Latest news with #OPEC
Yahoo
5 hours ago
- Business
- Yahoo
Russian Oil Flows Keep Falling, Pipeline Giant Transneft Says
Oil flows on the Transneft pipeline network, which handles 80% of all the oil Russia produces, fell last year and continue to slide in 2025, too, due to the OPEC+ agreement to withhold supply and technological issues at Russia's oil-producing sites, the pipeline giant said on Friday. Due to the falling oil flows, Transneft doesn't expect its revenue to grow at the same pace as in the past decade until about 2030, the company's first deputy CEO Maxim Grishanin was quoted as saying by Russian news agency Interfax. Tariffs on shipments of crude oil and oil products via the extensive pipeline network is the key source of revenue for Transneft. The oil volumes flowing through the Transneft network have been falling since 2022 and have continued to decline this year, too, Grishanin said. Last year, the volume of crude oil pumped through Transneft's pipelines fell by 2.8% compared to 2023, chief executive Nikolai Tokarev said today. Meanwhile, the combined net profits of Russia's oil and gas companies nearly halved in the first quarter of 2025 from a year earlier, while petroleum revenues for the budget fell with the decline in oil prices in April and May. The drop in oil prices, the tightening of Western sanctions, and the stronger Russian ruble have combined to weigh on company profitability. Every third ruble going into Russia's budget comes from the oil and gas companies. Russia said at the end of April it expects 24% lower revenues from oil and gas this year compared to earlier estimates, following the oil price crash that began in early April and sank the price of its flagship Urals crude close to the $50 per barrel mark. In addition, Russia's National Wealth Fund, a rainy-day reserves fund, saw its liquid assets drop by the equivalent of nearly $6 billion in May, data from the Russian finance ministry showed earlier this month. By Charles Kennedy for More Top Reads From this article on Sign in to access your portfolio
Yahoo
5 hours ago
- Business
- Yahoo
Saudi Arabia leads OPEC+ push for more output increases
-- OPEC+ is preparing to discuss another large production increase at its upcoming meeting, as Saudi Arabia continues its strategy to regain market share, according to a report from Bloomberg. Eight key OPEC+ members have already implemented three consecutive monthly production increases of 411,000 barrels per day. Multiple delegates, speaking on condition of anonymity, indicated their countries are open to considering a similar increase for August when the group meets on July 6. Saudi Arabia has guided the Organization of Petroleum Exporting Countries toward faster output restoration despite weak demand and abundant supply. This unexpected policy shift briefly pushed oil prices to a four-year low in April. Russia's position has also evolved. After initially resisting the accelerated July output increase at the previous meeting, Moscow now appears more willing to support another supply boost if the alliance deems it necessary, according to a source familiar with Russia's stance. Related articles Saudi Arabia leads OPEC+ push for more output increases - Bloomberg US oil futures rise from lows after API shows large draw in US crude supplies Spike in oil prices not a game changer for US inflation: Morgan Stanley Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15 hours ago
- Business
- Yahoo
Oil price volatility flattens as Middle East tensions settle
Oil volatility (^OVX) has leveled out as geopolitical concerns in the Middle East fade. Yahoo Finance anchor Julie Hyman takes a closer look at the recent oil price (CL=F, BZ=F) action and the moves in the broader energy sector (XLE). To watch more expert insights and analysis on the latest market action, check out more Market Domination here. Crude prices have seen big swings in recent weeks amid geopolitical uncertainty. We're taking a closer look at the action in our chart of the day. Yahoo Finance's Julie Hyman joining us now with more. Julie. Well, energy volatility is what I am watching here. You know that there is a volatility measure for the S&P 500. You might not know that there is one for oil prices as well. It's called the OVX as opposed to the VIX for stocks. And the OVX, as you might imagine, given all the volatility we've seen in oil recently, really spiked to highs that we have not seen since early 2022 as we saw Israel hit Iran, Iran hit Israel, and then the US of course hit Iranian nuclear assets. So, all of that causing that huge spike in oil volatility on concerns that we would see flows disrupted. But it is just as quickly calmed down. That spike was very short-lived as we saw it spike and then really recede here. Couple of things that oil traders are now watching. There is an OPEC Plus meeting that is coming up in a couple of weeks, a little less than two weeks. And there are some reports now that OPEC Plus may extend its production cuts. So that putting some downward pressure on oil prices. Also, Bloomberg is reporting that Treasury Secretary Scott Beson said that sanctions on Iran are remaining in place. So that's something else that oil traders are factoring in. But really we saw oil really lose about $10 per barrel of value if you're talking about WTI while all this was going down and we were seeing it come back down. WTI is off about 9%, almost 8, 9% so far this year, whereas the ETF that tracks those energy stocks, the XLE, is really little changed. And I looked at it earlier today, it's almost evenly split between gains and losses in terms of the stocks that are up and the stocks that are down on the year. The best performer in that ETF EQT, which is more of a natural gas company as opposed to oil. Halliburton, the oil services giant, is the worst performer within that ETF, Josh. All right, thank you, Julie. Sign in to access your portfolio
Yahoo
18 hours ago
- Business
- Yahoo
Crude Oil Settles Higher on US-China Trade Optimism
