Connect with us

Commodities

Crude Oil Prices Rise as IEA Hails Q4 Stockpile Draw By Investing.com

Published

on


© Reuters.

 By Geoffrey Smith 

Investing.com — Crude oil prices climbed back above $40 a barrel in the U.S. on Wednesday after a moderately upbeat of the near-term outlook from the International Energy Agency, which forecast a clear drop in world stockpiles in the final quarter of 2020.

By 9:30 AM ET (1315 GMT), futures were up 1.6% at $40.84 a barrel, while the international benchmark contract was up 1.6% at $43.12 a barrel.

U.S. were likewise up 1.1% at $1.1956 a gallon.

In its monthly oil market report, published earlier Thursday, the IEA had said its estimates for global supply and demand imply a 4 million barrel a day average drop in world stockpiles in the current quarter. It also noted that the volume of crude in floating storage – typically an indication of weak spot demand – had dropped by around one third in September alone, to just over 139 million barrels.

The IEA’s comments came a few hours ahead of the American Petroleum Institute’s weekly estimate of U.S. stockpiles, which are expected to have fallen by 3.36 million barrels last week. The API data, like the government’s, are delayed by a day this week due to the Columbus Day holiday.

Prices are also being supported by speculation that the OPEC+ bloc of producers will signal a willingness to postpone their scheduled increase in output at the end of the year, mindful of the fragility of global demand as more and more countries tighten restrictions on economic and social life to contain the Covid-19 virus. The virus has spread rapidly across Europe in particular at the approach of the northern hemisphere’s winter.

Technical experts from the OPEC+ bloc are due to meet in Vienna on Thursday, ahead of a ministerial meeting next Tuesday.

Suhail al-Mazrouei, the oil minister of the United Arab Emirates, said on Wednesday that the bloc still intends to restore  nearly 2 million barrels a day of output to world markets as of January.

However, the ability of the world market to absorb that extra supply is in question. Not only may demand not be strong enough, but Libya – an OPEC member which is exempt from the current quotas because of the hardships caused by its civil war – is now ramping up output after a peace deal allowed its biggest field, El Sharara, to resume production.  The IEA said Libyan output could read 700,000 barrels a day by the end of the year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Commodities

Trading Theory—Adding To Winning Trades – Growing Your Money

Published

on

By


Trading Theory—Adding To Winning Trades

When Do You Add To Your Winning Trade? This has always been a very interesting question because it can create a situation of going from rags to riches to riches to rags in a very short amount of time.

Many times I see traders abuse pyramiding or adding to positions with utter lack of any type of money management system in place and letting it ride which usually ends up in a complete wipeout of capital and sometimes even worse.

Commodity prices can move very quickly with large gains or loses like we experienced in 2008 crash of stock and commodity prices, so you always have to use stops and not fall in love or marry a position.

My answer to this question is add only once to the trade if that position has made you at least 1%-2% of your account balance while still having stop losses on all positions that equal 2% loss at a maximum risk.Remember your stop loses will be different on both positions because of the fact that you entered those trades at a different date and price.

 

 

 

If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com

 

FREE TRIAL FOR THE LIMIT UP COMMODITY NEWSLETTER

Email: mseery@seeryfutures.com

If you’re looking to open a Trading Account click on this link www.admis.com

Disclaimer: This and other personal blog posts are not reviewed, monitored or endorsed by TalkMarkets. The content is solely the view of the author and TalkMarkets is not responsible for the content of this post in any way. Our curated content which is handpicked by our editorial team may be viewed here.



Source link

Continue Reading

Commodities

Crude Oil Tumbles as OPEC Happy Talk Fails to Quell Demand Fears By Investing.com

Published

on

By


© Reuters.

By Geoffrey Smith 

Investing.com — Crude oil prices fell sharply on Monday in line with other risk assets as the rapid spread of the Covid-19 virus across Europe and the U.S. sparked fears of more demand destruction through restrictions on economic and social activity.

