Friday, 10 April, 2020

Oil rises for fifth session as stockpiles fall and market awaits Fed

Corrected Oil falls after The sun sets behind a pump-jack outside Saint-FiacreMore
Ginger Lawrence | 01 August, 2019, 23:27

On Tuesday, the 30th of July 2019, ahead of an expected Federal Reserve rate decision by July 31st, GMT 18.00, which would likely to mead US Central Bank's first interest rate cut in a decade, benchmark crude oil futures' prices rose more than 2 percent on expectation of a softer American dollar following Wednesday's (July 31st) FOMC minutes, while forecasts of another weekly US crude inventory decline had added further bullish wings to crude oil futures' prices.

Brent crude futures LCOc1, the worldwide benchmark for oil prices, were up 40 cents, or 0.6 per cent, at $65.12 a barrel by 0842 GMT.

Oil is on track for a decline of about 2% this month as concerns about demand overshadow the risk of supply disruptions due to simmering tensions in the Middle East.

U.S. West Texas Intermediate crude CLc1 gained 28 cents, or 0.5%, to $58.33 a barrel. This week, investors are watching the U.S.

The Energy Information Administration said in its regular weekly report that decreased by about 8.5 million barrels in the week to July 26.

Economic growth in the United States slowed less than expected in the second quarter, strengthening the outlook for oil consumption but, elsewhere, disappointing economic data has increased concerns about slower growth.

"The strong demand is underpinning prices, along with the steep and rapid decline in crude oil inventories over the past several weeks", said John Kilduff, partner at Again Capital Management in NY.

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However, some health workers say besides resources a new approach is needed to combat misunderstandings in the community. Symptoms can be sudden and include: fever, severe weakness, muscle pain, headache, and sore throat.

"Although the remarkably bullish US inventory reports (are) providing a very encouraging backdrop for oil markets, oil prices sagged, as whatever forward-looking monetary policy support from the Fed has pretty much evaporated", Stephen Innes, managing partner, VM Markets Pte said in a note.

If correct, that would put crude stocks down for a seventh week in a row for the first time since they fell for a record 10 weeks in a row in January 2018, according to Refinitiv data going back to 1982.

Market participants are also closely watching the U.S.

However, expectations for progress during the two-day Shanghai meeting are low, so officials and businesses hope Washington and Beijing can at least detail commitments for "goodwill" gestures and clear the path for future negotiations.

However, Trump said China might not want to sign a trade deal until after the 2020 USA election.

BP Plc, which had to shelter one of its vessels this month in fear it could be targeted by Iranian forces, is avoiding sending ships to the Persian Gulf, Chief Executive Officer Robert Dudley said Tuesday.