Brent Crude Oil Hits New 2017 High

Sep 27, 2017, 00:35
Brent Crude Oil Hits New 2017 High

Much of this production will be exported as US refiners along the Gulf Coast aren't capable of processing more light crude, having been set up to deal more with heavier and sour grades from offshore Gulf of Mexico platforms and imports from the Middle East.

The spread "could stretch a bit further" but USA refinery restarts and growing US exports should eventually lift WTI prices and narrow the spread, Ritterbusch said.

Iran expects to maintain overall crude and condensate exports at around 2.6 million bpd for the rest of 2017 while the UAE's Energy Minister Suhail al-Mazroui said its compliance with supply cuts was 100%.

He also said oil in floating storage was falling and cited a shift of benchmark Brent prices into backwardation, a market condition in which it is more attractive to sell oil immediately rather than storing it for later sale, indicating tighter supplies.

West Texas Intermediate (WTI) rose 3.1% to $52.2 a barrel, its highest level since April, and 0.11% to $52.3 a barrel in early morning trading. United States oil inventories are back within the five-year range and are at their lowest since January 2016.

Platts is seeking feedback from the market by October 13. "Now that prices are higher, the US producer should continue to press production higher".

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Argus publishes prices for WTI Houston, WTI Midland, Mars and LLS in Asia.

Brent and WTI explode higher as global tensions uncap Brent's long-term resistance. Taiwan (中油) will increase domestic gasoline and diesel prices on Monday by NT$0.3 (US$0.009) and NT$0.4 per liter respectively, pushing prices at the pump to a near seven-month high.

OPEC and other oil exporters declined on Friday to extend their agreement to limit production in a bid to drain a global glut that has weighed on prices for three years.

"In spite of increases from US shale production, that kind of increase is enough to sop up" excess oil supply, Lipow said. The jury is out, and speculation's rising about what OPEC would or should do after the production cut deal expires after its current deadline in March 2018. But the storm had a much smaller and shorter impact on crude oil production, which fell by 750,000 barrels a day the week the storm made landfall but recovered most of that over the two following weeks.

While in conversation with an energy trader, a polymerupdate team member was informed, "crude oil prices gained on the back of improved global crude oil demand".

Recep Tayyip Erdogan, the president of Turkey, threatened to cut off the pipeline that carries crude from northern Iraq to foreign markets as part of his opposition to an independence referendum in Kurdistan. Also Janet Yellen will be speaking in Cleveland, Ohio and the API Energy Stocks at 3:30 P.M. could be a game changer to the overbought technical reading.