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Oil rallies as concerns grow over geopolitics

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Oil prices rose on Monday, supported by a rebound in the stock market as concerns of a trade war between the United States and China eased.

A rainbow is seen over a pumpjack during sunset outside Scheibenhard, near Strasbourg, France, October 6, 2017. REUTERS/Christian Hartmann

Brent crude LCOc1 futures rose $1.25 to $68.36 a barrel, a 1.9 percent gain, by 12:29 p.m. EDT (1629 GMT).

U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $1.21 to $63.27 a barrel, a 2.0 percent gain.

Prices were on track for their largest daily percentage gain since March 23.

“Once again we find the oil market being swept up in broader market sentiment,” said Matt Smith, director of commodity research at ClipperData. “After Friday’s flight from risk, the positive mood in equities to start the week is encouraging a rebound in oil, with a weakening dollar providing a further shot in the arm.”

The U.S. stock market broadly rose more than 1 percent. Crude futures have recently tracked with equities.

Oil prices fell about 2 percent on Friday after U.S. President Donald Trump threatened new tariffs on China over Twitter, reigniting fears of a trade war between the world’s two largest economies.

Market participants also focused on an air strike on a Syrian air base over the weekend. Syria and its main ally Russia blamed Israel for carrying out an attack on a Syrian air base near Homs on Monday which followed reports of a poison gas attack by President Bashar al-Assad’s forces on a rebel-held town.

The Pentagon formally denied a Syrian state television report that the U.S. military had fired missiles at a Syrian government air base.

Prices have been supported so far this year by healthy demand and supply restraint led by the Organization of the Petroleum Exporting Countries, which started in 2017 to rein in oversupply and prop up prices.

“From a pure short-term fundamental perspective, odds still tilt bullish in our view,” Jim Ritterbusch, president of Ritterbusch and Associates, said in a note.

In physical oil markets, OPEC’s No. 2 producer Iraq said on Monday that it will keep prices steady for its May crude supplies.

WTI’s discount to Brent recently has widened to its largest since January, reflecting some of the investor caution over rapidly expanding U.S. output WTCLc1-LCOc1.

However, production from the prolific Permian basin may already be outpacing pipeline takeaway capacity and could prompt producers to slow down drilling.


81 Comments on "Oil rallies as concerns grow over geopolitics"

  1. makati1 on Tue, 10th Apr 2018 8:19 pm 

    Moving towards China and away from the Us:

    “MANILA, April 9 (Reuters) – The Philippines is looking to seal a pact with China within a few months to jointly explore for oil and gas in a part of the busy South China Sea waterway claimed by both countries, a Philippine official said on Monday.

    In February, the two countries agreed to set up a special panel to work out how to jointly explore for offshore oil and gas in areas both sides claim, without needing to address the touchy issue of sovereignty.”

    A step in the right direction.

  2. MASTERMIND on Tue, 10th Apr 2018 8:50 pm 


    China central bank chief warns of ‘Minsky moment’

    China’s grand plan hit by delays and debt fears

  3. Sissyfuss on Tue, 10th Apr 2018 8:52 pm 

    Brent at 71.10.

  4. MASTERMIND on Tue, 10th Apr 2018 8:54 pm 


    Government Intervention is triggered by a Keynesian belief that aggregate demand can be increased by lower interest rates and by increasing government deficits thereby somehow spurring economic growth. Debt grows faster than income growth and eventually has to be restructured, i.e., everyone loses in the end. Since 2007, global debt has grown by US$57 trillion and it’s had disastrous results. Greece, Detroit, Puerto Richo, Venezuela are just the beginning of this trend. Soon, it will be followed by larger countries like China and United States.

    Get a real education. Sorry Zerohedge and organic prepper are not educational sources. You stupid hick construction worker.

  5. MASTERMIND on Tue, 10th Apr 2018 8:59 pm 

    The last law of nature says: that any creature that despoils and outbreeds its natural habitat will be culled to bring its numbers under control and restore a stable environment.

