Oil 13 (Oct 23 - Dec 27)

[winston]

US Purchases 1.2M Barrels of Oil to Replenish Strategic Oil Reserves

The US Department of Energy said that the country plans to buy 1.2 million barrels of oil to replenish its strategic oil reserves.

The Department said it plans to buy oil from 2 companies at an average price of US$77.57 per barrel.

18 bids were received for the purchase. Last year, the US government conducted the largest-ever sale of strategic petroleum reserves, totaling 180 million barrels, to stabilise oil prices.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

More Hedge Funds Are Shorting Oil as Negative Sentiment Spreads

by Julia Fanzeres

Money managers have more than quadrupled bearish bets on US oil in the past month.

Shorts are now the highest since July. At the same time, hedge funds slashed wagers on rising prices for the sixth straight week.

Sentiment has soured in recent weeks as a dimming global demand outlook and rising US supplies erased the risk premium from the Israel-Hamas war.

Source: Bloomberg

https://finance.yahoo.com/news/more-hed ... 46839.html

[winston]

Oil markets less tight than expected as supply climbs, IEA says

By Grant Smith

[quote]
Upward revisions to demand are outpaced by upgrades to supplies.

Production growth in the US and Brazil has been outperforming forecasts.

World oil demand will climb by 2.4 million barrels a day this year to a record annual average of 102 million barrels a day, the IEA said. Record Chinese consumption will account for about 75% of the increase, while US fuel use drove the upgrade to the forecast.


Saudi Arabia has deepened its output cuts by one million barrels a day, and several analysts predict it will continue the restraint into next year, potentially announcing the move when the Opec+ alliance meets on Nov 26.

[quote]

Source: Bloomberg

https://theedgemalaysia.com/node/689940

[winston]

Oil dips on prospect of peak US production, despite strong demand signals

China's economic activity perked up in October as industrial output increased at a faster pace and retail sales growth beat expectations.

Source: Reuters

https://www.thestar.com.my/business/bus ... nd-signals

[winston]

Oil falls nearly 5% as demand worries, inventory builds send prices off 20% from 2023 highs

by Ines Ferré

Concerns of a supply squeeze faded amid rising inventories and fears of a slowdown in the global economy.

Over the last month, WTI crude oil is down more than 16% while the price of Brent crude is off more than 14%.

US inventories at Cushing, Okla. — used as the benchmark in WTI oil pricing — showed stockpiles rose by 3.6 million barrels last week, more than twice expectations for a build of 1.2 million barrels.

Source: Yahoo Finance

https://finance.yahoo.com/news/oil-fall ... 01757.html

[winston]

Oil prices jumped more than 4 per cent on Friday, rebounding from a four-month low hit in the previous session, as investors who had taken short positions took profits and while US sanctions on some Russian oil shippers lent support.

Brent crude futures settled up US$3.19, or about 4.1 per cent, at US$80.61 a barrel, while West Texas Intermediate crude (WTI) rose US$2.99, or 4.1 per cent, at US$75.89.

Some of the losses were offset after the US imposed sanctions on maritime companies and vessels for shipping Russian oil sold above the Group of Seven’s price cap.

Still, both benchmarks ended the week more than 1 per cent lower, their fourth straight weekly decline, mostly weighed down by a rise in US crude inventories and sustained record high production.

China’s deepening property crisis and slowing industrial growth also weighed.

Source: Phillips

[winston]

IEA sees surplus oil supply in 2024 even if OPEC+ extends current cuts

by Nerijus Adomaitis

At the moment, however, the oil market is in a deficit and stocks are declining "at a fast rate".

Global oil stocks are at low levels, which means that you risk increased volatility if there are surprises on either the demand side or the supply side.

OPEC+ have already pledged total oil output cuts of 5.16 million barrels per day (bpd), or about 5% of daily global demand.

The cuts include 3.66 million bpd by OPEC+ and additional voluntary cuts by Saudi Arabia and Russia.

Source: Reuters

https://finance.yahoo.com/news/iea-sees ... 58310.html

[behappyalways]

OPEC+ Nearing Compromise In Spat With African Oil Producers Over Quotas
https://www.zerohedge.com/commodities/o ... ver-quotas

[winston]

Buy This Commodity Now (low-risk/high-reward trade)

by Jeff Clark

$92 per barrel in late September. It traded near $74 yesterday. That’s a 20% drop in about eight weeks.

Oil is setting up to make an important bottom sometime this week – perhaps just ahead of the OPEC meeting on Thursday.

Buying oil and oil stocks into weakness looks like a low-risk/high-reward trade.

Source: Jeff Clark Trader

https://dailytradealert.com/2023/11/30/ ... ard-trade/

[winston]

Oil consumption will climb 16% over the next two decades

Oil consumption will climb 16% over the next two decades to reach 116 million barrels a day in 2045, about 6 million a day more than previously predicted, the Organization of Petroleum Exporting Countries [OPEC] said in its World Oil Outlook.

Road transportation, petrochemicals and aviation, will drive the growth, it said.

To put a dollar amount on it, OPEC says $14 trillion in investment is needed to keep up with demand that will boom as developing nations' economies and populations continue to grow.

First, demand for oil in wealthier developed nations will eventually begin to taper as the transition to alternative sources unfolds, but OPEC says it will be more than offset by increasing demand in developing countries.

Second, that process will take decades, during which time OPEC expects the predominant sources of global energy will be oil, coal and natural gas.

Source: Investor Place