Why The Oil Price Just Rallied Again

11 April, 2018, 12:38 | Author: Gladys Mathis
  • Reuters: Oil prices rise on hopes US trade spat with China may ease

Crude prices at the end of last week closed down roughly 2%, capping their worst week in two months, as the US threatened new tariffs on Chinese imports and Beijing responded in kind.

Investors are waiting to see how the conflict in Syria will unfold after Trump promised to make a decision on whether he will attack "very quickly".

Brent crude futures were at $67.42 per barrel, up 31 cents, or 0.5 percent.

"If China was to impose counter tariffs on USA crude, it would become quickly very heavy for the US supply and demand picture, resulting in US crude oil price pressure that would have a negative impact on global oil prices", according to Petromatrix. "I hope that both sides understand the risks", said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

In post-settlement trading, Brent hit $71.34, its highest since December 2014.

US West Texas Intermediate (WTI) crude futures for the May contract edged higher by 1.2 percent to $64.22 per barrel, while global benchmark Brent futures for June delivery climbed by 1.2 percent to $69.53 per barrel.

Nadal swats Zverev aside to keep Spain alive
Nadal has been part of four Davis Cup winning teams thus far and is keen to help his team progress to the last four. Croatia will take on the United States in the other semi-final, with both ties to be played on 14-16 September.


Floyd Mayweather Hints at Ending Retirement With UFC Bout
Boxing superstar Floyd Mayweather might come out of retirement for another fight, but only if it's in the UFC. Lobov was subsequently pulled from the card, while McGregor was arrested and released on $50,000 bail.


WWE WrestleMania 34 Predictions
- WWE Superstar Sasha Banks shared a photo of her in front of the full, finished WrestleMania 34 set. It's Jax's time to shine and she may even defeat Bliss in a very fast and convincing fashion.


Oil prices overall remain optimistic due to strong demand, as well as the supply curb by the Organization of the Petroleum Exporting Countries (OPEC) and Russian Federation. But prices began to retrace losses Monday afternoon after American and Chinese officials moved to soften their rhetoric (http://www.marketwatch.com/story/trump-administration-dials-down-the-rhetoric-on-china-tariffs-2018-04-08) over the trade spat. "Usually, what the Saudis want, the Saudis get", said Flynn.

"It's not so much "risk on/risk off", as it is "trade war on/trade war off" and, at the moment, we're "trade-war off", London Capital Group's Jasper Lawler said.

Crude prices at the end of last week closed down roughly 2%, capping their worst week in two months, as the USA threatened new tariffs on Chinese imports and Beijing responded in kind.

The U.S. Energy Information Administration said it expected domestic crude oil production to rise by 750,000 barrels per day (bpd) to 11.44 million bpd next year, more than previously expected.

Oil markets have been supported by healthy demand and supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC). Only Russia pumps more crude out of the ground, at nearly 11 million bpd.

May natural gas ended at $2.656 per million British thermal units, down 1.4%.

Recommended:

  • Trump doubles down on defense of embattled EPA chief

    Trump doubles down on defense of embattled EPA chief

    No previous EPA chief has ever received a 24/7 security detail, the agency's inspector general has said . The provision allows Pruitt to hire employees without gaining approval from the White House or Congress.
    Iran warns U.S.  against deal violation

    Iran warns U.S. against deal violation

    However, "our response will be stronger than what they imagine, and they will receive it (the response) within a week", he said. The attack took place hours after U.S.

    Israel bans entry of vehicle tires into Gaza after massive tire-burning

    Live ammunition, rubber-coated steel bullet and tear gas fired at the rallies by Israeli soldiers wounded at least 1,600 thus far. Seven Palestinian men were shot by the Israeli army on Saturday in the second mass protest along the border of Gaza .
  • Australia Affirms Vanuatu Ties Amid Report of Chinese Base

    Australia Affirms Vanuatu Ties Amid Report of Chinese Base

    China established its first overseas base outside the South China Sea last August in Africa's Djibouti. China is also backing an upgrade to the Vanuatu airport.
    'Black Panther' Passes 'Titanic' To Become 3rd On All-Time Box Office List

    'Black Panther' Passes 'Titanic' To Become 3rd On All-Time Box Office List

    Worldwide, " Black Panther " has earned $1.29 billion and now stands as the tenth highest grossing film at the global box office .
    Indian women create history, win first team table tennis CWG gold

    Indian women create history, win first team table tennis CWG gold

    At the Gold Coast Hockey Centre, the Indian women's hockey team rallied to beat England 2-1 for their second win in three matches. It was Vaivai's failure of lifting 103kg in her third attempt which got both the athletes on level pegging.
  • Shah's remarks show BJP rattled: Congress

    Shah's remarks show BJP rattled: Congress

    We are privileged to receive the blessings of people of all age groups, across all sections of society. On Friday, Shah had said, "I have heard that whenever floods happen, all the animals come together".
    Guardiola admits Gundogan inclusion backfired on City

    Guardiola admits Gundogan inclusion backfired on City

    Significant damage was caused, notably smashed front windows, and City needed a replacement bus for their journey home. Liverpool fans flanked the new route, with some pelting the bus with cans, bottles and flares.
    Raikkonen tops 3rd practice for Bahrain GP, Hamilton 4th

    Raikkonen tops 3rd practice for Bahrain GP, Hamilton 4th

    And the race, scheduled for Sunday, starts at twilight and finishes under lights in order to avoid most of the heat of the day. The Briton had been off the pace in the day's two free practice sessions, ending up the fourth fastest in the evening.
  • OnePlus 6 to be announced on May 5

    OnePlus 6 to be announced on May 5

    The notch has the notification light, proximity sensor, earpiece and front camera in that order from left to right. Inside, the company has already confirmed that the OnePlus 6 will house a Snapdragon 845 and up to 8 GB RAM .

    Antoine Griezmann salvages point in Madrid derbi at Bernabeu

    Real Madrid's shout for a penalty was waived off by the referee and Marco Asensio struck the woodwork. Zinedine Zidane's men now trail Atletico by four points with just seven La Liga games to play.
    Feds seizing Backpage.com, websites in enforcement action

    Feds seizing Backpage.com, websites in enforcement action

    In 2016, Backpage's CEO Carl Ferrer was arrested in Houston on pimping charges, states NPR; they were later dismissed. But the site has since then faced a slew of other lawsuits alleging child sex trafficking.


Popular

Japan sack manager Vahid Halilhodzic just two months before the World Cup
SUN SIX is the new predictor game where you can win £1million - just by correctly picking the results of six games. Respected veteran Akira Nishino has been named as Japan's chief coach ahead of the FIFA World Cup Russia 2018.

Trump troop request creates opening for gov's to say no
The Arizona national guard said planners would coordinate the deployment of 150 troops . President Donald Trump wants to send as many as 4,000 Guard members to the border .

Guardiola: Man City must be "almost perfect" to advance
Liverpool "can beat anyone", says John Arne Riise, with Jurgen Klopp's side capable of winning the Champions League in 2018. But we can't make a big deal of this and forget all the great things we have done until now.

Welbeck double powers Arsenal to 3-2 win over Southampton
Jack Stephens saw red for reacting to a foul from Jack Wilshere before Mohamed Elneny was also sent off for pushing Cedric Soares. Defeat for Southampton leaves them in the relegation zone and three points from safety after they lost their early lead here.

Israeli forces martyr 9 protesting Palestinians
Tens of thousands were present at the border area with Israel for their demand to have rights for return for Palestinian refugees. Israeli Prime Minister Benjamin Netanyahu addressed the riots on the Gaza border over the last few weeks on Saturday, saying.

Australia on top of Commonwealth medal table
Women's 4 x 100m Freestyle Relay Final - Optus Aquatic Centre - Gold Coast , Australia - April 5, 2018. In Gymnastic England and Canada won 2, 2 Gold Medals while Australia won 1 Silver and one Bronze medal.

Brazilian Agribusiness Assesses Gains from Trade War between United States and China
Markets might be able to shrug off trade concern if there's a good jobs report this morning or an agreement on Nafta, he says. The public has until May 11 to submit comments on the proposed list of USA tariffs, with a hearing scheduled for May 15.

5 killed in rebel mortar attack in Damascus' Douma military showdown
The resumption of strikes stunned civilians. "There were 20 strikes in 15 minutes", Mohammed, a medic, told AFP . A spokesman for his office, however, said an operation against Tel Rifat might not be needed.

Commonwealth Games: Nigeria's Anyalewechi misses weightlifting medal
Earlier on the day, India has already added a Gold medal to their tally with Sathish Sivalingam claiming victory in weightlifting .

Woman, 19, accused of killing teen now charged with robbery
A man and a woman are each facing more than a dozen robbery charges after the pair was arrested following a robbery on Tuesday. A robbery suspect was arrested after leading officers on a chase down Platte Avenue Thursday evening, according to police.