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Offbeat Oil Rises to $80 a Barrel in London for First Time Since 2014

13:15  17 may  2018
13:15  17 may  2018 Source:   bloomberg.com

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Brent for July settlement rose 66 cents to .94 a barrel on the London -based ICE Futures Europe exchange at 10:49 a.m. local time , after adding as Futures for September delivery on the Shanghai International Energy Exchange gained 1 .9 percent to 481.9 yuan a barrel , rising for a third day.

On Monday for the first time since November of 2014 , the price of US crude oil rose above per barrel . Currently, crude oil was up in London by 1% to .59 a barrel , having hit a high of Saudi Arabia, which is looking to push its price to $ 80 a barrel to fund the countries economic reforms.

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Oil rose to $80 a barrel in London for the first time since 2014 as U.S. crude inventories fell and traders braced for the impact of renewed sanctions on OPEC member Iran.

Brent futures added as much as 1.1 percent to $80.18 on Thursday. U.S. crude stockpiles slipped for a second week as the summer driving season approaches, government data showed on Wednesday. Goldman Sachs Group Inc. said America’s surging shale output won’t be able to replace the potential drop in Iranian oil shipments after the U.S. reimposed sanctions on OPEC’s third-largest producer.

Crude has rallied this month to the highest level in more than three years after U.S. President Donald Trump withdrew from a 2015 pact between Iran and world powers that had eased sanctions on the Islamic Republic in exchange for curbs on its nuclear program. While the International Energy Agency said a global glut’s been eliminated thanks to output curbs by OPEC, it warned high prices may hurt consumption and cut forecasts for demand growth.

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Futures contracts in London and New York both climbed more than 1 percent on Thursday. Brent for July settlement jumped 42 cents to .70 a barrel on the London -based ICE Futures Europe exchange, after earlier reaching $ 80 .18, the highest since November 2014 .

May.17 -- Brent crude rose to $ 80 a barrel in London for the first time since 2014 , pushed higher by declining U.S. stockpiles and concerns over renewed

“Supply concerns are top of mind after the U.S. left the Iran nuclear deal,” said Norbert Ruecker, head of macro and commodity research at Julius Baer Group Ltd. in Zurich. “The geopolitical noise and escalation fears are here to stay.”

Brent for July settlement rose 66 cents to $79.94 a barrel on the London-based ICE Futures Europe exchange at 10:49 a.m. local time, after adding as much as 1.1 percent to $80.18 on Wednesday. The global benchmark crude traded at a $7.66 premium to WTI for July.

West Texas Intermediate crude for June delivery traded at $72.13 a barrel on the New York Mercantile Exchange, up 64 cents. The contract climbed 18 cents, or 0.3 percent, to $71.49 on Wednesday. Total volume traded was 33 percent above the 100-day average.

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Futures for September delivery on the Shanghai International Energy Exchange gained 1.9 percent to 481.9 yuan a barrel, rising for a third day.

See also: Russia’s OPEC Deal Dilemma Worsens as Idled Crude Capacity Grows

U.S. crude inventories fell 1.4 million barrels last week, while domestic production rose to 10.7 million barrels a day, the Energy Information Administration said on Wednesday. The specter of surging American output, which has topped 10 million barrels a day every week since early February, continues to place a cap on prices and undermine OPEC’s output cuts. Gasoline stockpiles also shrank last week by 3.79 million barrels, the EIA reported.

Members of the Organization of Petroleum Exporting Countries, including Saudi Arabia, Kuwait and the United Arab Emirates, said they have enough capacity to fill in any supply gap if renewed sanctions curtail Iran’s exports. Still, Goldman Sachs said the group won’t proactively replace the lost barrels, given its current narrative that the market isn’t fully re-balanced.

Oil price hits highest level since 2014 as surplus shrinks

  Oil price hits highest level since 2014 as surplus shrinks Crude settled at the highest since 2014 as shrinking U.S. oil, gasoline and diesel stockpiles signaled tightening global supplies. Futures ended Wednesday’s session 0.3 percent higher in New York after fluctuating between gains and losses. An International Energy Agency forecast for less robust energy demand overshadowed a U.S. government tally showing record overseas demand for American crude and declining domestic stockpiles of oil and fuels.

Oil rose to $ 80 a barrel in London for the first time since 2014 as U.S. crude inventories fell and traders braced for the impact of renewed sanctions on Iran; Goldman says money managers who are reducing their bullish bets on oil are following a “dangerous” strategy

Bloomberg Oil reached US $ 80 a barrel in London for the first … Read also: Oil to US $ 100 is possible in 2019: Bank of America Brent for July delivery rose 66 cents to US $ 79.94 a barrel on London ’s ICE Futures Europe stock exchange at 10:49 am local time , after adding up 1 . 1 % to US

Even the U.S. won’t be able to offset Iran’s shipments because shale producers are facing “growing pains” as record production has caused bottlenecks in the nation’s pipelines, Goldman analysts including Jeffrey Currie wrote in a May 16 note.

Oil-market news:

Gasoline futures were up 0.3 percent at $2.22560 a gallon, after gaining 2.1 percent on Wednesday. Since the European Union is unlikely to follow the U.S. in re-imposing sanctions on Iran, the overall impact on the Persian Gulf state’s exports will be “far more muted” than in the past, tanker tracker Petro-Logistics said in a note.

--With assistance from Tsuyoshi Inajima.

To contact the reporters on this story: Heesu Lee in Seoul at [email protected];Grant Smith in London at [email protected]

To contact the editors responsible for this story: James Herron at [email protected], Will Kennedy

©2018 Bloomberg L.P.

Oil slips further below $80 a barrel as focus on OPEC intensifies .
Oil prices recorded their largest one-day drop in two weeks on Thursday, with expectations building that OPEC will end an output deal that has been in place since the start of 2017 due to concerns about supplies from Venezuela and Iran. Benchmark Brent futures were down $1.08 at $79.72 a barrel, its largest one-day fall since May 8, while U.S. crude futures dropped 86 cents to $70.98 a barrel."This discussion about possible OPEC supply increases after the June meeting has put a brake on the oil price for the time being, so $80 is a big hurdle to overcome," Commerzbank strategist Carsten Fritsch said.

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