Brent crude rose on speculation that threats to supply mean recent losses were excessive, while West Texas Intermediate declined, pushing the North Sea grade’s premium to the U.S. benchmark to the widest in a week.
Now that the U.S. government has cleared the Keystone XL project of any dire environmental impact, attention is returning to why the pipeline was needed in the first place: to get more Canadian oil to U.S. refineries.
Brent crude prices, the benchmark for half the world’s oil, will weaken for a second year in 2014 as U.S. output expands and threats to Middle East and North African supply ease, the most-accurate forecasters said.
Even with OPEC forecast to keep its output quota unchanged at a meeting this week, falling oil demand and prospects for increased supply from some member states mean the group’s leader, Saudi Arabia, will have to cut production anyway.
The Energy Information Administration weekly supply support seems to suggest that low gas prices are spurring demand! Drivers are saying fill it up again as they felt richer as gas prices fall near $3 a gallon
What looked like a sure thing 24 hours ago may not be such a sure thing after all. So in the meantime the oil market now will try to recalibrate the point at which it now thinks that any military action might occur.
To have a more complete picture of the current situation in the oil market, we take a look at the charts from different time perspectives. Additionally, we explore how it relates to oil stocks and the oil-gold link.