Brent crude could slump toward a level it hasn’t seen since December 2018 prompting deeper output cuts from OPEC and its allies, according to one of world’s biggest oil traders.
Oil traded near a two-week low as an increase in U.S. fuel stockpiles spurred concern that demand is waning in the world’s biggest crude consumer.
Oil closed down in New York for the first time in three days amid rising concerns about the likelihood of a global economic contraction and mounting supplies.
Brent crude traded around $70 a barrel as a two-day rebound petered out on signs the U.S. and China are still far from reaching a trade deal, while supply risks from the Persian Gulf to Venezuela kept investors wary.
Oil traded near the lowest level in a month as concerns that economic turmoil could slow global demand outweighed expectations for a seasonal decline in U.S. crude stockpiles.
Oil in London is set for the longest weekly run of gains in seven years on growing concerns over supply disruptions from the Middle East to Venezuela and on signs a global glut has dwindled.
Oil’s rally is unraveling on fears over a rise in U.S. production and as a deepening slump in equities undermined market support.
Oil giant Royal Dutch Shell is expected to reveal that profits more than doubled last year as it benefited from the surging cost of crude.
The FTSE 100 drops 37 points (0.5%) during lunch with a dip in oil and mining stocks being blamed for its lowest level since October.
A combination of higher crude prices and cost cutting measures should add up to positive third quarter for Shell, an analyst has said.
UBS Wealth management executive director, commodities and FX, Wayne Gordon has weighed in on the oil price upturn after Brent topped $60 for the first time in two years on Friday.
London’s premier index rebounded to within a whisker of a new mid-session record after choppy trading for the pound handed a boost to blue-chip stocks.
The FTSE 100 Index has closed above 7,500 for the first time as higher-than-forecast inflation data and confidence over Britain’s prospects under a Tory government drove stocks higher.
The Brent crude price benchmark for millions of barrels of physical crude sales each day is poised for its biggest shakeup in a decade with a new grade added to the mix from January next year.
Oil declined for a second day as OPEC’s internal disagreements undermined efforts among major suppliers to reach an agreement in Vienna on trimming output to support prices.
World financial markets have been rocked by the UK’s vote to leave the European Union, with stock markets and oil prices crashing and the pound hitting its lowest level in three decades.
OPEC said its oil revenue plunged by $438billion to a 10-year low last year, as an increase in export volumes failed to compensate for the collapse in prices.
London’s premier index was flat as investors paused for breath ahead of Thursday’s vote on Britain’s membership of the European Union.
BP can keep spending at a reduced rate of about $17 billion for another three years without affecting growth, chief executive Bob Dudley said.
Sterling and the London market swung back into positive territory on Friday morning amid easing concerns over a British exit from the European Union.
Oil pared the biggest weekly decline in more than two months as the dollar extended its retreat, increasing the appeal of commodities priced in the U.S. currency.
Crude is stabilizing around $50 a barrel and may only average $55 next year as the global oversupply continues to cap prices, according to two of the world’s top oil executives.
The oil and gas industry will cut $1 trillion from planned spending on exploration and development because of the slump in prices, leading to slower growth in production, according to consultant Wood Mackenzie.
The global oil market will be almost balanced next year as demand continues to rise faster than production, while the current oversupply is much smaller than previously thought, the International Energy Agency said.
Oil declined for a fourth day on concern recent gains were unsustainable, while shuttered Canadian operations started to reopen.
