Oil price recovers $50 level on venezuela unrest _ the week uk cnn futures markets
Nevertheless, Brent crude returned to a shade above $50 as prices rebounded last night and this morning, in part because of building unrest in Opec member state Venezuela, which has seen “escalating protests… against the rule of President Nicolas Maduro”, says Reuters. Solving problems by finding equivalent ratios These have erupted into violence and there are fears the troubles could ultimately affect the country’s oil output.
Headline stocks dropped by 553,000 barrels, while stored refined products such as petrol and diesel fell by a slightly greater amount, says the Energy Information Administration.
ANZ Bank said the drop in US oil reserves was misleading as it centres on west coast storage hubs and “inventories actually increased along the East and Gulf Coasts”, reports Fox News.
“Many traders in the market actually laugh at the thought that Opec would ever reach
a deal,” Michael McCarthy, the chief markets strategist at CMC Markets in Sydney, told MarketWatch. “And if even a deal is made, people don’t think the quotas will be observed.” Oil price slumps to $50 on stocks build and Opec deal doubts
O il prices have dropped to around $50 for the first time in three weeks as fears grow that the two-year supply glut that has seen trading fall from more than $100 a barrel is far from being over.
International benchmark Brent crude fell around 2.3 per cent to $50.30 a barrel in New York trading yesterday evening. Gender roles in society articles It touched the $50 mark overnight in Asia before recovering slightly to around $50.20 in London this morning.
Its US benchmark, West Texas Intermediate, was this morning down to $49.35 a barrel, around 2.4 per cent from yesterday’s New York opening price.
The slump, the third in three sessions, came after a report from the American Petroleum Association showed a 4.8 million build in US raw crude reserves last week, says Oilprice.com.
That would almost fully erase the 5.2 million draw from the preceding week and came alongside an increase in refined products, with petrol stocks up 1.7 million barrels.
These figures feed into wider concerns on supply. Marketing future trends Analyst doubt that the tentative supply deal struck by the Opec cartel, in which they would cut output by up to one million barrels from next month, will be successful.
Specific country cuts among the group’s 14 members need to be agreed at a formal meeting in Vienna next month, but Reuters says Iran, Nigeria, Libya, Venezuela and Indonesia could all be exempted.
At the same time, Iraq has signalled it will refuse to cut exports, while non-Opec giant Russia has refused to say whether it will honour any deal.
“The market is definitely in need of some kind of soothing words once again, but it’s a ‘cry wolf’ thing. Convert rmb to us dollars The talking has to get louder and louder to attract any attention because scepticism is on the rise and I think rightly so,” Ole Hansen, the senior manager at Saxo Bank, said.