Register
Login:
Share:
Email Facebook Twitter

Exclusive: Hayden Locke, CEO Emmerson plc, a low cost high margin potash investment | Watch Now

Exclusive: Hayden Locke, CEO Emmerson plc, a low cost high margin potash investment
Richard Slape, Oil consultant - Avoiding Losers and Picking Winners, his personal strategy


Macroeconomic News


UPDATE 5-U.S. oil retreats from 2019 high on soaring production

Fri, 15th Mar 2019 01:27


* Economic slowdown prompts concern over demand growth

* OPEC has led supply cuts since start of year

* U.S. sanctions against Venezuela, Iran tighten market

* Slight oil supply deficit likely emerging in Q1 (Updates prices, adds comment)

By Noah Browning

LONDON, March 15 (Reuters) - U.S. crude futures briefly hit a 2019 high on Friday but later retreated along with benchmark Brent oil as worries about the global economy and robust U.S. production put a brake on prices.

West Texas Intermediate (WTI) crude oil futures were down 3 cents at $58.58 per barrel at 1100 GMT, having hit their highest so far this year at $58.95.

Brent crude futures were at $66.92 per barrel, down 31 cents from their last settlement, and more than $1 off their 2019 peak of $68.14 reached on Thursday.

"The market is still torn between economic concerns and high U.S. oil production on one hand and remarkable OPEC+ compliance on the other. The latter is greatly aided by unplanned cuts in production," PVM oil broker Stephen Brennock said.

The Organization of the Petroleum Exporting Countries and its allies including Russia, an alliance known as OPEC+, agreed last year to cut production, partly in response to increased U.S. shale production.

OPEC+ ministers will meet on April 17-18 to decide output policy.

"If OPEC+ decide to extend (cuts) ... we expect that inventories will continue to draw through at least Q3," U.S. investment bank Jefferies said on Friday.

The International Energy Agency said on Friday that the market could show a modest surplus in the first quarter of 2019 before flipping into a deficit in the second quarter by about 0.5 million barrels per day (bpd).

It said a comfortable supply cushion by OPEC could prevent any price rally in case of possible disruptions and that non-OPEC oil output growth led by the United States should ensure demand is met.

Preventing oil from rising further have been concerns that an economic slowdown that has gripped large parts of Asia and Europe will dent growth in fuel demand.

But oil demand has held up well so far.

Crude oil use in China, the world's biggest importer, in the first two months of 2019 rose 6.1 percent from a year earlier to a record 12.68 million bpd, official data showed this week.

Goldman Sachs said growth in global demand for crude in January was "nearly 2.0 million barrels per day, with strength visible in both emerging markets and developed economies".

(Reporting by Noah Browning in London; Additional reporting by Henning Gloystein; Editing by Dale Hudson)



(c) Copyright Thomson Reuters 2019. Click For Restrictions - https://agency.reuters.com/en/copyright.html




Back to Macroeconomic News


Share Price, Share Chat, Stock Market news at lse.co.uk
FREE Member Services
- Setup a personalised Watchlist and Virtual Portfolio.
- Gain access to LIVE real-time Regulatory News (RNS).
- View more Trades, Directors' Deals, and Broker Ratings.
Share Price, Share Chat, Stock Market news at lse.co.uk




Datafeed and UK data supplied by NBTrader and Digital Look. While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.