Oil extends rally on supply tightness, Brent at more than 3-year high

17/1/2022 4:17:00 AM

Oil extends rally on supply tightness, Brent at more than 3-year high

Oil extends rally on supply tightness, Brent at more than 3-year high

TOKYO : Oil prices rose on Monday, with Brent crude futures at their highest in more than three years, as investors bet supply will remain tight amid restrained output by major producers with global demand unperturbed by the Omicron coronavirus variant. Brent crude futures gained 42 cents, or 0.5per cent,

TOKYO : Oil prices rose on Monday, with Brent crude futures at their highest in more than three years, as investors bet supply will remain tight amid restrained output by major producers with global demand unperturbed by the Omicron coronavirus variant.

Brent crude futures gained 42 cents, or 0.5per cent, to $86.48 a barrel by 0022 GMT. The contract touched its highest since Oct. 3, 2018 - $86.71 - earlier in the session.U.S. West Texas Intermediate crude was up 62 cents, or 0.7per cent, at $84.44 a barrel, after hitting $84.78, the highest since Nov. 10, 2021, earlier in the session.

Read more: CNA »

#trending: Chinese cosplayer claims she was detained by police for wearing a kimono

SUZHOU, CHINA — In a video that went viral on Chinese social media over the weekend, men in what looked like police uniform can be heard shouting at a young Chinese woman dressed in a Japanese kimono, who is apparently in the midst of a cosplay photoshoot in Suzhou. Read more >>

Analysis-Physical crude oil market steams ahead after Omicron blipLONDON/BANGALORE/SINGAPORE : Frantic oil buying driven by supply outages and signs the Omicron variant won't be as disruptive as feared has pushed some crude grades to multi-year highs, suggesting the rally in Brent futures could be sustained a while longer, traders said. Prices for physical cargoes do

Asia braces for China data, oil nears 2021 highsSYDNEY : Asian share markets got off to a cautious start on Monday as the U.S. earnings season loomed large and a slew of Chinese economic data were expected to show the deadening effect of coronavirus restrictions on activity.A holiday in the United States made for thin trading, but that did not stop Bre

Analysis-Physical crude oil market steams ahead after Omicron blipLONDON/BANGALORE/SINGAPORE : Frantic oil buying driven by supply outages and signs the Omicron variant won't be as disruptive as feared has pushed some crude grades to multi-year highs, suggesting the rally in Brent futures could be sustained a while longer, traders said. Prices for physical cargoes do

Asia braces for China data, oil nears 2021 highsSYDNEY : Asian share markets got off to a cautious start on Monday as the U.S. earnings season loomed large and a slew of Chinese economic data were expected to show the deadening effect of coronavirus restrictions on activity.A holiday in the United States made for thin trading, but that did not stop Bre

Peru urges COVID-19 vaccine sellers to extend expiration dates to cut risk of lossesLIMA: Peru\u0027s Health Minister Hernando Cevallos has called on COVID-19 vaccine companies to extend expiration dates past the current three months to reduce the risk of losing doses. Cevallos said in a telephone interview on Saturday (Jan 15) that the government had asked one of the laboratories that supplie

US Bill aims to end China's 'chokehold' on America's rare earth suppliesWASHINGTON: Two US senators have proposed a law aiming to end China\u0027s alleged \u0022chokehold\u0022 on rare-earth metal supplies, a statement by the lawmakers said Friday (Jan 14). The law - proposed by Democrat Mark Kelly and Republican Tom Cotton - would aim to ensure the United States can guarantee its supplies o Unfortunately, the 2010 false narratives of REE chokehold & security threats are manipulated by politicians & some miners, but it's all great news for the next big producers: vital_metals $VTMXF, ucore $UURAF, NorthernMins $NOURF, RainbowREarths $RBWRF, & PensanaRE $PNSAF. The truth is that China is now a net importer by wide margins. They get a significant portion of their REEs from Myanmar & Madagascar & Russias Tomtar's building. China's been asking the west to get their own SupplyChain in order for nearly a decade now. They need their REEs.

LinkedIn TOKYO : Oil prices rose on Monday, with Brent crude futures at their highest in more than three years, as investors bet supply will remain tight amid restrained output by major producers with global demand unperturbed by the Omicron coronavirus variant.LinkedIn LONDON/BANGALORE/SINGAPORE : Frantic oil buying driven by supply outages and signs the Omicron variant won't be as disruptive as feared has pushed some crude grades to multi-year highs, suggesting the rally in Brent futures could be sustained a while longer, traders said.LinkedIn SYDNEY : Asian share markets got off to a cautious start on Monday as the U.LinkedIn LONDON/BANGALORE/SINGAPORE : Frantic oil buying driven by supply outages and signs the Omicron variant won't be as disruptive as feared has pushed some crude grades to multi-year highs, suggesting the rally in Brent futures could be sustained a while longer, traders said.

