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Page added on April 24, 2018
Crude Surges to Three-Year High as Saudi-Yemen Conflict Heats Up
Crude surged as strife in the Mideast region that’s home to almost half the world’s oil worsened.
Futures in New York settled at their highest since December 2014, erasing earlier losses and nearing $69 a barrel, after Iranian-backed Houthis in Yemen launched unsuccessful missile attacks against Saudi Arabia, while kingdom-led forces killed a senior leader of the rebel group. The flare-up countered a slump in commodities after the U.S. softened its position on sanctions against Russian aluminum giant United Co. Rusal.
“It seems to be an escalation, but Saudi Arabia has been very good at shooting these missiles down,” said Phil Flynn, senior market analyst at Price Futures Group Inc. in Chicago. “The concern for oil really comes at what happens if it hits?”
Oil has risen more than 5 percent this month amid geopolitical tensions in the Middle East. At the same time, OPEC’s cuts have continued to erode a worldwide excess. It won’t be necessary to extend historic supply limits if oil prices keep climbing, Iranian Oil Minister Bijan Namdar Zanganeh said, according to the ministry’s Shana news service.
West Texas Intermediate crude for June delivery rose 24 cents, or 0.4 percent, to settle at $68.64 a barrel on the New York Mercantile Exchange. Earlier, futures dropped as much as 1.8 percent.
Brent crude for June delivery added 65 cents to end the session at $74.71 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a $6.07 premium to June WTI, the widest since January.
The Bloomberg Dollar Index rose as much as 0.8 percent for a fifth session of gains, keeping a lid on rising crude prices.
“Aluminum led the complex down. That seemed to take crude oil and other commodities down with it,” said John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, referring to selloff in the morning. “You’ve got a really strong dollar as well today.”
Investors are also assessing U.S. inventory levels, with supplies seen declining last week, according to a Bloomberg survey ahead of Energy Information Administration data released on Wednesday. Cushing, Oklahoma crude stockpiles dropped 150,000 barrels last week, a Bloomberg forecast shows.
12 Comments on "Crude Surges to Three-Year High as Saudi-Yemen Conflict Heats Up"
Go Speed Racer on Tue, 24th Apr 2018 7:26 am
Kool. Here comes $5.00 a gallon gas.
That otta wipe out some more ex-middle class.
We should blow up Syria, to get this all
straightened out.
deadlykillerbeaz on Tue, 24th Apr 2018 8:04 am
The middle class is gone. 130 dollar oil is better oil than 70 dollar oil. Burns clean, cost has to be more.
I hope the fight this time rockets oil to 200, gain back some of those losses when oil was being given away.
Let’s hear it for war, more war, in the ME.
Gets people’s attention.
dave thompson on Tue, 24th Apr 2018 8:51 am
I bought an old tree branch grinder mill from a local landscaper.
Now I take it around town and pick up any old cast offs like plastic lawn furniture and old sofas. Toss em into the ol’ grinder mill and vola instant free clean green incinerator/generator back yard burning fuel.
Runs all my home energy needs. And my all electric golf cart fleet that tows my battery powered grinder mill.
Sissyfuss on Tue, 24th Apr 2018 10:38 am
DT, it’s people like you that are guaranteed to survive the zombie apocalypse. You prove that clever is infinitely better than wise. I am humbled in the presence of your majesty.
twocats on Tue, 24th Apr 2018 10:53 am
time to begin the age-old debate over whether high oil prices spur recessions or not. I’m of the opinion that high oil prices alone will not cause a recession (like what happened in late 2009 to 2014), but that if an economy is teetering on recession that high oil prices will filter through an economy and send it over a cliff (like 2003 to 2008).
dave thompson on Tue, 24th Apr 2018 11:07 am
Sissyfuss I have to admit the use of old discarded sofas, plastic lawn furniture and tires for fuel came strait from Go Speed Racer. So I thank you Speed.
Anonymouse1 on Tue, 24th Apr 2018 6:55 pm
Not at all odd that Yemen, and country that produces so little oil is causing this ‘surge’.
In 2016, Yemen’s ranking in oil production (world), was 66. Which put them just below that OTHER oil extracting powerhouse, Albania. Yes, that Albania.
Not sure how much has changed in the last year or so, but given the whole war thing, I doubt things have changed all the much. Likely gotten worse for Yemen.