  6. sidzepp on Tue, 10th Apr 2018 9:32 pm 

    For the last month or so the trend has been; if the stock market goes up, so does oil. If it goes down, so does oil. Gold has remained flat. I don’t think your average Wall Street type could differentiate between Syria and North Korea on a map.

  7. makati1 on Tue, 10th Apr 2018 10:26 pm 

    MM, ALL ‘economics’ is nothing more than reading chicken guts or the way bones land when thrown. Economists are ALWAYS wrong. It is a pseudoscience, not a real means to predict anything.

    If it were, why are not all “economists” wealthy? After all, they “know” what is coming. The only ones that make big money are those who publish garbage books for fools. Not one economist can tell you what will happen tomorrow. Certainly not next year or in 5, 10, or 30 years. The system cannot continue for much longer but how it will fail, who will be first, and when, are all just guesses. We shall have to wait and see. LOL.

  8. Cloggie on Wed, 11th Apr 2018 12:45 am 

    “A rainbow is seen over a pumpjack during sunset outside Scheibenhard, near Strasbourg, France“

    Drove through Strassbourg yesterday, heading south, also in rain and rainbow. Listened to German radio. German guy had sued Facebook in order to find out what data Suckerbook was keeping about him. Turned out to be 1100 pages. They knew EVERYTHING about him. Data entered via FB was only a small part, it is linking to other databases that completes the picture. Forget about KGB, CIA, Stasi, NSA and the rest of the amateurs; Facebook is the real thing.

    Smash Facebook!

  9. peakyeast on Wed, 11th Apr 2018 3:36 am 

    Oil and gas production in south china sea.. What could possibly go wrong…

    I suppose seafood is not important when compared to a few BTUs in fossil fuels since they have already decided to empty the ocean of living things.

  10. makati1 on Wed, 11th Apr 2018 3:53 am 

    Peaky, ask the residents surrounding the Gulf of Mexico what it is like living on the shores of an oil field. The South China sea is 2.3 times as large and has a much better flow of water thru it then the Mexican Gulf. Not to say that there will not be pollution but it is a big place and the actual recovery process is years away, IF there is an agreement. A lot can happen in that time frame. Many other things can happen meanwhile. The Us needs to worry about it’s own backyard.

    “June outlook foretold New Jersey-sized area of low oxygen”

    “This large dead zone size shows that nutrient pollution, primarily from agriculture and developed land runoff in the Mississippi River watershed is continuing to affect the nation’s coastal resources and habitats in the Gulf.”

    “Louisiana’s land loss crisis doesn’t stop at the coast. New research has found that the seafloor extending from the Mississippi River Delta into the Gulf of Mexico is also eroding at a rapid rate, potentially putting offshore oil and gas infrastructure at risk and allowing hurricanes to hit the coast with greater force. ”

    Climate change is going to do more to relocate everything than any future oil recovery will.

  11. peakyeast on Wed, 11th Apr 2018 4:26 am 

    @Mak: You have, of course, seen the videos by Jeremy Jackson and “end of the line”?

  12. deadly on Wed, 11th Apr 2018 4:31 am 

    The Ruskies say that if you are going to devalue our rouble, well, then, the price of oil is going to have to increase some.

    We will get those dollars and if it takes more of them to equal roubles, then that is what it will be.

    Oil will cost more if the rouble declines in value.

    It’s at 63 of them thar roubles to equal a dollar, indexed, and it was at one time 39 in the old days, so the rouble has lost substantial dollar amounts while the price of oil has increased, which translates to a decline in value of the dollar, but don’t tell anybody.

    It can become confusing.

    The snow and ice cover that constitutes the glacial massd, the ice sheet, on Greenland did slightly grow last year. The remnants of Harvey dumped boatloads of snow on Greenland’s snow and ice covered land mass, a lot, so the snow pack and ice cover on Greenland did increase over the winter.

    More news on Greenland:

    There are record low temperatures being recorded this week, so global warming is on hold for a couple of more weeks or so, it appears that way.

    The earth has to move another 22 million miles in the next two weeks, fly across the sky at one point six million miles each day, then the point in time and space will allow for more warming, the tilt of the earth will begin to face the sun even more.

