Posted on 04/07/2015 5:19:06 AM PDT by thackney
Oil futures rebounded sharply Monday, with the U.S. benchmark closing at its highest level in seven weeks on signs of strengthening Asian demand and expectations a preliminary agreement to curb Iran’s nuclear program won’t see the market immediately swamped with more crude.
On the New York Mercantile Exchange, West Texas Intermediate crude for delivery in May jumped $3, or 6.1%, to close at $52.14 a barrel. That marked the highest close for a most-active futures contract since Feb. 17.
May Brent crude LCOK5, on London’s ICE Futures exchange rose $3.17, or 5.8%, to $58.12 a barrel. Both benchmarks saw their biggest one-day percentage gains since Feb. 3.
Saudi Arabia over the weekend raised its official crude oil selling price for Asian buyers for May lifting on the back of strong refining margins in the region and a strong Dubai crude price benchmark, Singapore-based traders said. Strategists took the move as a further sign of strengthening demand in Asia.
“The increase was only 30 cents a barrel, but it is worth noting this is the second consecutive month the Saudis have raised prices,” wrote Bob Shiring, analyst at Tradition Energy, in a note.
The dollar, meanwhile, had weakened after Friday’s weaker-than-expected U.S. jobs data as investors delayed expectations of an increase in the U.S. Federal Reserve’s key interest rate. A stronger dollar on the back of higher rate expectations has weighed on commodities prices in recent weeks....
...analysts largely estimating that Iranian crude exports could take several months to ramp up significantly.
“Even if a final deal is reached, we do not expect any physical market impact before 2016,” Adam Longson, head of oil research at Morgan Stanley, said in a report....
(Excerpt) Read more at marketwatch.com ...
Is your “personal” consideration looking for a rebound to $80+/BBL to make shale-frac viable again?
That is what I’m thinking but, it may be higher before the industry comes back.
just curious.
Ah yes, commodities trading and currency speculation, what wealthy Obama voters love. Great way to innovate and create jobs and wealth and contributes so much to communities. Why, ones like Rockefeller and Carnegie and Vanderbilt should have been doing this instead of building railroads or steel mills or oil wells or steamships (sarc, of course).
Ah yes, good old “fears” raises its ugly head again. Whatever.
Not much correlation, but gasoline is back down to $2/gal here after a brief jump to $2.40 range.
I filled up 3 of my 4 cars.
There is no single magic number. As it rises, more areas will become economic. Even below $40, areas of the Bakken and others are still economic to drill additional wells. While shale field drilling has cut way back, it hasn't stopped.
Someone's going to lose a lot of money betting on the price of oil.
Oil has already gain backed earlier loss this morning and continued to climb from mid last week.
But then I don’t put a lot of value in short term trends, too much panic buy/sell on news.
http://online.wsj.com/mdc/public/page/mdc_commodities.html
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