Bullish oil streak propels Brent to strongest Q3 in 13 years

Bullish oil streak propels Brent to strongest Q3 in 13 years”

US crude prices found some strength from a surprise fall in USA stocks. OPEC countries have cut oil production by 517,000 barrels a day since the beginning of the year.

Still, some analysts and investors have been concerned that USA producers continuing to increase output and possibly ramping up even more quickly to take advantage of higher prices could limit oil's upside.

Brent slipped from 26-month highs to settle down 54 cents, or almost 1 per cent, at $57.90 a barrel, while U.S. West Texas Intermediate crude (WTI) ended 26 cents, or 0.5 per cent, higher at $52.14 but stayed below five-month highs.

Oil prices rose on Friday as investors bet that efforts to cut a global glut are working and that the demand outlook is improving.

"It fits the narrative for the bulls saying that USA shale is not as robust as the bears make it out to be", said Stephen Schork, author of the Schork Report.

At the same time, analysts said prices have also come down slightly as investors have cashed in on the recent gains, though Commerzbank described the situation as temporary.

Oil price gains have also been supported this month by anticipated renewed demand from USA refiners that were resuming operations after shutdowns due to Hurricane Harvey.

Bullish oil streak propels Brent to strongest Q3 in 13 years

US energy companies added oil rigs for the first week in seven after a 14-month drilling recovery stalled in August, energy services firm Baker Hughes said on Friday.

Analysts see this spread narrowing to trade steadily around $2.72 a barrel for 2017 and $2.79 in 2018. However, OPEC's crude production rose by about 150,000 barrels a day in September, with Libya and Nigeria pumping extra barrels, JBC said.

While there is debate as to how effective the cuts have actually been in re-balancing the market, any sign that OPEC and its allies, including major exporter Russian Federation, are ending their production discipline, would be taken as bearish for prices.

Iraq is bracing itself for a standoff against the Kurdish region that voted for secession in a referendum this week. Iran has stopped all land transportation of crude from the region. Turkish President Recep Erdogan has threatened to block Kurdish oil exports transiting through his country's territory.

Some analysts are looking to a possible tightness in the market next year and Citibank's global head of commodities research, Ed Morse said at a conference in Singapore this week that there could be "a supply gap emerging" in the coming months.

On the demand side, it's clear that middle distillates have led prices higher so far this year on the back of stronger industrial growth in major consumers such as China and India.

Gasoline futures fell 1.6% to $1.6065 a gallon in their fourth straight session of losses and diesel futures shed 1.1% to $1.8117.

Like this


30 September 2017
Veteran actor Tom Alter dies at 67
Veteran theatre and film personality Tom Alter died on Friday after losing his battle against stage four skin cancer in Mumbai . In 2008, he was awarded Padma Shri by the Indian government for his services to the field of arts and cinema.

30 September 2017
Homeland Security chief Elaine Duke just made Trump's Puerto Rico problem worse
Then he added: "I can tell you this: We have done an incredible job considering there is absolutely nothing to work with". On Thursday, the Trump administration waived a law to allow foreign vessels to assist in Puerto Rico's relief effort.

30 September 2017
England name 3 uncapped players in Ashes squad
Ballance only managed 85 runs in two Tests against South Africa at an average of 21.25 before he suffered a fractured finger. Stokes was arrested after an incident which left a 27-year-old man needing hospital treatment for facial injuries.

30 September 2017
Priyanka Chopra looks downright gorgeous in this swimsuit
It seems Miss Chopra is enjoying her time in USA with her co-actor Yasmine Al Massri and producer Mubina Rattonsey. Yasmine Al Massri posted a short video of Priyanka swimming with a Bruno Mars song playing.

30 September 2017
Three people struck outside Madison Square Garden by hit-and-run driver
All three victims were taken to hospital, according to NBC , though police say none were badly injured. Emergency services scrambled to the area as dramatic pictures emerged showing scenes of chaos.

30 September 2017
Aaron's, Inc. (NYSE:AAN) Trading Volume Significantly Higher
"The company reported $0.68 earnings per share (EPS) for the quarter, beating analysts" consensus estimates of $0.58 by $0.10. Investors sentiment decreased to 1.08 in 2017 Q2. (AAN), we can see that the stock moved 12.13% for the last five trades.

30 September 2017
Ameriprise Financial Inc. Raises Holdings in Cardinal Health, Inc. (CAH)
It increased, as 58 investors sold CAH shares while 247 reduced holdings. 62 funds opened positions while 202 raised stakes. Moreover, Aperio Group Ltd Liability Corporation has 0.06% invested in Cardinal Health Inc (NYSE:CAH) for 122,301 shares.

30 September 2017
Internationals lose opening Presidents Cup session
So large is the lead, there is a chance this year's Presidents Cup could be wrapped up before the Sunday's singles matches. Reed birdied the 15th and world number two Spieth followed up with a birdie on the par-three 16th to make the match flat.

30 September 2017
Assassin's Creed Origins Discovery Tour is a Combat-Free Mode
If you thought September was a great month of gaming, things are just hotting up as we hit the peak release month of the year. The tours will also focus on historical figures who played important roles in shaping Egypt's future.

30 September 2017
ROIC & Quant Score card Review for Enable Midstream Partners, LP (NYSE:ENBL)
The petroleum products and by-products it collects, transports, stores and markets are produced by oil and gas companies. The Fort Washington Investment Advisors Inc holds 217,244 shares with $3.68 million value, up from 25,366 last quarter.