Oil slips after USA rig count rises; Iran concerns cap downside
02 May 2018, 01:34 | Andres Norman
Iran risk sends oil prices higher
NEW YORK, April 30 (Reuters) - Oil rose slightly on Monday, bouncing off early losses after Israeli Prime Minister Benjamin Netanyahu said he would make an announcement later in the day about the nuclear deal with Iran.
While upside risks to the forecast include constraints to USA shale oil output, geopolitical risks in several producing countries, and concerns the United States may not waive sanctions against Iran, downside risks include weaker compliance with the oil producers' agreement to restrain output or outright termination of the accord, rising output from Libya and Nigeria, and a quicker-than-expected rise in shale oil output.
Trading on the Shanghai International Energy Exchange is closed for a Chinese public holiday. "Reimposing US sanctions is not a foregone conclusion just yet".
"Netanyahu may be the flavour of the day, but the larger issue driving this is what will Trump do with Iran?"
"Although the overall United States oil rig count rose by five, the prolific Permian region saw oil rigs decline by one", Anthony Headrick, energy market analyst and commodities futures broker at CHS Hedging LLC, said in an email. However, a bigger than expected jump in USA inventories sent crude oil futures... In Texas, oil production climbed to an all-time high in February, the federal government said.
U.S. West Texas Intermediate and international-benchmark Brent crude oil are trading lower early Monday, but continue to hover close to their almost three-year highs reached earlier in the month. Total volume traded was about 8% below the 100-day average. Prices climbed as high as $75.47 last week, levels not seen since November, 2014.
Brent crude futures, the global benchmark, dipped 39 cents, or 0.5 per cent, to $74.25 a barrel at 0305 GMT. The global benchmark crude traded at a $6.43 premium to June WTI. French President Emmanuel Macron made a joint announcement with the office of Iranian President Hassan Rouhani that the two leaders would work together on preserving the deal.
On Friday, US Secretary of State Mike Pompeo said at a news conference that Trump would exit the deal next month "absent a substantial fix". "You shouldn't be surprised if there's a $5 flush out and some profit taking". The contract fell 0.4% last week. US crude production rose by 46,000 BPD the previous week, to 10.59 MMBPD.
Oil fell earlier in the day after a weekly report showed U.S. drillers added five oil rigs in the week to April 27, bringing the total count to 825, the highest since March 2015, General Electric's Baker Hughes energy services firm said.
Canadian police seek motive in van attack that killed 10
The attack shook the usually peaceful streets of Toronto , a multicultural city with a population of 2.8 million. Minassian on Monday posted a cryptic message to Facebook minutes before setting off in his rented vehicle, Sgt.
Football Association apologise for Harry Kane tweet
The BBC report that neither Manchester United nor Tottenham were impressed with the tweet from the official FA account. Tottenham striker Harry Kane defended his form after their FA Cup semifinal defeat to Manchester United .
UNSC team meets Rohingyas in Bangladesh
His country and China - another veto-empowered council member - have bilateral and military ties with Naypyidaw. The diplomats will conclude their three-day visit to Bangladesh on Monday, when they leave for Myanmar.
Lightning 4, Bruins 2: Bad turnovers, worse officiating
With Rask off the ice, it was an opportunity to get a glimpse at what the future might look like between the pipes for the Bruins. Before the game begins, you can get caught up on everything you need to know in News Channel 8's Road to the Cup pregame special.
YouTube Introduces More Parental Controls For YouTube Kids
The app is created to be installed on a child's device, with the parent able to control settings from their own Facebook account. This is something kids are especially susceptible to, as they might lack the self-control adults often learn as they grow up.
Bucks 104, Celtics 102
For Boston , Stevens gave Greg Monroe just five minutes in Game 4 after he was effective in Game 3 , posting a double-double. The Bucks won their two home games but that's been the trend in the series as the hosts have prevailed all four times .