So yes, according to the retards@Rigporn, the price of crude is going up because the 66th ranked producer is under siege by the uSraelis and friends. Let’s hope nothing bad happens to Albania, or, you’ll be paying 15 bucks a gallon to fill your golf carts and weed wackers.
https://en.wikipedia.org/wiki/List_of_countries_by_oil_production
Dredd on Wed, 25th Apr 2018 8:33 am
The Fleets & Terrorism Follow The Oil – 4
BobInget on Wed, 25th Apr 2018 9:00 am
Yemen’s Rebels Step Up Attacks on Aramco Oil Facilities
The attacks, which have helped push up oil prices, seek to strike at the core of the Saudi economy
By Asa Fitch and Summer Said (WSJ)
April 25, 2018 7:47 a.m. ET
DUBAI—Yemeni rebels are increasingly targeting Saudi Arabian oil facilities, threatening the kingdom’s economic engine and adding another layer of geopolitical tension that is helping push oil prices to their highest levels since 2014.
Yemen’s Houthi rebels say they have attacked Saudi Arabian Oil Co. installations using missiles and drones at least eight times since the beginning of March. The latest attack was Monday afternoon when Houthis said they fired missiles on a Saudi oil port near the Yemen border. Saudi forces said…
https://www.wsj.com/articles/yemens-rebels-step-up-attacks-on-aramco-oil-facilities-1524656858
BobInget on Wed, 25th Apr 2018 9:34 am
Summary of Weekly Petroleum Data for the Week Ending April 20, 2018
U.S. crude oil refinery inputs averaged over 16.6 million barrels per day during the week
ending April 20, 2018, 328,000 barrels per day less than the previous week’s average.
Refineries operated at 90.8% of their operable capacity last week. Gasoline production
decreased last week, averaging 9.9 million barrels per day. Distillate fuel production
decreased last week, averaging 5.0 million barrels per day.
U.S. crude oil imports averaged about 8.5 million barrels per day last week, up by
539,000 barrels per day from the previous week. Over the last four weeks, crude oil
imports averaged over 8.2 million barrels per day, 1.5% more than the same four-week
period last year. Total motor gasoline imports (including both finished gasoline and
gasoline blending components) last week averaged 896,000 barrels per day. Distillate
fuel imports averaged 123,000 barrels per day last week.
U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum
Reserve) increased by 2.2 million barrels from the previous week. At 429.7 million
barrels, U.S. crude oil inventories are in the lower half of the average range for this time
of year. Total motor gasoline inventories increased by 0.8 million barrels last week, and
are in the upper half of the average range. Both finished gasoline inventories and
blending components inventories increased last week. Distillate fuel inventories
decreased by 2.6 million barrels last week and are in the lower half of the average range
for this time of year. Propane/propylene inventories decreased by 0.2 million barrels last
week, and are in the lower half of the average range. Total commercial petroleum
inventories increased by 1.4 million barrels last week.
Total products supplied over the last four-week period averaged about 20.4 million
barrels per day, up by 4.3% from the same period last year. Over the last four weeks,
motor gasoline product supplied averaged about 9.4 million barrels per day, up by 1.3%
from the same period last year. Distillate fuel product supplied averaged over 4.0 million
barrels per day over the last four weeks, down by 2.5% from the same period last year.
Jet fuel product supplied is up 6.2% compared to the same four-week period last year.
BobInget on Wed, 25th Apr 2018 9:54 am
Looks beerish at first glance.
Imports up vs exports up.
“U.S. crude oil inventories are in the lower half of the average range for this time”
Being as this was the first ‘build’ in weeks, we can expect shortages mid summer.
On careful reading we see CONSUMPTION year over year higher 4.3 %, Still too wet for farmers,
diesel dn 2.5%. Not too wet to fly, Jet Fuel +6.2%
(good thing too as distillates are lower by 2.6 M B)
When MW farmers reload diesel tanks they face higher prices. Independent Truckers, farmers may not be able to pass along fuel increases thereby missing bank payments. Hello higher food prices, inflation, bankruptcies…
Any comments ?
BobInget on Wed, 25th Apr 2018 10:10 am
All it takes at this stage is for a single missile
to get past Saudi air defenses. Unless you are totally in love with ‘the endless possibilities of shale,’ you need to be fracking worried. Shale lovebirds need a healthy dose of facts, then, you too need to worry.
If you f..ing care, I’m on board dirty, filthy oil or as most here call ‘tar’ sands.
No one can afford to search for oil in the Arctic of ultra deep water at current equity prices.
For back-up I’ve bought pipelines, mostly in Canada, US and back.