Tausi Insider

Oil prices seesawed on Friday in thin market liquidity, closing a week marked by worries about Chinese demand and haggling over a Western price cap on Russian oil. Brent crude futures dropped 17 cents to trade at $85.17 a barrel by 11:25 a.m. EST (1625 GMT), having retraced some earlier gains. U.S. West Texas Intermediate (WTI) crude futures were down 3 cents at $77.91 a barrel. There was no WTI settlement on Thursday due to the U.S. Thanksgiving holiday and trading volumes remained low. “Because there’s light volume after the holiday, we’re giving up some of the gains here a bit,” said Phil Flynn, an analyst at Price Futures group. Both contracts were headed for their third consecutive weekly declines after hitting 10-month lows this week. Brent was set to end the week down 2.6 per cent, while WTI was on track to fall 2.5 per cent. Brent and WTI’s market structure implies current demand is softening, with backwardation, defined by front-month prices trading above contracts for later...

Oil futures were broadly stable on Friday, but were poised to end the week up, ahead of a meeting by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) on Sunday and an EU ban on Russian crude oil kicking in on Monday. Brent crude futures were up 14 cents, or 0.2 per cent, at $87.02 per barrel by 1008 GMT. U.S. West Texas Intermediate (WTI) crude futures inched up 5 cents, or 0.1 per cent, to $81.27 per barrel. Both Brent and WTI had dipped earlier in the session, but were on track for their first weekly gains – the biggest in two months at around 4 per cent and 6 per cent, respectively – after three consecutive weeks of decline. Sending bullish signals, China is set to announce an easing of its COVID-19 quarantine protocols within days, sources told Reuters, which would be a major shift in policy in the world’s second biggest oil consumer, though analysts warn a significant economic reopening is likely months away. Also underpinning oil prices, the U.S. dol...

Goldman Sachs GS-N expects that the growing ability of the Organization of the Petroleum Exporting Countries (OPEC) to raise prices without hurting demand too much will limit downside risks to its bullish oil forecast for 2023. The Wall Street investment bank sees global oil demand growth of 2.7 million barrels per day in 2023, pushing the market into deficit in the second half and lifting Brent prices to $105 per barrel by the fourth quarter. “This tightening, in turn, should allow OPEC to start unwinding its October production cut in H2,” analysts at Goldman said in a note dated Jan. 9. OPEC and allies including Russia, together called OPEC+, last month agreed to stick to their October plan to cut output by 2 million barrels per day from November through 2023. Brent futures were trading around $80 a barrel on Tuesday, while U.S. crude was above $75 per barrel. “However, if the market turned out to be softer, then OPEC could stick to its October cuts or cut production even further g...

The OPEC Fund for International Development, a development institution established by the Organization of the Petroleum Exporting Countries’ member governments nearly 50 years ago, has raised $1-billion by selling its first ever bond. With the money earmarked for food security, health care, infrastructure, education, employment and renewable energy projects, the three-year bond which will pay investors an interest rate of 4.5 per cent, will also be classed as a ‘sustainable development’ bond. It is a label that has a growing appeal for investors increasingly looking to use their resources in more environmentally and socially-beneficial ways. The OPEC Fund’s Head of Funding, Martine Mills Jansen, said that central banks from the Middle East, Europe and Asia and other types of “official” institutions, including from the United States, accounted for 62 per cent of the bond’s buyers. Commercial banks made up another 19 per cent, asset managers and insurance and pension funds accounted fo...