Oil price up on distillate strength, supply concerns
Brent crude LCOc1 futures gained 44 cents, or 0.4%, to settle at US$107.58 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 48 cents to settle at $105.17 a barrel.
NEW YORK: Oil prices reversed course to settle in positive territory on Monday on a rally in the diesel market and fears that supply might be crimped by a potential European Union ban on Russian crude.
Brent crude LCOc1 futures gained 44 cents, or 0.4%, to settle at US$107.58 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 48 cents to settle at $105.17 a barrel.
Diesel futures HOc1 continued to rally after rolling over to the June contract on Monday, rising 5% to $4.0172 per gallon as a low supply of inventories globally put pressure on WTI and Brent prices.
"The main item was a further strengthening in the diesel market that acted to pull the rest of the complex higher," said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
Both benchmarks fell by more than $2.00 earlier in the session on news that the European Commission may spare Hungary and Slovakia from a Russian oil embargo as it prepares to finalize its next batch of sanctions on Russia on Tuesday.
The EU is leaning toward banning Russian oil imports by the end of the year, according to two EU diplomats, after talks between the European Commission and EU member states over the weekend.
Hungary will not vote for any measures prepared by the European Union that could endanger the security of its oil or gas supply, Foreign Minister Peter Szijjarto said, reiterating the country's position on Monday to RTL television.
Around half of Russia's 4.7 million barrels per day (bpd) of crude exports go to the EU, supplying about a quarter of the bloc's oil imports in 2020. Read full story
On the demand side, U.S. factory activity grew at its slowest pace in nearly two years in April, according to a survey from the Institute for Supply Management (ISM) on Monday. The ISM's index of national factory activity fell to a reading of 55.4 last month, which is still considered to be a mark of expansion.
"U.S. economic data still indicated expansion in the manufacturing sector, far from a recessionary number," said Phil Flynn, market analyst at Price Futures Group in Chicago.
Markets in Japan, Britain, India and across Southeast Asia were closed for public holidays on Monday.
China released data on Saturday showing that factory activity in the world's second-largest economy contracted for a second straight month to its lowest level since February 2020 because of COVID-19 pandemic-related lockdowns. Read full story
"A slowing to that extent, when China is already suffering from a property bust and worries about its (until recently) increased regulation, is potentially a major issue for commodity markets and the world economy," Tobin Gorey, a Commonwealth Bank commodities analyst, said in a note.- Reuters
https://www.thestar.com.my/business/business-news/2022/05/03/oil-price-up-on-distillate-strength-supply-concerns
Singapore Investment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Trading Journal As Of 19 Apr 202419 hours ago
-
-
-
-
Keyboarding Warriors1 day ago
-
-
-
-
-
-
What, Me Worry?2 days ago
-
-
-
-
-
Weekly Markets Outlook2 days ago
-
-
-
-
Portfolio Update3 days ago
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Beware Of Scams4 days ago
-
-
-
Buying a home for face5 days ago
-
-
-
-
-
-
-
-
-
-
-
Finance Investment Movement 441 week ago
-
-
Market indeed coming down1 week ago
-
-
-
-
-
-
Banks and Miles Report – Mar 20242 weeks ago
-
-
Revisiting Bitcoin2 weeks ago
-
-
-
-
2024 (Portfolio Update)2 weeks ago
-
-
-
Retirement Journey Update for March 20243 weeks ago
-
-
-
1Q 2024 Investment Strategy Update3 weeks ago
-
-
Portfolio Summary for March 20243 weeks ago
-
-
-
Portfolio (March 30, 2024)3 weeks ago
-
-
-
QAF #77 - 2023 Annual Report3 weeks ago
-
Lentor Hills Residences4 weeks ago
-
Burnt out!4 weeks ago
-
-
-
Feb 2024 Expenditure4 weeks ago
-
-
Starting Our Second Property Cycle5 weeks ago
-
-
-
-
-
-
-
Feb 2024 Portfolio1 month ago
-
-
Summary of February 20241 month ago
-
The Market Is A Scam!1 month ago
-
-
-
-
-
-
-
-
Options Trading Journal Jan 20242 months ago
-
-
-
-
-
-
-
-
End of 2023 Review3 months ago
-
-
Year 2023 DIYQuant Portfolio Performance Report3 months ago
-
Monthly Summary of November 20234 months ago
-
3 Simple Poker Strategies for Beginners4 months ago
-
Migration of website4 months ago
-
-
Abandon REITS?5 months ago
-
-
-
-
-
-
-
-
-
August 2023 Portfolio Updates7 months ago
-
-
-
-
Hello SP Group, I'm Back!9 months ago
-
-
-
-
A New Light11 months ago
-
-
-
-
-
-
-
Demoralized1 year ago
-
2022 Thoughts, Hello 2023!1 year ago
-
Series of Defaults for Maple Finance1 year ago
-
Takeaways from “Sea Change”1 year ago
-
-
Greed is Coming Back1 year ago
-
-
-
-
-
-
-
-
-
-
-
What is Overemployment1 year ago
-
-
-
-
-
-
-
-
-
-
-
Home
ARMADA
CARIMIN
DELEUM
energy
HENGYUAN
HIBISCS
PETRONM
Oil price up on distillate strength, supply concerns