NEW YORK: Oil prices soared on Friday, with US futures closing out May with record monthly gains, on hopes that the US-China trade deal would remain intact and on falling crude production. West Texas Intermediate crude futures for July delivery settled at $35.49 a barrel, jumping $1.78, or 5.3%. July Brent crude closed at $35.33 a barrel, gaining 4 cents. However, the more active August contract ended at $37.84, rising $1.81, or roughly 5%. Both benchmarks saw steep monthly rises due to falling global production and expectations for demand growth as parts of the United States, including New York City, and other countries move to reopen after coronavirus-related lockdowns. WTI recorded an all-time monthly rise of 88% after trading negative last month. Brent logged an increase of about 40% for its strongest monthly bounce since March 1999. US President Donald Trump said his administration will begin to eliminate special treatment for Hong Kong in response to China plans to impose … [Read more...] about Oil surges 5% on US-China trade optimism, falling crude output
Oil tumbles on slowing chinese demand u s china trade spat
Even as an attempt to shore up the market, this move is destined to be counter-productive as it sends all the wrong signals to foreign institutional investors, who are already nervous though typically more reliable long-term holders of securities than Chinese retail investors, who regard the market as an extension of the casinos of Macau. … [Read more...] about What ails the Chinese economy?
Who needs a loss-making, inflexible oil refinery in a world where demand for petroleum has been obliterated? We’re about to find out.When consumption of transport fuels collapsed this year because of coronavirus, much of the industry moved into survival mode, cutting processing rates and even temporarily stopping refining in some cases. While that helped prop up the industry’s margins for a while, a combination of rising crude costs and still-weak end-user demand are starting to bite.With many oil traders and analysts expecting a slow and uncertain recovery in demand, there’s now an open question about where that leaves refineries supplying tens of billions of barrels of fuel each year. It seems likely that many of the weaker plants will be permanently shuttered.“The Covid situation has accelerated the rationalization process that was always coming,” said Spencer Welch, vice president of oil markets and downstream consulting at IHS Markit. “It will … [Read more...] about View: Covid-19 will hasten the demise of many oil refineries
The biggest US bank has been doing business in China since 1921. Chief Executive Officer Jamie Dimon has said that his firm is committed to bringing its “full force” to the country. This year it applied for full control of an asset management firm as well as a securities venture, and is expanding its office space in China’s tallest skyscraper in downtown Shanghai. … [Read more...] about Wall Street has billions to lose in China from rising strain
NEW YORK: US crude marketing company Eighty-Eight Oil LLC has declared force majeure after oil producers across the Rockies and North Dakota shut production as the coronavirus eroded demand and sent prices plunging, four sources familiar with the matter said.The company declared force majeure after producers selling oil to them shut production, causing Eighty-Eight to be short on barrels that they had committed to sell, two sources said. US producers have shut wells and idled rigs as prices have dropped 45 per cent this year, making production unprofitable. In North Dakota, the second-largest producer after Texas, output is down by more than 500,000 barrels per day, state officials said. Last year, North Dakota produced 1.4 million bpd. Eighty-Eight Oil LLC markets crude from the Rocky Mountain region and trades crude in Clearbrook, Minnesota, a major hub for Bakken crude, traders said. The company is a unit of True Companies of Casper, Wyoming. A spokesman said the company doesn't … [Read more...] about Oil marketing firm Eighty-Eight oil declares force majeure: sources