Speakers from Touchstone Exploration, Shanta Gold, Savannah Resources and Kavango Resources feature in our Natural Resources webinar on May 25th. Please register here.

Less Ads, More Data, More Tools Register for FREE

UPDATE 3-Brent hits 5-mth high on Abu Dhabi supply cuts, China data

Mon, 31st Aug 2020 06:10

* ADNOC cuts Asia crude supplies in Oct by 30% - sources

* Brent set for 5th monthly gain; 4th mth for WTI

* China's crude imports set for first fall in 5 months
(Changes dateline, updates prices)

By Noah Browning

LONDON, Aug 31 (Reuters) - Oil rose on Monday, with Brent
touching the highest in five months, underpinned by a 30% cut in
Abu Dhabi crude supplies and encouraging Chinese data even as
global demand struggles to return to pre-COVID levels in a well
supplied market.

Brent crude futures for November advanced to $46.50
a barrel by 0853 GMT up 69 cents, or 1.5%. U.S. West Texas
Intermediate crude was at $43.48 a barrel, up 51 cents,
or 1.2%.

Brent is set to close out August with a fifth successive
monthly price rise while WTI is on track for a fourth monthly
gain, having hit a five-month high of $43.78 a barrel on Aug. 26
when Hurricane Laura struck.

Abu Dhabi National Oil Company told its customers on Monday
that it will reduce October supplies by 30%, up from a 5% cut in
September, as directed by the United Arab Emirates government to
meet its commitment on the recent OPEC+ agreement.

"With demand gradually recovering, this will allow the
market to better absorb the inventory glut from earlier this
year," OCBC's economist Howie Lee said.

Energy companies continued efforts to restore operations at
U.S. Gulf Coast offshore platforms and refineries shut before
the storm.

A weak U.S. dollar and a survey on Monday showing
surprisingly strength in China's services sector supported oil
prices even though fuel demand has struggled to recover amid the
coronavirus pandemic and supplies remain ample, analysts say,
cautioning of hurdles for crude going forward.

"Oil is likely to slowly grind higher in modest steps, not
explode out of the wellhead higher," OANDA's Asia-Pacific
analyst Jeffrey Halley said, adding that abundant near-term
supplies and the fragility of the global recovery tempered price
gains.

China's crude imports in September are set to fall for the
first time in five months as record volumes of crude are stored
in and outside of the world's largest importer, data from
Refinitiv and Vortexa showed.
(Reporting by Noah Browning and Florence Tan, editing by Louise
Heavens)

More News

UPDATE 1-Britain's Next raises profit outlook for second time in two months

(Adds detail)LONDON, May 6 (Reuters) - British fashion retailer Next on Thursday raised its profit guidance for the 2021-22 year for the second time in two months as it reported better than expected first quarter trading.The group, which trades fr...

Today 07:26

Thursday newspaper round-up: Covid contracts, Indivior, KPMG, Glaxo

(Sharecast News) - The government has been urged to publish details of up to £2bn in Covid-19 contracts awarded to private healthcare companies, including some that have helped fund the Conservative party. Contracts to provide extra capacity during the pandemic have been handed to 17 firms since March 2020. - Guardian

Today 07:22

Alphawave IP Group prices London IPO at up to $4.5 bln

May 6 (Reuters) - Alphawave IPO Group has set a price range for its planned London listing of 375 pence to 430 pence per share, putting it on course for a valuation of up to 3.2 billion pounds ($4.45 billion), bookrunner JPMorgan said on Thursday....

Today 07:22

Superdry sees 'light at end of tunnel' as returns to growth in Q4

LONDON, May 6 (Reuters) - British fashion retailer Superdry said it returned to growth in its fourth quarter, helped by online and wholesale, after COVID-19 disruption resulted in sales for the year falling 21% to 556.6 million pounds ($774 milli...

Today 07:13

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.