|Day's range||70.10 - 71.77|
Ministers are facing a backlash over “pointless” changes made to the oil and gas windfall tax, with North Sea firms warning jobs and investment are still at risk.
Despite the bearish sentiment associated with the Zacks Oil and Gas - International E&P industry, we advise focusing on fundamentally sound companies like KOS, TUWOY and CRNCD.
Oil prices edged higher Friday, rebounding after the previous session’s sharp losses after the White House denied a report that a nuclear deal between the U.S. and Iran was in the offering. Both benchmarks had broken key support levels on Thursday–$70 in the case of the U.S. contract and $75 for Brent– after a report appeared on the Middle East Eye website of an interim deal that would allow the Islamic republic to legally export some of its sanctioned oil, increasing global supply. This was subsequently refuted by U.S. authorities, with a spokesperson for the White House National Security Council calling the report "false and misleading."
The UK government has introduced a price floor for the windfall tax on oil and gas producers, arguing that it is necessary to support investment and boost the country’s energy security. The tax rate, which was raised to 75 per cent last year at the peak of the energy crisis, will revert to the pre-crisis level of 40 per cent if oil and gas prices fall below their long-term average under the so-called Energy Security Investment Mechanism. The floor has been set at $71.40 for crude oil and £0.54 a therm for gas.
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China’s commodity market is ripe with complexities and inconsistencies, with strong crude imports, but weakening copper demand, hinting at an uncertain economic recovery.
Investing.com -- Oil prices extended losses into Asian trade on Friday amid persistent fears that slowing economic growth will erode demand this year, with dismal readings from China further denting sentiment.
Britain’s windfall tax on oil and gas producers is set to be scaled back as part of efforts to boost investment in the North Sea, according to three people briefed on the government’s plans. The chancellor, Jeremy Hunt, is expected to confirm plans to introduce a “floor” on the 35 per cent levy in the coming days so that it only applies if oil and gas prices trade above a certain level. Treasury officials are due to meet the oil and gas industry on Friday at a forum in Aberdeen.
Crude prices tumbled anew Thursday before closing off their lows as a report suggesting a U.S.-Iran nuclear deal that would let the Islamic republic legally export some of its sanctioned oil was refuted by the White House. “This report is false and misleading," a spokesperson for the White House National Security Council said in comments carried by Reuters, referring to the report that appeared on the Middle East Eye website. The denial didn’t stop oil markets from registering a substantial drop on the day, though they finished off the bottom.
The commodity markets include everything from oil to copper to agricultural products. Katy Kaminski, AlphaSimplex's Chief Research Strategist tells Yahoo Finance Live what signals these markets are signaling about the global economy.
A proposal to drill for oil in the sea off the mouth of the Amazon river has exposed a rift in the cabinet of Brazilian president Luiz Inácio Lula da Silva, lining up an important test of his pledges to halt environmental destruction. National oil and gas company Petrobras has lodged an appeal after the environmental agency rejected its request to drill an exploratory well in the zone known as the Foz do Amazonas, or Amazon Mouth basin, some 175km from the country’s northern coast.
Oil prices rose Thursday, helped by Saudi Arabia’s surprise production cut and signs of increased Asian demand, but concerns about the important western markets have limited gains. Saudi Arabia’s decision, announced Sunday, to cut its crude output by 1 million barrels per day in July on top of a broader OPEC+ deal to limit supply into 2024 has created a support base for the market. “Crude oil demand from Asia has been recovering over the last few months as the pace of interest rate hikes slows down and economic growth picks up,” said analysts at ING, in a note.
Investing.com - In recent sessions, the TTF in Amsterdam has seen a significant rally that has taken the July contract to touch €29 per MWh today with a rise of over 8% and 24% at the beginning of the week.
Less crude to the global markets is likely to boost oil prices, which could result in more expensive flight tickets for consumers.
This column makes no apology for returning to the subject of Shell so quickly after its last look a month ago. That came after May’s bumper first-quarter profits statement and the occasion this time is last weekend’s Opec+ meeting in Vienna.
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Investing.com -- Oil prices kept to a tight range in early Asian trade on Thursday as markets took stock of mixed demand signals from major world economies, while initial support from a Saudi production cut now appeared to be waning.
Recent moves by Saudi Arabia, Russia and China have raised fears that the U.S. dollar could lose its preferred status for oil trading. And yet alternative national currencies aren’t that appealing. Could a Bitcoin-like currency do better?
Teck Resources (TECK) indicates that it has received indications of interest for deals for its coal assets.
Crude prices rose about 1% Wednesday after mixed data on U.S. fuels helped oil longs recoup losses from a day ago and reset trajectory in a market showing little regard thus far for deep production cuts announced by Saudi Arabia. New York-traded West Texas Intermediate, or WTI, crude settled up 79 cents, or 1.1%, at $72.53 per barrel, offsetting Tuesday’s decline of 0.6%. WTI and Brent rallied as much as 2% earlier in the session, with some traders attributing the run-up to belated enthusiasm over Saudi Arabia’s declaration after Sunday’s meeting of the OPEC+ alliance that it will cut an additional one million barrels per day in July to effectively take 2.5M barrels off its regular daily output.
OPEC+ decided to cut oil production by one million barrels a day. Rebecca Babin, CIBC Private Wealth, US Senior Energy Trader, joins Yahoo Finance Live to discuss the economic impact of the decision, the EIA reporting that crude oil inventories fell 452,000 barrels, how this will impact the summer travel season, and the geopolitical impact.
Exploration and production companies like SM Energy (SM), Matador (MTDR) and Pioneer (PXD) are likely to witness big gains from a healthy crude price trajectory.
U.S. crude stockpiles fell last week bucking expectations for a build but inventories of fuel jumped way above forecasts, the government agency in charge of energy data said as it issued a mixed weekly report on supply-demand amid the start of peak travel for summer. The weekly draw in crude came despite a 1.9 million barrel release from the Strategic Petroleum Reserve, or SPR. The Biden administration has been tapping the SPR since late 2021 to prevent extraordinary tightness in U.S. crude supply that could lead to spikes in pump prices of fuel.
This article explores three key economic events that oil traders should monitor closely.