Worsening trade tensions between the United States and China have cast a dark cloud over crude prices. Add a heavy shower of refinery closures for maintenance works and it’s easy to see why oil markets are facing a perfect storm. Demand side fears have fueled the slide in crude oil prices. ICE Brent futures lost around US$16 per barrel, or 21 percent, of their value in early June from a 2019 high of $75.60 seen on April 25. Experts agree that a glum outlook for the global economy is to blame. “Financial markets continue to price in an increased probability of ‘recession’ in the next year,” Chris Midgley, Global Head of Analytics at S&P Global Platts said recently. Bickering over trade between China and the US — the world’s largest economies and consumers of crude — are causing forecasters problems. Platts Analytics has revised its oil consumption growth forecast lower. In Asia, which accounts for around 60 percent of global demand … [Read more...] about Demand side fears fuel oil price storm
Crude oil price news
Oil prices surge after suspected tanker attack near Iran
LONDON (REUTERS) - Oil prices jumped as much as 4 per cent on Thursday (June 13) after a suspected attack on two tankers in the Gulf of Oman near Iran and the Strait of Hormuz, through which a fifth of global oil consumption passes. The Marshall Islands-flagged Front Altair carrying naphtha and the Panama-flagged Kokuka Courageous carrying methanol have been evacuated and the crews were safe, shipping sources said. The charterer of Front Altair said the vessel was "suspected of being hit by a torpedo". The manager of Kokuka Courageous said it had been damaged as a result of a "suspected attack", but that its cargo was intact. The incident followed last month's nearby sabotage attacks on vessels off the Fujairah emirate, one of the world's largest bunkering hubs. Brent crude futures were up US$2.19, or 3.65 per cent, at US$62.16 a barrel by 1341 GMT (9.41pm Singapore time) on Thursday, having risen as much as 4.45 per cent to US$62.64. US West Texas Intermediate (WTI) crude … [Read more...] about Oil prices surge after suspected tanker attack near Iran
Oil prices surge after suspected attacks on tankers
LONDON: World oil prices surged on Thursday (Jun 13) on reports that two tankers had been attacked in the Gulf of Oman, worsening frayed tensions in the crude-rich Middle East region, analysts said.The surge in oil prices boosted share prices of energy companies, while global stock markets also won some support from the prospect of US interest rate cuts this year.Rising hopes of a rate cut has helped to offset lingering tensions over the long-running trade war between Washington and Beijing.Thursday's suspected tanker attacks, a second incident involving shipping in the strategic sea lane within just weeks, sent London's Brent North Sea oil rebounding more than four per cent in morning deals before trimming gains.The Gulf of Oman lies at the other end of the strategic Strait of Hormuz from the Gulf, part of a vital shipping lane through which at least 15 million barrels of crude oil and hundreds of millions of dollars of non-oil imports pass each day.'TENSION IS HIGH'"Tension … [Read more...] about Oil prices surge after suspected attacks on tankers
European stock markets rise, oil prices slip lower
LONDON: Stock markets gained ground in Europe on Monday (Jun 3) but oil prices wobbled before heading back downwards against a backdrop of US President Donald Trump's widening trade wars.The British pound was flat against the dollar after data showed that UK manufacturing contracted for the first time in three years as Brexit stockpiling dried up.Analysts said stocks were getting some support from buying in response to the May pullback when major indices fell almost seven per cent."If the stock market has anything going for it as it begins the month of June, it could be the burgeoning sense that investor pessimism is rising and that the market is appearing oversold on a short-term basis," remarked analyst Patrick O'Hare at Briefing.com.Trump's abrupt threat last week to hit Mexico with tariffs over immigration concerns had done little to reassure investors already anxious about the increasingly fractious US-China trade war.FEARS OF GLOBAL RECESSIONTrump, who began a state visit to … [Read more...] about European stock markets rise, oil prices slip lower
Global stocks, oil prices dive in ‘perfect storm’
NEW YORK (WASHINGTON POST, AFP) - World stock markets and oil prices slumped on Thursday (May 23) in a "perfect storm" of Europe elections, fresh economic gloom, the China-United States trade war, and beleaguered British Prime Minister Theresa May's decision to delay another key Brexit vote. The Dow Jones industrial average plunged 448 points at its low before clawing back late in the day to finish at a loss of 286 points, or 1.11 per cent, driving it into negative territory for the week. If the Dow were to finish in the red for the week, it would be the fifth week in a row and the first such slump in eight years. Technology continued to sink the blue chips as US President Donald Trump ratcheted up pressure on Chinese tech firms. United Technologies and IBM led the Dow Jones downward. Energy was hit by a steep drop in oil prices, dragging Exxon Mobil and Chevron with it. Energy, technology, industrials and financials were the biggest losers of 11 sectors. Utilities and real estate were … [Read more...] about Global stocks, oil prices dive in ‘perfect storm’