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Oil Set for Weekly Gain With Market Firming on Draining Surplus


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Oil Set for Weekly Gain With Market Firming on Draining Surplus

Oil in New York rose to the highest intraday level in more than a year as output curbs from top producers whittle down global inventories.

Futures climbed as much as 2.6% on Friday, set for a second straight weekly gain, alongside a firmer U.S. equity market. OPEC+ continues to slash output and the group expects a stronger second half of the year, indicating this week that global inventories will face sharp declines unless the cartel boosts supply. Iraq said OPEC+ is unlikely to change its output policy at a March meeting. In the U.S., crude stockpiles are at the lowest in nearly a year.

“This time of year, there’s usually builds,” said Bill O’Grady, executive vice president at Confluence Investment Management in St. Louis. “The draws we’ve been getting are pretty surprising, setting up a really bullish backdrop.”

The Brent market’s structure also strengthened Friday, with its so-called backwardation indicating tightening supplies. The nearest timespread traded as strong as 55 cents a barrel, while swaps tied to the North Sea physical market flipped from a discount to a premium, according to brokerage Eagle Commodities.

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Dopey Joe is cutting production so get ready for high gasoline prices. Those that believe in global warming are going to pay at the pump for it.

PS Thanks to the production cuts in the US, we will be more reliant on foreign governments. This is the exact same policy Obama ran with and it went nowhere except making them rich overseas.

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7 minutes ago, MovieMadness said:

Oil Set for Weekly Gain With Market Firming on Draining Surplus

Oil in New York rose to the highest intraday level in more than a year as output curbs from top producers whittle down global inventories.

Futures climbed as much as 2.6% on Friday, set for a second straight weekly gain, alongside a firmer U.S. equity market. OPEC+ continues to slash output and the group expects a stronger second half of the year, indicating this week that global inventories will face sharp declines unless the cartel boosts supply. Iraq said OPEC+ is unlikely to change its output policy at a March meeting. In the U.S., crude stockpiles are at the lowest in nearly a year.

“This time of year, there’s usually builds,” said Bill O’Grady, executive vice president at Confluence Investment Management in St. Louis. “The draws we’ve been getting are pretty surprising, setting up a really bullish backdrop.”

The Brent market’s structure also strengthened Friday, with its so-called backwardation indicating tightening supplies. The nearest timespread traded as strong as 55 cents a barrel, while swaps tied to the North Sea physical market flipped from a discount to a premium, according to brokerage Eagle Commodities.

**************************************************

Dopey Joe is cutting production so get ready for high gasoline prices. Those that believe in global warming are going to pay at the pump for it.

PS Thanks to the production cuts in the US, we will be more reliant on foreign governments. This is the exact same policy Obama ran with and it went nowhere except making them rich overseas.

Wrong yet again;   Much of the developed world is starting to come  out of the pandemic.   Production and employment will increase.   People will be traveling again. Therefore demand for oil with increase.    With increased demand comes increase prices.    

OMG:  Haven't you heard of the concept of supply and demand!!!!!!

 

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1 minute ago, MovieMadness said:

Oil Set for Weekly Gain With Market Firming on Draining Surplus

Oil in New York rose to the highest intraday level in more than a year as output curbs from top producers whittle down global inventories.

Futures climbed as much as 2.6% on Friday, set for a second straight weekly gain, alongside a firmer U.S. equity market. OPEC+ continues to slash output and the group expects a stronger second half of the year, indicating this week that global inventories will face sharp declines unless the cartel boosts supply. Iraq said OPEC+ is unlikely to change its output policy at a March meeting. In the U.S., crude stockpiles are at the lowest in nearly a year.

“This time of year, there’s usually builds,” said Bill O’Grady, executive vice president at Confluence Investment Management in St. Louis. “The draws we’ve been getting are pretty surprising, setting up a really bullish backdrop.”

The Brent market’s structure also strengthened Friday, with its so-called backwardation indicating tightening supplies. The nearest timespread traded as strong as 55 cents a barrel, while swaps tied to the North Sea physical market flipped from a discount to a premium, according to brokerage Eagle Commodities.

**************************************************

Dopey Joe is cutting production so get ready for high gasoline prices. Those that believe in global warming are going to pay at the pump for it.

PS Thanks to the production cuts in the US, we will be more reliant on foreign governments. This is the exact same policy Obama ran with and it went nowhere except making them rich overseas.

Biden's actions have nothing to do with it.  Your assertion of Obama's policy is also ridiculous.  Regardless of policy, this was the era of fracking, and US oil imports peaked at the end of Bush II era and has been declining ever since.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrimus1&f=m

Also, there are two sides of every coin.  Higher crude prices means more jobs in energy states, as more fields become profitable to open.

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You two know little about the oil market. We were starting to export oil under Trump and now Biden is cutting production due to regulation, as Democrats always do. Traders are betting on higher oil prices  >>>> All because of Biden.

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1 hour ago, txfilmfan said:

Biden's actions have nothing to do with it.  Your assertion of Obama's policy is also ridiculous.  Regardless of policy, this was the era of fracking, and US oil imports peaked at the end of Bush II era and has been declining ever since.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrimus1&f=m

Also, there are two sides of every coin.  Higher crude prices means more jobs in energy states, as more fields become profitable to open.

