Oil hits $80, highest since Nov 2014, on Iran concerns

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Yet, are we seeing demand destruction?

Goldman also said the tight market left "room for OPEC to exit (its production cuts) without significant price impact". Well, we are not there yet.

The agency trimmed its 2018 world demand growth projection by 40,000 barrel per day (bpd) to 1.4 million bpd, projecting total consumption at 99.2 MMbpd.

USA bank Morgan Stanley said it had raised its Brent price forecast to $90 per barrel by 2020 due to a steady increase in demand. Both the EIA and API reports have come in very different, prompting a largely rotational oil trade. However the IEA - which advises oil-consuming nations - has warned that prices are high enough to hurt consumption, and trimmed its forecasts for demand growth. While rising prices can hurt demand in some cases; if it is being driven by demand it is a normal function of price reflecting growing demand, and it will encourage investment to keep feeding that demand.

India received about 397,200 bpd of oil from Venezuela in April, the highest since September, up about 46.8 percent from a year ago, the data showed.

It's also a busy morning in the City, with estate agent Foxtons warning that the London property market remains "very challenging", Ocado landing a partnership with U.S. retailer Kroger, and Mothercare announcing the return of once-sacked CEO Mark Newton-Jones.

Markets are treading carefully around uncertainty over Iran's supply, however, and signs of ample supply kept a lid on price rises Wednesday.

The IEA talks its book when it comes to demand.

There are several ways to play higher oils prices. A stronger dollar makes it more expensive to buy dollar-denominated commodities like oil. World supply, meanwhile, rose 1.78 million bpd in April from a year earlier, driven predominantly by non-Opec production. They also say better data In China, India and Latin America would cause oil demand to flourish.

The crude oil inventories are in and traders are wondering what to do with them.

The agency estimates that global oil inventories fell an average of almost 0.6 million barrels per day (bpd) in each of the past five quarters (January 2017 through March 2018).

In addition, the high oil prices prompted the IEA to increase supply growth estimates for non-OPEC member producing countries, particularly the U.S.

Will OPEC and its non-OPEC partners continue to cut production with lower Iranian and Venezuelan volumes?

OPEC thinks non-OPEC oil supply will grow at 1.72 million bpd year-on-year in 2018.

It did not, however, really reach a sustained 3 million barrels per day production despite being reluctantly exempted from the current OPEC plus agreement with non-OPEC producers.

The bottleneck in North America likely contributed to a 4.9 million barrel rise in USA crude oil inventories, to 435.6 million barrels, that the private American Petroleum Institute reported on Tuesday.

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