Tag: oil prices

Oil prices rise to hit four-year high of $70 a barrel

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The price of oil has hit $70 a barrel for the first time since December 2014.

Brent crude climbed after members of Opec, the cartel of 14 oil-producing nations that accounts for 40% of the world’s output, said it would continue to limit supplies.

The RAC, the motoring group, has warned that rising oil prices could lead to higher forecourt costs for motorists.

However, the AA said that drivers would benefit if supermarkets resumed their petrol price war.

Suhail al-Mazrouei, the UAE oil minister and Opec president, said it was committed to limiting output until the end of the year.

The US Energy Information Administration on said crude inventories fell by almost five million barrels to 419.5 million barrels in the week to 5 January. US production also fell by 290,000 barrels per day to 9.5 million.

US oil also rose 1.5% to $64.51 a barrel.

The RAC said that rising oil prices were likely to have “a knock-on effect in the forecourt due to the increase causing the wholesale price of fuel to rise”.

The price of unleaded petrol has already risen by nearly 5p since November to 121.27p per litre, while diesel prices have jumped 3p to 123.97p over the same period.

It said that cost of filling an average 55-litre family car was now £66.69 for petrol and £68.18 for diesel.

An RAC spokesman said: “If oil stays at this level, pump price hikes will be almost inevitable.

“With households across the country still feeling the cost of Christmas this is not the start to 2018 anyone would have wanted. It could also negatively affect business and further fuel inflation.”

But the AA said: “Oil at $70 a barrel has yet to threaten a pump price surge on UK forecourts.”

An AA spokesman said petrol prices had risen in recent weeks after supermarkets put their fuel price war on hold.

According to data from the AA, supermarkets lowered petrol prices several times last year to a low of 111.8p a litre in July.

While the AA conceded that wholesale prices have risen, it added: “The current higher prices are more a reflection of reduced fuel price competition at supermarkets.”

By December, petrol was an average of 117.6p a litre at supermarkets and 121.9p ea litre at other outlets.

September 12, 2018
Oil pushes past $80 as Iran fears mount

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Oil has risen above $80 a barrel to its highest level this year amid concerns about supplies from Iran and a fall in US stockpiles.

Brent crude rose more than 1% to $80.13 – the first time it has breached $80 since late May.

The rise reflects concern about the impact of US sanctions against Iran that will target oil exports.

“Iran is increasingly becoming the preoccupation of the crude market,” said consultants JBC Energy.

“The last couple of weeks have seen the expected squeeze on Iranian crude flows taking shape, with overall outflows down markedly.”

Gordon Gray, HSBC’s global head of oil and gas equity research, said there were “real risks” that Brent could hit $100 a barrel.

“The fact that much higher supply is already needed from the likes of Saudi Arabia – and the low levels of spare capacity remaining – leave the global system highly vulnerable to any further significant outage,” he said.

‘Huge uncertainty’

Russian energy minister Alexander Novak said global oil markets were fragile due to geopolitical risks and supply disruptions.

He also warned of the impact of US sanctions against Iran: “This is a huge uncertainty on the market – how countries, which buy almost 2 million barrels per day of Iranian oil, will act. The situation should be closely watched, the right decisions should be taken.”

Opec, the Organization of the Petroleum Exporting Countries that accounts for 40% of global production, cut its forecast for oil demand growth next year in its monthly report.

Oil traders were also watching the progress of category 4 Hurricane Florence, which is expected to make landfall in the US by Friday.

US crude rose 91 cents to $70.16 a barrel.

In January Brent crude hit $70 a barrel for the first time since December 2014.

September 12, 2018
Brent crude suffers biggest value drop in two years

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Oil costs suffered steep falls on Wednesday after Libya mentioned it might spice up supply, at the same time as traders worry that business tensions will hit demand.

Brent crude dropped 6.9% – the most important decline in more than two years – to end at $73.40 a barrel for the worldwide benchmark.

US crude fell 5% to $70.38 a barrel – its worst one-day decline in a year.

The declines adopted a months-long rally that had larger prices to a few of the highest levels in recent years.

However, oil costs were unstable in latest weeks after the u.s. stated it will reinstate sanctions against Iran, a big producer.

Wednesday’s sell-off began after the declaration by way of Libya’s National Oil Corp that it might reopen four export terminals that were closed due to the fact past due June, shutting so much of the country’s oil output.

The falls got here in spite of a US govt document that American crude oil stockpiles fell by way of more than 12 million barrels ultimate week and are approximately FOUR% not up to moderate for this time of yr.

OPEC president Suhail Al-Mazrouei mentioned volatility in oil costs was not desirable: “Fluctuation isn’t excellent and we do not love to see plenty of fluctuation in the costs.”

Economists are worried that escalating business tensions among the us and China will hurt the worldwide economy, lowering demand.

On Tuesday, the u.s. unveiled a list of $200bn worth of goods to be hit with 10% tariffs, prompting China to vow counter-measures.

The again-and-forth adopted price lists on $34bn of each country’s items that went into impact last week

While fallout from the ones measures is expected to be somewhat restricted, that could modification if the fight continues.

China was the world’s largest oil importer remaining year, followed by way of the united states.

July 18, 2018