World News
Oil Rangebound Despite Stock Draw And Iran Bracing For Trump Presidency
Oil enjoyed modest gains but remained largely range bound on Wednesday, with everything from China's disappointing economy to analysts lowering demand growth expectations affecting trading – which was also capped by a strong dollar in the wake of Donald Trump's historic win as U.S. president.
Brent settled up 39 cents to $72.28 per barrel, while West Texas Intermediate settled up 31 cents to $68.43.
The bearish sentiment wasn't helped by the Energy Information Administration stating on Wednesday that U.S. and global oil production will rise to record highs this year.
Still, it's unclear to what extent the negative sentiment is justified: American Petroleum Institute figures on Wednesday showed that U.S. crude stocks fell by 777,000 barrels last week, compared to expectations for a 100,000 barrel build.
Meanwhile, Trump taking office next January and presumably taking a hard line against countries that sponsor terrorism caused Iran to prepare for possible sanctions.
Iranian oil minister Mohsen Paknejad said, "Required measures have been taken; I will not go into detail but our colleagues within the oil sector have taken measures to deal with the restrictions that will occur and there is no reason to be concerned."
While getting tough on Iran is good news for oil bulls, Trump critics complain that his proposal to impose import tariffs could slow down global and U.S. economic growth and, consequently, oil demand.
In other oil news on Wednesday, Sergey Tsivilyov, energy minister for Russia, told media, "Everything is stable with prices, the situation on the market is stable, so restrictions can be lifted - they were introduced in the first place to stabilize prices on the domestic market."
Tsiviyov was referring to the gasoline export sanctions that Moscow in August extended to the end of 2024 in order to keep domestic supply stable amid seasonal demand and scheduled refinery repairs.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 571.50 | 1.50 | 666.50 | 3.50 |
| Rotterdam | 515.00 | 1.50 | 662.50 | 0.50 |
| Houston | 542.50 | 5.00 | 656.50 | 2.00 |
| Fujairah | 560.50 | 6.50 | 742.00 | 4.50 |
| Global 20 Ports Average | 585.00 | 3.00 | 749.50 | 1.00 |
| Global 4 Ports Average | 547.50 | 3.50 | 682.00 | 0.50 |
| Global Average Bunker Price | 634.00 | 2.00 | 805.50 | 1.50 |
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