Ramsco's Women Empowerment Initiative Recognized Among Top BRICS Businesswomen Practices for 2025    Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    Gold prices end July with modest gains    Pakistan says successfully concluded 'landmark trade deal' with US    Egypt's FM, US envoy discuss Gaza ceasefire, Iran nuclear talks    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Federal Reserve maintains interest rates    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    Rafah Crossing 'never been closed for one day' from Egypt: PM    I won't trade my identity to please market: Douzi    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt's EHA, Huawei discuss enhanced digital health    Egypt, Oman discuss environmental cooperation    Egypt's EDA explores pharma cooperation with Belarus    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



U.S. crude hits its biggest annual gain since 2009, up 45% on the year
Published in Amwal Al Ghad on 31 - 12 - 2016

Oil prices dropped Friday, but U.S. crude still posted its biggest annual gain since 2009 after OPEC and other major producers agreed to cut output to reduce a global supply overhang that has depressed prices for two years.
U.S. benchmark West Texas intermediate (WTI) crude futures settled down 5 cents at $53.72. Brent front-month March crude oil futures were down 8 cents a barrel at $56.77 at 2:37 p.m. ET (1937 GMT).
WTI futures climbed 45 percent on the year, while Brent futures have risen by more than 52 percent in 2016. The gains in the oil market were the best since the 2009 rally, when Brent and WTI rose 78 percent and 71 percent respectively.
Futures held their losses as oilfield services firm Baker Hughes reported U.S. drillers added oil rigs for a ninth straight week. The weekly count rose by 2 rigs to 525. At this time last year, drillers were operating 536 oil rigs.
Oil prices have more than halved since the summer of 2014, when it was above $100 a barrel. The fall in prices is due to oversupply, in part thanks to the U.S. shale oil revolution, was accentuated later that year when Saudi Arabia rejected any OPEC deal to cut output and instead fought for market share.
But a new agreement to reduce production by the Organization of the Petroleum Exporting Countries (OPEC), struck over three months from September this year, marks a return to the 13-country group's old objective of defending prices.
Oman told some customers it will reduce term allocations by 5 percent in March, but did not say whether the supply reduction would continue after that.
Although doubts remain as to the production cuts' effectiveness in implementation, the rise in prices can be seen as "proof of international credibility," for OPEC and partners, said Igor Yusufov, founder of the Fund Energy investment firm and a former Russian energy minister.
Equally as important to oil prices next year will be the development of demand globally, and major forecasters diverge in their predictions.
"We see a big variation in demand growth assessments for 2017, ranging from +1.22 million bpd (barrels per day) … to +1.57 million b/d," analysts at JBC said in a note to clients.
"Overall, all forecasters agree that Asia will remain the main engine for demand growth."
Oil will gradually rise towards $60 per barrel by the end of 2017, a Reuters poll showed on Thursday, with further upside capped by a strong dollar, a likely recovery in U.S. oil output, and possible non-compliance with agreed cuts.
The market on Friday shrugged off an unexpected increase in U.S. crude inventories, which rose 614,000 barrels in the week to Dec. 23 according to U.S. Energy Information Administration data. Analysts had expected a decrease of 2.1 million barrels.
Still, the rise in crude stocks in the EIA data was significantly smaller than in Wednesday's American Petroleum Institute (API) data that indicated a 4.2 million barrel build in U.S. crude oil stocks in the same period.
Gasoline stocks fell 1.6 million barrels, compared with analysts' expectations in a Reuters poll for a 1.3 million-barrel rise.
The market is likely to have focused on the surprise draw in product stocks and taken a slightly more bullish view towards the WTI contract, traders said.
Source: Reuters


Clic here to read the story from its source.