Brent futures dipped towards USD 111 a barrel on Thursday as supply fears eased after Libya declared an end to an oil crisis that has cut exports from the OPEC member to a trickle, although declines will be capped by concerns over Iraq.
Libya's acting prime minister, Abdullah al-Thinni, said the government had reached a deal with a rebel leader controlling oil ports to hand over the last two terminals and end a blockade, making around 500,000 more barrels a day of crude available for export. Brent crude extended the previous session's losses to fall to a three-week low, dropping 19 cents to USD 111.05 a barrel by 0505 GMT. US. oil declined 40 cents to USD 104.08, also sliding to a three-week trough..3
Demand outlook is improving in the United States and China, the world's top two oil consumers. U.S. crude stocks fell more than expected last week as refineries hiked output ahead of the holiday July 4 weekend, data from the Energy Information Administration showed. Crude stocks dropped 3.2 million barrels compared with expectations for a decrease of 2.2 million barrels. Gasoline stocks fell 1.2 million barrels versus forecast of a 400,000-barrel gain,
Employment growth in the country is expected to have continued at a solid clip in June further dispelling fears about the economy's health. Earlier in the week, data from China showed factory activity hit multi-month highs in June, reinforcing signs that the world's second-largest economy is steadying.
Broader financial markets also gained on hopes of an improved economic outlook. Asian stocks hovered at a three-year high and the dollar rose early as a series of strong economic numbers point to momentum building in the economy. The improving demand outlook and lingering supply worries may push the U.S. benchmark towards USD 115 a barrel and Brent towards USD 120-USD 125 by the end of September.
Libya's acting prime minister, Abdullah al-Thinni, said the government had reached a deal with a rebel leader controlling oil ports to hand over the last two terminals and end a blockade, making around 500,000 more barrels a day of crude available for export. Brent crude extended the previous session's losses to fall to a three-week low, dropping 19 cents to USD 111.05 a barrel by 0505 GMT. US. oil declined 40 cents to USD 104.08, also sliding to a three-week trough..3
Demand outlook is improving in the United States and China, the world's top two oil consumers. U.S. crude stocks fell more than expected last week as refineries hiked output ahead of the holiday July 4 weekend, data from the Energy Information Administration showed. Crude stocks dropped 3.2 million barrels compared with expectations for a decrease of 2.2 million barrels. Gasoline stocks fell 1.2 million barrels versus forecast of a 400,000-barrel gain,
Employment growth in the country is expected to have continued at a solid clip in June further dispelling fears about the economy's health. Earlier in the week, data from China showed factory activity hit multi-month highs in June, reinforcing signs that the world's second-largest economy is steadying.
Broader financial markets also gained on hopes of an improved economic outlook. Asian stocks hovered at a three-year high and the dollar rose early as a series of strong economic numbers point to momentum building in the economy. The improving demand outlook and lingering supply worries may push the U.S. benchmark towards USD 115 a barrel and Brent towards USD 120-USD 125 by the end of September.
No comments:
Post a Comment