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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
CNBC
20 hours ago
- Business
- CNBC
Coterra shifts its view on oil, again. Here are our 3 takeaways as investors in the stock
Coterra Energy is refocusing on oil. CEO Thomas Jorden shared the company's decision not to reduce its oil rig count at the JPMorgan Energy conference earlier this week. Here are several key takeaways for investors. 1. For starters, the move signals that Coterra has regained confidence in the direction of oil markets — and inherent in that is more confidence in the outlook for the economy. Alongside its first-quarter earnings report in early May, Coterra said it planned to shift some capital expenditures from its oil assets into natural gas production amid concerns about a potential tariff-driven recession that would dent demand for oil, leading to lower prices. As part of the shift, the company said it planned to reduce its oil rig count in the Permian Basin to seven. They're now walking back that change. "We're holding firm right now at nine [oil rigs] and we have very few under contract, so we have the flexibility," Jorden said at the conference Tuesday. "We were looking at the possibility of a collapse," he added, explaining the company's view last month. "We're feeling a little better about that now." @CL.1 3M mountain WTI three month performance When Coterra reported its Q1 on May 5, U.S. oil benchmark West Texas Intermediate crude had fallen around 20% since President Donald Trump announced his "reciprocal" tariffs in early April. Oil cartel OPEC was also signaling that it would increase production. As Trump walked back his most aggressive trade policies, the outlook for the economy improved, which was supportive for oil prices. Then, in mid-June, the start of the Iran-Israel conflict caused a temporary oil price spike as traders worried about supply disruptions. Prices have given back those gains as tensions eased. WTI has dropped more than 11% this week alone as the market deemed Iran-Israel conflict, and last weekend's U.S. bombing of three Iranian nuclear sites, not systemically concerning for now. With few rigs under contract, Coterra can scale back if circumstances change yet again. But for now, we were encouraged to hear Coterra isn't worried about a price collapse driven by a recession. 2. In reacting to the first-quarter earnings, Mizuho analysts flagged concerns that Coterra's lower oil activity spending could have negative implications down the road, particularly as it relates to the company's three-year goal of oil production growth of at least 5% annually on average. "We believe the impact will be felt in 2026-27 given the loss in momentum," the analysts wrote in a note to clients. Those worries might be alleviated as maintaining nine rigs could help Coterra hit its three-year goal, which the company outlined in February . The increased rig count, however, does put Coterra's capital expenditure spending at the higher end of its 2025 guidance, which falls between $2 billion and $2.3 billion. Keep in mind, though, investors may not fret capex coming in at the high end of the range if it's the result of more rigs staying in operation with drilling being done efficiently. It would be concerning if drilling activity fell off, but capex went higher. 3. At the same time, Coterra's decision to keep its oil rig count steady for now is not impacting the company's plans to increase activity in the natural gas-focused Marcellus Shale. "We are proceeding," Jorden said at the conference. "Gas prices look very constructive and we really do see the Marcellus as a really meaningful part of our program go forward." @NG.1 3M mountain Natural Gas three month peformance Coterra stands to win big on natural gas if the Constitution Pipeline project, which starts in the Marcellus, were to get revived. Coterra also has active nat gas assets in the Anadarko Basin and started drilling again in the Dimock Township of Pennsylvania following a 12-year-long ban that was lifted in December 2023. The company plans to drill 11 wells this year and expects to have around 17 total in the years to come. (Jim Cramer's Charitable Trust is long CTRA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Yahoo
21 hours ago
- Business
- Yahoo
Crude Oil Prices Climb on Positive Trade News
August WTI crude oil (CLQ25) today is up +0.73 (+1.12%), and August RBOB gasoline (RBQ25) is down -0.94 (-0.35%). Crude oil and gasoline prices today are mixed. Crude is climbing today 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, today'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 are limited, and gasoline prices fell due to a stronger dollar. Also, the crude crack spread today slid to a 1-1/2 week low, discouraging refiners from buying crude and refining it into gasoline and distillates. How High Can Middle East Turmoil Drive Crude Oil Prices? Nat-Gas Prices Fall to 6-month Low on Bearish EIA Report and Cooler Temps Dollar Weakness and Stock Strength Push Crude Oil Prices Higher Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Crude prices rallied today 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. 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 20 fell by -1 to a 3-3/4 year low of 438 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 Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Exxon Mobil: $55 Brent is Fine; Open to M&A, Including Permian
