newsmoments.net
newsmoments.net October 23, 2017


Oil Hits Highest $58.37

27 September 2017, 12:33 | Lorenzo Hawkins

Trafigura Forecasts End of"Lower for Longer Crude Era

Trafigura Forecasts End of

This could mean that producers who use Brent as a benchmark will have to offer greater discounts in order to compete in Asia against US crudes.

"The market is OK, but these levels are beginning to look a little precarious", said Robin Bieber, technical chart analyst at London brokerage PVM Oil Associates.

US West Texas Intermediate crude for November delivery rose $1.56, or 3 per cent, to settle at $52.22 a barrel, the highest since April.

Platts is seeking feedback from the market by October 13.

Nigeria has been given another extension in respect of oil production output ceiling, thereby raising hope of her recovering fully from the economic recession she just marginally exited recently.


Argus publishes prices for WTI Houston, WTI Midland, Mars and LLS in Asia. In other words, the Organisation of the Petroleum Exporting Countries (Opec) is very close to reaching its target for stockpiles, at least in the developed nations. "Supported by the improving forward structure in the futures market, floating storage has also been on a declining trend since June", OPEC said.

And other analysts were skeptical about further price gains due to increased refining and higher crude output from the United States.

The Financial Times reported that oil "prices received a further injection of momentum after Turkish President Recep Tayyip Erdogan warned Iraqi Kurdistan that he opposed its independence referendum that passed on Monday, saying Ankara could shut off its main export pipeline and economic lifeline".

On Wednedsay the U.S. Department of Energy's Energy Information Administration (EIA) releases its data.

The major oil producers' production cut deal has supported crude oil prices since November 2016.


Oil TankerThe great disruptor that is USA shale oil is coming to Asia, as refiners in the energy-hungry region look to expand and diversify their sources of crude, and the consequences will likely go well beyond a shift in oil trade flows.

Even the most bullish traders and executives in Singapore said that it would be almost impossible for crude to hold above $65 a barrel next year for this reason.

However, a private meeting Friday between OPEC and some non-OPEC members, resulted in no decision on whether to extend the agreement beyond the current end-date of March 2018. But the storm had a much smaller and shorter impact on crude oil production, which fell by 750,000 barrels a day the week the storm made landfall but recovered most of that over the two following weeks.

And, higher crude prices have yet to feed through fully to gas station forecourts - but they will, raising the cost of driving, which is already above last year's level.

Kachikwu noted that even though Nigeria hit 1.802 million barrels per day in the month of August that was not enough justification for a call by some countries for Nigeria to be brought into the fold.




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