    πD=C, D=186,000,000



    Fourteen days will be about 22 million miles or 14/365ths of the distance of one revolution around the sun.

    It is bound to warm up, so there you go.

    Time to go fishing and stuff.

  13. makati1 on Wed, 11th Apr 2018 6:05 am 

    peaky, over fishing is all over the world, not just in Asia. Fish species are disappearing from the Atlantic and the Pacific, not to mention that few are left in fresh water streams anywhere.

    When I was a boy, there were bass, sunfish and perch in some local streams. Trout in others. Twenty years later, there were only trash fish like suckers, carp and mud catfish. Why? Pollution and over fishing. It’s nothing new. It just makes the news today. When the SHTF even those species will be gone as food disappears for the grocery shelves.

  14. twocats on Wed, 11th Apr 2018 7:37 am 

    oil prices might be tracking markets, but they also track currencies, which also track markets. but none of these correlations is one to one, and the dynamic changes over time. I don’t think anyone on this forum is qualified to say but it will be interesting to know if the squaring off between US and China (tariffs & petroyuan specifically) during this short-term period will start to effect oil prices irrelevant of any market moves (which I think are easier to manipulate by non-state actors due to relatively small size vis-a-vis currency markets).

  15. BobInget on Wed, 11th Apr 2018 9:25 am 

    Thank you, twocats.

  16. joe on Wed, 11th Apr 2018 9:36 am 

    Once upon a time this would have been great news. Now though, higher prices just puts opec out of business quicker. Tight oil is here higher prices will just bring more drilling….
    Even Trumps high tech missiles to obliterate all those Russian manned and operated Syrian airports won’t save oil.

  17. BobInget on Wed, 11th Apr 2018 9:36 am 

    Summary of Weekly Petroleum Data for the Week Ending April 6, 2018

    U.S. crude oil refinery inputs averaged over 17.0 million barrels per day during the week
    ending April 6, 2018, 83,000 barrels per day more than the previous week’s average.
    Refineries operated at 93.5% of their operable capacity last week. Gasoline production
    increased last week, averaging 10.2 million barrels per day. Distillate fuel production
    increased last week, averaging 5.3 million barrels per day.

    U.S. crude oil imports averaged 8.7 million barrels per day last week, up by 752,000
    barrels per day from the previous week. Over the last four weeks, crude oil imports
    averaged over 7.9 million barrels per day, 1.5% less than the same four-week period last
    year. Total motor gasoline imports (including both finished gasoline and gasoline
    blending components) last week averaged 655,000 barrels per day. Distillate fuel imports
    averaged 125,000 barrels per day last week.
    U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum
    Reserve) increased by 3.3 million barrels from the previous week. At 428.6 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 0.5 million barrels last week, but
    are in the upper limit of the average range. Finished gasoline inventories increased while
    blending components inventories decreased last week. Distillate fuel inventories
    decreased by 1.0 million barrels last week but are in the lower half of the average range
    for this time of year. Propane/propylene inventories decreased by 0.4 million barrels last
    week, but are in the lower half of the average range. Total commercial petroleum
    inventories increased by 6.0 million barrels last week.

    Total products supplied over the last four-week period averaged 20.7 million barrels per
    day, up by 5.0% from the same period last year. Over the last four weeks, motor gasoline
    product supplied averaged 9.3 million barrels per day, down by 0.6% from the same
    period last year. Distillate fuel product supplied averaged 4.1 million barrels per day over
    the last four weeks, down by 3.6% from the same period last year. Jet fuel product
    supplied is up 4.3% compared to the same four-week period last year.

  18. BobInget on Wed, 11th Apr 2018 9:40 am 

    Imports increased (over a MB)
    Exports decreased about the same amount.

    ALWAYS read the last paragraph first. Consumption, at the end of the day, drives price.
    As proof, check this;

  19. joe on Wed, 11th Apr 2018 9:57 am 

    Drying world causing starvation

    Invest in peak water companies, thats where the real price gouging is gonna be.

    A wetter world causing starvation, Ireland can’t feed it own livestock. Need to import fodder, grass won’t grow when it’s too wet.

