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Oil prices breathe after a three-day rally

On March 7, 2022, a worker at a Brazilian oil company Petrobras gas station in Brazil, Brazil, was using a petrol pump. REUTERS / Adriano Machado / File Photo / File Photo

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  • Macron tells Biden that the UAE and Saudi alone can increase oil production
  • G7 agrees to explore Russian oil price limit
  • OPEC will increase oil revenues in 2021, well completed
  • The API shows US crude stocks below, fuel stocks are up-market sources

Tokyo, June 29 (Reuters) – Oil prices fell Wednesday after rising in the previous three sessions, but the loss is limited from the view that global supply tightening will continue as major producers such as Saudi Arabia have limited opportunity to boost production.

US West Texas Intermediate (WTI) raw futures fell 44 cents, or 0.4%, to $ 111.32 a barrel at 0150 GMT, giving up past gains.

In August, Brent Crude futures fell 61 cents, or 0.5%, to $ 117.37 a barrel, reversing previous gains. The August deal expires Thursday, and the more active September deal is down 66 cents, or 0.6%, at $ 113.14.

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Both Brent and WTI were up more than 2% Tuesday, as concerns over tight global supply outweighed fears of demand that could slow down in the future recession. The agreement of the group of seven economic powers to explore ways to limit the price of Russian oil is the basis of market sentiment. Read More

“Investors have made position adjustments, but are bullish on the prospects that Saudi Arabia and the United Arab Emirates will not be able to significantly increase production to meet the recovery demand from jet fuels,” said general manager Hiroyuki Kikukawa. Research at Nissan Securities.

“Oil prices could rise above $ 110 a barrel on the fear of potential supply disruptions from hurricanes as the United States enters summer,” he said.

Saudi Arabia and the UAE are viewed as just two members of the Organization of the Petroleum Exporting Countries (OPEC), which have the leisure capacity to offset lost Russian supply and weak production from other member states.

But UAE Energy Minister Suheel al-Majraoui said on Monday that the emirate is producing near its peak capacity of 3.168 million barrels per day under an agreement with OPEC and its allies, collectively known as OPEC +. Read More

His comments confirmed French President Emmanuel Macron’s statement to US President Joe Biden on the side of the G7 meeting that the UAE is producing at maximum capacity and that Saudi Arabia alone can increase its output by 150,000 bpd, less than about 2. Million bpd Read more

OPEC’s oil revenues soared in 2021, prices and demand recovered from the worst of the Kovid pandemic, but the group’s data showed that the number of active rigs on its members posted a modest rebound and new completed wells fell. Read More

Analysts have warned that political unrest in Ecuador and Libya could further tighten supply.

Inventory data in the US has provided some sense of improving fuel supply. According to market figures from the American Petroleum Institute on Tuesday, gasoline storage for the week ended June 24 rose 2.9 million barrels, and distilled fuel supply increased 2.6 million barrels. However, crude inventories fell by 3.8 million barrels.

According to Reuters surveys, US crude inventories are forecast to have fallen over the past two weeks. The government’s weekly petroleum status report was delayed last week due to a hardware problem. Both weeks of data will be published together on Wednesday. EIA /

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Report by Yuka Obayashi; Edited by Christian Smollinger

Our Standards: Thomson Reuters Trust Principles.

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