Oil prices reach highest since November 2014 on Venezuela, Iran worries

Ajustar Comentario Impresión

Currencies and Banks In order to skirt the USA financial system, Asian buyers could also resort to using currencies other than the dollar to pay Iran for their oil purchases. At 6.50am the pound was trading at $1.352 against the dollar and at €1.141 against the euro. The June market is now showing 1 bid @ 1.492 and 2 offers @ 1.498. At one point they fell below $70, after settling above that level for the first time since November 2014 on Monday. In the overnight electronic session the June contract is now trading 7963 which is 91 points higher.

Trade data already show a reduction of Iranian oil supplies to Japan and South Korea, and refinery sources confirmed they had started shifting purchases in preparation for renewed sanctions. The futures continue to outpace the cash prices with no obvious cause and effect. BP (BP) advanced 2.8%, still in buy range.

On Tuesday, some of those oil-price gains were pared as traders took profit after Trump said in a tweet he would announce his decision on the nuclear deal at 1800 GMT Tuesday.

The API also reported a draw in gasoline inventories for the week-ending May 4 of 2.055 million barrels.

A 50% spike in the price of crude oil over the past year has set off a celebration for Big Oil. It's unclear what that might look like in practice, but with the oil market already pricing in some sort of re-implementation of sanctions, anything that stops short of that could be met with a selloff.

The last time the United Nations imposed similar sanctions on Iran in 2006, the price of oil shot up from $60 to $145 U.S., the bank noted - although there were other factors at play at the time, too.

Recently, the Organization of the Petroleum Exporting Countries has curtailed output, which has been a factor in the run-up in crude prices. Al-Falih added that OPEC and its non-OPEC partners will discuss targets and metrics next month in Vienna at their official meeting.

"PTT shares might see a new high above 60 baht after it split its par price per share from 10 baht to 1 baht per unit since April 24", he said.

OPEC oil production fell for third straight month. The price of crude is down to 69.80 ahead of the announcement.

Other companies should be able to pass along higher energy costs to their customers, especially because the United States and world economies are healthy. Like I said before, this is not your daddy's OPEC. The over-compliance is the result of a rapid and ongoing deterioration in Venezuela's production, plus Iraq's output dipped for the first time in months.

Brent climbed 46 cents to $75.33 per barrel, and it is said that the benchmarks were earlier boosted by news that ConocoPhillips has moved to seize key Caribbean assets of Venezuela's PDVSA in order to enforce a $2 billion arbitration award - and that this could further restrict PDVSA's declining oil production and exports. But the tremendous productivity improvements in the shale sector over the past four years would limit the offset.

Vodafone Group Plc has agreed to buy European units from Liberty Global Plc in an 18.4 billion-euro ($22 billion) deal, signaling a retreat from the region by US billionaire John Malone.

The increases came despite nine USA oil rigs bringing the total count to 834, energy services firm Baker Hughes said on Friday.

The 36-cent gas price increase over the past year coincided with a roughly $25 per barrel jump in oil - but even a smaller bump could tie up a significant amount of the tax law's benefits.

So far, financial markets have taken the jump in oil prices largely in stride, as the USA economy has been performing well behind solid job gains and strong consumer confidence. Make sure your hedges are in place. US natural gas production is rising so quickly that inventories are rapidly building up. The Group is available answer marketing questions and meet your investment needs.