Yea,  prices were too low for oil companies using fracking to make production cost-effective so many stopped production.   Now with higher prices they can restart production.

It is my understanding that Biden will likely ban all new leases on public land.   It could be just Federal public land.    Either way,   it doesn't impact existing leases, which can restart production and how make a profit once the cost of a barrel of oil exceeds around $70.    As you note this will create jobs and any increase cost in gas prices will be minimal,  with the overall impact likely to be positive for the  US economy (as long as the cost remains under $80 or so).

  

 

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8 minutes ago, MovieMadness said:

You two know little about the oil market. We were starting to export oil under Trump and now Biden is cutting production due to regulation, as Democrats always do. Traders are betting on higher oil prices  >>>> All because of Biden.

I'm afraid I do, as part of my income derives from oil leases.

Oil is a global market, not a US market.  Oil is bought and sold on the global market, and as such, global supply and demand are the primary drivers.

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14 minutes ago, txfilmfan said:

I'm afraid I do, as part of my income derives from oil leases.

Oil is a global market, not a US market.  Oil is bought and sold on the global market, and as such, global supply and demand are the primary drivers.

You forget that to so many people the US President is the reason for almost everything that happens in the world.   This is true for way too many Dems and GOPers.

This type of narrow limited thinking makes it easier for their tiny brains to process information and for them to give either a thumps up or down, based on the strong confirmation bias they carry with them.

 

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whenever dems get back into power they always attack the foundations of our capitalist economy with a double whammy of overregulation and sabotaging oil drilling.

 all the while claiming they are not socialists.:lol:

they hurt the economy and the middle class which then turns their support back to the GOP.

they never learn!

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4 hours ago, txfilmfan said:

I'm afraid I do, as part of my income derives from oil leases.

You are a true democrat, claiming to believe in global warming, but investing in oil. All of the ones in California who drive gas guzzlers but vote for democrats too.

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3 minutes ago, MovieMadness said:

You are a true democrat, claiming to believe in global warming, but investing in oil. All of the ones in California who drive gas guzzlers but vote for democrats too.

I'm not a member of any political party.  I have voted for both Republicans and Democrats.

My investment in oil is a result of my Indian heritage.  I inherited the leases, and in one case, the leases are held tribally by the Osage tribe.

I do believe that mankind affects the climate, and am also a realist in that burning fossil fuels in the past and for the moment is the most practical means of moving about.  

You don't have to have black/white, yes/no, on/off, liberal/conservative, Democrat/Republican, binary positions on matters.  The world's a complicated place.   It doesn't have to be all or nothing.

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28 minutes ago, txfilmfan said:

I'm not a member of any political party.  I have voted for both Republicans and Democrats.

My investment in oil is a result of my Indian heritage.  I inherited the leases, and in one case, the leases are held tribally by the Osage tribe.

I do believe that mankind affects the climate, and am also a realist in that burning fossil fuels in the past and for the moment is the most practical means of moving about.  

You don't have to have black/white, yes/no, on/off, liberal/conservative, Democrat/Republican, binary positions on matters.  The world's a complicated place.   It doesn't have to be all or nothing.

Well said;    Yea,  CA is looking to mandate that all new homes be 100% electric.    I don't really get that;  Gas burns cleanly and isn't that damaging to the environment, compared with other sources of energy.     Also,  a high percentage of the electricity in CA is generated by Gas (since CA is phasing out coal,  which I support 100%).    

Now if CA looked to phase out gas for homes and replace it with solar that would make sense,  but that isn't part of the new home legislation. 

 

 

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All of your posts point to you being a democrat, but I can see why you're ashamed to admit it. BTW here is an interesting fact:

California is the largest consumer of jet fuel among the 50 states and accounted for one-fifth of the nation’s jet fuel consumption in 2018. California's total energy consumption is second-highest in the nation.

California preaches global warming yet uses the most jet fuel of all the states. I only wish Trump had instilled a policy that those who believe in global warming have to live by global warming means as dictated by the politicians. That means carbon neutral starting tomorrow. But as we know, almost none of them do it, especially the politicians.

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15 hours ago, MovieMadness said:

All of your posts point to you being a democrat, but I can see why you're ashamed to admit it. BTW here is an interesting fact:

California is the largest consumer of jet fuel among the 50 states and accounted for one-fifth of the nation’s jet fuel consumption in 2018. California's total energy consumption is second-highest in the nation.

California preaches global warming yet uses the most jet fuel of all the states. I only wish Trump had instilled a policy that those who believe in global warming have to live by global warming means as dictated by the politicians. That means carbon neutral starting tomorrow. But as we know, almost none of them do it, especially the politicians.

There's no shame.  The reason I don't belong to a party, as I've stated in these forums before, is that I absolutely abhor party politics and the political party machinery.   And whether you choose to believe it or not, I have voted for Republicans.

Re: California, are you really surprised?  It's the most populous state in the Union and has the major airline hubs for Trans-Pacific flights.  By all accounts, it should be first in total energy consumption.  The fact that Californians are second points to, in part, energy saving measures in place at the state level.

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