April 3

Oil settles at 5-month high; gains capped by jump in US crude stocks

0  comments

[[{“value”:”

NEW YORK, April 3 (Reuters) – Oil prices settled at their highest levels since late October on Wednesday as investors worried about supply disruptions from a worsening geopolitical landscape, although a jump in U.S. crude oil inventories eased some of those concerns.
Brent futures rose 43 cents, or 0.5%, to settle at $89.35 a barrel, and U.S. West Texas Intermediate futures gained 28 cents, or 0.3%, to $85.43 a barrel.
Both contracts were up more than a dollar during the session, but pulled back after the U.S. Energy Information Administration reported crude stocks increased by 3.2 million barrels.
Analysts polled by Reuters had expected a decrease of more than 1.5 million barrels, in line with data reported by the American Petroleum Institute on Tuesday.
“The EIA report went in the other direction on crude oil from what the API reported yesterday, so that has helped pause the rally a little bit,” said Bob Yawger, director of energy futures at Mizuho.
Technical indicators also pressured prices, signaling oil futures were overbought.
“We needed a little bit of a pullback to reload before gunning higher again. Other than being overbought, market fundamentals continue to point upwards,” he said.
Brent and WTI futures have hit five-month intraday highs for three consecutive sessions, lifted by concerns that oil supplies could tighten due to Ukraine’s attacks on Russian refineries and a potential widening of the conflict in the Middle East.
Iran, which provides support for the Hamas militia fighting Israel in the Gaza Strip, has vowed revenge against Israel for an attack on Monday that killed high-ranking military personnel. Iran is the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC).
Oil markets are figuring out how to price in these developments and for how long, alongside strong economic data from U.S. and China and expectations of declining U.S. crude output, said Angie Gildea, the U.S. national sector lead for energy, natural resources and chemicals at KPMG.
Federal Reserve Chair Jerome Powell stuck with a cautious approach to the U.S. central bank’s policy on interest rate cuts, indicating the need for more debate and data before a decision could be made on when to start the monetary policy easing.
The comments offered some support for oil demand growth as they seem to affirm solid U.S. economic growth expectations, said Rob Haworth, senior investment strategist for U.S. Bank’s asset management group.
Bank of America Global Research raised its 2024 Brent and WTI forecasts to $86 and $81 a barrel, respectively, it said in a note.
The U.S. Department of Energy said on Wednesday it will not award oil supply contracts for refilling the Strategic Petroleum Reserve in August and September due to high prices.
Meanwhile, a meeting of top OPEC+ ministers kept oil output policy unchanged and pressed some countries to boost compliance with output cuts.

The post Oil settles at 5-month high; gains capped by jump in US crude stocks appeared first on Energy News Beat.

“}]]  


Tags


You may also like