{"id":50742,"date":"2017-11-06T06:45:46","date_gmt":"2017-11-06T06:45:46","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=50742"},"modified":"2017-11-06T06:45:46","modified_gmt":"2017-11-06T06:45:46","slug":"oil-hits-highest-levels-since-2015-amid-tightening-markets","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/oil-hits-highest-levels-since-2015-amid-tightening-markets.html","title":{"rendered":"Oil hits highest levels since 2015 amid tightening markets"},"content":{"rendered":"

Oil hits highest levels since 2015 amid tightening markets<\/span><\/strong><\/span><\/h2>\n

Oil hits highest levels since 2015 amid tightening markets: Brent futures LCOc1, the international benchmark for oil prices, hit $62.44 per barrel early on Monday, their highest level since July 2015. Brent was at $62.27 per barrel at 0230 GMT, up 20 cents, or 0.3 percent from the last close and 40 percent above June\u2019s 2017 lows.<\/span><\/p>\n

U.S. West Texas Intermediate (WTI) crude CLc1 hit $56.00 per barrel in early trading, also the highest since July 2015, and was at $55.79, up 15 cents, or 0.3 percent from the last settlement. WTI is a third above its 2017 lows.<\/span><\/p>\n

Crown Prince Mohammed bin Salman, also known as MBS, has tightened his grip on power through an anti-corruption purge by arresting royals, ministers and investors including prominent business billionaire Alwaleed bin Talal and the head of the National Guard, Prince Miteb bin Abdullah.<\/span><\/p>\n

RBC Capital Markets said in a note that although the \u201cpurge represents a stunning political development in Saudi Arabia,\u201d it expected \u201cno immediate changes\u201d in the oil policy of Saudi Arabia, which is the world\u2019s biggest exporter of crude oil.<\/span><\/p>\n

\u201cMBS seems strongly committed to anchoring the OPEC agreement deep into 2018 and moving ahead with the Aramco sale,\u201d RBC said.<\/span><\/p>\n

Bin Salman\u2019s reforms include a plan to list parts of giant state-owned oil company Saudi Aramco next year, and a higher oil prices is seen as beneficial for the market capitalization of the future listed company.<\/span><\/p>\n

In oil fundamentals, traders said that there were ongoing signs of tightening market conditions.<\/span><\/p>\n

U.S. energy companies cut eight oil rigs last week, to 729, in the biggest reduction since May 2016.<\/span><\/p>\n

The decline in U.S. drilling activity comes as the Organization of the Petroleum Exporting Countries (OPEC) and a non-OPEC group lead by Russia have pledged to hold back about 1.8 million barrels per day (bpd) in oil production to tighten markets.<\/span><\/p>\n

The pact to withhold supplies runs to March 2018, but there is growing consensus to extend the deal.<\/span><\/p>\n

While supplies are tightening, analysts say demand remains strong.<\/span><\/p>\n

\u201cSynchronous global economic growth and new supply disruptions are creating the most constructive oil price environment since … 2014,\u201d Barclays bank said.<\/span><\/p>\n

The British bank said it was raising its average Q4 Brent price forecast by $6 per barrel to $60 per barrel.<\/span><\/p>\n

\u201dThe surprisingly strong macro backdrop and the accelerated inventory drawdown mean that these slightly higher price levels are likely to be sustained through Q1 of next year.<\/span><\/p>\n

Barclays said it raised its full-year 2018 forecast by $3 per barrel to $55 per barrel.<\/span><\/p>\n

Source:http:\/\/www.reuters.com\/article\/us-global-oil\/oil-hits-highest-levels-since-2015-amid-tightening-markets-saudi-purge-idUSKBN1D603A<\/span><\/p>\n

\n\t\t\t
\n\t\t\t <\/div><\/div>\n\t\t