WTI Gains Second Time in Three Days on Stockpiles; Brent Rises

                 West Texas Intermediate rose for a second time in three days after an industry report showed crude stockpiles declined in the U.S., the world’s biggest oil user. Brent climbed in London.

Futures advanced as much as 0.4 percent in New York. Crude supplies shrank by 5.5 million barrels last week, the American Petroleum Institute was said to report yesterday. Data from the Energy Information Administration today is projected to show inventories slid by 1.55 million, according to a Bloomberg News survey. Kurdish oil exports remain unaffected by the turmoil in Iraq, producer Genel Energy Plc said.

“There is a possibility that the market is starting to develop a bit of a range around here,” said Ric Spooner, a chief strategist at CMC Markets in Sydney who predicts investors may sell West Texas contracts if prices climb to about $98.70 a barrel. “Iraq looks to be contained for the short term. Markets are prepared to leave the premium at a relative low on a watching brief basis.”

WTI for September delivery rose as much as 34 cents to $97.72 a barrel in electronic trading on the New York Mercantile Exchange and was at $97.62 at 12:15 p.m. Singapore time. The contract dropped 0.9 percent to $97.38 yesterday, the lowest price since Feb. 5. The volume of all futures traded was about 33 percent below the 100-day average.

Brent for September settlement climbed as much as 45 cents, or 0.4 percent, to $105.06 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $7.36 to WTI. It closed at $7.23 yesterday.

Fuel Supplies

WTI declined 4.1 percent last week amid signs of weaker U.S. fuel demand. Gasoline supplies fell by 3.6 million barrels during the week ended Aug. 1., the API in Washington said, according to Bain Energy. Inventories were probably unchanged at 218.2 million, the survey shows before the EIA report.

Crude stockpiles at Cushing, Oklahoma, the delivery point for WTI and the biggest oil-storage hub in the U.S., increased by 51,000 barrels, the API was said report. The group collects data on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the EIA, the Energy Department’s statistical arm.

The peak driving season in the U.S. typically starts at the end of May and runs through to Labor Day in September.

Mideast Unrest

Genel Energy, the largest producer in Iraqi Kurdistan, is confident that the region’s independent pipeline exports won’t be impeded by the violence and political turmoil engulfing the country. The regional government has loaded five cargoes in Ceyhan, Turkey, and two have been bought and paid for, Chief Financial Officer Julian Metherell said yesterday.

The conflict has spared supply from Iraq’s south, home to more than three-quarters of its crude output. The nation is the Organization of Petroleum Exporting Countries’ second-largest producer, pumping 3 million barrels a day in July.

In Libya, National Oil Corp. is in talks to resume exports from the Es Sider port, according to Mohamed Elharari, a spokesman for the state-run company. Shipments from the Ras Lanuf terminal will start this week, Elharari said yesterday. The facilities were handed over last month by rebels seeking self-rule in the east of the country, the holder of Africa’s biggest crude reserves. - Bloomberg

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WTI Trades Near 3-Day High Before U.S. Supply Data; Brent Steady

                      West Texas Intermediate crude traded near the highest price in three days before supply data that will signal the strength of fuel demand in the U.S., the world’s biggest oil consumer. Brent in London was steady.

Futures were little changed in New York after snapping a five-day losing streak yesterday. Gasoline stockpiles probably fell for the first time since June last week, according to a Bloomberg News survey before a government report tomorrow. Kurdish fighters in Iraq retook northern border towns seized by militants from Islamic State, a breakaway al-Qaeda group, the Kurdistan Democratic Party said on its website.

“It’s been a good driving season,” David Lennox, a resource analyst at Fat Prophets in Sydney, said by phone, referring to the summer period of peak fuel demand. “There is quite a sound floor below the price at the moment.”

WTI for September delivery was at $98.38 a barrel in electronic trading on the New York Mercantile Exchange, up 9 cents, at 2:45 p.m. Sydney time. The contract gained 0.4 percent to $98.29 yesterday, the highest close since July 30. The volume of all futures traded was about 39 percent below the 100-day average. Prices are little changed this year.