August WTI crude oil (CLQ25) Friday closed up +0.28 (+0.43%), and August RBOB gasoline (RBQ25) closed down -1.04 (-0.50%). Crude oil and gasoline prices settled mixed on Friday. Crude found support on signs of easing trade tensions as the US moves closer to trade deals with China and other trading partners. Also, uncertainty over Iran gave crude prices a boost after US Energy Secretary Wright said that sanctions against Iran will remain in place for now. In addition, Friday's rally in the S&P 500 to a new record high shows confidence in the economic outlook, which is supportive of energy demand and crude prices. Gains in crude oil were limited, and gasoline prices fell due to a stronger dollar. Also, the crude crack spread Friday slid to a 1-1/2 week low, discouraging refiners from buying crude and refining it into gasoline and distillates. Crude Oil Prices Climb on Positive Trade News Nat-Gas Prices Surge in Anticipation of Hot US Weather Crude Oil Settles Higher on US-China Trade Optimism Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Crude prices rose Friday after US Commerce Secretary Lutnick said that the US and China had finalized a trade understanding reached last month in Geneva. Also, Commerce Secretary Lutnick said the White House has imminent plans to reach agreements with a set of 10 major trading partners ahead of a July 9 deadline for reciprocal tariffs. Crude oil prices have underlying support from US and European intelligence reports suggesting that Iran may still have most of its stockpile of 60% enriched uranium even after the Israeli and US bombing runs, which means that sanctions will likely remain in place until Iran agrees to nuclear inspections. On Friday, President Trump said he considered easing sanctions on Iran after a ceasefire, but would instead keep sanctions in place after Iran's Supreme Leader, Ali Khamenei, claimed victory in the war with Israel. Concern about a global oil glut is negative for crude prices. On Wednesday, Russia stated that it is open to another output hike for OPEC+ crude production in August, when the group meets on July 6. On May 31, OPEC+ agreed to a 411,000 bpd crude production hike for July after raising output by the same amount for June. Saudi Arabia has signaled that additional similar-sized increases in crude output could follow, which is viewed as a strategy to reduce oil prices and punish overproducing OPEC+ members, such as Kazakhstan and Iraq. OPEC+ is boosting output to reverse the 2-year-long production cut, gradually restoring a total of 2.2 million bpd of production. OPEC+ had previously planned to restore production between January and late 2025, but now that production cut won't be fully restored until September 2026. OPEC May crude production rose +200,000 bpd to 27.54 million bpd. Gasoline prices have support from the American Automobile Association (AAA) projection that a record 61.6 million people will travel by car this Fourth of July holiday (June 28 to July 6), up +2.2% from last year and a sign of stronger gasoline demand. Oil prices continue to be undercut by tariff concerns, as President Trump recently stated that he intends to send letters to dozens of US trading partners within one to two weeks, setting unilateral tariffs ahead of the July 9 deadline that followed his 90-day pause. A decline in crude oil held worldwide on tankers is bullish for oil prices. Vortexa reported Monday that crude oil stored on tankers that have been stationary for at least seven days fell by -13% w/w to 79.66 million bbl in the week ended June 20. Wednesday's EIA report showed that (1) US crude oil inventories as of June 20 were -10.9% below the seasonal 5-year average, (2) gasoline inventories were -2.8% below the seasonal 5-year average, and (3) distillate inventories were -20.3% below the 5-year seasonal average. US crude oil production in the week ending June 20 was unchanged w/w at 13.435 million bpd, modestly below the record high of 13.631 million bpd from the week of December 6. Baker Hughes reported last Friday that active US oil rigs in the week ending June 27 fell by -6 to a 3-3/4 year low of 432 rigs. Over the past 2-1/2 years, the number of US oil rigs has fallen from the 5-1/4 year high of 627 rigs posted in December 2022. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
19 hours ago
- Business
- Mint
Crude prices fall after report of OPEC planning August output boost
HOUSTON (Reuters) -Brent and U.S. West Texas Intermediate crude prices fell on Friday, reversing gains after a report that OPEC was planning to hike production in August following an increase planned for July. Brent crude futures were down 25 cents, or 0.37%, to $67.48 a barrel by 1615 GMT, while U.S. West Texas Intermediate crude fell 20 cents, or 0.31%, to $65.04. Four delegates from OPEC , which includes allies of the Organization of Petroleum Exporting Countries, said the group was set to boost production by 411,000 barrels per day (bpd) following a similar size output increase already planned for July. "The report about an OPEC increase came out and prices cratered," said Phil Flynn, senior market analyst with Price Futures Group. Crude prices were already headed for a 12% decline for the week following the cease-fire between Israel and Iran. During the 12-day war that started after Israel targeted Iran's nuclear facilities on June 13, Brent prices rose briefly to above $80 a barrel before slumping to $67 a barrel after U.S. President Donald Trump announced an Iran-Israel ceasefire. "The market has almost entirely shrugged off the geopolitical risk premiums from almost a week ago as we return to a fundamentals-driven market," said Rystad analyst Janiv Shah. He said the market was also keeping an eye on the July 6 meeting of the OPEC group of oil producers, adding that summer demand indicators were key as well. Flynn said expectations of higher demand in the coming months gave crude a boost earlier on Friday. "We're getting a demand premium on oil," Flynn said. Prices had also been supported earlier in Friday's session by multiple oil inventory reports that showed strong draws in middle distillates, said Tamas Varga, a PVM Oil Associates analyst. Data from the U.S. Energy Information Administration on Wednesday showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising. [EIA/S] Meanwhile, data on Thursday showed that independently held gasoil stocks at the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell to their lowest in over a year, while Singapore's middle distillates inventories declined as net exports climbed week on week. Additionally, China's Iranian oil imports surged in June as shipments accelerated before the Israel-Iran conflict and demand from independent refineries improved, analysts said. China is the world's top oil importer and biggest buyer of Iranian crude. It bought more than 1.8 million barrels per day of Iranian crude from June 1-20, according to ship-tracker Vortexa, a record high based on the firm's data.
