Oil prices have started back up following Tuesday’s dramatic drop of more than three percent, despite the dollar’s continuing gains and ahead of the Energy Information Administration’s weekly data on crude stockpiles.
“The release of the weekly API oil inventories report showed an unexpected small drop of 400,000 barrels in crude oil inventories for the week ending 6th March against analysts’ estimates of a build,” said Myrto Sokou at Sucden Financial Research in London.
“It seems that there might be a potential end to the 8-week build streak of crude oil inventories if the U.S. Department of Energy confirms this trend in today’s report,” Sokou added.
NEW YORK (AP) — The seventh year of the U.S. bull market is off to a rocky start.
U.S. stocks fell sharply on Tuesday, wiping out this year's gains for the Dow Jones industrial average and the Standard & Poor's 500 index. Investors are nervous about the likelihood of the first increase in U.S. interest rates in nine years and a plunge in the value of the euro.
As the dollar reaches multi-year highs and supply gluts persist, oil dropped in trading early Tuesday. U.S. benchmark crude fell 41 cents to $49.59 a barrel, while in London Brent was 81 cents lower to $57.72, Reuters reports.
The drastic drop in oil prices has prompted South African petrochemicals firm Sasol to cut spending as well as 1,500 jobs -- with more savings likely in the future – although CEO David Constable envisions such moves across the industry will likely prompt a big price surge in 2017, The Wall Street Journal reports.
With inventories at the Cushing hub increasing less than expected, U.S. benchmark crude gained 39 cents to settle at $50 a barrel Monday, while in London, Brent – pressured by bond purchases by Europe’s Central Bank – fell $1.20 to $58.53, Reuters reports.
An increase in the strength of the dollar coupled with the continuing growth in crude supplies combined to pressure oil prices early Monday. U.S. benchmark crude was 15 cents higher to $49.76 a barrel, but in London Brent fell 30 cents to $59.43, Reuters reports.
NEW YORK (AP) — A strong jobs report shook up the financial markets on Friday.
U.S. employers added 295,000 jobs last month, the government said. That was more than economists were expecting and, combined with a drop in the unemployment rate, raised the likelihood of the Federal Reserve raising interest rates sooner than had previously been expected.
Energy companies whose collateral has shrunk as a result of the oil price slide are using different methods to deal with their debt: Some are refinancing with leveraged loans, others are selling bonds or stock or assets, Reuters reports.
An amended lawsuit filed by Petrobras investors in New York last week claims that auditor PricewaterhouseCoopers ignored red flags over a fraud and money laundering scheme that was kept a secret from shareholders, Bloomberg reports.
North Dakota and the Midwest shipped out an average of 732,000 barrels of crude per day in January, according to monthly statistics on crude-by-rail movements released for the first time Tuesday by the Energy Information Administration, The Hill reports.
Republicans may be urging states to turn their backs on Environmental Protection Agency rules limiting power plant carbon emissions, but Democratic Gov. Jay Nixon is gearing Missouri up to cooperate, going so far as to send officials to an EPA “policy academy” on ways to meet the new standards, the Springfield News-Leader reports.
New driller Independent Resources Management LLC -- which intends to focus on unconventional shale plays in places like the Anadarko Basin – is getting $500 million in backing from private equity firm Warburg Pincus, the Houston Business Journal reports.
Expansion deals announced by Dynegy Inc. last August are finally becoming a reality, with the company’s takeover of EquiPower Resources Corp. and assets from Brayton Point Holdings becoming final on Wednesday, and a transaction to add resources from Duke Energy closing on Thursday, E&E reports.