Oil price wti steady as brent rises on hopes of saudi output cut the week uk dollar to rupee exchange rate today


The price of oil was flat in New York today, as Hurricane Irma approached the US, but rose in London, where news of a production cut led to optimism.

At 2.39pm today, West Texas Intermediate (WTI) was fetching $49.04 a barrel in the US, down five cents on its previous closing price html code reader. In London, Brent Crude was up 25 cents at $54.74.

Irma will be the second major hurricane to hit the US coast in a fortnight when it makes landfall on Florida some time between now and Sunday. Hurricane Harvey, which struck further west in Texas, shut down one quarter of US oil refining capacity.

With fewer refineries to buy oil – and with the city of Houston gridlocked and not buying gasoline – the price of crude fell. As refineries have come back on line after the stoppage the price has recovered somewhat.

Brent enjoyed a rise today thanks to the news that Saudi Arabis is to cut oil supply allocations to worldwide customers by 350,000 barrels a day, says the news agency.

The collapse in the price of oil since highs three years ago has been caused by a global oversupply – with vastly too much oil on the market, the price has plummeted.

When Opec nations and other major producers announced their most concerted efforts yet to limit production last year, the price immediately rose usd brl exchange rate. But the promised reduction was not as big as hoped – and oil has hovered around the $40 to $50 mark.

US production also increased earlier this year, stopping the rebalancing that some analysts had hoped for this year convert aed to usd. Oil price rises as US refineries restart after Hurricane Harvey

At 2pm UK time today, West Texas Intermediate (WTI) had risen 73 cents on its previous closing price to $52.77 per barrel. In London, Brent Crude was up 43 cents at $48.02 a barrel, with pricing driven by hints that major producers might reduce output.

The price of refined gasoline also fell in the US as the refineries re-opened today, says Reuters. Gasoline futures were down four per cent on their last closing price at $1.69 at 2pm UK time, down from $2.17.

The tropical storm which struck the coast of Texas on 25 August took out almost one quarter of all US refining capacity, says the news agency.

Eight refineries, with the capacity to refine 2.1 million barrels per day, remained shut yesterday afternoon, according to the US Department of Energy.

It might seem logical that the price of oil would increase when production was restricted by storms 1 usd to bgn. In fact it fell – partly because refineries were no longer buying and partly because America’s fourth-largest city, Houston, was brought to a standstill and stopped buying gasoline euro to pound exchange rate today. Hints of further cuts

The price of oil in London was boosted today by hopes that Opec nations and other major oil producers might extend an agreement to cut the amount of crude oil they produce.

Oil’s long price slump from highs three years ago has been caused by a huge global oversupply of the commodity: put simply, with more oil on the market, the price is lower.

Last year, Opec nations and other producers including Russia announced their most concerted efforts yet to limit production and raise the price. But factors including natural disasters and political events have conspired to keep oil around the $40 to $50 mark.

Now, says Reuters, Russia and Saudi Arabia have discussed extending the production cut, giving traders some hope for a price rally this year. Oil price falls despite Hurricane Harvey floods

As UK markets opened, West Texas Intermediate (WTI) was down 16 cents on its previous close, at $46.28 per barrel funny quotes about friendship. In London, Brent Crude fell by 21 cents in early trading but recovered to $51.99 per barrel by 8.36am, one cent down on yesterday’s closing price.

Storm Harvey, which has flooded an area of Harris County half the size of Greater London, is now moving on to Louisiana 100 eur usd. The US National Hurricane Centre warned: "Catastrophic and life-threatening flooding continues in southeastern Texas and portions of southwestern Louisiana."

The storm, and the hurricane which preceded it, have forced US oil producers to shut down their rigs, although they are now beginning to resume production after the bad weather moved onshore.

That might have increased the price of oil – less oil produced means higher prices – but the opposite has happened as the bad weather is decreasing the current demand for oil by a huge margin.

On Monday, the commodity suffered a three per cent drop in value, its worst one-day fall in almost two months – and it dropped again yesterday. There are two reasons for this slump, says CNN.

First, ten oil refineries along the coast of the Gulf of Mexico had to be shut down completely as the storm approached – and at least one has been left damaged. According to Reuters, the largest refinery in the US – at Port Arthur in Texas – shut down last night.

The second reason for the slump is that America’s fourth-largest city is largely underwater, meaning demand for petroleum – and even airline fuel – is significantly reduced binary translation. According to FGE Energy, quoted by CNN, Houston’s current situation reduces demand for crude oil in the US by 150,000 barrels a day.

Goldman Sachs estimates the storm’s eventual impact on demand for oil will be greater than its impact on production, warns CNN. Oil price gains ground as US reserves drop

The oil price rallied from three-week lows last night and earlier today after a report that boosted claims that the market is moving towards a balance between supply and demand.

Brent crude, the international oil price benchmark, was up 0.7 per cent this afternoon at $51.15 a barrel usd to inr converter. It was languishing at around $50.30 a barrel yesterday.

The trigger for the rebound is a report from the private sector group the American Petroleum Institute (API), which claims that crude oil reserves in the US fell by 9.2 million barrels last week, says MarketWatch.

That’s more than double the projected drop anticipated in the official weekly report that will be published by the Energy Information Administration later this evening.

Analysts are currently projecting the official dataset will show a drop of around 3.6 million barrels. OM Financial’s Stuart Ive says an overshoot of the scale of the API release could send the US oil price back above $50 a barrel.

US inventory data has lost a degree of its value in recent months as traders express concern about data that show near-record reserve levels elsewhere and reports that global supplies are rising ahead of demand.

Traders are especially anxious about the rising output from US shale oil fields and excess supply from the Opec cartel that’s ahead of its pledged production cap.

The oil price fell by more than 2.5 per cent yesterday and was trading lower again in London this afternoon as concerns about China, the world’s second largest oil user, knocked trader sentiment on supply.

Brent crude, the international oil price benchmark, was trading at a two-month high near $54 a barrel earlier this month. But overnight it dropped by 2.6 per cent malaysian ringgit to usd history. At the time of writing, it was down a further 0.9 per cent to $50.30 a barrel.

Its US counterpart West Texas Intermediate suffered a drop in excess of 2.5 per cent overnight and was down 0.7 per cent today, to $47.25 a barrel.

Part of the reason for the falls was the sizeable 0.4 per cent rebound in the dollar index, which measures the US currency against a basket of six peers, as tension between Donald Trump and North Korea’s Kim Jong-un seemed to ease.

But another trigger was seen to be data from China that shows a "steeper than expected" drop in oil refinery runs in July, which in turn suggests a "glut of refined fuel products" in the country that could "weaken Chinese demand for oil", says Reuters.

Elsewhere US data issued yesterday points to a rise in shale oil production starting in September. This will help push the country towards an estimated ten million barrels per day of output by next year.

On the supply front, Reuters reports that the Nigerian subsidiary of Royal Dutch Shell has announced it has lifted a force majeure on some exports from the country.

Despite falling US reserves in recent weeks, all of this gives a sense that the global market remains over-supplied and will remain over-stocked following years of excess production.

The Chinese data is especially important. A report from the Opec cartel last week identified rising demand as the one bright point in the market after it admitted its own output was 400,000 barrels above its pledged cap.