• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
  • 15 minutes WTI @ 67.50, charts show $62.50 next
  • 14 hours The EU Loses The Principles On Which It Was Built
  • 6 hours Starvation, horror in Venezuela
  • 9 hours Why hydrogen economics does not work
  • 7 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 6 hours Tesla Faces 3 Lawsuits Over “Funding Secured” Tweet
  • 2 hours Mike Shellman's musings on "Cartoon of the Week"
  • 19 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 1 day Chinese EV Startup Nio Files for $1.8 billion IPO
  • 7 hours Saudi Fund Wants to Take Tesla Private?
  • 23 hours Crude Price going to $62.50
  • 2 hours California Solar Mandate Based on False Facts
  • 2 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 18 hours Saudi Arabia Cuts Diplomatic Ties with Canada
Can China Afford To Slap Tariffs On U.S. Oil?

Can China Afford To Slap Tariffs On U.S. Oil?

China’s latest round of tariffs…

Dollar Strength Is Likely To Cap Oil Price Gains

Dollar Strength Is Likely To Cap Oil Price Gains

An exceptionally strong dollar and…

WTI Passes $100 Per Barrel on Bullish News

The West Texas Intermediate (WTI) benchmark surpassed $100 per barrel in intraday trading for the first time since October of last year on a wave of upbeat news between February 11 and 12. Brent prices hovered around $109 per barrel.

Fed Chair Janet Yellen indicated in an hours-long testimony on Capitol Hill that the Federal Reserve will likely keep its foot on the gas. She said that with the recovery in the labor market “far from complete,” the Fed will likely keep interest rates near zero “well past” the point when unemployment drops to 6.5%. The Fed had previously suggested that once it reached that target, it would pull back on monetary stimulus. She also downplayed the turmoil in emerging markets in recent weeks, which has spooked investors. The bullish remarks lifted the markets, with major indices rising more than 1%. This provided a lift to oil prices.

Related Article: Forget North Dakota, Texas is No. 1 for Oil

Another reason for higher oil prices is a forecast from OPEC, which raised its projection for oil demand growth in 2014. It revised upwards the incremental increase in oil demand for this year by 50,000 barrels per day to 1.09 million barrels per day. That puts OPEC’s predicted 2014 global oil demand at 90.98 million bpd. OPEC noted a big reason for its revision was “strong growth” coming from North America and Europe.

Finally, new data from China suggests that oil imports for China hit an all-time high. January crude oil imports jumped 11.9% from the same month a year ago, hitting 6.63 million bpd. Chinese exports also unexpectedly increased in January, shattering expectations with a 10% increase from January 2013. Analysts have been worried about slower growth from China and the danger of a “hard landing” for its economy, but the latest numbers soothed the markets.

Taken together, these events have pushed WTI oil prices over the three-digit mark.

By Joao Peixe



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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