- Russia’s Transneft: Ukraine notifies suspension of oil supplies to Hungary via Druzhba – RIA
- Blast kills two in eastern Poland as Russian missiles hit neighboring Ukraine
- Slower US producer price growth raises inflation optimism
- API Shows Falling US Crude Oil Inventories – Market Sources
NEW YORK, Nov 15 (Portal) – Oil prices rose and settled higher on Tuesday after news that Hungary’s oil supply via the Druzhba oil pipeline had been temporarily suspended due to a pressure drop.
Brent crude futures were up 72 cents at $93.86 a barrel, while US West Texas Intermediate crude was up $1.05 at $86.92.
Russia’s state pipeline monopolist Transneft (TRNF_p.MM) has been briefed by Ukraine on the pipeline disruption, RIA Transneft news agency quoted Tuesday as saying.
The United States said it was investigating unconfirmed reports that stray Russian missiles caused an explosion that killed two people in a Polish village near the Ukraine border. Continue reading
A European Union ban on seaborne Russian crude, due to begin December 5, means 1.4 million barrels per day (bpd) will need to be replaced, the International Energy Agency said on Tuesday.
“If you look at what we’ve seen from the IEA on global oil stocks, that should be very bullish,” said Phil Flynn, an analyst at Price Futures Group.
Oil prices were given additional support as US producer prices rose less-than-expected in October, more signs that inflation was beginning to ease, which could allow the Federal Reserve to slow its aggressive rate hikes. Continue reading
Wall Street indices rose after the data, while the US dollar index fell, making greenback-denominated oil less expensive for other currency holders.
“Inflation data has been somewhat positive. Stocks have gone off the rails and it looks like we’re about to be pulled higher now,” said John Kilduff, a partner at Again Capital LLC in New York. “We’re still in this reverse dollar effect here.”
The IEA forecasts that a gloomy economic outlook will push global oil consumption down nearly a quarter million bpd year-on-year in the fourth quarter of 2022, with demand growth slowing to 1.6 million bpd annually from 2.1 million bpd this year will slow down in 2023.
U.S. crude inventories fell about 5.8 million barrels in the week ended November 11, market sources said, citing figures from the American Petroleum Institute on Tuesday. Gasoline inventories increased about 1.7 million barrels while distillate inventories increased about 850,000 barrels.
US government inventories data is due Wednesday.
COVID cases continued to rise in China, including in the capital Beijing, and the country’s factory output growth slowed.
Investment bank JPMorgan has lowered its quarterly and full-year forecasts for economic growth in China. The Organization of the Petroleum Exporting Countries (OPEC) lowered its forecast for 2022 global oil demand growth for the fifth time since April, citing mounting economic challenges, including high inflation and rising interest rates.
Reporting by Stephanie Kelly in New York; Additional reporting by Rowena Edwards in London and Florence Tan and Isabel Kua in Singapore; Edited by David Gregorio and Emelia Sithole-Matarise
Our standards: The Thomson Portal Trust Principles.
Stephanie Kelly