Brent for September settlement rose 18 cents, or 0.2 percent, to $105.59 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $7.20 to WTI. It closed at $7.12 yesterday.

Fuel Supplies

WTI declined 4.1 percent last week amid signs of weaker U.S. fuel demand. Gasoline supplies probably fell by 300,000 barrels to 217.9 million during the week ended Aug. 1, according to the median estimate of nine analysts surveyed by Bloomberg before the Energy Information Administration report. The country’s peak driving season typically runs from the end of May to Labor Day on Sept. 1.

U.S. crude inventories shrank by 1.5 million barrels to 365.9 million, the survey shows. Distillate stockpiles, a category that includes heating oil and diesel, expanded by 700,000 barrels.

The American Petroleum Institute is scheduled to release separate supply data today. The industry-funded group in Washington collects data on a voluntary basis from operators of refineries, bulk terminals and pipelines. The government requires that reports be filed with the EIA.

Mideast Unrest

Kurdish fighters recaptured Sinjar and Rabia’ah near the Syrian border after heavy fighting yesterday, according to the Kurdistan Democratic Party. At least 50 Islamic State militants were killed as security forces battled to regain the village of Wana, south of Mosul dam.

The conflict has spared supply from Iraq’s south, home to more than three-quarters of its crude output. The nation is the Organization of Petroleum Exporting Countries’ second-largest producer, pumping 3 million barrels a day in July.

In Libya, turmoil could have “negative ramifications on a global scale” if the country continues to spiral out of control, Abu Bakr Bueira, a senior lawmaker told the country’s newly elected parliament yesterday. The nation is the smallest OPEC producer and holds Africa’s biggest oil reserves. - Bloomberg

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WTI Trades Near Six-Month Low Before Economic Data; Brent Holds

                  West Texas Intermediate crude traded near the lowest price in six months before data that will signal the strength of the economy in the U.S., the world’s biggest oil consumer. Brent was steady in London.

Futures were little changed in New York after capping the biggest weekly decline in seven months on Aug. 1. The Markit Economics purchasing managers index for U.S. services is due tomorrow, while factory order data is also scheduled this week. In Iraq, militants took control of two oil fields in the north after clashes, according to the Northern Oil Co.

“There is no fear about supply,” said Ken Hasegawa, an energy trading manager at Newedge Group in Tokyo. “On technical charts, we saw big drops last week, and both WTI and Brent are down to one of the support levels. WTI is very close to $97.50 a barrel and Brent to $104 a barrel. If those levels hold, the market will rebound.”

WTI for September delivery was at $98 a barrel in electronic trading on the New York Mercantile Exchange, up 12 cents, at 1:15 p.m. Singapore time. The contract slid 0.3 percent to $97.88 on Aug. 1, the lowest close since Feb. 6. The volume of all futures traded was about 1.3 percent above the 100-day average. Prices are down 0.5 percent this year.

Brent for September settlement rose 21 cents, or 0.2 percent, to $105.05 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $7.08 to WTI. It closed at $6.96 on Aug. 1.

Fuel Demand

WTI declined 4.1 percent last week amid signs of weaker U.S. fuel demand. Gasoline supplies rose to the highest level in four months as average consumption of the fuel dropped to the lowest since May, even after the country’s peak driving season started with the Memorial Day holiday on May 26.

Markit’s final reading of a gauge for U.S. services is projected to be 60.8 in July, down from 61 in June, according to a Bloomberg News survey. Factory orders probably rose to 0.6 percent in June, a separate survey shows.

Hedge funds and other money managers trimmed their bullish bets on WTI, extending the drop from this year’s peak in June to 22 percent, U.S. Commodity Futures Trading Commission data show. Net-long positions fell 1,375 to 276,741 futures and options combined in the week ended July 29, according to the CFTC.

Mideast Unrest

In Iraq, the Ain Zala and Batma oil fields are under full control of Islamic State, a breakaway al-Qaeda group, according to the state-run Northern Oil Co. Together they have an output of 30,000 barrels per day. The Sunni Islamist militants last month occupied the Qayyara field north of Baghdad.

Fighting has spared supply from Iraq’s south, home to more than three-quarters of its crude output. The nation is the second largest producer in the Organization of Petroleum Exporting Countries, pumping 3 million barrels a day in July.

