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Oil prices settled higher on Friday but fell week-on-week after health authorities in China eased some of the country’s heavy COVID-19 curbs, raising hopes for improved economic activity and demand in the world’s top crude importer. Brent crude futures settled up $2.32 at $95.99 a barrel, extending a 1.1% rise from the previous session but falling 2.6% on the week. U.S. West Texas Intermediate (WTI) crude futures settled up $2.49, or 2.9%, at $88.96 a barrel, after climbing 0.8% in the previous session but down nearly 4% on the week. The easing curbs include shortening quarantine times for close contacts of cases and inbound travellers by two days, as well as eliminating a penalty on airlines for bringing in infected passengers. The benchmark oil contracts fell during the week due to rising U.S. oil inventories, and lingering fears over capped fuel demand in China, but late-week gains limited the losses. “China’s changing response to stubbornly high COVID-19 cases has added to the oi...

OPEC on Monday cut its forecast for 2022 global oil demand growth for a fifth time since April and also trimmed next year’s figure, citing mounting economic challenges including high inflation and rising interest rates. Oil demand in 2022 will increase by 2.55 million barrels per day (bpd), or 2.6 per cent, the Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report, down 100,000 bpd from the previous forecast. “The world economy has entered a period of significant uncertainty and rising challenges in the fourth quarter of 2022,” OPEC said in the report. “Downside risks include high inflation, monetary tightening by major central banks, high sovereign debt levels in many regions, tightening labour markets and persisting supply chain constraints.” This report is the last before OPEC and its allies, together known as OPEC+, meet on Dec. 4 to set policy. The group, which recently cut production targets, will remain cautious, Saudi Arabia’s energy minister was q...

Oil prices fell more than 3% on Thursday, with demand squeezed by mounting COVID-19 cases in China and fears of more aggressive hikes in U.S. interest rates. Brent crude fell $3.08 to settle at $89.78 a barrel, down 3.3%. U.S. West Texas Intermediate (WTI) crude slid $3.95, or 4.6%, to settle at $81.64 per barrel. “It’s kind of a triple whammy. We’ve got COVID-19 cases rising in China, interest rates are continuing to rise here in the U.S. and now we’ve got technical weakness in the market,” said Dennis Kissler, senior vice president of trading at BOK Financial. St. Louis Federal Reserve President James Bullard said a basic monetary policy rule would require interest rates to rise to at least around 5%, while stricter assumptions would recommend rates above 7%. The dollar also rose as investors digested U.S. economic data. A stronger dollar makes dollar-denominated oil more expensive for holders of other currencies. China reported rising daily COVID-19 infections and Chinese refiners...

Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman Al-Saud speaks at the Future Investment Initiative conference, in Riyadh, Saudi Arabia, on Oct. 25. AHMED YOSRI/Reuters The energy ministers of Saudi Arabia and Iraq met on Thursday and stressed the importance of adhering to OPEC+ output cuts that last until the end of 2023, the Saudi energy ministry said in a statement on Friday. Iraq’s energy minister Hayan Abdel-Ghani met Saudi energy minister Prince Abdulaziz bin Salman on a visit to the kingdom which began on Wednesday. The two sides also pointed to, “the ability to take further measures, if required, to achieve balance and stability in the market,” according to the statement. OPEC+, an alliance that groups together Organization of Petroleum Exporting Countries (OPEC) members and their allies, including Russia, next meets on Dec. 4 in Vienna. In its last meeting on Oct. 5 an output cut of 2 million barrels a day was agreed. Prince Abdulaziz said earlier this week ...

Oil prices settled largely narrowly mixed on Thursday, retreating from an early rally built on dollar weakness and hopes for improved fuel demand in China after COVID-19 curbs were eased in two major Chinese cities. Brent Crude futures settled 9 cents lower at $86.88 a barrel. U.S. West Texas Intermediate crude futures settled at $81.22 a barrel, up 67 cents or 0.8%. Both benchmarks remain on target for their first weekly gains after three consecutive weeks of decline. On Monday, Brent touched $80.61, lowest since Jan. 4. “We came into the session bullish but we’re not going to get to $100 no matter what city reopens,” said Eli Tesfaye, senior market strategist at RJO Futures. Tesfaye said he expects oil to trade in the $70-$90 a barrel range and gradually stabilize after higher volatility in recent weeks. The shift in China’s zero-COVID strategy raised optimism about a recovery in oil demand there. The cities of Guangzhou and Chongqing announced an easing of COVID-19 curbs on Wednes...

