Oil near two-month high as producers set to meet again
Oil prices were near two-month highs on Monday, putting July on track to become the strongest month so far this year, as news of a producers' meeting next week added to bullish sentiment driven by the threat of U.S. sanctions against OPEC-member Venezuela, APA reports quoting Reuters.
Benchmark Brent crude LCOc1 traded down 19 cents or .36 percent at $52.33 a barrel at 12:00 p.m. (1600 GMT). Brent earlier hit $52.92 a barrel, its highest since May 25.
U.S. light crude oil CLc1 traded down 40 cents or .8 percent at $49.31 a barrel.
U.S. crude had jumped above $50 a barrel for the first time in two months early in the session, after U.S. officials said sanctions on Venezuela could be announced as early as Monday.
The United States is considering imposing sanctions on the country's oil sector in response to Sunday's election of a constitutional super-body, which Washington has denounced as a "sham" vote.
Even though the White House has said that "all options are on the table," the most likely action, banning Venezuela from importing U.S. oil, could come as early as Monday.
A Reuters survey on Monday indicated output from OPEC members rose, mostly from adjustments upward to Iraqi and Saudi output.
"The upward revision by 200,000 in June for OPEC-13 is quite shocking," said Commerzbank senior oil analyst Carsten Fritsch, "Compliance already slipped sharply in June to 77% (initially reported at 92%)."
However some OPEC and non-OPEC members will meet on Aug. 7-8 in Abu Dhabi to assess how the group can increase compliance with production cuts that began on Jan. 1.
Hedge funds and money managers have raised bullish bets on U.S. crude oil to their highest in three months, U.S. data showed.
In Europe, a production outage at Shell's 404,000 barrel-per-day Pernis refinery in the Netherlands following a fire sent benchmark European diesel margins, which reflect the profit made from refining crude oil into the road fuel, to their highest since November 2015 at $14.60 a barrel.
U.S. production has hampered efforts to rebalance the market but signs the market is tightening have emerged after heavy inventory falls and slower new oil rig additions last week.
U.S. crude inventories have fallen by 10 percent from their March peaks to 483.4 million barrels. C-STK-T-EIA
U.S. output dipped by 0.2 percent to 9.41 million barrels per day (bpd) in the week to July 21, after rising by more than 10 percent since mid-2016. C-OUT-T-EIA
Drilling for new U.S. production is also slowing, with just 10 rigs added in July, the fewest since May 2016.
Related news releases
- 20.10.2017EBRD approves loan for TANAP
- 20.10.2017Azerbaijan gets 43% decline in export of oil products
- 20.10.2017Azerbaijan gets rise in revenues from natural gas export
- 20.10.2017Azerbaijan gets 20% decline in revenues from crude oil export
- 20.10.2017Azerbaijan triples energy export
- 20.10.2017Minister: Output cut justifies itself, oil market found balance
- 19.10.2017Extractive Industries Transparency Commission held meeting
- 17.10.2017TAP to invest 800 million euros in Albania
- 17.10.2017Italy’s Edison to purchase Azerbaijani gas
- 16.10.2017TAP pipe deliveries complete
- 16.10.2017Azerbaijan gets 2.5% decline in heating power production
- 16.10.2017SOCAR transfers AZN 1B to state budget
- 14.10.2017Oil rallies nearly 2 percent on China import boost, U.S.-Iran tensions
- 13.10.2017Executive body on ensuring transparency in extractive industry changed in Azerbaijan
- 13.10.2017Azerbaijan increases oil transportation via main pipelines
- 13.10.2017Azerbaijan gets 8% decline in natural gas production
- 13.10.2017Azerbaijan increases gasoline production 5%, reduces diesel production 21%
- 13.10.2017President: Azerbaijani gas will play a major role in solution of issues of Bulgaria's energy security
- 12.10.2017Parviz Shahbazov appointed Azerbaijan’s new energy minister
- 12.10.2017Azerbaijan sees 5% decline in gas production
- 12.10.2017Azerbaijan sees 8% decline in oil output
- 12.10.2017SOCAR to export 1.5 million tonnes of oil via Baku-Novorossiysk pipeline next year
- 12.10.2017Expenditures of STAR Refinery in Turkey increase
- 12.10.2017Azerbaijan may export diesel to Iran
- 12.10.2017Turkmenistan to resume oil transportation via BTC, Kazakhstan holding negotiations
- 12.10.2017BP announces its investments in ACG and Shahdeniz
- 12.10.2017BP Regional President names factors to turn Azerbaijan into a regional energy hub
- 12.10.2017SOCAR Trading to supply liquid gas to Malta
- 12.10.2017SOCAR: ACG currently has more than 550 million tonnes of oil
- 12.10.2017Baku hosting international petroleum summit
- 10.10.2017Board of Directors highly evaluates Nobel Oil Services’ performance
- 09.10.2017Ancient tombs unearthed during TANAP construction
- 06.10.2017Minister: TANAP to be completed earlier than planned
- 06.10.2017Gazprom agrees to open office in Azerbaijan
- 05.10.2017President gives SOCAR instruction to provide gasifying of Lahij settlement
- 05.10.2017Azerbaijan reduces gas production nearly 17%
- 05.10.2017SOCAR reduces gas production nearly 6%
- 05.10.2017Azerbaijan reduces oil production by 9%
- 05.10.2017SOCAR reduces oil production by 1.5%
- 05.10.2017Georgia increases fuel import from Azerbaijan
- 01.08.2017Azerbaijan sells energy worth $10M to Turkey this year
- 01.08.2017SOCAR exports 12 million tonnes of oil through three ports this year
- 01.08.2017SOCAR announces sale price of crude oil for last month
- 28.07.2017Georgian official: Baku-Supsa pipeline to operate uninterruptedly
- 27.07.2017SOCAR imports 16,000 tonnes of aircraft fuel from Saudi Arabia
- 27.07.2017Oil jumps to near eight-week high after big draw in U.S. crude stocks