Saudi Arabia 'Pumps' Oil Prices Higher

Brent crude oil climbs to fresh December 2014 high of over $74 a barrel

U.S. West Texas Intermediate crude futures ended Wednesday's session up $1.95 a barrel, or 2.9%, at $68.47/Bbl, the best settlement since December 1, 2014, Kallanish Energy reports.

Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation fell up to 7 percent intraday after crude oil prices rallied more than 3 percent on decline in USA crude inventories.

The oil market has been supported by concerns about geopolitical tension and supply disruptions in crude-producing nations.

But the latest leg up over the past two weeks has largely reflected rising political risk, traders say. Brent, the global benchmark, was trading at $74.14 at 8:51 a.m. ET.

"Geopolitics have a much bigger impact when the market is already tightening", said Amrita Sen at Energy Aspects in London. “It's a multitude of factors that are contributing to that tighter inventory picture.

"Overall the supply-demand equation is fairly balanced", said Anthony Scott, managing director at BTU Analytics in Denver.

The cuts have been even bigger than those specified in the deal, thanks in part to a slide in Venezuelan production due to an economic crisis in the South American country.

The market is also waiting to see whether President Donald Trump will reimpose sanctions on Iran as a May 12 deadline approaches.

Today, a leaked OPEC/NOPEC report suggested that the lingering overhang was even smaller-at 12 million barrels above the five-year average.

"The current move up is nearly exclusively aided by geopolitical events", said Tamas Varga at oil brokerage PVM in London. Saudi Arabia's comments were seen as an intent to continue limiting oil production, although oil stores are now close to the 5-year average.

Talk that Saudi Arabia has its sights on $80-$100 a barrel oil again ignited a fierce rally in commodities and resource stocks on Thursday, though the potential boost to inflation globally put some pressure on fixed-income assets. In any case, there is no sign yet that Saudi Arabia or its partners need the supply slice to end.

The biggest threat to the rally, beyond an easing in tension in the Middle East, remains the USA shale sector.

Oil prices on Thursday hit highs not seen since 2014, built on the ongoing drawdowns in global supply and as Saudi Arabia looks to push prices higher, though USA crude gave back gains in the afternoon to finish lower.

Prices in the Permian basin, the largest United States shale field in west Texas, have fallen to a discount to the benchmark, however, as soaring output growth is pushing up against infrastructure constraints to get the oil easily to market.

Related news:

Hot News

isis-killer-beheading-video-story-top IDF Source Credits Israel with Attack on Iranians in Syria
Apr 20, 2018 - 01:40
Iranian military forces, however, are already entrenching themselves in Syrian bases within striking distance of Israeli towns. If conducted by Israel , the Monday morning attack was at least the third time IAF planes struck the T-4 base.

isis-killer-beheading-video-story-top Power restored to 1 million in Puerto Rico after total blackout
Apr 20, 2018 - 01:38
On Wednesday, an excavator used by the contractor hit a transmission line near the south coast. This incident was marked as the "second-largest blackout", CNN reports.

isis-killer-beheading-video-story-top India court rejects pleas for probe into judge BH Loya's death
Apr 20, 2018 - 01:37
Dave had, on several occasions, said that any unanswered question on Loya's death would be a blot on India's independent judiciary.

isis-killer-beheading-video-story-top Trump says he prefers bilateral trade deal with Japan
Apr 20, 2018 - 01:36
It was a signature trade policy of President Barack Obama , but he was unable to secure Congressional support for the deal. He added the countries "still have to talk about trade, and that the prime minister understands that".

isis-killer-beheading-video-story-top Doctor who treated singer Prince pays Dollars 30000 for illegal prescription
Apr 20, 2018 - 01:33
Schulenberg prescribed Prince Percocet in Prince's longtime friend, Kirk Johnson's name, Percocet was not the cause of death. The coroner's report found that he had an " exceedingly high " concentration of fentanyl in his body when he died.

isis-killer-beheading-video-story-top Amazon Prime, Tesla, Cardi B — Business Briefs
Apr 20, 2018 - 01:21
Amazon Prime Video, like most mainstream SVOD services on the market, has leaned into originals as a way to attract customers. Buffett now ranks third on the Bloomberg Billionaires Index, behind Bezos and Microsoft Corp. founder Bill Gates.

isis-killer-beheading-video-story-top GM Canada president leaving to run auto maker's Cadillac unit
Apr 19, 2018 - 02:17
The XT5, shown at its LA debut with Caddy chief de Nysschen and GM product czar Mark Reuss, never sold in the volumes expected. The company says Steve Carlisle will replace Johan de Nysschen, who is leaving to pursue other opportunities.

isis-killer-beheading-video-story-top Ohtani to continue hitting as he manages blister
Apr 19, 2018 - 02:16
In eight games as a batter, Ohtani is batting.367 with 11 hits in 30 times at bat, including a double, triple and three home runs. By the time he was replaced after the second inning, the 23-year-old had given up four hits as Boston moved into a 3-0 lead.

isis-killer-beheading-video-story-top Canadian Instagram Model Jailed for Drug Smuggling Blames Selfie Obsession for Crime
Apr 19, 2018 - 02:15
Roberge was called an Instagram influencer, publishing trendy images of herself and her good friends in glamorous environments. She was recruited by a " sugar daddy " who got interested in her after learning about her experience as an escort in Morocco.

isis-killer-beheading-video-story-top Barbara Bush Quotes to Celebrate the Former First Lady
Apr 19, 2018 - 02:11
Bush served her country for a number of years, meeting with dignitaries and celebrities to help bring change across the globe. Bush is pictured with his mother Barbara in August 1992 at the Republican National Convention in Houston .

isis-killer-beheading-video-story-top US Marshals offer reward for arrest of Lois Riess
Apr 18, 2018 - 03:19
Marshals released surveillance video Monday which shows 56-year-old Lois Reiss at a Fort Myers Beach Restaurant on April 5. Deputies believe Riess may have targeted Hutchinson because they look alike, and she may have assumed her identity.

isis-killer-beheading-video-story-top Village turns out to welcome home Grand National champion Tiger Roll
Apr 18, 2018 - 03:19
Bless The Wing, another Elliott-trained horse, finished third with Anibale Fly fourth , completing an Irish clean sweep of the places.

isis-killer-beheading-video-story-top WWE 'Raw' Rumors & Spoilers: Injured superstar could return on Monday night
Apr 18, 2018 - 03:17
The A-Lister's night got even worse when he competed in a 10-man tag team match alongside Owens, Zayn, Dallas and Axel. Hardy ruined Jinder Mahal's arrival to RAW by nabbing the USA belt within the first 20 minutes of last night's show.

isis-killer-beheading-video-story-top Lots of reaction about what James Comey is saying
Apr 18, 2018 - 00:54
In his book, Comey takes direct aim at Trump's appearance, a particularly sensitive topic for the president. Then, when asked about Trump's relationship with Putin, he said, "I don't know what's behind that.

isis-killer-beheading-video-story-top Batteries of Tesla will last longer than expected
Apr 18, 2018 - 00:50
On average, equities analysts anticipate that Tesla will post ($1.42) earnings per share for the current fiscal year. Tesla stock traded down about 0.3% late Tuesday morning, at $290.39 in a 52-week range of $244.59 to $389.61.