In Libya, Britain dispatched its navy to evacuate its nationals as 22 other people were killed as a result of militia feuds near Tripoli’s international airport. The nation is the holder of Africa’s biggest oil reserves.

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NYMEX crude prices down in Asia as deamnd lags global supply

                      Crude oil prices continued to fall in Asia on Friday with demand seen lagging global supplies though geopolitical events offer a floor.

On the New York Mercantile Exchange, West Texas Intermediate Crude oil for delivery in September traded at $97.77 a barrel, down 0.41%, after hitting an overnight session low of $97.96 a barrel and a high of $99.84 a barrel.

Brent oil on ICE Futures Europe fell 0.5%, to $106.02 a barrel. Prices fell 5.6% this month and are down 4.3% so far this year.

OPEC countries pumped more oil in July than in June, according to Reuters data, which sent oil futures dropping on fears the world is awash in crude.

Reuters reported that supply from OPEC member states averaged 30.06 million barrels per day (bpd) in July, up from 29.92 million bpd in June.

Fears that conflicts in the Middle East were going to disrupt supply never panned out, which softened oil prices despite consensus that the global economy continues to recovery, the U.S. especially. - investing.com

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WTI Drops Below $100 as U.S. Fuel Supplies Rise; Brent Declines

                           West Texas Intermediate dropped for a fourth day and slipped below $100 as gasoline stockpiles rose and demand declined in the U.S., the world’s biggest oil user. Brent decreased in London.

Futures fell as much as 1.1 percent in New York. Gasoline supplies expanded by 365,000 barrels last week to 218.2 million, the highest level in four months, the Energy Information Administration said yesterday. Average consumption shrank 0.5 percent over the past four weeks to thelowest since May, even as the country’s peak driving season started with the Memorial Day holiday on May 26.

“This should be a period of peak demand,” said Jonathan Barratt, the chief investment officer at Ayers Alliance Securities in Sydney. “The price action is telling us the world does not have an issue with the supply of crude. Oil at $100 is a big level, and I don’t think it will give it up so quickly.”

WTI for September delivery slid as much as $1.11 to $99.16 a barrel in electronic trading on the New York Mercantile Exchange and was at $99.63 at 1:58 p.m. Singapore time. The contract fell 0.7 percent to $100.27 yesterday, the lowest close since July 15. The volume of all futures traded was about 7 percent above the 100-day average. Prices are down 5.5 percent in July, the most in nine months.

Brent for September settlement fell as much as 63 cents, or 0.6 percent, to $105.88 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $6.64 to WTI, from $6.24 yesterday.

Crude Stockpiles

WTI slid last week as gasoline stockpiles rose the most in six months to the highest level since March, fueling speculation of slowing demand. Consumption of the fuel during the past four weeks shrank to an average 8.95 million barrels a day, according to the EIA, the Energy Department’s statistical arm.

Crude inventories dropped 3.7 million barrels to 367.4 million in the week ended July 25, said the EIA. Supplies at Cushing, Oklahoma, the delivery point for WTI, decreased by 924,000 barrels to 17.9 million, the lowest since October 2008.

Stockpiles of distillates, a category that includes heating oil and diesel, expanded by 789,000 barrels to 126.7 million, the highest level since September 2013.

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Crude oil futures - weekly outlook: July 28 - August 1

           

                     Brent oil futures rallied to a one-week high on Friday, as investors continued to assess the geopolitical situation in Eastern Europe and in the Middle East.

On the ICE Futures Exchange in London, Brent oil for September delivery rose to a daily high of $108.46 a barrel on Friday, the most since July 18, before settling at $108.39 by close of trade, up 1.23%, or $1.32.

The September Brent contract advanced 1.06%, or $1.15, on the week, the second consecutive weekly gain.

Investors continued to closely watch an intensifying geopolitical crisis between Moscow and the West over the situation in Ukraine.

The Pentagon said Friday that Russia has escalated the violence in Ukraine and may be set to provide more sophisticated weapons to pro-Russian rebels in eastern Ukraine.

Russia is one of the world's top producers and exporters of oil and gas.