By 11:35 AM ET (1635 GMT), futures were down 3.1% at $38.61 a barrel, their lowest level in three weeks. The international benchmark blend was down 2.8% at $40.88 a barrel, having also hit a three-week low.

U.S. gasoline RBOB futures were down 2.5% at $1.0991 a gallon, testing their lowest in over a month. Data from GasBuddy showed that U.S. demand for gasoline fell by 0.5% last week.

Sentiment was summed up by Patrick Pouyanne, the chief executive of French oil and gas major Total, who told a conference that “globally speaking, the demand is still weak.

“I am afraid that with the second wave we are experiencing in many continents today again, it could be longer [for demand] to recover like everybody hoped,” Pouyanne was quoted by Argus Media as telling the CERA Week conference.

The pressure on the corporate sector was again in evidence, with Canada’s Cenovus and Husky Energy (OTC:) announcing plans to merge over the weekend in a bid to rationalize costs and squeeze more value out of reserves that require relatively high investment to be monetized.

However, as usual, there was no shortage of those willing to talk prices up. Saudi Arabia’s Oil Minister Prince Abdulaziz bin Salman was quoted as telling the same conference as Pouyanne that the essentially cyclical nature of the oil business was unchanged, and that low prices and low capital spending now would beget high prices in the future.

In the same vein, Indian Oil Corp. Chairman Shrikant Madhav Vaidya told S&P Global Platts in an interview that Indian product demand is now rebounding strongly after a wretched couple of months due to the virus. India has one of the world’s highest death tolls from Covid-19, after the U.S.

Likewise, OPEC Secretary General Mohammed Barkindo hinted CERA Week that the OPEC+ bloc of producers that a deferral of a scheduled increase in output at the end of the year is still possible, stressing that that the group will “adapt to the changing realities.”

“We are determined to assist the market to restore stability by ensuring that the stock drawdowns continue.”

There was little visible effect however from signs of yet another disruption to production in the Gulf of Mexico, where BHP, Chevron (NYSE:), Royal Dutch Shell (LON:) and BP (NYSE:) had all started to remove non-essential personnel from their platforms ahead of the likely arrival of Tropical Storm Zeta. The National Hurricane Center said it expected dangerous storm surges across the Yucatan peninsula in Mexico later Monday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Continue Reading

Commodities

OPEC chief says rising infections may delay oil recovery By Reuters

Published

on

By


© Reuters.

By Alex Lawler

LONDON (Reuters) – OPEC’s secretary general said on Monday an oil market recovery may take longer than hoped as coronavirus inflections rise around the world, and OPEC and its allies would “stay the course” in balancing the market.

The Organization of the Petroleum Exporting Countries and allies including Russia made a record oil output cut in April as the pandemic hit demand. They are scheduled to increase output in January as part of a gradual easing of supply curbs.

OPEC’s Mohammad Barkindo, asked at the virtual India Energy Forum by CERAWeek if the second wave of the virus required any changes to OPEC+ strategy, said hopes earlier this year of a demand rebound had been disappointed.

“We were hopeful the second half of 2020 would begin to see a recovery,” Barkindo said. “Unfortunately, both the economic growth and demand recovery remain anaemic at the moment due largely to the virus.”

“We remain cautiously optimistic that the recovery will continue. It may take longer, maybe at lower levels, but we are determined to stay the course,” Barkindo added.

Russian President Vladimir Putin, speaking last Thursday, did not rule out extending the oil cuts for longer if market conditions warranted.

Barkindo said producers did not expect a renewed oil-price collapse as seen in the second quarter, when oil hit historic lows with briefly trading in negative territory.

OPEC+ producers had met an average of 100% of their supply cut commitments and would continue to implement the curbs so that inventories fall further, Barkindo said.

“We are determined to assist the market to restore stability by ensuring that the stock drawdowns continue.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Continue Reading

Trending

Copyright © 2017 Zox News Theme.