Financial Communique » Crude Oil Price

The price of crude oil exceeds 100 USD per barrel

Viliyana Filipova — Thu, 01 Dec 2011 15:23:01 +0000

The price of the crude oil exceeds 100 USD during trading in New York. A Barrel U.S. light crude rose to 100.36 dollars at the end of the session, which is the highest price level of 16 November. The London Brent crude rose to 110.99 dollars a barrel. The price of black gold was supported by the coordinated action of several central banks to reduce the financial tensions in Europe and facilitate access to financial assets. Later data from the consulting firm ADP showed that the private sector in the U.S. revealed 206 thousand new jobs expected in November at about 106 thousand.
According to a report of the U.S. Department of Energy stocks of crude oil in the country increased by almost 4 million barrels last week to 334.7 million barrels. Reserves of petroleum distillates rose 5.53 million barrels to 138.5 million barrels at the end of last week. Meanwhile, gold prices reached a maximum of two weeks in session today. Precious metal futures with delivery in December rose to 32.10 dollars, or 1.9 percent, to 745.50 dollars an ounce.

Light crude oil in attacking 100 USD per barrel

Viliyana Filipova — Mon, 14 Nov 2011 14:06:37 +0000

The crude oil prices began the new week with growth, such as quotations reached their highest levels since July. The reason for market optimism gave news related to Europe and Japan. Over the weekend in Italy, which in recent weeks has been under pressure from the markets, was appointed new prime minister after the anti-crisis measures were adopted for next year. That was the condition of former Prime Minister Silvio Berlusconi to quit. In its place stands the former commissioner Mario Monti. The good news from Japan that the country has come out of recession, having experienced the equivalent to an annual basis, growth of 6 percent. This was welcomed by markets as the country’s second largest consumer of oil in Asia after China. In the hours electronic trading on the New York Stock Exchange lightest crude for December delivery reached 99.69 USD per barrel, then a quote is returned to its level on Friday – 98.99 USD per barrel. Last week, black gold recording a growth of 5 percent, achieving the longest series of positive in April 2009 – six consecutive weeks.
Traded in London Brent oil for December delivery rising by 34 cents to 114.50 USD per barrel this morning. The deadline for the December futures trading expires tomorrow, which makes trade in the January contracts more active. They move with an increase of 39 cents from yesterday to 113.32 USD per barrel. Analysts’ expectations are that the lightest crude appreciation may slow and prices to meet resistance. The reason is the 14-day relative strength index of price movements (RSI) is worth 69.3. This, according to many analysts, is the entry level of the market, which may signal a reversal of direction.
“At 100 USD per barrel has a strong resistance level”, said Jonathan bar from Commodity Broking Services in Sydney. “I think the 100 USD per per barrel level will be reached, then will return to 95 USD per barrel”, said the specialist for Bloomberg.

Price of crude oil exceeded 98 USD per barrel

Viliyana Filipova — Fri, 11 Nov 2011 21:37:21 +0000

The crude oil prices went up again, finding support in better-than-expected data on the labor market in the US and restoration of shares of Wall Street losses. Last night in New York futures on US light crude rose 2.04 USD or 2.1 percent, to 97.78 USD a barrel. The price of black gold continues to rise and during today’s e-commerce in Asia, reaching a level of 98.25 USD per barrel. At the end of the session price is 98.07 dollars. In London, the barrel of Brent is quoted at 113.55 USD.
“While price uncertainty may test the 100 USD level,” said Ken Hasegava, a broker based in Tokyo Newedge Group. More on Wednesday the International Energy Agency (IEA) predicted that oil prices could reach 150 USD “in the short term”. However, the agency lowered its forecast for crude demand for this and next year because of economic slowdown in the USA, China and Japan. The analysts from Commerzbank, quoted by MarketWatch, indicate that oil imports in China has shrunk by 1.6% in October compared to September. On an annual basis in October of oil imports in the country has decreased by nearly 27% to 20.8 million metric tons.

The price of crude oil continues the negative trend

Viliyana Filipova — Fri, 19 Aug 2011 21:58:13 +0000

The price of oil fell in New York as investors fear that crude demand will fall because of signs of slower growth of U.S. economy – the largest user of oil. The futures fell 2.1%. “Weakness in the euro area and the possibility of re-recession, pulling oil prices down”, said Ben Westmor, an economist at National Australia Bank in Melbourne, which predicts that futures will cost an average 93 dollars in the third quarter. The price of oil for delivery in September dropped by 1.72 dollars to 80.66 dollars a barrel in electronic trading in New York. Yesterday contracts fell 5.9 percent to 82.38 dollars. For the week the price has lost 4.6 percent. The price of Brent crude oil for October delivery fell 71 cents, or 0.7 percent, to 106.28 dollars a barrel in London trade. The price dropped by 1.6 percent for the week, but 16% higher than last year.

The increased debt limit in USA grew the crude oil prices

Viliyana Filipova — Mon, 01 Aug 2011 08:42:59 +0000

The crude oil prices started the new week with a promotion that night after Barack Obama announced that he had agreed to lift the ceiling on the debt of the United States. This prompted optimism in the market since at least in the short term threat of default on U.S. debt disappeared. The electronic platform of the New York Stock Exchange oil contracts for delivery in September increased its price by 1.2 percent to 96.87 dollars per barrel. Earlier in the night the price of black gold moved with an increase of 1.7 percent. Traded in London Brent oil price increases with 1.2 percent to 118.15 dollars a barrel.
The increase in oil prices contributed data to higher than expected manufacturing activity in China. The index, which tracks attitudes of managers in the sector has given way to 50.7 points in July. Expectations were to shrink to 50.2 points in June after its value was 50.9 points.