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...

OPEC+ is likely to stick to its current oil output target when it meets on Sunday, two OPEC+ sources said on Friday, although some say a further output cut is not completely off the table given concern about economic growth and demand. The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a group known as OPEC+, has switched its planned in-person meeting in Vienna on Dec. 4 to a virtual one, which sources in the group say signals the likelihood of it leaving policy unchanged. “It is unlikely there will be any change to the policy,” an OPEC+ source said. Another source made similar remarks, also declining to be identified by name. Talks begin on Saturday when OPEC ministers hold a virtual meeting at 1100 GMT. OPEC+ begins talks at the same time on Sunday with a meeting of the advisory Joint Ministerial Monitoring Committee (JMMC) panel, followed by the full ministerial conference. With oil prices and the economic outlook weakening, the group agreed in ...

The logo of the Organization of the Petroleoum Exporting Countries (OPEC) is seen outside of OPEC's headquarters in Vienna, Austria, on March 3. Lisa Leutner /The Associated Press OPEC+ agreed to stick to its oil output targets at a meeting on Sunday as the oil markets struggle to assess the impact of a slowing Chinese economy on demand and a G7 price cap on Russian oil on supply. The decision comes two days after the Group of Seven (G7) nations agreed a price cap on Russian oil. OPEC+, which comprises the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, angered the United States and other Western nations in October when it agreed to cut output by 2 million barrels per day (bpd), about 2% of world demand, from November until the end of 2023. Washington accused the group and one of its leaders, Saudi Arabia, of siding with Russia despite Moscow’s war in Ukraine. OPEC+ argued it had cut output because of a weaker economic outlook. Oil prices hav...

OPEC on Tuesday stuck to its forecasts for global oil demand growth in 2022 and 2023 after several downgrades, saying that while economic slowdown was “quite evident” there was potential upside such as from a relaxation of China’s zero-COVID policy. Oil demand in 2023 will rise by 2.25 million barrels per day (bpd), or about 2.3 per cent, the Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report, after growth of 2.55 million bpd in 2022. Both forecasts were unchanged from last month. “Although global economic uncertainties are high and growth risks in key economies remain tilted to the downside, upside factors that may counterbalance current and upcoming challenges have emerged as well,” OPEC said in the report. “A resolution of the geopolitical conflict in Eastern Europe and a relaxation of China’s zero-COVID policy could provide some upside potential,” the report said in a separate section. While keeping the annual demand growth forecasts steady, OPEC tr...

Oil prices rose by more than $2 a barrel on Wednesday after data showed a larger-than-expected draw in U.S. crude stockpiles, but gains were capped by a snowstorm that is expected to hit U.S. travel. Brent crude futures for February delivery were up by $2.21, or 2.76%, at $82.20 a barrel, while U.S. West Texas Intermediate (WTI) crude futures gained $2.06, or 2.7%, to $78.29. U.S. crude inventories fell by 5.89 million barrels, according to data from the U.S. Energy Information Administration (EIA), compared with estimates for a drop of 1.66 million barrels. Data from the American Petroleum Institute on Tuesday showed a 3.1 million barrel draw in the week to Dec. 16, market sources said. “This report is very bullish, especially with the fact that there’s a draw from the crude oil equation and distillate inventories stopped their streak of builds ahead of the cold blast,” said Phil Flynn, analyst at Price Futures group. Distillate inventories fell by 242,000 barrels, according to EIA ...

