Thursday , July 18 2019
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Tag Archives: oil

Oil pipelines not Royal Navy warships will solve Hormuz Iran threat

Deploying more of the Royal Navy to protect oil tankers from Iranian attack as they sail through the Strait of Hormuz is a short-term fix to a historic problem of providing energy security in the Persian Gulf. Instead of Britain adding to the crowded fleet of warships converging on the region, new export routes such as pipelines and canals should be opened up to provide long-term peaceful alternatives that would finally reduce the world’s dependence on the narrow 21-mile-wide channel...

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Commodity tracker: 6 charts to watch this week

S&P Global Platts editors’ pick of unfolding commodities trends. This week, bunker values at Fujairah plunge, mine overcapacity puts pressure on key battery metal lithium, and US LNG exporters face tight margins over the summer. Plus Chinese refiners’ growing taste for Saudi crude, EU CO2 prices and gas and coal profitability. 1. Fujairah bunker values plunge as Middle East risk rises   What’s happening?  Marine fuel sales in the Port of Fujairah are estimated to have dropped...

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Near-Term Dollar Outlook: What the Charts may Say

The dollar had a challenging week.  The Chair of the Federal Reserve confirmed as much as possible a rate cut at the end of the month. The market understood this as a validation of its expectations and pushed the implied yield of the January 2020 fed funds futures contract down six basis points to 1.715%.  The low, and what we have suggested is peak dovishness, was 1.555% on June 20. As the central bank meetings are awaited later in the month, the most likely near-term scenario may be...

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Crude Oil Gets Support from Falling Oil Rigs Count, Gulf of Mexico Production

Futures for West Texas Intermediate crude oil were almost flat while Brent crude ended Friday with gains. The major positive factor for the commodity was the drop in output from the Gulf of Mexico. Companies were shutting down platforms and rigs and evacuating workers due to the threat from Tropical Storm Barry, which is expected to turn into a hurricane by the weekend. Another positive factor was the oil rig...

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Energy and commodity highlights: Tropical storm Barry, UK-Iran tanker spat, Asian LNG demand

As Tropical Storm Barry approaches the US Gulf Coast, offshore oil and gas producers, refineries and ports have been shuttering facilities in preparation. Utilities are also on alert. As of July 11, US offshore drillers have shut 1 million b/d (53%) of Gulf of Mexico oil production and 1.2 Bcf/d (45%) of natural gas output. The US National Hurricane Center expects Barry to reach hurricane strength late July 12, or early the next day, and make landfall in Louisiana. The storm could slow US...

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Powell Spurs Equity and Bond Market Rally, While the Greenback Falls Out of Favor

Overview:  Fed's Powell confirmed a Fed rate cut at the end of this month by warning that uncertainties since the June FOMC had "dimmed the outlook" and that muted price pressures may be more persistent.  It ignited an equity and bond market rally (bullish steepening) while the dollar was sold. The MSCI Asia Pacific Index rose for the second session, led by gains in South Korea and Hong Kong.  Benchmark 10-year yields have slipped lower, with the Asia Pacific and core European yields...

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Fundamentals Continue to Support Crude Oil

Futures for crude oil jumped 4% today as fundamental factors remained supportive of the commodity. The Energy Information Administration reported that US inventories of crude declined by 9.5 million barrels last week, whereas experts had predicted a much smaller decrease by 1.9 million barrels. The official data was in line with the report from the American Petroleum Institute, which also showed a huge draw. US producers...

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Video: Crude Oil as of July 10, 2019

In the present video, Phil Carr from The Gold and Silver Club talks about crude oil as of July 10, 2019. He starts by discussing the fact that hedge funds and money managers increased their long positions on the commodity. Phil then proceeds with explaining what he expects from crude and what factors can affect it. If you found this video useful and want to see more videos like this one or if you want to see...

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North American Focus: Poloz and Powell

Overview:  The US Treasury market is retreating for the fourth consecutive session ahead of Fed Chairman Powell's testimony before Congress.  It is the longest losing streak in six months, and the 10-year yield has risen 15 bp over the run.  This is helping drag up global yields, and today Asia Pacific yields mostly rose 2-3 basis points while core European bond yields are 5-7 bp higher and peripheral yields up a little less.  The small gain in the S&P 500 yesterday failed to help...

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Supportive Factors Bolster Prices for Crude Oil

Crude oil rose today with the help of a range of supportive factors. Among them were production cuts by the Organization of Petroleum Exporting Countries and its allies, most notably Russia, and geopolitical tensions in Middle East. Russia’s oil production fell to almost a three-year low after Russian oil pipeline monopoly Transneft limited intake from the country’s biggest producer Rosneft. Meanwhile, reports suggest that...

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