Oil dips as short-term demand outlook weakens

Oil dips as short-term demand outlook weakens

Oil prices fell on Friday as market fundamentals are expected to weaken with the upcoming end of the peak demand period during the Northern Hemisphere winter, Reuters reports.

Brent crude futures were at $70.18 per barrel at 0504 GMT, down 24 cents, or 0.3 percent, from their last close. Brent the previous day rose its highest since December 2014 at $71.28.

U.S. West Texas Intermediate (WTI) crude futures were at $65.32 a barrel, down 19 cents, or 0.3 percent from their last close. WTI also marked its highest since December 2014 in during the previous session at $66.66.

Georgi Slavov, head of research at commodities brokerage Marex Spectron, said despite a generally healthy outlook for oil demand, there were short-term headwinds due to the upcoming end of the peak demand period during the Northern Hemisphere winter season.

Many refiners shut down after winter for maintenance, resulting in lower orders for crude, their most important feedstock.

“Demand is starting to weaken as ... refining capacity was taken out of the market,” Slavov said.

“Global oil stocks built overall in the week ending Jan. 19, as both crude and product stocks saw small builds,” U.S. bank Morgan Stanley said in a note.

On the supply side, U.S. oil production is expected to hit 10 million barrels per day (bpd) soon, after reaching 9.88 million bpd last week.

Output has grown by more than 17 percent since mid-2016, and is now on par with top exporter Saudi Arabia‘s.

Only Russia produces more, averaging 10.98 million bpd in 2017.

Rising U.S. output is threatening to undermine the supply restraint led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia aimed at propping up prices.

These cuts, coupled with demand growth, have contributed to a near 60 percent rise in oil prices since mid-2017 as excess crude inventories around the world have been drawn down.

Crude oil futures have also received support from a weakening dollar.

The U.S. currency has lost almost 13 percent in value against a basket of other leading currencies since the start of 2017.

As oil is traded in dollars, swings in the greenback can also impact oil demand as it affects the price of fuel purchases for countries using other currencies. “The weakening of the U.S. dollar against a basket of global currencies... has positioned 2018 to lead off with strong levels of oil demand,” said BMI Research.

