Oil / Commodities - Oil closed below $90 a barrel for a second ay as the possibility that a nuclear deal with Iran could bring relief to a tight market overshadowed a big drop in U.S. crude stockpiles. Futures in NY ended Wednesday’s session just 0.3% higher, paring earlier gains, as a flurry of diplomacy in Vienna has spurred renewed optimism of a breakthrough in the nuclear talks. A government report showed U.S. crude inventories fell to the lowest level since 2018 amid record demand, causing prices to jump shortly by 1.4% during Wednesday’s day session – U.S. crude stockpiles fell 4.76 million barrels according to the EIA report, while the four-week average for U.S. oil-product supplied, a gauge for demand, rose last week to a record high. With long-awaited supply relief expected around the corner, market sentiments are beginning to cool despite rising demand. The possibility of more Iranian oil comes as global supply has increasingly been unable to keep up with surging demand from economies emerging from the pandemic. OPEC+ is also struggling to meet its pledged output increase due to outages in Libya, while traders look to see how much the U.S. shale patch will lift output this year. meanwhile, France’s President Macron suggested the political tension over Ukraine could ease.
Newsletter - February 10, 2022
Newsletter - February 10, 2022
Newsletter - February 10, 2022
Oil / Commodities - Oil closed below $90 a barrel for a second ay as the possibility that a nuclear deal with Iran could bring relief to a tight market overshadowed a big drop in U.S. crude stockpiles. Futures in NY ended Wednesday’s session just 0.3% higher, paring earlier gains, as a flurry of diplomacy in Vienna has spurred renewed optimism of a breakthrough in the nuclear talks. A government report showed U.S. crude inventories fell to the lowest level since 2018 amid record demand, causing prices to jump shortly by 1.4% during Wednesday’s day session – U.S. crude stockpiles fell 4.76 million barrels according to the EIA report, while the four-week average for U.S. oil-product supplied, a gauge for demand, rose last week to a record high. With long-awaited supply relief expected around the corner, market sentiments are beginning to cool despite rising demand. The possibility of more Iranian oil comes as global supply has increasingly been unable to keep up with surging demand from economies emerging from the pandemic. OPEC+ is also struggling to meet its pledged output increase due to outages in Libya, while traders look to see how much the U.S. shale patch will lift output this year. meanwhile, France’s President Macron suggested the political tension over Ukraine could ease.