Oil prices drop after Iran nuclear deal

BANGKOK – Oil prices sank Monday as a nuclear deal between Iran and six world powers made it more likely that the sanctions choking Iranian oil exports will eventually be lifted.

Brent crude, a benchmark for international oils, was down $2.43 at $108.62 a barrel at midmorning Bangkok time in electronic trading on the ICE futures exchange in London.

Benchmark U.S. crude fell 85 cents to $93.99 on the New York Mercantile Exchange.


After marathon negotiations in Geneva, Iran on Sunday reached an agreement with the U.S., Britain, France, Russia, China and Germany to limit enrichment of uranium to 5 percent, far below the level needed for nuclear weapons.

Iran got limited relief from sanctions that have hobbled its economy, but an embargo on its oil exports remains in place while negotiations continue for a more enduring deal to ensure the country only uses nuclear technology for peaceful purposes such as power generation.

If Iranian oil returns to international markets, the additional supply is likely to make crude less expensive.

Benchmark U.S. crude is down from about $110 in October because of ample supplies and muted demand.

In other energy futures trading on Nymex:

— Wholesale gasoline dropped 4.6 cents to $2.665 gallon.

— Heating oil shed 4.8 cents to $2.991 a gallon.

— Natural gas added 7.7 cents to $3.845 per 1,000 cubic feet.

source: business.inquirer.net

Oil near $94 on heels of US consumer data

BANGKOK — The price of oil rose slightly Friday after data showed U.S. consumer spending on the rise, a sign of confidence in prospects for the world’s biggest economy.

Benchmark crude for July delivery was up 15 cents to $93.76 per barrel at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 48 cents to close at $93.61 per barrel on Friday.

The U.S. economy grew at a modest 2.4 percent annual rate from January through March, slightly slower than initially estimated. But consumer spending was stronger than first thought, roaring ahead at a 3.4 percent annual rate. That’s the fastest spending growth in more than two years and even stronger than the 3.2 percent rate estimated last month.

Caroline Bain, commodities analyst at the Economist Intelligence Unit, said in a commentary that “the modest upward revision to already-strong private consumption should be a positive for the oil price as it suggests buoyant consumer demand.”

Meanwhile, the U.S. Energy Department’s Energy Information Administration said the nation’s supply of oil rose last week by 3 million barrels to 397.6 million barrels, the highest level since the government started collecting the data in 1978. Separately, the American Petroleum Institute said crude oil stocks rose by 4.4 million barrels to 395.1 million barrels.

Brent crude, a benchmark for many international oil varieties, was up 4 cents to $102.23 a barrel on the ICE Futures exchange in London.

In other energy futures trading on the New York Mercantile Exchange:

— Wholesale gasoline rose 0.7 cents to $2.815 a gallon.

— Heating oil was little changed at $2.844 per gallon.

— Natural gas shed 1.1 cents to $4.012 per 1,000 cubic feet.

source: business.inquirer.net

Oil hovers below $98 amid mixed US demand signs

SINGAPORE (AP) — Oil prices hovered below $98 a barrel Thursday in Asia amid mixed signs about the strength of U.S. crude demand.

Benchmark crude for March delivery was down 1 cent at $97.60 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 87 cents to settle at $97.61 on Wednesday.

Brent crude was steady at $111.56 a barrel on the ICE Futures Exchange in London.

A jump of U.S. crude inventories last week by 4 million barrels suggested oil consumption is sluggish. However, factories raised output in January by the most in seven months, the Institute for Supply Management said Wednesday while the Commerce Department said construction spending rose 1.5 percent in December, the fifth straight monthly gain.

Oil prices have hovered near $100 for the last few months amid mixed economic signs from the U.S., Europe and Asia. Some analysts expect crude to begin to rise as the global economy may grow more this year than previously expected.

"The crude oil price has become stuck in a remarkably extended period of narrow sideways trading," Barclays Capital said in a report. "However, the market is now likely to start to position for an upside break based on a greater degree of relaxation about macroeconomic prospects."

In other energy trading, heating oil rose 1.4 cents to $3.06 per gallon and gasoline futures were up 0.3 cents to $2.90 per gallon. Natural gas gained 0.8 cent to $2.39 per 1,000 cubic feet.

source: philstar.com