  20. BobInget on Wed, 11th Apr 2018 10:16 am (NPR)

    Trump Tells Russia: ‘Get Ready’ For U.S. Missiles Striking Syria
    April 11, 20185:53 AM ET

    Donald J. Trump

    Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia, because they will be coming, nice and new and “smart!” You shouldn’t be partners with a Gas Killing Animal who kills his people and enjoys it!”
    DJT is ‘wagging the dog’ IOW’s to create a distraction (away from the Russian probe)
    This troubled president is taking the world to war.

    DJT boxed US into a corner. If we launch missiles at Syria we are in effect launching at Russia. Putin says he will sink one or more of our carriers that launched those missiles.
    Nuclear armed carrier groups won’t wait to respond.

    If we don’t launch, we show weakness.

    Our future is in the hands of a leader who knows he is beaten.

    It’s time for Congress to act before it’s too late.

  21. BobInget on Wed, 11th Apr 2018 10:21 am 

    RIYADH (Reuters) – Saudi Arabia’s air defence forces intercepted a ballistic missile over Riyadh on Wednesday, state media said, after at least three blasts were heard and three clouds of smoke were seen in the sky above the capital.

    Yemen’s Houthis has stepped up missile attacks on the kingdom in what it says is retaliation for air raids by a Saudi-led coalition fighting the Iran-aligned armed movement.

    One man was killed in Riyadh last month by debris after the military shot down a flurry of missiles, the first casualty of the Yemen war in the Saudi capital.

    Saudi Arabia and a coalition of mostly Gulf Arab states intervened in Yemen’s civil war in 2015 to try and push back the Houthis after the movement drove the internationally recognized government into Saudi exile.

    The attack on Wednesday marked the fourth time in five months that missiles have flown over Riyadh, as the Houthis step up efforts to demonstrate they can reach the Saudi capital, and threatens to escalate a regional rivalry between Iran and Saudi Arabia.

    The coalition has launched thousands of air strikes in Yemen which have hit schools, markets and hospitals, killing hundreds of people – though it says it does not target civilians.

    (Reporting by Stephen Kalin; editing by John Stonestreet and Alison Williams)

    SEE ALSO: How the suspected Syria gas attack turned into one of the biggest crises of Trump’s presidency

  22. BobInget on Wed, 11th Apr 2018 10:29 am 

    At any time KSA could begin bombing Iran along with short time allies Israel.

    Boy o Boy events are moving quickly.
    Do we need KSA oil bad enough to go to war with Iran and Russia on the same day?

  23. Sissyfuss on Wed, 11th Apr 2018 4:01 pm 

    Brent at $71.95.

  24. joe on Thu, 12th Apr 2018 9:45 am 

    All this feels a bit like fake news to me. The warparties are looking for a way to stay in the game in Syria, since backing jihadist groups like isis has proven to be even dumber than invading countries yourself based on lies. Also, who will topple Assad, and what of Syrians government, are they to be disbanded like in Iraq, the US will have to muster another 150,000 man army and occupy Syria and face yet another insurgency and also face isis attacks as well. The British don’t have the power to topple Assad, thats why the dark powers are using every dirty trick they know to keep the US fighting. Obama knew what a pointless shithole Syria is,
    Trump is starting to learn that as well. The only people who want to get rid of Assad are the Zionists and the Saudis.

  25. Cloggie on Thu, 12th Apr 2018 9:49 am 

    “The only people who want to get rid of Assad are the Zionists and the Saudis.”

    And the Turks.

  26. Davy on Thu, 12th Apr 2018 10:01 am 

    And Europeans and Americans

  27. joe on Thu, 12th Apr 2018 10:04 am 

    Imho Turkey has no real choice but to oppose Assad right now. They are a member of NATO, BUT, they are led by a leader whoes party affiliates with the muslim Brotherhood, like hamas and other islamists looking to use democratic means to install sharia law. Therefore Turkey is by its nature an enemy of the the west and secular leaders like Assad, America is doing Saudis bidding and Turkeys but Russia is helping Assad and Turkey. The entire situation is turning into an enormous spaghetti mess, the best thing anyone can do at this point is to step back, but emotions and bloodlust is very strong.

