International Business: Oil recovers, but set for biggest weekly loss of 2019

Crude Oil

Oil prices rose toward $69 a barrel on Friday, snapping a two-day losing streak after U.S. President Donald Trump said that there is a "good possibility" of including Huawei in a trade deal to end a trade dispute with Beijing. Most of the loss can be attributed to a steep decline on Thursday, which produced the worst single-day performance in 2019.

Brent crude futures, the worldwide benchmark, settled down US$3.23, or 4.6 per cent, at US$67.76 a barrel.

Commercial U.S. crude inventories C-STK-T-EIA rose by 4.7 million barrels in the week ended May 17, to 476.8 million barrels, their highest since July 2017, the EIA data showed.

U.S. West Texas Intermediate (WTI) crude futures were down by 31 cents, or 0.5 percent, at $61.11 per barrel.

The long USA holiday weekend is expected to see the second-highest travel volume on record since motorists advocacy group AAA began tracking holiday travel volumes dating back to 2000.

The stock market continued its volatile downward spiral on Thursday fueled by fears of a worsening trade war between the US and China. Asian stocks tracked USA equities lower after the White House was said to be considering cutting off the flow of vital U.S. technology to five Chinese surveillance companies.

"U.S. businesses affected by the increased tariffs will be making decisions regarding purchases, inventories, etc., that are apt to force some downshifts in the US economic growth path that could have implications for USA oil demand", Jim Ritterbusch, president of Ritterbusch and Associates, said.

With that said, OPEC and its allies may come under pressure to boost production at the next meeting on June 25 as the rise in tariffs are expect to curb the purchasing power for USA and Chinese households, but the ongoing alliance may keep oil prices afloat in 2019 as the producers pledge to keep 'inventories under control'. The global oil benchmark was at a US$9.90 premium to WTI.

First satellites for Musk's Starlink internet venture launched into orbit
In fact, OneWeb has already launched several of its internet satellites from French Guiana into space back in February. The payload weighs around 30,000 pounds, which is the heaviest payload that has been delivered by a Falcon 9 rocket .

A jump in US crude inventories primarily caused by low refinery runs helped drive prices lower.

USA sanctions on OPEC members Iran and Venezuela have curbed their crude exports, reducing supplies further.

Global oil markets generally remain "well supplied" but also "thinly balanced" between supply and demand. China's decision to institute tariffs on gas, as a result, by imposing higher costs on US gas and sending potential buyers elsewhere, may be causing some investors to rethink whether to fund costly export infrastructure projects in the U.S.

Countering these bearish factors are ongoing supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC).

A shipment of crude oil, by contrast, can often change hands multiple times between when it leaves port and arrives at its destination.

"It is reasonable to doubt whether Saudi Arabia will be willing to step up its output given the latest decline in prices", analysts at Commerzbank said.

By way of a reminder, at the end of past year, a "glut" is reported to have helped contribute to the fact that oil prices took a significant tumble to that $45 per barrel mark, that we all would like to forget happened.

Related News:



Most liked

Rouhani congratulates Modi on election victory
While Congress bagged only one Lok Sabha seat and nine assembly seats in Odisha, Patnaik also faced defeat in the assembly polls. The All India United Democratic Front led by perfume baron Badruddin Ajmal secured only one seat in the state - Dhubri.

Weinstein reaches $44M deal to settle sexual misconduct claims
The trial won't start until September, thanks to a postponement issued last week , but Weinstein's day of reckoning is coming. However, it does not exempt him from the criminal charges brought against him for rape and sexual assault.

Backstabbing, constant change a feature of UK Conservative Party leadership contests
Mrs Foster said the prime minister had fundamentally misjudged her party's position on Brexit throughout negotiations. European Union leaders expressed respect for May, and stressed they would not renegotiate the Brexit deal.

China accuses U.S. of plot to 'colonise global business' by targeting Huawei
Taiwan Mobile said it would not sell the latest Huawei phones, because they are not compatible with Google apps. The US government's Huawei import ban delivered a massive blow to the most important Chinese smartphone vendor.

Iranian threats put on hold: Acting US defence chief
The remark followed a suggestion made by US President Donald Trump that talks are possible, when Iran is ready. Since then, the Trump administration renewed sanctions on Iran, gradually tightening them as time went on.

US Stance On Iran ''Deterrence, Not About War'': Pentagon Chief
FILE - Iranian Foreign Minister Mohammad Javad Zarif , center, answers questions in Tokyo, May 16, 2019. FILE - FILE - The USS Arlington arrives on the Hudson River in New York, May 23, 2018.

The simmering tensions about the trade war have finally dawned on Beijing
The move is a potentially devastating blow for the company and has rattled technology supply chains and investors. Gao said Beijing would take steps necessary to safeguard Chinese firms' interests.

Modern management with Windows 10: What's in it for IT?
Once in the WinRE, select Troubleshoot , followed by Advanced Options and More Recovery Options , and Startup Settings . The last feature update for Windows 10 highlighted the need to test updates more thoroughly before release.

More congressional Democrats call for impeachment inquiry
There is a "danger", he added, because if there is a Democratic president in the future, "they can impeach him for any reason". Pelosi has been resisting calls from dozens of Democrats to begin impeachment proceedings against Trump.

MacBook Pro 2019: Everything you need to know!
As for the MacBook Pro spec updates - they're about what you'd expect and start at the same prices as their predecessors. Apple has updated its 13 and 15-inch MacBook Pro notebooks with Intel's latest processors and new keyboards.

Here's the official trailer for the 'Downton Abbey' movie
Of course the show wasn't without its dark moments, and it'll be interesting to see what twists and turns abound here. The scrambling to get Downton Abbey ready for the royals means the major stars of the show are in the movie.

Brexit: PM says MPs have 'one last chance' to back her deal
May's hands have been tied, knowing that to make concessions to Labour would lead to fury in her divided party. Many businesses oppose Brexit and hope that the two sides can preserve much closer ties.

Trump Says U.S. Has Not Reached Out to Iran for Talks
On Monday the Houthis were accused of firing two missiles into Saudi Arabia, although the rebel group has denied the reports. Also on Monday, the Associated Press reported that Iran announced a four-fold production increase of uranium enrichment.

Huawei founder: United States blacklist will have no effect on sales numbers
The U.S. government said this was to give telecom operators using existing Huawei equipment "time to make other arrangements". However, no carve-out was made for any new smartphones or networks Huawei is preparing to roll out in the US.

Nasser Hussain and Michael Atherton name their England World Cup squads
Highlights as England wrapped up a 4-0 series victory over Pakistan with a 54-run win in the fifth ODI at Headingley. Chief selector Inzamam-ul-Haq said Amir had been included due to his experience.