US oil posts worst settlement since April 20, closes 3.7 pct lower, at $40.06 U.S. crude prices on Monday settled sharply lower after briefly breaking below $40 a barrel for the first time since April, weighed by a survey showing output in OPEC reached record highs last month amid the biggest addition of U.S. oil […]
oil prices, generally refers to the spot price
oil price, generally refers to the spot price of a barrel of benchmark crude oil—a reference price for buyers and sellers of crude oil such as West Texas Intermediate (WTI), Brent ICE, Dubai Crude, OPEC Reference Basket, Tapis Crude, Bonny Light, Urals oil, Isthmus and Western Canadian Select (WCS).There is a differential in the price of a barrel of oil based on its grade—determined by factors such as its specific gravity or APIand its sulphur content—and its location—for example, its proximity to tidewater and/or refineries. Heavier, sour crude oils lacking in tidewater access—such as Western Canadian Select— are less expensive than lighter, sweeter oil—such as WTI.
From 1999 til mid 2008, the price of oil rose significantly. It was explained by the rising oil demand in countries like China and India. In the middle of the financial crisis of 2007–2008, the price of oil underwent a significant decrease after the record peak of US$147.27 it reached on July 11, 2008. On December 23, 2008, WTI crude oil spot price fell to US$30.28 a barrel, the lowest since the financial crisis of 2007–2010 began. The price sharply rebounded after the crisis and rose to US$82 a barrel in 2009. In July 2008 oil reached a record peak of US$147.27 but by February 2009 it sank beneath $40 a barrel.On 31 January 2011, the Brent price hit $100 a barrel for the first time since October 2008, on concerns about the political unrest in Egypt. For about three and half years the price largely remained in the $90–$120 range. In the middle of 2014, price started declining due to a significant increase in oil production in USA, and declining demand in the emerging countries. The oil glut—caused by multiple factors—spurred a sharp downward spiral in the price of oil that continued through February 2016.By February 3, 2016 oil was below $30—a drop of “almost 75 percent since mid-2014 as competing producers pumped 1-2 million barrels of crude daily exceeding demand, just as China’s economy hit lowest growth in a generation.”Some analysts speculate that it may continue to drop further, perhaps as low as $18
Why oil will drop to $35 by end of summer The state of the oil market these days can be summed up in a four-letter word—no, not one those salty terms, by a powerful, unoffending term: glut. After peaking in early June, near $52, WTI oil prices have fallen upwards of twenty percent, getting under […]
Saudi Arabia Oil Demand Growth at 6-Year Low as Economy Sputters Oil consumption in Saudi Arabia, the world’s biggest crude exporter, is expanding at the slowest pace in at least six years as low energy prices hurt economic growth. The kingdom’s demand for oil increased by an average of 24,000 barrels a day in the […]
Oil and gas are trading in a ‘bizarro world’: Tom Kloza After a strong first half of the year, oil just posted its worst month since July 2015. Despite fears that the commodity could retest the mid-$30 range, one closely-followed oil watcher is especially bullish on where energy is heading in the coming months and […]
Yen Spike Sinks Nikkei 225 Futures on BOJ Day; Oil Extends Slump Yen Spike The yen jumped, weighing on Tokyo equity-index futures, amid jittery trade ahead of Friday’s much-anticipated policy review from the Bank of Japan. Oil was on track for its third weekly decline in a month. Futures on Japan’s Nikkei 225 Stock Average […]