LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Oil hit two-month high on tighter U.S. market, Venezuela sanctions risk

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Mon, Jul 31, 2017
09:24 am
Reuters

Oil prices hit a two-month high on Monday, lifted by a tightening U.S. crude market and the threat of sanctions against OPEC-member Venezuela.

Brent crude futures, the international benchmark for oil prices, were at $52.67 per barrel at 0247 GMT on Monday, up 15 cents or 0.3 percent. Prices hit $52.76 per barrel earlier in the day, their highest since May 25.

U.S. West Texas Intermediate (WTI) crude futures were up 16 cents, or 0.3 percent, at $49.87 per barrel, the highest since June 30.

The price rises put both crude benchmarks on track for sixth consecutive session of gains.

Oil prices have risen around 10 percent since the last meeting of leading members by the Organization of the Petroleum Exporting Countries (OPEC) and other major producers, including Russia, when the group discussed potential measures to further tighten oil markets.

"A combination of factors seems to be driving the newly found optimism. U.S. inventories are showing massive drawdowns, Saudi Arabia seems intent on playing its role as the world`s swing producer (and) impending sanctions on Venezuela by the U.S. will almost certainly be oil price supportive," said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.

The United States is considering imposing sanctions on Venezuela`s vital oil sector in response to Sunday`s election of a constitutional super-body that Washington has denounced as a "sham" vote.

But traders said the biggest price supporter was currently a tightening U.S. oil market.

"Strong increases in the price of oil ... (were) fuelled in large part by the substantial draw-downs in U.S. inventories over the past several weeks," said William O`Loughlin, investment analyst at Australia`s Rivkin Securities.

"A continuation of this trend could indicate the oil market is rebalancing thanks to the production cuts by OPEC and Russia," he added.

After rising by more than 10 percent since mid-2016, U.S. oil production dipped by 0.2 percent to 9.41 million barrels per day (bpd) in the week to July 21.

U.S. crude inventories have fallen by 10 percent from their March peaks to 483.4 million barrels.

Drilling for new U.S. production is also slowing, with just 10 rigs added in July, the fewest since May 2016.

The tighter market was also visible in the price curve, which shows backwardation in the front end.

Backwardation is a market condition in which prices for immediate delivery of a product are higher than those later on.

Brent prices for delivery in September are currently around 35 cents above those for October.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:

LATEST NEWS

IRCTC share price FALLS 9%, Know the reason WHY?

The Kapil Sharma Show fees per episode: REVEALED! Kapil Sharma, Krushna Abhishek, Bharti Singh, Archana Puran Singh and others - This is what they earn

Rakesh Jhunjhunwala Stocks: Experts bet big on these two stocks with bumper returns

Delhi Schools and Colleges Latest News: All educational institutes closed, class 9 class 11 exams POSTPONED - Important message from Manish Sisodia

USD vs INR: Indian Rupee at 9-month low against US dollar - Expert decode the impact

CBSE Board Exam 2021: Students, do not miss this latest news! Will CBSE CANCEL class 10 class 12 board exams? Check UPDATES here

Dr Lal Pathlabs outperformed its peers even as markets plummeted; Analyst Simi Bhaumik recommends a Buy for this target price

Dr Reddy’s Laboratories target price Rs 5200-Rs 5250; know what else expert revealed

CBSE Class 10, 12 exams 2021 cancel request: BIG Assurance comes from CBSE; This is what Board says now

Stocks to buy with Anil Singhvi: Kothari Sugars is Sandeep Jain's recommendation today

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved