Oil prices rise after dollar recovery

Brent Daily

Brent Daily

Geopolitical tensions, concerns about US policy reform viability and the decline in the USA dollar have helped stimulate oil prices, a Kuwaiti bank said.

Gold is retreating as the safe-haven demand fades. Global benchmark November Brent crude LCOX7, +0.02% inched up by 6 cents, or 0.1%, to finish at $53.84 a barrel on the ICE Futures Europe exchange. It estimates that the worldwide crude oil rig count fell by eight to 715 in August 2017-compared to the previous month.

US inventories data will be closely watched over the next two days amid uncertainties over the impact of recent hurricanes.

The Organization of the Petroleum Exporting Countries, of which Saudi Arabia is the largest member, and 10 other producers including Russian Federation first agreed late previous year to cut about 2% of global oil production.

The cartel said its production fell in August, and also revised higher its global oil demand growth forecasts for this year.

Prices were little changed in Asian trading on Tuesday before edging lower in European trading with WTI trading around $47.80 p/b.

Amid persistent glut concerns, Saudi Arabian Energy Minister Khalid al-Falih had talks with his Venezuelan, Kazakh counterparts about the possibility of extending supply cuts beyond March 2018.

Hurricanes have shaken energy markets, with Irma shutting fuel stations and ports across Florida and Harvey strangling refineries in the nation's energy hub.

In a "dramatic situation" like a hurricane, there is going to be "a lot of volatility in the numbers", he said. The American Petroleum Institute releases its own weekly inventory report late Tuesday.

There was still a high degree of uncertainty surrounding the situation in Florida following the impact of hurricane Irma.

Crude inventories rose by 6.2 million barrels in the week to September 8 to 468.8 million, compared with analysts' expectations for an increase of 3.2 million barrels.

The EIA lowered its USA crude output forecast for next year to 9.84 million barrels a day from 9.91 million a day estimated in August, according to its Short-Term Energy Outlook. Buckeye Partners LP plans to resume limited service Wednesday at its Florida terminals and refined products pipeline system, according to a statement.

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