49 Views

Oil mixed amidst Irma demand fears, Saudi cut extension talks

© Reuters. FILE PHOTO: A worker checks the valve of an oil pipe at Nahr Bin Umar oil field north of Basra© Reuters. FILE PHOTO: A worker checks the valve of an oil pipe at Nahr Bin Umar oil field north of Basra

By Julia Simon

NEW YORK (Reuters) – Oil prices were mixed on Monday, with Hurricane Irma’s continued pounding Florida raising demand fears, while U.S. refinery restarts and Saudi cut extension talks gave upward pressure.

Brent crude oil futures were down 13 cents, or 0.2 percent, at $53.65 a barrel at 12:17 p.m. (1617 GMT) while U.S. West Texas Intermediate crude rose by 59 cents, or over 1 percent, to $48.07.

Hurricane Irma knocked out power to nearly 5.8 million Florida homes and businesses on Sunday after millions were told to evacuate ahead of the storm.

Irma hit Florida on Sunday morning as a dangerous Category 4 hurricane. It gradually lost strength and weakened to a tropical storm by Monday morning as it headed towards Georgia.

Harvey struck the U.S. oil hub of Texas two weeks ago, knocking out a quarter of the nation’s refineries.

Now many refineries are restarting, including the largest U.S. refinery. On Monday, Motiva Enterprises restored the 325,000 barrel per day (bpd) VPS-5 crude distillation unit at its Port Arthur, Texas, refinery to minimum production levels sources said.

But the oversupply of U.S. crude persists, causing a further widening in the WTI/Brent spread, said James Williams, president of energy consultant WTRG Economics.

“We’re waiting for our refineries to all get going,” he said, “On the east coast we don’t have enough gasoline so we have to import more product from Europe, which adds a boost to Brent.”

The Brent/WTI spread has widened 63 cents or 11 percent by 12:24 p.m. EDT (1624 GMT).

The two hurricanes are expected to inflict a “bearish shock” on oil balances in September, denting global demand by 900,000 bpd and supply by about 300,000 bpd, Goldman said.

The longer-term focus, however, was on a possible extension to the 15-month production pact between members of the Organization of the Petroleum Exporting Countries and non-OPEC producers including Russia.

Saudi Arabia’s Energy Minister Khalid al-Falih met his Venezuelan and Kazakh counterparts at the weekend to discuss an extension of a deal to cut production by about 1.8 million bpd until March 2018 by at least three months, the Saudi energy ministry said.

On Monday, Falih and his United Arab Emirates counterpart also agreed to consider an extension beyond March.

The deal aims to curb a glut that has weighed on crude prices for more than three years.

The deal agreed late last year helped to keep prices as high as $58 a barrel in January, but they have since sagged as global stocks have not fallen as quickly as expected.

China has begun studying when to ban the production and sale of cars using traditional fuels, the official Xinhua news agency reported, citing comments by the vice industry minister, who predicted “turbulent times” for automakers forced to adapt.

sponsoredArticle = ‘div-gpt-ad-1466339494851-0’;

Get the best viral stories straight into your inbox!

Don't worry, we don't spam

Latest Posts

These Incredible Dogs Rescued People And You Won’t Believe What These People Did in Return
Uncategorized
42 views
Uncategorized
42 views

These Incredible Dogs Rescued People And You Won’t Believe What These People Did in Return

Editor - February 2, 2018

These heroics dogs didn't waste a second after realizing a human was struggling to get out of the water. Check out these dog saves owner from drowning…

Unusual business ideas for the pet industry
Uncategorized
38 views
Uncategorized
38 views

Unusual business ideas for the pet industry

Editor - January 28, 2018

Are you an animal lover? We from Optionsuniversitystrategist sure are! It's amazing what that does for business, entire new industries are born this way. We know the…

Part Two – 13 Things You Won’t Believe You Didn’t Know
Uncategorized
62 views
Uncategorized
62 views

Part Two – 13 Things You Won’t Believe You Didn’t Know

Editor - January 27, 2018

4. You can’t smell while you’re sleeping So it wasn’t the smell of the fart that woke you up. It was probably the sound. 5. Have you…

13 Amazing Things You Won’t Believe You Didn’t Know
Stock
74 views
Stock
74 views

13 Amazing Things You Won’t Believe You Didn’t Know

Editor - January 27, 2018

Here are a bunch of things that you probably never knew, but after reading this you will. And then maybe you'll come back to life next season…

Richard is looking for South African testers!
Uncategorized
71 views
Uncategorized
71 views

Richard is looking for South African testers!

Editor - January 9, 2018

Richard Branson is een van de beste ondernemers en langetermijnbeleggers ooit. Hij creëerde een fortuin zoals weinige hem dat hebben voorgedaan. Het mag dan ook niet verwonderen…

Met dit systeem ben je iedereen slimmer af
Uncategorized
940 views
Uncategorized
940 views

Met dit systeem ben je iedereen slimmer af

Editor - January 3, 2018

Koers bitcoin is weer op weg naar 20.000 dollar De koers van de digitale munt bitcoin gaat hard op de 20.000 dollar af. Afgelopen vrijdag doorbrak de…

This Amazing Video of Babies & Dogs Will Challenge You Not To Laugh
Uncategorized
5268 views
Uncategorized
5268 views

This Amazing Video of Babies & Dogs Will Challenge You Not To Laugh

Editor - December 29, 2017

We love dogs and love babies, so we came across this fantastic video that combines the two! It's so great to see this little newborns laugh and…

The heartwarming sight of dogs seeing their owners after a long time
Uncategorized
6115 views
Uncategorized
6115 views

The heartwarming sight of dogs seeing their owners after a long time

Editor - December 2, 2017

Our little friends can be so happy to see us again. It seems that seeing each other after a long time evokes the same feelings and emotions…

Unusual business ideas.. for the pet industry!
Uncategorized
7720 views
Uncategorized
7720 views

Unusual business ideas.. for the pet industry!

Editor - November 17, 2017

Are you an animal lover? We from Optionsuniversitystrategist sure are! It's amazing what that does for business, entire new industries are born this way. We know the…

Are you the boss at home? This little girl sure is!
Uncategorized
1271 views
Uncategorized
1271 views

Are you the boss at home? This little girl sure is!

Editor - November 14, 2017

This little girl knows exactly what she wants, do you know what you want as well? Haha what a laugh to see this little bosslady telling her…