Turkey records dropping revenues from cement export to Georgia
Turkey records dropping revenues from cement export to Georgia
Turkey reports 11,770 COVID-19 cases in 24 hours
Turkey reports 11,770 COVID-19 cases in 24 hours
We successfully completed all steps taken, including ending occupation of Nagorno-Karabakh - Erdogan
We successfully completed all steps taken, including ending occupation of Nagorno-Karabakh - Erdogan
Loading Bars
Latest
Weekly review of Azerbaijani precious metals market
Iran's Energy Exchange announces products to be on sale on March 7
Azerbaijan shows footage from Fuzuli's Garakollu village (VIDEO)
Weekly review of major developments in Azerbaijan's transport sector
S. Korea reports 416 more COVID-19 cases, 92,471 in total
Health Minister: Only WHO approved vaccine to be imported
Turkey records dropping revenues from cement export to Georgia
Iran's customs releases more imported commodities
Turkmenistan shares data on GDP growth rate
New hazelnut processing plant to open in Azerbaijan’s Zagatala
New Zealand's Auckland emerges from lockdown, Australia starts AstraZeneca vaccinations
China exports jump 60.6% y/y in January-February, imports up 22.2%
Brazil registers 1,555 deaths from COVID-19 in 24 hours
Iran's trade, economic, political relations with neighboring countries to be developed
Ebola infects 29 people, kills 13 in Guinea, DRC: Africa CDC
UN chief condemns terrorist attack in Somalia
Paraguay’s president asks all ministers to resign amid protest rallies
Weekly review of highlights in Azerbaijan's agricultural sector
Israel reports 3,262 new COVID-19 cases, 799,727 in total
Biden says $1,400 payments can start to go out this month
France registers 23,306 new coronavirus cases, 170 deaths
U.S. Senate passes 1.9-trln-USD relief bill after marathon overnight session
UK records another 6,040 coronavirus cases, 158 deaths
India could be next happening market for SPAC-driven investor frenzy
Amazon, Google vie for piece of India digital payment market
India’s Wipro to acquire UK company for $1.45 bn
Indian-American named 1st VP, COO of Federal Reserve Bank of New York
Indian Govt to support Sri Lanka – Keheliya
Canada thanks India for sending 500,000 doses of COVID-19 vaccines
India proposes inclusion of Chabahar Port in INSTC multi-lateral corridor project
Nepali Parliamentarians take COVID-19 vaccine ahead of reinstated lower house meeting
Twitter tests audio chat tool Spaces on Android in India
WHO reports over 353,000 new daily cases of COVID-19
U.S. administers 87.9 million doses of COVID-19 vaccines: CDC
Foreign diplomats acquainted with Gulebird HPP in liberated Lachin of Azerbaijan (PHOTO)
Uzbekneftegaz eyes increasing daily production of liquefied gas at Shurtan oil&gas dep’t
Maduro receives Russia’s Sputnik V COVID-19 vaccine
Prices for fuels and lubricants increase in Kyrgyzstan 10-15% in one month
Turkey reports 11,770 COVID-19 cases in 24 hours
Iran, Iraq confer on expansion of transportation coop.
Visitors from Central Asia countries to enter Georgia with PCR tests
Armenian occupants seriously damage Azerbaijan's ecology - Ministry (PHOTO)
Paris police clear Seine riverside over lack of social distancing
Twitter's Dorsey auctions first ever tweet as digital memorabilia
Tibetan spiritual leader Dalai Lama gets vaccine shot
Five people killed in Ukrainian bus crash in Poland
Azerbaijani oil & gas sector's weekly review
Air France plane forced to land in Sofia due to disruptive passenger
Turkmenhimiya SC opens tender for construction of plants for technical iodine production
Georgian GlenBerries company launches arrangement of greenhouses for growing vegetables and fruits
Azerbaijani Ministry of Education implementing innovative projects with Microsoft
Bahar Azadi gold coin price continues to fall in Iran
We successfully completed all steps taken, including ending occupation of Nagorno-Karabakh - Erdogan
WHO official advises against introducing ‘immunity passports’ for travelers now
Russia logs 11,022 new COVID-19 cases
Azerbaijan confirms 149 more COVID-19 recoveries
Azerbaijan issues footage from Jabrayil district's Papi village (VIDEO)
Turkish FM pays official visit to Turkmenistan (PHOTO)
Iran reveals COVID-19 data for March 6
Uzbekistan transfers funds to UN Trust Fund for Aral Sea region
Turkish FM announces trilateral meeting between Azerbaijan, Turkey, Turkmenistan
Lybian diplomat harshly condemns Armenia using mosque in Azerbaijani Fuzuli as stable
Iran discusses relations with IAEA
Iran's nuclear activities completely peaceful - Rouhani
Who could say that Azerbaijan was wrong when the war started? - President Aliyev
New stage already evident in economic sphere, period of transparency, precision, when monopolies suppressed - President of Azerbaijan
As Commander-in-Chief, I know where our weaknesses are - Azerbaijani president
Today we are working on equal agreement with EU, it has been agreed by 90% - President of Azerbaijan
At new stage, we need to further deepen political dialogue - President Aliyev
Why are our “democrats” silent? Why aren’t they saying that Pashinyan should become example for us? - Azerbaijani president
Popular Front-Musavat ruined relations with almost all countries in just one year - Azerbaijani president
Azerbaijan today is country conducting large-scale reforms - President Aliyev
We have no problems with any political entity in country - President of Azerbaijan
If there were no outside help now, Armenia would be gone, completely - President Aliyev
If we are building road, asphalt is ours, bitumen is ours, gravel is ours, so why should we take external credits - Azerbaijani president
We never begged like Armenia, never humiliated ourselves, never asked anyone for help - Azerbaijani president
2003-2020 period was one of preparations - President Aliyev
Younger generation should know at what cost we were able to maintain independence - Azerbaijani president
Today Armenia shies away from cooperation, we will force them - President Aliyev
Absolute majority of participants in battles are people who were children when I came to power in 2003 - President of Azerbaijan
To put it mildly, Luxembourg does not have special political weight in world for its foreign minister to make any claims to us - President Aliyev
So many accused me – Ilham Aliyev does not want peace - Azerbaijani president
Hands of Popular Front-Musavat tandem were imbrued in blood of Azerbaijani people - President Aliyev
Country was in absolutely uncontrollable state during PFPA-Musavat tandem - President Aliyev
It is necessary to plan future of country in such way as to ensure long-term sustainable development - President Aliyev
I highly appreciate activities of “91”, for whom national interests were paramount at time - President Aliyev
Establishment of New Azerbaijan Party was necessity - President Aliyev
Heydar Aliyev's unambiguous, resolute steps related to independence were highly appreciated by people - President of Azerbaijan
Turkish investors have interest in Azerbaijan's business environment - Turkey's MUSAID
We turned Azerbaijan into country enjoying great authority, respect in international arena - President Aliyev
We are a country that creates realities - President of Azerbaijan
Program I announced after presidential elections is being implemented, we are consistently achieving our goals - President Aliyev
Many important events taken place in life of country in three years since sixth congress of New Azerbaijan Party - President Aliyev
Reps of diplomatic corps in Azerbaijan visit Fuzuli airport's construction area
Uzbekistan reveals its COVID-19 data for March 6
U.S. Embassy Announces 2021-2023 GIPA Master’s Degree Program in Journalism
Georgia reports 355 new cases of COVID-19 cases for March 6
Azerbaijan shows footage from Zangilan's Garadere village (VIDEO)
Democrats advance Biden's $1.9 trillion COVID-19 bill in marathon Senate session
President Ilham Aliyev congratulates Azerbaijani women on International Women's Day
All news