Supply concerns and demand optimism are boosting oil prices

supply concerns

Oil prices surged this week as hurricane season began, demand improved, and both U.S. crude and gasoline inventories fell. This triggers supply concerns. Rising geopolitical risk around the world only added to bullish sentiment.

Friday, June 21, 2024

The onset of hurricane season in the US is improving demand figures. It is corroborated by shrinking crude and product inventories. It is becoming more visible Chinese buying have come together to lift oil prices to their highest since early May. The market was also reminded of the dysfunctional Red Sea navigation with the Houthis sinking another bulker this week, adding upward pressure to oil prices.

Chevron-Hess Merger Stalled by Arbitrage Delays.

Three months have passed since the case for a contract arbitration panel on Chevron’s planned takeover of Hess’ Guyana assets was filed. Still, there is no final arbitrator selected, delaying the $53 billion merger.

Alberto Becomes the New Scare for the Gulf. 

A storm system has made landfall in Mexico’s northeast regions. It is becoming the first named tropical storm of the 2024 Atlantic hurricane season, with Tropical Storm Alberto bringing heavy rains that disrupted lightering operations in Corpus Christi and Beaumont.

Here Comes the New PE-Backed Gas Giant.

US private equity giant Carlyle Group (NASDAQ:CG) will form a new Mediterranean-focused oil and gas company after purchasing Energean’s (LON:ENOG) assets in Italy, Croatia, and Egypt for $945 million, naming former BP boss Tony Hayward as its new CEO.

Europe Approves 14th Russia Sanctions Package.

The European Union approved a 14th package of sanctions against Russia that bans re-exports of Russian LNG in the EU, however steering clear of banning LNG imports per se, whilst also blocking any financing for Russia’s planned Arctic and Baltic LNG terminals.

Click here to read the full article
Source: Oil Price

—

Do you have any questions or thoughts about the topic related to supply concerns? Feel free to contact us here or leave a comment below.

You might also like
ExxonMobil (XOM 0.31%) earned an impressive $9.1 billion in the third quarter. Meanwhile, cash flow was even higher at $16 billion.ExxonMobil is cashing in on higher crude oil prices
Oil prices found support after U.S. commercial crude stockpiles declined by 1.4 million barrels in the first week of May.US crude oil recovers losses after surprise stockpile decline
Last week, US crude inventories posted an unexpected rise, with the API reporting a build of 4.91 million barrels.Oil demand likely to surprise to the upside
The US will continue buying crude at $70s per barrel or lower and plans to add millions of barrels to the SPR early next year.SPR – US set to slowly refill SPR as crude buys extend into 2025
Oil prices found support after U.S. commercial crude stockpiles declined by 1.4 million barrels in the first week of May.US crude oil recovers losses after surprise stockpile decline
Crude oil futures rose Wednesday as Federal Reserve Chair Jerome Powell indicated that interest rates will likely come down this year.Oil prices rise more than 1% on Fed rate cut outlook, signs of rising gasoline demand
US crude oil ralliesUS crude oil rallies more than 4%, tops $80 as Pentagon sends more forces to Middle East
Oil prices have moved higher following news that producer BP will temporarily halt shipments through the Red Sea after reported attacks on vessels delivering on this route.Oil price rises as shipments through Red Sea are halted
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *