U.S. dollar, not OPEC, driving markets, Russian oil boss says

Oil and gas United States Oil Fund LP

Oil and gas United States Oil Fund LP

On the New York Mercantile Exchange, West Texas Intermediate futures CLV7, +0.46% were trading up around 0.6%, at $48.34 a barrel.

Brent crude LCOX7, -0.39%, the global benchmark, was down 0.3%, at $53.63 a barrel in London midmorning trading.

"WTI may break higher as storms limit crude processing".

About 6 percent of USA refining capacity remains shut after nearly a quarter of the nation's capacity was halted following Hurricane Harvey more than two weeks ago.

Buckeye Partners, the largest owner of oil storage facilities in the Caribbean, with 41.1 million barrels of capacity, on Thursday shut its Yabucoa oil terminal in Puerto Rico ahead of Hurricane Irma and was preparing for the storm at two other marine terminals in Florida and the Bahamas.

That led to a windfall for some oil bears who had correctly read Hurricane Irma's impact on WTI.

The mixed impact from hurricanes in the United States left the US and global benchmarks for crude oil moving in opposite directions early Monday.

US crude prices tumbled down more than 3 percent on Friday worries that energy demand would be hit hard as Hurricane Irma, one of the most powerful storms in a century, headed toward Florida and the Southeast.

The value of the USA dollar is having more of an impact on oil markets than the OPEC effort to trim production, the head of Russian oil company Rosneft said.

"The temporary product shortage that has been created in the Gulf of Mexico area was felt across Latin America in countries that are traditional USA product importers", the report read.

Natural gas for October, headed down 6.2 cents, or 2.1%, to $2.919 per million British thermal units.

The latest Baker Hughes data recorded a small decline in active drilling rigs for the third week in the last four releases, although there was some uncertainty whether the data had been distorted by the impact of hurricane Harvey.

Analysts said Brent was likely to retain its edge over WTI in the near-term based on indications Saudi Arabia will be cutting supplies again next month.

Next week, the market will see monthly reports from the Organization of the Petroleum Exporting Countries and the International Energy Agency on Tuesday and Wednesday, respectively. Russian Federation is a party to the effort and is cutting the most among non-OPEC members.

Saudi Aramco, the kingdom's state oil company, will cut supplies to Asia, the world's biggest oil consuming region, by 1.8 million barrels in October, with the reductions affecting mostly customers in Japan, the source said.

Refinery operations are largely dependent on a supply of crude oil and feedstocks, electricity, safe working conditions, workforce availability, and outlets for production.

"Just bear in mind that this blowout in premium isn't going to last forever", cautioned Davis, the oil bear.

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