SeaPRwire

Oil rises 3% with landmark global release from reserves smaller than expected

elean
4 minutes

NEW YORK (BLOOMBERG, REUTERS) - Oil prices climbed on Tuesday (Nov 23) as a landmark coordinated move by the United States and other consumer nations to tap their strategic oil reserves was less severe than markets expected. While the headline size of the US release is large, a significant chunk of the crude will be borrowed - to be returned later - leaving traders expecting tighter balances down the line. The US is making the move in concert with China, Japan, India, South Korea and the UK. Brent futures rose US$2.61, or 3.3 per cent, to settle at US$82.31, while US West Texas Intermediate (WTI) crude rose US$1.75, or 2.3 per cent, to settle at US$78.50. That was the biggest daily percentage gain for Brent since August and its highest close since Nov 16. It also pushed Brent's premium over WTI to its highest since mid-October. Oil prices have hit multiyear highs in recent months amid a global energy crisis that's added hundreds of thousands of barrels a day to consumption, while the world economy is grappling with surging inflation. The decision puts major consumers on a collision course with Opec+, which views such a release as unjustified and may reconsider plans to add more sup...

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Oil jumps US$1 per barrel as Texas freeze prompts US output drop

elean
3 minutes

NEW YORK (REUTERS) - Oil prices gained more than US$1 a barrel on Wednesday (Feb 17), as frigid Texas temperatures shut production across the largest US crude producing state, with the unusually cold weather expected to hamper output for days or even weeks. Brent crude settled at US$64.34 a barrel, gaining 99 cents, or 1.6 per cent, while US West Texas Intermediate (WTI) crude settled at US$61.14 a barrel, rising US$1.09, or 1.8 per cent. Both benchmarks were at their highest levels since January last year. Oil has been supported by Opec+ supply curbs, Saudi Arabia's additional cuts and hopes of a demand rebound due to Covid-19 vaccinations. Historic cold weather since the weekend in Texas, which supplies the bulk of US crude and is part of the main US refining hub, has propelled prices even higher. "This has just sent us to the next level," said Bob Yawger, director of energy futures at Mizuho in New York. "Crude oil WTI will probably max out somewhere pretty close to US$65.65," Mr Yawger said. The US deep freeze has shut an estimated 1 million barrels a day of production and is expected to disrupt production for several days if not weeks, industry experts said, as wellheads have ...