  28. joe on Thu, 12th Apr 2018 10:09 am 

    Davy American politicans are bought and paid for by America and Tel Aviv. UK politicans are Zionists, except it seems the Labour party who’s muslim members are causing the party to be lambasted as ‘anti-semtiic’ but also using such discusting and false defamation stops them doing serious harm to the Brexit timetable.
    America and Europe don’t matter really in this all they have to do is keep supplying the guns and advisors.

  29. joe on Thu, 12th Apr 2018 10:10 am 

    Meant Saudis and Tel Aviv btw.

  30. Cloggie on Thu, 12th Apr 2018 10:18 am 

    “And Europeans and Americans”

    Only US politicians and its European vassals.
    The Europeans with currently the most moral fiber, I mean the Russians, don’t. And neither do the rapidly growing European populists, who already captured Austria and Italy, the gateway into Europe.

    Oh and most Syrians want Assad to STAY. But you will never hear the filthy lying fake democratic West about that:

    The West needs to be abolished.

  31. Cloggie on Thu, 12th Apr 2018 10:20 am 

    “Davy American politicans are bought and paid for by America and Tel Aviv. UK politicans are Zionists”

    What a remarkeble honesty; other Britons Antius and TheNationalist say the same.

    Davy has yet to figure things

    Fortunately we Europeans are here to help him. That’s what older brothers are for.

  32. Cloggie on Thu, 12th Apr 2018 10:30 am 

    “Davy American politicans are bought and paid for by America and Tel Aviv. UK politicans are Zionists”

    Only a matter of time until joe will be forced to admit that a famous Sustrian political thinker had a point.

    Folks from Albion and America can be a little slow at times. Only when they are on the verge of losing their countries an awakening of sorts sets in.

    You want your eggs hard or soft boiled?

  33. GregT on Thu, 12th Apr 2018 10:31 am 

    “And Europeans and Americans”

    Only the Zionist Europeans and Americans, and the dumbed down masses who keep falling for the Zionist media propaganda.

  34. Davy on Thu, 12th Apr 2018 11:09 am 

    “Davy American politicans are bought and paid for by America and Tel Aviv.”
    All politicians are bought and paid for today. How do you think they make a living? You Jew baiters over play that card. There is more to global power than the Zionist.

  35. Davy on Thu, 12th Apr 2018 11:11 am 

    “Only US politicians and its European vassals.”
    Your stupid European vessels are still European. Your non-European vessels are still vessel so dream on.

    “The West needs to be abolished.”
    Yea, good luck with that and if it happens good luck with the outcome. You are clueless.

  36. GregT on Thu, 12th Apr 2018 11:12 am 

    “You Jew baiters over play that card.”

    Zionists and Jews are not the same things. All Zionists are not Jews, and all Jews are not Zionists.

  37. Davy on Thu, 12th Apr 2018 11:13 am 

    “Davy has yet to figure things
    Fortunately we Europeans are here to help him. That’s what older brothers are for.”

    We don’t have a older brother we have whining pussies to protect.

  38. Davy on Thu, 12th Apr 2018 11:14 am 

    “Zionists and Jews are not the same things. All Zionists are not Jews, and all Jews are not Zionists.”

    Shut up greggie, you are about as bright as a creek chub.

  39. GregT on Thu, 12th Apr 2018 11:31 am 

    Christian Zionism


    The Case for a ‘New Christian Zionism’

    Trump, Pence, Jerusalem: the Christian Zionism connection …

    Unholy Alliance: Christian Zionists and the Israeli/Palestinian Conflict

    Lose the agenda Davy, get your head out of your asshole, or STFU already.

  40. MASTERMIND on Thu, 12th Apr 2018 11:34 am 

    Attention Doomie Preppers!

    Prepping is futile.

    Myth: Well-prepared individuals, groups, and communities will survive our impending collapse and maintain healthy, fulfilling, and productive lives in its aftermath.

