Crude oil futures up 0.42% on global cues

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NEW YORK, April 26 (Reuters) - Oil prices were mixed on Thursday as the market weighed up the risk of renewed USA sanctions on Iran and plunging Venezuelan output against a backdrop of strong demand, above all in Asia, the world's biggest oil-consuming region.

At the Multi Commodity Exchange, crude oil for delivery in June month went up by Rs 19, or 0.42 per cent to Rs 4,587 per barrel in business turnover of 212 lots. Subscribe on Apple Podcasts. USA crude oil production has shot up by more than a quarter since mid-2016 to over 10.54 million barrels per day (bpd), taking it past Saudi Arabia's output of around 10 million bpd.

US West Texas Intermediate (WTI) crude futures were up 31 cents, or 0.5 percent, at $68.36 per barrel. West Texas Intermediate also soared, trading up almost 1% to $68.88.

Prices will be supported by continued adherence to the OPEC-led production cuts, increased demand from Asia, possible supply disruptions in Iran and turmoil in Venezuela.

US President Donald Trump will decide by 12 May whether to restore sanctions on Iran that were lifted after an agreement over its disputed nuclear programme, which would probably result in a reduction of Iranian oil exports.

"President Trump said the Iran nuclear deal was insane and ridiculous, yet that does not mean necessarily that he is going to back out of it", Phil Flynn, the senior market analyst for the PRICE Futures Group in Chicago, said in a daily emailed newsletter.

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That's nearly 10 million barrels above the five-year average.

Punch also reports that the EIA showed that the USA crude oil exports averaged 1.12 million bpd previous year, with the highest daily export of 1.73 million bpd recorded in October.

Increases in the US currency make dollar-priced oil more expensive for holders of other currencies.

Dutch bank ING said "the wide discount for WTI to Brent saw exports rising 582,000 bpd week-on-week to a record high of 2.33-million bpd". According to the recent EIA data, United States oil production rose to 9.3 million barrels per day in 2017, a 5-percent increase year-on-year, and is expected to rise steadily going forward.

With U.S. output and exports surging, some analysts warn that the 20 percent climb in Brent prices since February is starting to look overdone.

"The market does look a little toppish", said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

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