'Uncertainty' is the word for the oil market today and a single 24-hour snapshot of the price of WTI is an illustration, an Exxon Mobil senior vice president said. 'We've had perhaps the shortest oil spike in the history of the oil markets,' Jack Williams said at a J.P. Morgan energy conference June 24. 'It started on a Sunday evening; ended by Monday morning.' The WTI-August contract on CME Group closed June 20 for the weekend at $74, up from about $68 a week earlier before Israel launched daily attacks on Iranian targets. The U.S. joined in on June 21, dropping bunker-buster bombs onto underground Iranian nuclear infrastructure. The contract resumed trading at 4 p.m. CDT June 22, opening at $78/bbl. The following afternoon on June 23, after Israel and Iran agreed to a cease-fire, the contract fell to $64/bbl, which was the price on June 11. Williams said, 'So I mean, I think it's really hard to predict near term where things are going to go. We have a lot of volatility out there.' Exxon can weather sub-$70 WTI, though, he said. 'We think we're well positioned and ready in that kind of environment." And, of course, if prices improve 'we'll benefit pretty hugely with the production we have going on.' The $470-billion market cap, international and integrated energy major's five-year plan is based on mid-cycle prices of about $65 Brent. Still, at $55 Brent, 'we generate $110 billion of surplus cash after dividends and capex,' Williams said. 'So we certainly can withstand lower pricing and that would be for an extended period of time over that entire period [into 2030].' Exxon Mobil's net debt to capital is 7%. 'So sitting very, very good there.' Some $24 billion of divestments 'got us really down to our fighting weight. So we're in really good shape.' If Exxon varied from its five-year plan, 'it would be because we see a really, really good attractive opportunity in front of us—not because we need to because of market conditions kind of forcing, kind of tying our hands. 'We're, of course, keeping our head up and looking around for opportunities and we'll take advantage of those as they present themselves.' The operator bought Permian Basin pureplay Pioneer Natural Resources in May 2024 for $64.5 billion in stock and debt assumption, picking up 721,000 boe/d, 53% oil. Post-closing results have been surprising—to the upside—Williams said. 'What we didn't factor in enough is the quality of the Pioneer workforce, work processes, what they were doing and the reverse synergies we're going to get from that. 'So we certainly had a pleasant surprise there with the quality of what Pioneer brought to the corporation.' Exxon has increased its estimate of Permian Basin operational savings from the Pioneer deal from $2 billion a year to $3 billion due to synergies. 'I would say that's looking really good, really positive,' Williams said. Meanwhile, though, digesting the Pioneer acquisition hasn't 'boxed us in at all in terms of having too much of the organizational firepower working on that.' Exxon is 'pretty wide open in terms of the ability to do … more acquisitions,' he added. It's looking for deals that are 'one plus one equals three. We're looking for value. We have to be able to add significant value.' Within the Permian Basin, there are small deals to be done too. 'With the Pioneer acreage and our legacy [Permian] acreage, we have a lot of areas where we can do some trades around the edges so we can do real win-wins or some bolt-on acquisitions around the edges … that we bring a lot of value.' Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Oil Prices Set For Weekly Loss as War Premium Evaporates
Crude oil prices were set to end the week lower than they started it as Israel and Iran stopped bombing each other, alleviating fears of a supply disruption in the Middle East. At the time of writing, Brent crude was trading at $68 per barrel, with West Texas Intermediate at $65.55 per barrel. That's down from over $77 for Brent crude and $73 per barrel for WTI at the end of last week. Still, both benchmarks inched higher on Thursday this week, after the U.S. Energy Information Administration reported a draw in both crude oil and fuel inventories, and signs of strengthening demand and a ramp-up in refining activity. 'The market is starting to digest the fact that crude oil inventories are very tight all of a sudden,' Phil Flynn, an analyst from Price Futures Group, told Reuters. ING analysts, meanwhile, noted that now that the risk of a Middle Eastern supply disruption was off the table, focus would return to tariffs. The U.S. is due to finalise trade agreements with 10 countries after reaching a deal with China earlier in the month. If the other ten deals are successful, which will likely be the case, the tariff threat will also be removed from the oil market, which may provide a boost for demand and, consequently, prices. A cheaper U.S. dollar should also help. The greenback slumped this week on reports President Trump was going to make his Fed chair pick early. Besides the tariff business, ING also noted OPEC+'s next meeting, due to be held on July 6, which the bank's analysts expect will result in yet another 411,000-bpd production boost. 'These supply hikes should ensure that the oil market moves into a large surplus towards the end of the year. This assumes we don't see a re-escalation in the Middle East, which would lead to supply losses,' Warren Patterson and Ewa Manthey wrote. By Irina Slav for More Top Reads From this article on