Brent crude futures gained 42 cents, or 0.5per cent, to $86. Brent oil futures have jumped 10per cent since the start of the year but the physical market is still racing ahead, with differentials for some grades hitting multi-year highs, suggesting a tight market will push the futures rally on.48 a barrel by 0022 GMT. A holiday in the United States made for thin trading, but that did not stop Brent crude from extending its bull run toward last year's peak of $86. The contract touched its highest since Oct. There clearly is physical tightness," a North Sea oil trader said. 3, 2018 - $86. Key benchmark grade Forties traded at a fresh two-year high on Thursday at Dated Brent plus $1.

71 - earlier in the session.80 a barrel.8per cent after losing 1. U.S. Prices for key west African grades like Nigeria's Bonny Light have jumped too since the start of the year. West Texas Intermediate crude was up 62 cents, or 0. The main feature of the market recently has been a rotation into value stocks and away from growth, particularly technology.7per cent, at $84.reuters.reuters.

44 a barrel, after hitting $84.78, the highest since Nov.jpg The tightness began in the Atlantic Basin and spread as Asian buyers were forced to look for cheaper cargoes elsewhere. With valuations still high, earnings will have to be strong to stop further losses. 10, 2021, earlier in the session. The gains followed a rally last week when Brent rose 5. Several factors have fuelled prices.4per cent and WTI climbed 6.6per cent. After the wildfire spread of Omicron in the fourth quarter, oil demand has not been badly hit in a surprise to refiners that had reduced purchases.

3per cent. Now, they suddenly have to make up for the gap. Frantic oil buying, driven by supply outages and signs the Omicron variant won't be as disruptive as feared for fuel demand, has pushed some crude grades to multi-year highs, suggesting the rally in Brent futures could be sustained a while longer, traders said. "The bullish sentiment is continuing as (producer group) OPEC+ is not providing enough supply to meet strong global demand," said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd. The Libyan and Ecuadorian outages were largely resolved in the past week after taking out close to 1 million barrels per day. 25-26 policy meeting, but there has been more than enough hawkish comments to see the market almost fully price in a first rate hike for March. "If (investment) funds increase allocation weight for crude, prices could reach their highs of 2014," he said. The Organization of the Petroleum Exporting Countries (OPEC) and its allies - OPEC+ - are gradually relaxing output cuts implemented when demand collapsed in 2020. Meanwhile, nuclear talks with Iran, that could also boost supply, appear stalled. Meanwhile, nuclear talks with Iran, that could also boost supply, appear stalled.

But many smaller producers can't raise supply and others have been wary of pumping too much oil in case of renewed COVID-19 setbacks.8per cent, while futures implied yield of 1. Worries of a Russian attack on neighbouring Ukraine that could disrupt energy supply also lent support to prices.S. U.S. "(Buyers) are snapping up everything no matter what grade. "Meanwhile, new COVID lockdowns in China could re-aggravate global supply bottlenecks, while in both Europe and the U. officials voiced fears on Friday that Russia was preparing to attack Ukraine if diplomacy failed." Inventories have also shrunk in the United States and Canada.

Russia, which has massed 100,000 troops on Ukraine's border, released pictures of its forces on the move. The U. The U." Data out of China due on Monday are expected to show retail sales and industrial output slowed further in December.S. Energy Information Administration said on Wednesday crude oil stockpiles fell more than expected to their lowest since October 2018. government has held talks with several international energy companies on contingency plans for supplying natural gas to Europe if conflict between Russia and Ukraine disrupts Russian supplies, two U.S..6per cent from 4..

officials and two industry sources told Reuters on Friday. U. people are getting prepared to enjoy a strong market," a U.S. While a move is unlikely this year, financial markets may be under-estimating its readiness to gradually phase out its once-radical stimulus programme. crude oil stockpiles, meanwhile, fell more than expected to their lowest levels since October 2018, but gasoline inventories surged due to weak demand, the Energy Information Administration said on Wednesday. trader said. Concerns over supply constraints outweighed the news of China's possible oil release from reserves, Fujitomi analyst Tazawa said. Some traders still believe the market could run out of steam due to new COVID variants, seasonal refinery maintenance in the second quarter, and a potential slowdown in China.

Sources told Reuters China plans to release oil reserves around the Lunar New Year holidays between Jan. "I think it's more trying to get ahead of tightness they think is coming .29 but still well above major chart support at 112. 31 and Feb. 6 as part of a plan coordinated by the United States with other major consumers to reduce global prices.. (Reporting by Yuka Obayashi; Editing by Kenneth Maxwell) Source: Reuters .5per cent last week as the dollar eased broadly and was last changing hands at $1.