An oil platform in the Baltic Sea, Russia, on Sept. 16, 2021. VITALY NEVAR/Reuters Russia may cut oil output by 5 per cent-7 per cent in early 2023, as it responds to price caps on its crude and refined products, and halt sales to the countries that support them, Deputy Prime Minister Alexander Novak told state television on Friday. Detailing for the first time the Russian response to the price caps introduced by the West over Moscow’s invasion of Ukraine, Novak said the cuts could reach 500,000-700,000 barrels per day (bpd). He also said that despite Europe’s efforts to cut reliance on Russian oil and gas, energy exports from Russia are in demand worldwide and Moscow has been diversifying its buyers. Novak said it would be difficult to provide for global economic development without Russian energy, and predicted possible gas shortages in Europe, which has introduced restrictions on gas prices, as well as on oil. On oil, the European Union, G7 nations and Australia introduced a $60 p...

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...

Oil prices settled more than a dollar a barrel higher on Friday, notching their biggest weekly gains since October, as the U.S. dollar dropped to a seven-month low and more indicators pointed toward growing demand from top oil importer China. Brent crude futures settled at $85.28 a barrel, up by $1.25, or 1.5%. West Texas Intermediate (WTI) crude futures rose for the seventh-straight session to settle at $79.86 a barrel, up by $1.47, or 1.9%. Brent gained 8.6% this week, while WTI rose by 8.4%, recouping most of the previous week’s losses. The U.S. dollar index slumped to the lowest in more than seven months, a day after data showed inflation fell in December for the first time in 2-1/2 years, feeding hopes the Federal Reserve would slow its rate hikes. A weaker greenback tends to boost demand for oil, making it cheaper for buyers holding other currencies. Recent Chinese crude purchases and a pick-up in road traffic in the country are also fuelling hopes of a demand recovery in the w...

The reopening of China's economy after the country lifted COVID-19 restrictions will push global oil consumption up nearly 2 per cent to an unprecedented 101.7 million barrels a day, according to the International Energy Agency. FREDERIC J. BROWN/AFP/Getty Images World oil demand is forecast to hit a record high this year against a backdrop of constrained supply and a new warning from the United Nations Secretary-General that hope for staving off the worst effects of climate change is dimming. Crude consumption will climb by nearly 2 per cent to an unprecedented 101.7 million barrels a day, with the gain driven largely by the reopening of China’s economy following the lifting of COVID-19 restrictions, the International Energy Agency (IEA) said in its January oil market report. The Paris-based organization said demand would have been even higher, if not for the global improvements in energy efficiency and booming sales of electric vehicles. Those two factors have reduced the forec...

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...

Oil prices settled largely unchanged on Wednesday after government data showed a smaller-than-anticipated build in U.S. crude inventories, countering weak economic data from Tuesday. Brent crude futures settled at $86.12 a barrel, down a cent, while the U.S. West Texas Intermediate (WTI) crude futures settled at $80.15 a barrel, up by 2 cents. The Brent benchmark had dropped 2.3% and WTI futures slipped 1.8% in Tuesday’s session after data showed U.S. business activity contracted in January for the seventh straight month, raising concerns about an economic slowdown. “End of the day here, the market is starting to get a little more anxious about the economy and things along those lines,” Mizuho analyst Robert Yawger said. “Main worry at this point is demand destruction due to an economic slowdown.” WTI prices briefly rose by over $1 per barrel on Wednesday after the Energy Information Administration (EIA) said that U.S. crude inventories rose by 533,000 barrels in the last week to 448...

OPEC on Tuesday stuck to its forecasts for global oil demand growth in 2022 and 2023 after several downgrades, saying that while economic slowdown was “quite evident” there was potential upside such as from a relaxation of China’s zero-COVID policy. Oil demand in 2023 will rise by 2.25 million barrels per day (bpd), or about 2.3 per cent, the Organization of the Petroleum Exporting Countries (OPEC) said in a monthly report, after growth of 2.55 million bpd in 2022. Both forecasts were unchanged from last month. “Although global economic uncertainties are high and growth risks in key economies remain tilted to the downside, upside factors that may counterbalance current and upcoming challenges have emerged as well,” OPEC said in the report. “A resolution of the geopolitical conflict in Eastern Europe and a relaxation of China’s zero-COVID policy could provide some upside potential,” the report said in a separate section. While keeping the annual demand growth forecasts steady, OPEC tr...