    Reality: Those who survive our collapse will be those who can obtain sufficient life sustaining essentials—especially clean water and food—on a continuous basis, both during and after collapse. Those who store large quantities of these essentials and those who attempt to produce food, either individually or in communities, will be easy targets for the vast majority who have neither the foresight to store nor the skills to produce. No matter how remote or secluded your sanctuary, somebody will know about it; and they will come to call when they become desperate; and they will be well armed and devoid of compassion. You can prepare for a last stand, but you cannot prepare for post-collapse survival. Post-collapse Life Will Be Preferable to Our Industrial Lifestyle Paradigm.

    Myth: Industrialization has brought nothing but misery and degradation to the human race; our quality of life (and spiritual wellbeing) will improve substantially in a post-collapse world.

    Reality: The post-collapse lifestyle awaiting the few who survive will, under the best of circumstances, share many attributes with pre-Columbian America. Unfortunately, the realities associated with subsistence level existence bear little semblance to the Hollywood accounts. Those who anxiously await our post-collapse world will be disappointed, assuming they live to experience it. The fact that nobody is opting to jettison the amenities afforded by an industrialized way of life in favor of a hunter-gatherer lifestyle today should be sufficient proof that our future way of life is not something to be anticipated. Industrialism is not inherently “evil” or immoral; it is simply physically impossible going forward.

  41. Davy on Thu, 12th Apr 2018 12:18 pm 

    Greggie you can’t believe everything you read. You are the board disinformation whiner. Not all Americans in power are Zionist unlike you Jew baiter like to preach.

  42. GregT on Thu, 12th Apr 2018 12:26 pm 

    “Not all Americans in power are Zionist unlike you Jew baiter like to preach.”

    Zionists and Jews are not the same things Davy.

    Lose the agenda, get your head out of your asshole, or STFU already and let the adults debate subjects that you clearly do not have the foggiest clue about.

    Go make yourself useful and figure out how to milk your goat.

  43. Cloggie on Thu, 12th Apr 2018 12:34 pm 

    “Shut up greggie”

    Meathead doesn’t like it at all if discussions go in an unwanted direction.

    Quite the debater, this meathead fella.

  44. Davy on Thu, 12th Apr 2018 12:55 pm 

    Greggie, you and nederdreamer need jobs or purposes. Living only to be anti-Americans and Jew baiters is not a purpose.

  45. Davy on Thu, 12th Apr 2018 1:02 pm 

    Nederfuhrer, I get your attention daily by giving you a good neutering. It takes several of you to go toe to toe with me. Greggie stalks me daily like a prick. Billy 3rd world won’t comment unless greggie is there to protect him. Extremism is a failure. You 3 are failures. Personalizing macro geopolitical situations is a personality disorder you obsessive anti-American groupies suffer from. You are disgusting people that preach hate and discontent. Generally you are lusting for war in your comments. SICK

  46. joe on Thu, 12th Apr 2018 1:32 pm 

    Davy Zionism is a fundamental part of many Christians belief systems. Many of America’s founders were Zionists, they believed they were chosen people going out to found a new society based on Christian values away from the what they thought was evil rule in England. Heck, even David Koresh thought he was fulfilling prophesy.

  47. Davy on Thu, 12th Apr 2018 1:49 pm 

    No shit Joe, I live here I know my people. It is not all the people Joe. Many Americans could give a shit about religion. You people like to opine on Americans but you are not here. I am here. Even for me I am only in the Midwest. It is a big country. Lots of things going on.

  48. joe on Thu, 12th Apr 2018 1:50 pm 

    If Trump attacks Syria and things spin out of control as they are likely to do, I would imagine that Americans will suffer significant losses, at home, imagine a hundred 9-11s in a week (nothing compared to a single nuke). American civilians never really suffered at home in a global war. The South remembers Sherman’s march to the sea. Imagine the same fate for both coasts (all races, and libtards and gun nuts alike) and you get an idea of total war.

  49. joe on Thu, 12th Apr 2018 1:53 pm 

    I could care less about Americans but your politicians are out sticking their noses in global affairs so I get to have an opinion, even if you don’t like it. If American political figures don’t meddle in others business then far fewer people would be talking about your country.

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