Tuesday , March 2 2021

Oil prices in the US are shutting down a 12-digit series of record stacks

This update corrects the year of the largest one-day percent of profits on natural gas. The year 2004 was.

Getty Images

Oil prices ended higher on Wednesday, with the US reference crude ended a record 12% reduction, as traders weighed up rising raw materials against long-standing demand issues.

The future of natural gas has in the meantime achieved a spectacular rise of around 18%, the highest in the last 14 years, as cold weather forecasts continued to provide close supplies to the US.

Read: Wrongway puts on assets, which rose this week to 20%, increased oil consumption, says a reputable retailer

West Texas Intermediate oil for December delivery

CLZ8, + 0.56%

rose 56 cents or 1% to $ 56.25 a barrel after rising to $ 55.69 on New York Mercantile Exchange Tuesday. This was the lowest final agreement on November 16, 2017, and the biggest one-day drop in percentage, more than 7% in more than three years, according to Dow Jones market data.

The Brent crude benchmark was now about 23% since its peak in October, with January Brent

LCOF9, + 0,69%

adding 65 cents or 1% to $ 66.12 per barrel on Wednesday. At ICE Futures Europe Tuesday, the contract fell by 6.6% to increase by $ 65.47 per barrel that officially joined the American opponent on the medial market, which was defined as at least 20% refunds from the recent high.

"Dramatic sales in the oil markets in recent days have come to a short" Wednesday "break, but many remain stunned by the accelerated aggressive momentum that has taken place in the last few sessions," said Jameel Ahmad, global leader in currency strategy and market research at FXTM.

"We have not seen such a catastrophic day in the oil market in terms of a negative start, as it was on Tuesday in about three years," he said. However, "I think that we need to make progress, is that traders wake up to a significant threat that the slowdown in global growth in 2019 will weaken the demand for raw materials, such as oil."

At the same time, a growing number of signs of strong data on supply can fuel price measures, as the US, Russia and Saudi Arabia are cruel to a record level, which makes the global supply considerably exceed demand, according to a monthly update from the International Energy Agency on Wednesday.

Read: Oil contracts have simply done something that has never been done as Trump requires lower crude oil prices

The IEA also said that the crude production of the world's three largest producers continuously provides global supplies to around 100.7 million barrels a day earlier this month. This is 2.6 million barrels per day more than in the same period last year.

Some analysts believe that cruising the oil in a short time is too dramatic, with a still-ongoing production picture.

"While macro demand for October was likely to be excessive, the underlying picture of the supply with major upward adjustments in US production and the Libyan and Venezuelan production, which was stronger than expected, significantly deteriorated. However, it is important that this has not yet happened in strongly rising stocks and does not justify the size of today's sales, especially if OPEC is now discussing a decline in production, "said Jeffrey Currie and a product group at Goldman Sachs, a note.

Since May, world oil production has risen by 1.8 million barrels per day. The United States provided 1 million barrels per day of growth, while Saudi Arabia and Russia added 620,000 barrels per day and 445,000 barrels per day, the IEA said.

Read: 5 reasons why oil prices are in history

The supply of supply has prompted a decline in market trends as it weakened world economic growth and the decision of the Trump administration to deny abandonment to major Iranian raw material buyers following the imposition of sanctions, which was a factor expected to retain most of the Iranian oil market .

The fall in prices prompted the Organization of the Petroleum Exporting Countries and its allies, including Russia, to announce on Sunday that it could introduce a total reduction in production. Such a move would come only months after the group decided to increase production after more than a year of production retention.

Plus, President Donald Trump consistently advocates lower oil prices and issued another tweet on Monday calling for even lower prices.

Looking ahead, weekly EIA oil supply data will be published on Thursday, a day later than usually due to veterans' days that they observed on Monday.

Analysts studied by S & P Global Platts expect the government agency to report 2.3 million barrels in raw stocks for the week ending November 9. That would mean an eighth straight weekend rise. They also expect the supply of petrol to fall by 894,000 barrels and 2,7 million barrels for distillates.

At Nymex, December gasoline

RBZ8, + 0.53%

added 1.2% to $ 1,561 per gallon and in December heating oil

HOZ8, + 1,66%

increased 1.6% to $ 2,096 per gallon.

However, natural gas remained at the center of attention, with futures flying up for the fourth consecutive session.

December natural gas

NGZ18, + 15.24%

jumped 73.6 cents, or about 18%, up to $ 4.837 per million British thermal units. This was the highest one-day growth since September 29, 2004 and the highest settlement since February 26, 2014, according to Dow Jones Market.

Providing critical information for a trading day in the United States. Subscribe to MarketWatch's free newsletter Need to know. Sign up here.

Source link