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05/12/2014

NEW YORK—Oil prices pared losses Friday on better-than-expected U.S. employment data but held lower as worries about a global glut of oil continued to weigh on the market.

The U.S. added a seasonally adjusted 321,000 jobs last month, the strongest month of hiring since January 2012, the Labor Department said Friday. Economists surveyed by The Wall Street Journal had expected a gain of 230,000.

Light, sweet oil for January delivery recently traded down 25 cents, or 0.4%, to $66.56 a barrel on the New York Mercantile Exchange, up from as low as $66.03 a barrel before the report’s release.
“Confidence is going to build—more people are going to be out there using energy” in the U.S.,” said Carl Larry, director of oil and gas for Frost & Sullivan. However, he said, “oil prices keep going down because the rest of the world is not getting that kind of demand.”

04/12/2014

West Texas Intermediate declined in New York amid speculation the global oil market will remain oversupplied followed OPEC’s decision to keep output unchanged. Brent was steady in London.

Futures slipped 1.3 percent in New York, reversing an earlier gain of 1.3 percent. Saudi Arabia’s state-run oil company lowered official selling prices for its crude in January to the lowest in at least 14 years for Asian buyers. The biggest member of the Organization of Petroleum Exporting Countries has no target price, according to a person familiar with its oil policy who asked not to be identified.

“The absence of any production cuts inside or outside OPEC points to still lower prices,”Oil fell 18 percent last month as OPEC maintained its output target, letting prices fall to a level that may slow U.S. production growth.

03/12/2014

Brent crude traded near $70 a barrel, erasing earlier gains as traders evaluated the impact of OPEC’s decision to maintain output at last week’s meeting. West Texas Intermediate was little changed.

Futures pared advances of as much as 1.3 percent in London and 1.6 percent in New York. The global benchmarks fell 18 percent last month after the Organization of Petroleum Exporting Countries maintained its output target at 30 million barrels a day, opting to let low oil prices force U.S. shale producers to cut supply. Saudi Arabia won’t give up market share “at this time for anybody,” said Prince Turki Al-Faisal, the kingdom’s former intelligence chief.

Demand growth is slowing as the U.S. pumps the most oil in more than three decades, driving crude into a bear market. OPEC, responsible for about 40 percent of the world’s supply, resisted calls from members including Venezuela to reduce its quota at the Nov. 27 meeting in Vienna.

“The market is still trying to find its feet following the OPEC meeting last week,” Jens Naervig Pedersen, a commodities analyst at Danske Bank A/S, said by e-mail from Copenhagen today. “There seems to be some short-term support around the $70 to $72-a-barrel mark for Brent. But overall the market is still plagued by uncertainty.”

02/12/2014

Prices of vegetable oils made from crops including rapeseed may decline as falling crude cuts demand for biofuels, Oil World said.

While discretionary blending of vegetable oils into biofuels in the past two years has kept a floor under prices, the markets have become increasingly tied to energy, the Hamburg-based researcher said in a report. West Texas Intermediate crude fell yesterday to the lowest since July 2009 amid a supply glut. Vegetable oils from rapeseed and soybeans can be blended with fossil fuels for energy used in transportation and heating.

“Vegetable oils will now have to adjust to energy prices on a correspondingly lower level,” Oil World said. “The market will need to fine tune price differentials cautiously so that the demand for energy is being trimmed only partly.”

Soybean oil futures tumbled 4.4 percent since Nov. 26 on the Chicago Board of Trade. OPEC said last week it will maintain its production target of 30 million barrels of oil a day in spite of calls from some members to cut output to stem the rout in prices. Crude oil plunged 14 percent last week in New York.

01/12/2014

Venezuelan bonds fell to a five-year low as traders projected higher chances of default after OPEC’s decision to maintain oil output pushed crude lower.
Investors are pulling money out of Venezuela as the rout in oil raises the risk that the nation won’t be able to pay for its imports. West Texas Intermediate climbed after earlier today dropping to below $65 a barrel, the lowest level since July 2009. Crude tumbled last week on speculation prices have further to drop before the Organization of Petroleum Exporting Countries’s decision to maintain output slows U.S. shale supply.

“Every $1 drop in oil is around $770 million of lost revenue, so their ability to pay has taken a big hit,” Kevin Daly, a money manager at Aberdeen Asset Management, said in an e-mailed response to questions. “The market is already pricing in a high probability of default next year.”

28/11/2014

Commodities retreated to a five-year low as crude oil tumbled after OPEC refrained from cutting output to ease a global glut. Gold and copper also declined.

The Bloomberg Commodity Index (BCOM) of 22 raw materials dropped as much as 2.3 percent to 114.8341, the lowest since July 2009, before trading at 115.0765 at 12:40 p.m. in London. The index resumed trading today after the U.S. Thanksgiving holiday yesterday, when Brent crude plunged 6.7 percent after the Organization of Petroleum Exporting Countries took no action at a meeting in Vienna to relieve the supply excess.

Commodities are poised for a fourth straight year of losses as West Texas Intermediate oil futures are set for the biggest slump since the 2008 financial crisis. China, the world’s largest consumer of metals to fuels, is headed for the slowest yearly expansion pace since 1990. The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, is set for the highest close since March 2009 today.

