Oil prices move further upward

Oil prices move further upward

"Over the next few years, we expect tightness in one particular product-middle distillate-to lead to strength in one particular liquid, crude oil, and especially those crudes that look like Brent", said Martijn Rats, Morgan Stanley's global oil strategist, in a research note Tuesday.

It trimmed its 2018 world demand growth projection by 40,000 barrels per day to 1.4 million bpd, projecting total consumption at 99.2 million bpd.

"Given the uncertainty over trade, Iranian sanctions and various other geopolitical hot spots, people are making a bet that U.S. growth will outperform the rest of the world and that these companies will be less affected", he said.

The current rise of oil production is fueled by natural gas condensates and liquids, neither of which is used for producing the needed diesel. "It would be extraordinary if such a large jump did not affect demand growth, especially as end-user subsidies have been reduced or cut in several emerging economies in recent years".

Oil prices hit $80 a barrel on Thursday for the first time since November 2014 on concerns Iranian exports could fall, reducing supply in an already tightening market.

Robust oil demand together with supply curbs led by Opec and Russian Federation have coincided with a series of geopolitical crises over the past year pushing up prices towards $80 a barrel this week.

Spot crude oil cargo prices are at their steepest discounts to futures prices in years as sellers are struggling to find buyers for West African, Russian and Kazakh cargoes, while pipeline bottlenecks trap supply in west Texas and Canada.

More news: Senate Committee Confirms President's Pick for CIA Chief
More news: Irate Woman Detained After Throwing Feces At Tim Hortons Staff In Langley
More news: Pro-Trump Lawyer Has Meltdown When Deli Worker Speaks Spanish in NYC

OIL STOCKS: Across Europe, oil companies were in demand amid higher oil prices. "As ever, the IEA stands ready to act if necessary to ensure markets remain well supplied".

On average over the past month crude oil imports averaged about 8.0 million barrels per day, 4.3% less than the same month previous year.

A rapid decline in Venezuela's crude production has further roiled markets in recent months.

"So I wouldn't be surprised to see $100 per barrel in the coming months". "Also if the USA can get China to loosen energy ties with Iran, then regardless of increased U.S. shale production, the price could close in on $100".

The IEA noted that Iranian oil exports now total about 2.4 million barrels a day.

A day after the American Petroleum Institute's crude oil inventory report put a restraint on oil prices, the Energy Information Administration pushed prices up again by reporting a draw of 1.4 million barrels for the week to May 11.

For now, the rapidly changing geopolitical landscape will move the attention away from stocks as producers and consumers consider how to limit volatility in the oil market.

Related Articles

  • Trump Suggests

    Trump Suggests "Protections" For Kim In North Korea Nuclear Deal

    We went in there to beat him", Trump said. "We went in and decimated him, and we did the same thing with Iraq ". He tweets: "We will both try to make it a very special moment for World Peace!" "So we'll see what happens".
    US Warns Russian-German Gas Pipeline Risks Triggering Sanctions

    US Warns Russian-German Gas Pipeline Risks Triggering Sanctions

    According to Altmaier, the European Union must ensure that Ukraine will remain a gas even after the new pipeline will be built. Deputy Assistant Secretary of State for Energy diplomacy Sandra Oudkirk said.
    Mothercare closing 50 stores with up to 800 jobs lost

    Mothercare closing 50 stores with up to 800 jobs lost

    The sub-£50mln company now has 137 stores up-and-down the United Kingdom but wants to have a portfolio of just 73 by 2022. Shares in Mothercare were up 4.8 pence at 26.6 pence at 0832 GMT, valuing the business at 46 million pounds.
  • UN's Zeid: Israel keeps Gaza residents

    UN's Zeid: Israel keeps Gaza residents "caged in a toxic slum"

    Calls for an independent probe into the deaths have come from many sides, including Britain, Germany, Canada and Switzerland. Pushing back against global censure of his army's actions, Mr.
    Allan McGregor rejoins Rangers on two-year deal

    Allan McGregor rejoins Rangers on two-year deal

    Rangers could be set for an influx of players with huge Premier League experience, if the latest rumours are to be believed. In his first spell with Rangers he won 11 major trophies, including a hat-trick of league titles in 2009, 2010 and 2011.
    NBCUniversal May Drop WWE Smackdown Live From Its TV Schedule

    NBCUniversal May Drop WWE Smackdown Live From Its TV Schedule

    But the relationship of WWE and NBCU will not be completely severed as Monday Night Raw will continue to air on USA Network . They added that Fox is a potential suitor for Smackdown , a network that had been rumored for months for Raw as well.
  • MCU Producer Teases Marvel's Phase 4 Plans After 'Avengers 4'

    MCU Producer Teases Marvel's Phase 4 Plans After 'Avengers 4'

    At India box office, Avengers: Infinity War is already a record-breaking affair. Some are characters you've met before; some are wholly new characters.
    Solo Showdown Limited Time Mode Announced

    Solo Showdown Limited Time Mode Announced

    Upon the conclusion of each match, you'll earn a number of points based upon your final positioning. Get ready to get sweaty as Fortnite gets a more competitive game type than ever before.
    As US deadline passes, Mexico says NAFTA deal still doable

    As US deadline passes, Mexico says NAFTA deal still doable

    But Trudeau said that the main reason Canada is holding off on a deal is Lighthizer's push for a five-year sunset clause. Some in the Canadian government have mused about the potential strategic benefits of dragging out the talks.
  • XOne/PC Preview - 'Call of Duty: Black Ops 4'

    XOne/PC Preview - 'Call of Duty: Black Ops 4'

    Call of Duty: Black Ops 4 is available for pre-order, and as a bonus, you gain access to the upcoming beta for being pro-active. Activision and Treyarch have finally announced the next installment in the Call of Duty franchise.
    Stan Lee files lawsuit against former business partner, claims forgery

    Stan Lee files lawsuit against former business partner, claims forgery

    Entertainment and two of its executives have conspired to steal his name, identity, and likeness without his consent. Lee's subsequent statements and conduct, is overwhelming and the Company looks forward to presenting it in court.
    USA  man killed by exploding e-cigarette

    USA man killed by exploding e-cigarette

    D'Elia's death marks the first e-cigarette death in the US, ABC reported , citing the US Federal Emergency Management Agency. The Smok-E Mountain Mech Works vaping device, which is made in The Philippines, is an unregulated mechanical e-cigarette.