three.
  • UGA QB Justin Fields transferring to Ohio State

    UGA QB Justin Fields transferring to Ohio State

    The Harrison H.S. graduate was considered the nation's top dual threat QB prospect when he signed with Georgia in December 2017. Quarterback Justin Fields confirmed Friday night he is transferring to Ohio State following one season as Georgia's backup.
    US  sends troops to Gabon amid election uncertainty in neighbouring Congo

    US sends troops to Gabon amid election uncertainty in neighbouring Congo

    Since independence in 1960, the DRC has never experienced a peaceful, democratic transfer of power. The December 30 election was therefore one of the most important elections in DRC history.

    Biff! Pow! Zap! Former Hearthstone folks making Marvel game

    We can't wait to show it to the people who we interview as candidates. Since then, their team has been busy prototyping a new game. No title or timeframe for the game have been announced.
  • New House Democrat Rashida Tlaib profanely vows to impeach Trump

    New House Democrat Rashida Tlaib profanely vows to impeach Trump

    So much for Hillary Clinton's promise a year ago that "civility can start again" after Democrats take the House and/or Senate. And secondly, how important were they? "A president who is doing a good job can still be impeached", Tumulty wrote .
    Five children heading to Disney die in crash

    Five children heading to Disney die in crash

    The van from the Pentecostal church was struck and overturned multiple times, ejecting some of its occupants. Troopers say a semi truck was traveling on northbound I-75 when it and another vehicle collided.
    Hopman Cup: Roger Federer & Belinda Bencic retain title for Switzerland

    Hopman Cup: Roger Federer & Belinda Bencic retain title for Switzerland

    World number 2 Kerber later leveled things for Germany as she beat Bencic 6-4, 7-6 in fiercely contested women's singles game. Belinda Bencic feels excited to play the Hopman Cup final with Roger Federer again for the second year in a row.

Most liked

Study finds that Vermont is top state for inbound moves
The study shows jobs as the primary reason for people relocating and the age group most moving from Kansas is 55 to 64. The Garden State moved up one spot on the outbound list to No. 1 and has has ranked in the top 10 for the past decade.

Jimmy Butler Challenging HC Brett Brown, 76ers' Offensive System
In searching for answers, Butler has met privately with Brown and his coaching staff, as well as general manager Elton Brand , league sources told ESPN .

China confirms United States trade talks in Beijing next week
Last year, China and the United States imposed tariffs on more than $300bn (£237bn) worth of each other's goods. Washington has imposed punitive tariffs of up to 25 percent on $250 billion of Chinese goods.

Five teens die in 'escape room' fire during birthday celebration
Previously, there was no official requirement for fire safety certificates at such locations - of which there are more than 1,000. Local residents were placing flowers and lights in front of the location, a detached house which became a death trap.

Kelly's sexual abuse history heightens rage against him
Vibe magazine found that Kelly got married to Aaliyah when she was only 15 and listed herself as 18 while the singer was 27. The marriage was annulled after Aaliyah's family became aware of it, the Chicago Sun-Times reported.

German Court Orders iPhones Pulled From Stores
Apple had filed a request for the Chinese court to reconsider its decision, but no outcome has been announced. German reseller Gravis said it was still selling the iPhone 7 and 8 models at its stores as well as online.

Russia collusion inquiry: Grand jury term extended
Prosecutors have the option of using a new grand jury once the term of a previously established one expires. The grand jury, which was seated in July 2017, was set to expire after 18 months, on January 6.

Delete The Weather Channel App If You're Concerned About Your Location Data
The data serves no weather-related goal , but was only collected in order to allow TWC to turn a profit, the complaint reads. TWC, according to the complaint, has been able to convince about 80 per cent of users to grant access to geolocation data.

Forget keto - the Mediterranean diet was just named the best for 2019
You can have red wine in moderation if you'd like, but you must get plenty of exercise and enjoy meals with family and friends. The plan also involves in-person meetings or online chats created to support those in the program and keep them accountable.

Jazmine Barnes: Texas police release sketch of drive-by gunman
Please, get help", she said she told her two teenage daughters, who jumped out and tried to flag down drivers on the freeway. The gunfire killed Jazmine and wounded Washington, as well as her six-year-old daughter, who has not been identified.

Novak Djokovic makes it through to Qatar Open quarter-finals after scare
There were also Doha wins for Guido Pella, Marco Cecchinato, Dusan Lajovic and Guillermo Garcia-Lopez. The number one seed, will play fifth seed Nikoloz Basilashvili in the quarter-finals.

14-year-old boy arrested on murder charge after fatal crash
Zavala's daughter Jessica Gaspar said her mom had been on her way back from the family celebration at the time of the fatal crash. PHOTO: One person was killed when a 14-year-old driver crashed into their vehicle in Houston on Tuesday, Jan. 1, 2019.

Giant tuna fetches record $3.1 million at Japan auction
The Japanese are the biggest consumer of bluefin tuna and experts warn the species could become extinct because of overfishing. The previous site at Tsukiji opened in 1935 and became the world's biggest fish market and a popular tourist attraction.

Manchester United get FA Cup underway vs Reading — SUGGESTED STARTING XIs
How much United's upturn in fortunes is down to Solskjaer and how much it is about not having Mourinho, only time will tell. The style which the Portuguese considered an unnecessary bonus is demanded as a pre-requisite under Solskjaer, and it shows.

Tottenham beats Tranmere 7-0 in FA Cup for biggest away win
He was then replaced in the 75th minute by Kane, who completed the scoring eight minutes from time . It became a rout as Llorente got his second and then a minute later his hat-trick.