• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 10 hours Satellite Moons to Replace Streetlamps?!
  • 3 hours U.S. Shale Oil Debt: Deep the Denial
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 1 day EU to Splash Billions on Battery Factories
  • 7 hours The Dirt on Clean Electric Cars
  • 4 hours Owning stocks long-term low risk?
  • 2 days The Balkans Are Coming Apart at the Seams Again
  • 11 hours Can “Renewables” Dent the World’s need for Electricity?
  • 2 days Uber IPO Proposals Value Company at $120 Billion
  • 2 days 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 22 hours The end of "King Coal" in the Wales
How The Trade War Could Benefit Australian Gas

How The Trade War Could Benefit Australian Gas

As the U.S.-China tit-for-tat tariff…

Forget Lithium, This Is The Next Big Thing In Energy

Forget Lithium, This Is The Next Big Thing In Energy

There’s a virtually unknown commodity…

Oil Price Slide Comes To A Halt Amid Jobs Data, Ukraine Tension

Prices for WTI and Brent oil reversed declines as positive employment numbers and geopolitical tension put upward pressure on prices. For June delivery, WTI was up 10 cents per barrel and Brent jumped 60 cents on May 2. The two benchmarks regained some lost ground after hitting a five-week low earlier this week.

The U.S. Labor Department reported that employers added 288,000 jobs in the month of April, suggesting that the U.S. economy is picking up steam. The unemployment rate also dropped to 6.3 percent, the lowest it has been since 2008. The U.S. remains the world’s largest consumer of oil, and the positive economic news pushed up oil prices.

The Russia-Ukraine crisis also created pressure on oil prices. Violence escalated to its highest point in the weeks-long standoff between Kiev and Russia on May 2, when pro-Russian rebels shot down two Ukrainian helicopters, killing three.  Following the incident, a spokesman for Russian President Vladimir Putin said, “The Kiev regime ordered combat aircraft to fire at civilian towns and villages, launching a ‘punitive operation’ and effectively destroying all hope for the viability of the Geneva agreements.” The comments could be an indication that Russia feels it has basis to invade Ukraine to protect its interests.

Related Article: AAA: Shale Boom Keeps High Gas Prices From Going Higher

Russia’s Micex Index dropped 0.5 percent on the news, and the ruble lost 0.5 percent.
Meanwhile, Russia’s energy minister said that Gazprom would reduce natural gas supplies to Ukraine in June if it fails to receive payment.

Despite positive economic news and tension in Ukraine, oil prices avoided sharper increases. U.S. crude inventories hit a record high last week, leaving oil markets well supplied. Also, Libya is expected to step up oil exports once again after a conflict with rebels kept its ports shut for months.

By Charles Kennedy of Oilprice.com


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News