financetom
World
financetom
/
World
/
Oil prices tick up on tighter supply outlook
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Oil prices tick up on tighter supply outlook
May 13, 2024 6:15 PM

BEIJING (Reuters) - Oil prices rose on Tuesday as the supply-demand balance looked set to tighten on operational disruptions, stronger demand and voluntary output cuts.

U.S. West Texas Intermediate crude futures rose 18 cents to $79.30 a barrel by 1224 GMT. Brent crude futures gained 19 cents, reaching $83.55 a barrel.

The market is watching wildfires in remote western Canada that could disrupt the country's oil supply, Tony Sycamore, market analyst with IG, said in a note.

As Canada's wildfire season begins, firefighters on Monday were racing to contain one blaze in British Columbia and two in Alberta near the heart of the country's oil sands industry. No operational disruptions had been reported.

But Alex Hodes, analyst at energy brokerage StoneX, said Canada's 3.3 million barrel per day production capacity is "very likely to be affected".

Oil prices settled up about 1% in the previous trading session on improving demand from the U.S. and China.

U.S. motorist group AAA has forecast Labour Day road trips for the May 25-27 long weekend rising to the highest level since 2000, while Chinese data over the weekend showed consumer prices rising for a third straight month.

The market also continued to react to bullish comments from Iraq's oil minister, Hayyan Abdul Ghani, over the weekend, according to a note from ANZ analysts. Ghani said on Sunday that Iraq would honour voluntary output cuts made by OPEC+, which includes the Organization of the Petroleum Exporting Countries, Russia and other non-OPEC producers, at its upcoming meeting on June 1.

That reversed course from his Saturday comments that Iraq had made enough voluntary reductions and would not agree to any new output cuts.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Asia shares on a roll as SNB kicks off rate cuts
Asia shares on a roll as SNB kicks off rate cuts
Mar 21, 2024
SINGAPORE (Reuters) - Asian stocks were near a weekly gain on Friday and the Nikkei charged to a record high, riding a rally from its global counterparts after a surprise rate cut from the Swiss National Bank had investors wagering who could be next. The SNB's 25 basis point rate cut on Thursday proved a shot in the arm for...
China yuan falls to four-month low, state banks step in
China yuan falls to four-month low, state banks step in
Mar 21, 2024
(Updates to midday) SHANGHAI, March 22 (Reuters) - China's yuan declined to a four-month low against the dollar on Friday, breaching a key threshold and prompting state-owned banks to step in to defend the currency. In the spot market, the onshore yuan fell to the weak side of the psychologically important 7.2 per dollar level to hit a low of...
GLOBAL MARKETS-China gloom sucks life out of Asia's rate cut cheer
GLOBAL MARKETS-China gloom sucks life out of Asia's rate cut cheer
Mar 21, 2024
(Recasts to lead on Chinese markets, updates prices) By Rae Wee SINGAPORE, March 22 (Reuters) - Chinese stocks were a sea of red on Friday and the yuan fell sharply, dragging down the broader mood in Asia and putting a dent in the rate cut rally after a surprise move from the Swiss National Bank had investors wagering on who...
GLOBAL MARKETS-Asia shares on a roll as SNB kicks off rate cuts
GLOBAL MARKETS-Asia shares on a roll as SNB kicks off rate cuts
Mar 21, 2024
SINGAPORE, March 22 (Reuters) - Asian stocks were near a weekly gain on Friday and the Nikkei charged to a record high, riding a rally from its global counterparts after a surprise rate cut from the Swiss National Bank had investors wagering who could be next. The SNB's 25 basis point rate cut on Thursday proved a shot in the...
Copyright 2023-2026 - www.financetom.com All Rights Reserved