Oil Rebounds Slightly on Short-Covering as Stong Dollar Caps Gains
(Reuters) - Oil prices rebounded slightly on Wednesday...
(Reuters) - Oil prices rebounded slightly on Wednesday on short-covering a day after they fell near a two-week low on OPEC's reduced demand forecast, but gains were limited as the dollar hit a seven-month high.
Brent crude futures settled up 39 cents, or 0.5%, to $72.28 a barrel. U.S. West Texas Intermediate crude(WTI) futures gained 31 cents, or 0.5%, to $68.43.
On Tuesday, the benchmarks closed at their lowest level in nearly two weeks after the Organization of the Petroleum Exporting Countries lowered its global oil demand growth forecasts for 2024 and 2025, citing weak demand in China, India, and other regions. It was the producer group's fourth straight downward revision for 2024.
"The forecast is no doubt bearish and the market is still digesting it," said Bob Yawger, director of energy futures at Mizuho, adding the market bounced back as some speculative investors tried to recoup losses.
Both U.S. and global oil production are set to rise to slightly larger record highs this year than prior forecasts, the U.S. Energy Information Administration said.
U.S. oil output is now expected to average 13.23 million barrels per day (bpd) this year and global production is set to reach 102.6 million bpd.
Liberty Energy’s Chris Wright is Harold Hamm's Top Choice for Energy Secretary
Liberty Energy co-founder, chairman and CEO Chris Wright is wildcatter...
Liberty Energy co-founder, chairman and CEO Chris Wright is wildcatter Harold Hamm’s top choice for U.S. energy secretary in the new Trump White House, Hamm told Hart Energy in an exclusive interview.
Hamm, who was previously offered the energy secretary position in the prior Trump administration, was an early supporter of Trump's first presidential run and has been a large financial supporter of all three Trump campaigns.
Hamm said another pick for DOE secretary could be North Dakota Gov. Doug Burgum with whom he has worked closely in the Williston Basin’s Bakken play and on Continental Resources’ development of the Summit Carbon Solutions project, which aims to sequester CO2 in the state.
Inflation ticked up slightly on an annual basis in October, the latest evidence that while cost increases were coming under control, they were not entirely vanquished.
The Consumer Price Index, released on Wednesday, climbed 2.6 percent from a year earlier, higher than September’s 2.4 percent. And after food and fuel prices were stripped out to give a better sense of the underlying inflation trend, “core” inflation held steady at 3.3 percent.
WTI crude oil prices remained near their November lows, trading around $68.39 per barrel Wednesday morning, as bearish market factors capped any gains during yesterday's session. In the physical market, indicators suggest a supply glut is emerging sooner than expected, while the futures market is displaying signs of oversupply. Additionally, OPEC reduced its demand growth forecasts for the fourth consecutive month, and the strong US dollar made commodities priced in the currency less attractive.
Despite some activity in the physical market supporting the Dated Brent benchmark, the overall outlook for oil remains weak. Global supply is expected to outpace demand next year, and China's latest economic measures fell short of direct stimulus while inflation remains subdued. Traders continue to monitor tensions in the Middle East, the possibility of a second Trump presidency, and OPEC+ production decisions, all of which contribute to the choppy trading environment in the mid-$60s to mid-$70s range.
Elon Musk and Vivek Ramaswamy will lead DOGE. That’s...
Elon Musk and Vivek Ramaswamy will lead DOGE. That’s the newly created Department of Government Efficiency (DOGE), which will “dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies,” according to an announcement from President-elect Trump yesterday. Musk will co-lead the effort, which is not an official government agency and will operate from outside of the government, with biotech entrepreneur and former GOP presidential candidate Vivek Ramaswamy. Also yesterday, Trump said he’ll nominate Fox News host and Army veteran Pete Hegseth to be secretary of defense.
President-elect Trump will reportedly stop a potential TikTok ban before it goes into effect next year, according to the Washington Post.
Shell notched a big legal win when a Dutch court overturned a landmark ruling that had required the oil giant to cut its carbon emissions by 45%.
Sales of morning-after pills have surged online in the days since the election, CNN reported. The sexual and reproductive telehealth company Wisp said its sales jumped about 1,000% the day after Trump was reelected.
Waymo announced its largest-ever expansion, allowing anyone in an 80 square mile area of Los Angeles County to hail a robotaxi.
South Korea’s presidential office said leader Yoon Suk Yeol has started to practice golf again for the first time in eight years to prepare for “golf diplomacy” with President-elect Trump, who loves the sport.