Meanwhile, fighting between Israel and Hamas showed little sign of abating, despite ongoing efforts by the U.S. to reach a ceasefire.

Market participants are worried that a flare up in the conflict could draw in neighboring countries and affect oil supplies.

Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in September fell to a session low of $101.00 a barrel on Friday, the weakest since July 17, before coming off the lows to settle at $102.09, up 0.02%, or 2 cents.

U.S. oil prices were weighed by weekly supply data which showed that total motor gasoline inventories increased by 3.4 million barrels last week, above forecasts for a gain of 1.3 million barrels.

The larger than expected increase in gasoline stocks during the summer driving season in the U.S. was bearish for oil prices.

For the week, Nymex oil futures eased up 0.13%, or 14 cents, the second straight weekly gain.

Data from the Commodities Futures Trading Commission released Friday showed that hedge funds and money managers increased their bullish bets in New York-traded oil futures in the week ending July 22.

Net longs totaled 278,116 contracts as of last week, up 6.8% from net longs of 259,259 in the preceding week.

Meanwhile the spread between the Brent and the WTI crude contracts stood at $6.30 a barrel by close of trade on Friday, compared to $5.29 in the preceding week.

In the week ahead, investors will be focusing on Wednesday’s preliminary reading on U.S. second quarter growth, while Friday’s nonfarm payrolls report will also be in focus.

Wednesday’s Fed statement will also be closely watched for any indications that the central bank is moving closer to raising rates.

The Commerce Department on Friday reported a rise of 0.7% in orders of long lasting goods such as machinery and electronic products, compared to forecasts of 0.5%.

The data came a day after the U.S. Department of Labor said that the number of individuals filing for initial jobless benefits in the week ending July 19 declined by 19,000 to hit an eight-year low of 284,000. - investing.com

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WTI Swings as Crude Stockpiles at Cushing Decline; Brent Steady

                     West Texas Intermediate swung between gains and losses after U.S. government data showed crude supplies at the delivery point for New Yorkcontracts shrank to the lowest level since 2008. Brent was steady in London.

Futures were little changed in New York after rising 0.7 percent yesterday. Crude stockpiles at Cushing, Oklahoma, the biggest U.S. oil-storage hub, dropped by 1.45 million barrels to 18.8 million, the least since November 2008, according to an Energy Information Administration report. A measure of manufacturing in China, the world’s second-largest oil consumer, climbed to an 18-month high in July.

“The long-run story has not changed, global supply still looks healthy,” Barnabas Gan, an economist at Oversea-Chinese Banking Corp. inSingapore, said by phone today. “The global growth tailwinds are expected to continue, and that does give oil investors a reason to see higher prices in the short term.”

WTI for September delivery was at $102.86 a barrel on the New York Mercantile Exchange, down 26 cents, at 3:22 p.m. Singapore time. The contract increased 73 cents to $103.12 yesterday. The volume of all futures traded was 20 percent above the 100-day average. Prices have advanced 4.5 percent this year.

Brent for September settlement was 22 cents lower at $107.81 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $4.96 to WTI, compared with $4.91 yesterday.

Fuel Supplies

U.S. crude inventories nationwide fell by almost 4 million barrels to 371.1 million in the week ended July 18, said the EIA, the Energy Department’s statistical arm. Supplies were down for a fourth week, the longest run of declines since January. They were forecast to decrease by 2.9 million, according to the median estimate in a Bloomberg News survey of nine analysts.

Gasoline stockpiles expanded by 3.38 million barrels, compared with a projected gain of 1 million. The peak U.S. driving season typically starts on Memorial Day, which came on May 26 this year, and runs through Labor Day on Sept. 1.

Distillate inventories, including heating oil and diesel, rose by 1.64 million barrels last week, the EIA report shows. An increase of 2 million was projected in the survey.

In China, a preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was at 52, topping the median prediction of 51 in a separate Bloomberg survey and June’s final level of 50.7. Readings above 50 signal expansion.

The Asian country will account for about 11 percent of global oil demand this year, compared with 21 percent for the U.S., according to theInternational Energy Agency in Paris. - Bloomberg

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