• 6 minutes Corporations Are Buying More Renewables Than Ever
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 23 minutes Starvation, horror in Venezuela
  • 5 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 day Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 1 day Renewable Energy Could "Effectively Be Free" by 2030
  • 1 day Saudi Fund Wants to Take Tesla Private?
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 3 hours China goes against US natural gas
  • 2 days Mike Shellman's musings on "Cartoon of the Week"
  • 5 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 2 days Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Are Trump's steel tariffs working? Seems they are!
  • 3 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 22 hours Why hydrogen economics does not work
Philippines Cracks Down On Fuel Pirates

Philippines Cracks Down On Fuel Pirates

Though fuel smuggling in Southeast…

Why China Will Continue To Buy Iranian Crude

Why China Will Continue To Buy Iranian Crude

While the United States sanctions…

Oil Prices On Track For Largest Q3 Gain Since 2004

Oil

Oil prices rose by 1 percent on Wednesday morning and were set for the biggest third-quarter gain since 2004, as investors weighed the renewed talk of possible deeper OPEC cuts, along with the results of this week’s EIA inventory report.

At 8:27am EST, WTI was topping the US$50 mark, rising 1.07 percent at US$50.01, while Brent was up 1.03 percent at US$55.71. Near 2:00pm EST, prices had climbed even further, with WTI up 2.16% at $50.55, and Brent up 2.14% at 56.32, as investors enjoyed a lower-than anticipated build in crude oil inventories.

Some producers favor extending the OPEC/non-OPEC deal for 3-4 months beyond March, while others believe it should be extended until the end of next year. Still another group—including Ecuador and Iraq—think that it’s more cuts that should be discussed, Iraqi Oil Minister Jabbar al-Luiebi said on Tuesday.

However, al-Luiebi noted that Iraq didn’t see a need for more oil production cuts currently, but it would support consensus within OPEC if such need arises. It is still too early to decide on actions to take beyond March next year, the Iraqi minister said, reigniting market speculation about whether OPEC would or should cut deeper to speed up the rebalancing of the market.

Asked by Reuters if Iraq would push for additional 1-percent cut at the November meeting, the minister said: “There are proposals and there are ideas... I don’t think it will be implemented but it will be considered and studied.”

“I can’t see the market tightening unless OPEC cuts output further next year,” Commerzbank strategist Carsten Fritsch told Reuters on Wednesday.

“An improving macro-economic backdrop should spur oil demand growth over the next couple of quarters and if OPEC increases its adherence to production cuts, higher prices will come,” ANZ Research said in a note, as carried by Reuters. All things being equal, ANZ Research continues to see oil prices testing new 2017 highs by the end of the year.

Oil prices are supported today by Tuesday’s report by the American Petroleum Institute (API), which reported a 1.4-million increase in crude inventories against expectations of a 3.5-million increase, while gasoline and distillate stockpiles declined in the week to September 15.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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