Commodities and Futures News

Oil prices extend recovery rally to cap volatile week

2024.09.12 21:43

By Shariq Khan

(Reuters) – Oil prices rose on Friday, extending a rally sparked by output disruptions in the U.S. Gulf of Mexico, where Hurricane Francine forced producers to evacuate platforms before it hit the coast of Louisiana.

futures rose by 34 cents, or 0.5%, to $72.31 per barrel by 0016 GMT. U.S. West Texas Intermediate crude futures rose by 38 cents, or 0.6%, to $69.35 a barrel.

If those gains hold, both benchmarks will break a streak of weekly declines, despite a rough start that saw Brent crude dip below $70 a barrel on Tuesday for the first time since late 2021. At current levels, Brent is set for a weekly increase of about 1.7%, and WTI is set to gain over 2%.

Oil producers assessed damages and conducted safety checks on Thursday as they prepared to resume operations in the U.S. Gulf of Mexico, as estimates emerged of the loss of supply from Francine.

UBS analysts forecast output in the region in September will fall by 50,000 barrels-per-day (bpd) month-over-month, while FGE analysts estimated a 60,000 bpd drop to 1.69 million bpd.

Official data showed nearly 42% of the region’s oil output was shut-in as of Thursday.

The supply shock helped oil prices recover from a sharp selloff earlier in the week, with demand concerns dragging benchmarks to multi-year lows.

Both the Organization of Petroleum Exporting Countries and the International Energy Agency this week lowered their demand growth forecasts, citing economic struggles in China, the world’s largest oil importer. A shift towards lower-carbon fuels is also weighing on China’s oil demand, speakers at the APPEC conference said this week.

China’s imports averaged 3.1% lower this year from January through August compared to the same period last year, customs data showed on Tuesday.

“Flagging domestic oil demand in China has become a hot topic and was further underlined by disappointing August trade data,” FGE analysts said in a note to clients.

© Reuters. FILE PHOTO: An oil pumpjack is pictured in a farmer’s field near Kindersley, Saskatchewan, Canada September 5, 2024.  REUTERS/Todd Korol/File Photo

Demand concerns have grown in the United States as well. U.S. gasoline and distillate futures traded at multi-year lows this week, as analysts highlighted weaker-than-expected demand in the top petroleum consuming country.

U.S. oil and fuel stocks rose last week as demand declined sharply, data from the U.S. Energy Information Administration showed on Wednesday.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 63,831.10 3.00%
ethereum
Ethereum (ETH) $ 2,505.90 3.64%
tether
Tether (USDT) $ 0.999585 0.01%
bnb
BNB (BNB) $ 576.03 1.94%
solana
Solana (SOL) $ 150.17 4.81%
usd-coin
USDC (USDC) $ 0.999651 0.01%
xrp
XRP (XRP) $ 0.542745 2.09%
staked-ether
Lido Staked Ether (STETH) $ 2,505.64 3.66%
dogecoin
Dogecoin (DOGE) $ 0.114907 4.77%
the-open-network
Toncoin (TON) $ 5.37 2.93%
tron
TRON (TRX) $ 0.154013 0.31%
cardano
Cardano (ADA) $ 0.36701 4.60%
avalanche-2
Avalanche (AVAX) $ 27.41 6.25%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 6.62%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,958.21 3.66%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 63,737.08 2.88%
weth
WETH (WETH) $ 2,506.57 3.70%
chainlink
Chainlink (LINK) $ 11.58 2.60%
bitcoin-cash
Bitcoin Cash (BCH) $ 330.56 2.31%
polkadot
Polkadot (DOT) $ 4.26 2.65%
dai
Dai (DAI) $ 0.999493 0.01%
near
NEAR Protocol (NEAR) $ 5.21 8.86%
uniswap
Uniswap (UNI) $ 7.38 7.85%
leo-token
LEO Token (LEO) $ 6.02 0.83%
sui
Sui (SUI) $ 1.91 9.17%
litecoin
Litecoin (LTC) $ 67.68 1.64%
bittensor
Bittensor (TAO) $ 650.15 15.16%
aptos
Aptos (APT) $ 8.94 1.67%
pepe
Pepe (PEPE) $ 0.000011 12.23%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,630.40 3.63%
internet-computer
Internet Computer (ICP) $ 8.62 4.82%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.54 8.97%
kaspa
Kaspa (KAS) $ 0.146271 0.89%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.388841 2.12%
ethereum-classic
Ethereum Classic (ETC) $ 19.06 2.64%
blockstack
Stacks (STX) $ 1.87 1.95%
stellar
Stellar (XLM) $ 0.093154 0.95%
monero
Monero (XMR) $ 147.73 4.49%
dogwifcoin
dogwifhat (WIF) $ 2.67 17.12%
first-digital-usd
First Digital USD (FDUSD) $ 0.998901 0.04%
immutable-x
Immutable (IMX) $ 1.57 3.78%
okb
OKB (OKB) $ 41.85 0.76%
ethena-usde
Ethena USDe (USDE) $ 0.998239 0.10%
aave
Aave (AAVE) $ 154.05 3.73%
filecoin
Filecoin (FIL) $ 3.80 4.67%
render-token
Render (RENDER) $ 5.65 3.58%
crypto-com-chain
Cronos (CRO) $ 0.081268 1.34%
optimism
Optimism (OP) $ 1.72 7.82%
injective-protocol
Injective (INJ) $ 21.36 7.09%
hedera-hashgraph
Hedera (HBAR) $ 0.05514 4.05%