Why is the oil market so volatile?

“The geopolitical risk environment is dangerously close to the levels we haven’t seen since the early stages of Operation Iraqi Freedom” in 2003, warned Robbie Fraser, a senior commodity analyst at Schneider Electric. Middle East tension has supported prices. On May 14, Yemen’s Houthi rebels, who are fighting the Saudis, claimed responsibility for armed-drone attacks that halted pumping at a key Saudi oil pipeline. A day earlier, Saudi Arabia said that a weekend sabotage attack had damaged two of its oil tankers off the eastern coast of the United Arab…

Oil prices slide despite bullish OPEC report

From Myra P. Saefong: Crude-oil production by the Organization of the Petroleum Exporting Countries edged up by 30,000 barrels a day to 30.26 million barrels a day in April, according to an S&P Global Platts survey issued Thursday. Individual output levels varied month on month among the 14 OPEC members, the survey showed, with “Iran’s sanctions-induced slump and Angola’s drop offset by significant rises in Nigeria and Iraq and recoveries in crisis-torn Libya and Venezuela.” Saudi Arabia held its April production at 9.82 million barrels a day, the lowest in over…

3 factors affecting the price of oil in 2019

Besides Occidental Petroleum’s bidding war with Chevron for fellow producer Anadarko Petroleum, the big energy news from last week is that President Donald Trump, as expected, moved to end all sanction waivers for nations that import Iranian oil. Starting in May, countries that still buy oil from Iran could face U.S. penalties. In response, Brent crude hit $75 per barrel for the first time in six months. Oil and natural gas are the Middle Eastern country’s most important export, so the policy is intended to hit Tehran where it hurts.…

Oil prices move higher after March jobs report

West Texas Intermediate crude for May delivery CLK9, +0.89%  on the New York Mercantile Exchange rose 49 cents, or 0.8%, to $62.59 a barrel. The U.S. benchmark remains on track for a weekly rise of more than 4%. June BrentLCOM9, +0.76% the global benchmark, gained 33 cents, or 0.5%, to trade at $69.73 a barrel on ICE Europe. Brent is up 1.9% for the week. Crude had traded in negative territory earlier in the day, but turned higher after a stronger-than-expected rise in March nonfarm payrolls. However, weekly rig count data later in the session from oil-field…

Oil prices close lower today but climb higher for a third straight week

From Myra P. Saefong: Oil futures fell on Friday, with losses fed by worries over a slowdown in global energy demand, but prices climbed for a third straight week on expectations for tighter crude supplies. May West Texas Intermediate oil CLK9, -1.68% fell 94 cents, or 1.6%, to finish at $59.04 a barrel on the New York Mercantile Exchange. The contract still rose about 0.4% for the week, according to FactSet data. Source link