“Precious metals declined as lower oil prices prompted concerns about deflation,” Australia & New Zealand Banking Group Ltd. said in a report today. Industrial metals have been hurt by the drop in the oil price as it may help reduce production costs, according to the bank.

27/11/2014

Everybody has to make some sacrifice,” Foreign Minister Rafael Ramirez told reporters in Vienna today at the start of OPEC’s meeting. He said the market was oversupplied by about 2 million barrels a day, equal to or more than the output last month of each of OPEC’s six smallest members.

Crude oil slumped into a bear market this year as global demand growth weakened and U.S. production expanded to a three-decade high, bolstered by fracking.

While Ramirez didn’t specify the size of the cut, he said it should be similar to the reduction the group made at Oran, Algeria, in 2008
“Venezuela wants to see production cuts and a higher price,” Bjarne Schieldrop, chief commodities analyst at Oslo-based SEB, wrote in an e-mail. “With Saudi holding the view of no cuts, and the same seems to be the case for the GCC, it is hard to see that there will be any cuts today,” he said, referring to Gulf Cooperation Council members Kuwait, Qatar and the United Arab Emirates.

26/11/2014

Nations supplying a third of the world’s oil failed to pledge output cuts after meeting in Vienna today. Russia can withstand prices even lower than they are now, the country’s biggest producer said.

Officials from Venezuela, Saudi Arabia, Mexico and Russia said only that they would monitor prices. Crude futures sank to a four-year low in New York. OPEC meets in two days, with analysts split evenly over whether the group will lower output in response to the crash in prices.

Crude fell into a bear market this year amid the highest U.S. production in 31 years and speculation that Saudi Arabia and other members of the Organization of Petroleum Exporting Countries won’t do enough to curb a surplus. Prices are below what nine of group’s 12 members need to balance their national budgets.

25/11/2014

Brent crude advanced for the third time in four days amid speculation that OPEC will reduce its production ceiling when it meets later this week. West Texas Intermediate also rose in New York.

Futures advanced as much as 0.8 percent in London, erasing an earlier loss. The Organization of Petroleum Exporting Countries may try to agree to cut its output limit to 29 million barrels a day, Standard Chartered Plc said today in a report. The group’s members may at least renew their commitment to bring supply closer to the current ceiling of 30 million barrels a day, according to Citigroup Inc.

Oil has collapsed into a bear market amid the fastest rate of U.S. production in more than three decades as demand growth slows. Venezuelan officials plan to meet with counterparts from Saudi Arabia, Russia and Mexico later today, according to an official from the South American nation who asked not to be identified in line with policy.

“We might get a cut, the big question is how much,”.“Oil prices are still below last week’s highs so I think we’re just getting further positions adjustment ahead of Thursday’s meeting.”

24/11/2014

Oil prices fell Monday on expectations that the Organization of the Petroleum Exporting Countries would not cut production enough to reduce a global glut of oil.

Light, sweet oil for January delivery slipped 61 cents, or 0.8%, to $75.90 a barrel on the New York Mercantile Exchange.

Oil prices have plunged in recent months on concerns about ample global supplies, and traders have closely watched OPEC ahead of its Nov. 27 meeting. The cartel, which controls about one-third of global oil output, is currently producing above its collective production quota of 30 million barrels a day. Analysts say the group would have to cut production by at least a million barrels a day to bring global supplies closer in line with demand.

However, OPEC members, including top exporter Saudi Arabia, have signaled that the group is unlikely to make a large, coordinated cut.
“No action would be met with a yawn, but [would] ultimately keep downward pressure on oil prices,”

21/11/2014

Brent and West Texas Intermediate crudes headed for their first weekly gains since September after China, the world’s second-largest oil consumer, cut interest rates to bolster its economy.

Futures gained as much as 2.9 percent in London. The People’s Bank of China cut lending and deposit rates for the first time since 2012, according to a statement on its website. Saudi Arabia and Russia, the two largest crude exporters, agreed to cooperate on oil markets. Half of the 20 analysts surveyed by Bloomberg News predict the Organization of Petroleum Exporting Countries will reduce output, while the rest expect no change when the group meets next week.

“If the expectation that we may get better demand from China follows through, that will definitely support Brent,” Amrita Sen, chief analyst at London-based consultant Energy Aspects Ltd., said by phone. A 1 percent increase in the country’s gross domestic product boosts its oil demand by about 0.7 percent,

19/11/2014

West Texas Intermediate crude fell after a government report showed that U.S. inventories unexpectedly increased last week.

Stockpiles rose 2.61 million barrels to 381.1 million in the week ended Nov. 14, the Energy Information Administration said. A 1.5 million barrel supply decline was projected, according to the median of responses in a Bloomberg survey. Brent oil advanced in London amid speculation that OPEC may reduce output at a meeting next week to bolster prices.

WTI for December delivery, which expires tomorrow, fell 50 cents to $74.11 a barrel at 10:38 a.m. on the New York Mercantile Exchange.
Brent for January settlement was little changed at $78.47 a barrel on the London-based ICE Futures Europe exchange. Prices have decreased 29 percent this year.

U.S. crude output fell 59,000 barrels a day to 9 million in the latest week, according to the EIA, the Energy Department’s statistical arm.

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