The crude oil decreased

Viliyana Filipova — Thu, 14 Jul 2011 08:15:07 +0000

The crude oil price fall in the electronic trading in New York after the U.S. credit rating was placed under surveillance for possible reduction. This increased the speculations that the economic is slowing down and may reduce demand for raw materials in the U.S. The futures fell 0.5% after ratings agency Moody’s announced it would review the country’s Aaa rating for the first time since 1995. Oil prices affect the data of the U.S. Department of Energy, which announced yesterday that gasoline demand fell by 3.2% during the week ended 8th July.
“This revision of ratings is worrying”, said Anthony Noonan, the assistant general manager of Mitsubishi Corp in Tokyo. “The uncertainty that this creates a market is scary. Crude demand has stagnated, and this is not healthy for the U.S.”, he added. The price of oil for delivery in August fell 51 cents to 97.54 dollars a barrel in electronic trading in New York. Contracts yesterday rose 62 cents to 98.05 dollars a barrel – the highest level since July 7. Prices have risen by 27% last year. The price of Brent crude oil for delivery in August was 118.40 dollars a barrel, down 38 cents.

The crude oil get more expensive after the decrease in the USA reserves

Viliyana Filipova — Thu, 07 Jul 2011 13:09:57 +0000

The crude oil rises during e session in New York because signals increase in demand in the U.S. and unexpected drop in inventories. The investors rely on signs of economic recovery, pointing to increased domestic demand, which is a major consumer of raw materials globally. The futures rose 0.8% after the U.S. Institute of Petroleum announced yesterday a surprise drop in inventories of petroleum products in the U.S.. Stocks have dropped by 3.2 million barrels to 357.1 million barrels. Analysts had forecast that the decline will be 2.3 million barrels.
“The data on stocks of oil probably helped to appreciate,” said Jonathan Barrett, managing director at Commodity Broking Services Pty in Sydney, which predicts that the average price of raw materials will be $ 100 a barrel this year. “The market expected employment data. If they are not good, this will be the last nail in the coffin”, he added. The price of oil for delivery in August rose 80 cents to 97.45 dollars per barrel. Contracts yesterday fell 24 cents to 96.65 dollars a barrel – the lowest level since July 1. But prices are 32% higher than last year. The price of Brent crude oil for delivery in August rose 48 cents, or 0.4 percent, to 114.10 dollars a barrel.

Venezuela is losing 21 billion USD per year from dotting of the fuel

Viliyana Filipova — Mon, 13 Jun 2011 12:17:39 +0000

Venezuela, which is among the major oil exporters in the world every year to lose 21 billion dollars for state subsidies for petrol, says a report of the New York branch of investment bank Nomura. The country’s president Hugo Chavez announced that losses for the state budget for that sector were 1.5 billion dollars. Currently liter of gasoline sold in Venezuela for 2.2 cents. According to estimates of specialists daily needs of petrol in the country is 500,000 barrels. Authorities in the country had fixed the price of gasoline of 3.5 dollars per barrel (159 liters), while the global markets it is 120 dollars. Venezuelans living in border areas of Brazil, Guyana and Colombia, do not fail to benefit from the price difference by illicit business. Daily thousands of Venezuelan drivers crossing the border to sell cheap gasoline. Profits from illegal business reach 4,000 percent. In November last year, Venezuelan authorities were forced to put on each car special chip to limit the number of charges. The measure, however, proved ineffective as soon started on the black market sale of counterfeit chips for $ 20 number.
Nomura Bank has branches in 30 countries and offers brokerage and consulting services internationally.

The crude oil price decreased

Viliyana Filipova — Fri, 10 Jun 2011 10:42:00 +0000

The crude oil price fell with 29 cents, or 0.3 percent, to 101.64 dollars a barrel in electronic trading in New York. Earlier contracts rose 0.2 percent to 102.15 dollars, near its highest level this month. The price of U.S. light oil added 1.4 percent this week and 35% for last year. With 8 cents, or 0.1 percent, to 119.65 dollars per barrel dropped the price of Brent crude oil for delivery in June, after earlier rose 0.4 percent. Earlier, the crude oil price rose close to its highest value during the month after the U.S. trade deficit unexpectedly fell and OPEC failed to agree on production quotas. U.S. trade deficit shrank after exports grew by 1.3 percent, driven by sales of fuels, petroleum products and computers, according to the Commerce Department. The report prompted economists at Morgan Stanley to raise its forecast for growth for the second quarter.

The crude oil got cheaper before the OPEC meeting

Viliyana Filipova — Mon, 06 Jun 2011 11:01:27 +0000

The price of Brent oil fluctuated around 115 US dollars per barrel earlier in the week after disappointing data on employment in the USA. The investors are awaiting a meeting of OPEC, to be held later this week to see whether the group will increase the supply of crude oil. The weaker US dollar and the political upheaval in the Middle East also kept the price of black gold at lower levels.
“Today there is no shortage of supply. OPEC will do its job,” said the CEO of French energy giant Total at a conference in Kuala Lumpur. The price of the Brent crude fell 43 cents to 115.41 dollars per barrel. U.S. crude fell 28 cents to 99.94 dollars per barrel.
“A weak economy means lower oil prices”, said Tony Noonan, risk manager at Tokyo-based Mitsubishi Corp.
The technical charts suggest that oil prices may fall in the short term. Expectations are the price of Brent crude to drop to 112 dollars per barrel and U.S. light of oil to fall to 98.12 dollars per barrel.