Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

MarketScreener Homepage  >  Commodities  >  WTI       


News SummaryAll newsMarketScreener Strategies

Oil Inches Higher, on Track for Weekly Gain

share with twitter share with LinkedIn share with facebook
share via e-mail
05/17/2019 | 10:52am EDT

By Amrith Ramkumar

-- Oil prices inched higher Friday and were on track for a fourth consecutive advance, boosted by geopolitical uncertainty surrounding supply from Iran and Venezuela despite some cautious sentiment about continuing trade talks.

-- West Texas Intermediate futures, the U.S. price benchmark, was up 0.7% at $63.33 a barrel on the New York Mercantile Exchange. Prices are up about 39% for the year, though they are down more than 4.5% from their April peaks.

-- Brent crude, the global price gauge, added 0.2% to $72.74 a barrel on London's Intercontinental Exchange.


Geopolitical Tensions: Tensions between the U.S. and Iran have ratcheted up this week, boosting oil as analysts brace for the possibility of even lower supply from the sanctions-hit Islamic Republic. Earlier this week, a U.S. official said Iran likely was behind recent attacks on oil tankers in waters off the United Arab Emirates, something Tehran has strenuously denied.

The possibility of intensifying military tensions in the Persian Gulf could add to supply uncertainty in the oil market, analysts say, with Iran and Venezuela already hit by U.S. sanctions and a battle for control in Libya also potentially leading to lower supply.

Those three countries were exempted from production cuts by the Organization of the Petroleum Exporting Countries that are in place through June and have also lifted prices. Venezuela and Iran alone accounted for about 37% of the 2.3-million-barrel-a-day drop in OPEC supply between November and April, according to Bank of America Merrill Lynch.

Analysts are waiting to see whether Saudi Arabia, the de facto head of OPEC, and other large exporters will continue curbing output beyond June.

Trade Fears: Stocks and other risk assets edged lower Friday with some analysts still wary of higher tariffs in the U.S.-China trade spat slowing the global economy and weakening commodity demand. Oil has generally traded in tandem with stocks in recent days as sentiment about the two sides reaching an agreement shifts, potentially limiting crude's Friday gains, analysts said.


Crucial Time: In addition to uncertainty surrounding trade talks and OPEC supply, new sulfur regulations for shipping fuels, known as IMO 2020, could also swing prices in the coming months.

"Weakness in manufacturing may drag down services if trade wars eventually hurt consumer sentiment. In a global downturn, Brent could slip to $50," Bank of America's analysts said in a note. "On the other hand, under a U.S.-China deal scenario, business confidence may return with a vengeance.... If a cyclical global demand upturn coincides with an IMO2020 boost, Brent crude oil prices could spike to $90."


-- Baker Hughes is due to release its weekly rig-count report later Friday at 1 p.m. ET.

Write to Amrith Ramkumar at amrith.ramkumar@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on WTI
07:16aNEWS HIGHLIGHTS : Top Global Markets News of the Day
07:16aNEWS HIGHLIGHTS : Top Energy News of the Day
07:00aOkea sees foreign oil majors leaving Norway's offshore in a decade
06:57aSupply concerns push spreads, cash premiums higher
06:35aJet cracks inch up, cash differentials flip to discounts
05:45aEuropean Stocks Slip After Gains in Asia
04:19aEuropean Stocks Slip After Gains in Asia
04:16aNEWS HIGHLIGHTS : Top Energy News of the Day
03:34aGoldman says commodity returns to grow amid easing monetary policy
12:17aNEWS HIGHLIGHTS : Top Energy News of the Day
More news
Chart WTI
Duration : Period :
WTI Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends WTI
Short TermMid-TermLong Term