|Day's range||52.40 - 52.40|
The Trump administration believes ahead of an expected OPEC+ meeting this week that major oil producers such as Saudi Arabia and Russia will honor their pledges to cut crude production and will not damage the global economy by changing course, a senior official said on Tuesday. "We trust that other major oil producers will not revert to policies that impede an orderly and swift recovery from these unprecedented global economic conditions," a senior administration official told Reuters in response to a question about the administration's approach to global oil producers ahead of the OPEC+ meeting expected on Thursday.
Stock futures kicked off the overnight session hugging the flat line Tuesday evening, as investors set their sights on more major cities’ plans to reopen businesses in the near-term as the coronavirus pandemic eased.
Stocks rose, tracking advances in global equities as investors eyed stabilizing economic data alongside ongoing protests across the country, which spurred some concerns of a ramp-up in coronavirus cases following a deescalation in the outbreak.
U.S. shale oil producers are beginning to reverse production cuts as prices recover from historic lows, underscoring shale's ability to quickly adjust to pricing and posing a challenge to OPEC as it considers extending production curbs. U.S. producers slashed output in April and May as oil prices collapsed due to a supply glut and as restrictions on populations worldwide to slow the COVID-19 pandemic destroyed fuel demand. Shale producers Parsley Energy Inc <PE.N> and EOG Resources Inc <EOG.N> on Tuesday disclosed plans to restore some or all of their output cuts.
Brent oil is nearing the $40 mark as rumors that the OPEC+ production cuts will be extended gain momentum
Marshall Islands-based Afranav Maritime Ltd, Adamant Maritime Ltd and Sanibel Shiptrade Ltd, as well as Greece-based Seacomber Ltd, all own tankers that lifted Venezuelan oil between February and April of this year, the Treasury Department said. "These companies are transporting oil that was effectively stolen from the Venezuelan people," Secretary of State Mike Pompeo said in a statement.
Silver met resistance below $18.50 but stays above $18.00.
Investors need to pay close attention to Callon Petroleum (CPE) stock based on the movements in the options market lately.
The world's biggest oil producers are close to extending output cuts as part of a battle to shore up prices following a collapse in demand. Russia and Saudi Arabia are inching closer to a deal which will keep production low as much of the world slowly emerges from lockdown. Talks between the two sides sent the Brent crude benchmark rallying to almost $40 a barrel, its highest since early March. Oil prices rise if less of the fossil fuel is being sold on the market because buyers are forced to outbid each other. A conference call between Moscow and nations in the Saudi-led Opec cartel which was originally planned for June 9 has been brought forward to this Thursday in a bid to secure agreement. Riyadh is said to be pushing for bigger production cuts to support oil prices, but other nations are keen to increase output to bring in more revenue. Under the current deal, agreed in April, a reduction of 9.7m barrels a day - about a tenth of global production - will fall to 8m from July 1. Friction has emerged between Russia and Saudi Arabia, the two countries responsible for triggering a price war in March that along with the pandemic sent oil prices crashing. They were later the driving force behind the cuts as part of a bid to repair relations. The Saudis are keen to maintain the current level of cuts until the end of the year, while Russia is said to be pushing for gradual output hikes. The pair are discussing a compromise that would see cuts maintained until September 1.
The direction of the July WTI crude oil futures contract is likely to be determined by trader reaction to the 50% level at $36.07.
Essentially, the current rally lacks the momentum to continue as bullish traders await the next catalyst to drive gold prices higher.
China is reviving a $20 billion petrochemical project in eastern Shandong province as part of efforts to dial up infrastructure spending to support an economy struggling with the impact of the coronavirus pandemic, two China-based industry sources said. The 400,000 barrel-per-day (bpd) refinery and 3 million tonne-per-year ethylene plant in Yantai, Shandong, the country's hub for independent oil refineries, was proposed years ago but approval has been slowing in coming because of China's struggle with excess refining capacity. China's state planner, the National Development & Reform Commission (NDRC), gave initial approval on Monday for the project, allowing Shandong province to start planning for construction, said the sources with knowledge of the approval.
The Commitments of Traders report covering positions held and changes made by money managers in the week to May 26 found that speculators maintained strong buying interest in crude oil while selling was most noticeable in natural gas, gold and the three major crops.
Investing.com - Oil markets traded higher Tuesday, with traders looking ahead to the next meeting of the major producers amid expectations they will agree to extend record production cuts.
Russia is likely to be the key obstacle in any extension. Furthermore, they are unlikely to agree to an extension which goes beyond two months.
Russian oil and gas condensate production fell to 39.7 million tonnes (9.39 million barrels per day) in May, near its target under a deal within the OPEC+ group, Interfax news agency reported on Tuesday, citing energy ministry data. The figure was in line with data from sources, reported by Reuters on Monday, and down from 11.35 million barrels per day (bpd) in April. Under the agreement between Russia and the Organization of the Petroleum Exporting Countries, a group known as OPEC+, Moscow has pledged to reduce its output by around 2.5 million bpd to 8.5 million bpd to help support oil prices.
With the RBA holdings policy unchanged, the focus returns to the key risk drivers. Continued unrest in the U.S and tensions between the U.S and China are in focus.
Oil prices climbed by more than $1 a barrel on Tuesday on hopes that major crude producers will agree to extend output cuts during a video conference expected to be held this week and as countries and U.S. states begin to reopen after coronavirus lockdowns. "There's the anticipation that OPEC+ is going to agree to extend their current levels for another two months, and at the same time, the market anticipates that the reopening of economies around the world will increase demand and will get us in a position such that, by August, the oil market will be in balance," said Andy Lipow, president of consultants Lipow Oil Associates. Under the original OPEC+ plan, the cuts were due to run through May and June, scaling back to a reduction of 7.7 million bpd from July to December.
Oil rose on Wednesday to a near three-month high amid optimism that major producers will extend production cuts as the world recovers from the coronavirus pandemic. Brent crude <LCOc1> was up 22 cents, or 0.6%, at $39.79, by 0003 GMT, the highest since March 6, having gained 3.3% on Tuesday. The Organization of the Petroleum Exporting Countries and others including Russia may extend production cuts of 9.7 million barrels per day (bpd), or about 10% of global output, into July or August, sources told Reuters.
Crude oil markets continue to grind higher during the trading session on Tuesday, as we look likely to try to fill the gap above.
Gold markets continue to try to press to the upside,reaching towards the downtrend line which is part of the symmetrical triangle that has been a major feature.
Russian oil production, excluding gas condensate, fell to 8.59 million barrels per day (bpd) in May, near country's target under a an OPEC+ pact, the energy ministry said on Tuesday. The Interfax news agency, citing ministry data, had earlier said that Russian oil and gas condensate production declined to 39.7 million tonnes (9.39 million bpd) in May. That was in line with data from sources, reported by Reuters on Monday, and down from 11.35 million bpd in April. Under the agreement between the Organization of the Petroleum Exporting Countries, Russia and other producers, a group known as OPEC+, Moscow has pledged to reduce output by about 2.5 million bpd to 8.5 million bpd to support oil prices.