The Organization of the Petroleum Exporting Countries agreed today to cut oil production by 1.2 million barrels per day. (iStock photo) With crude oil prices rising to levels not seen in three years, local analysts say not only won’t Louisiana see any short-term benefits but they also warn prices could soon drop if the market makes a correction. Oil prices are important to Louisiana, especially in the Lafayette and Houma areas—suffering through the nation’s third- and second-worst economies, respectively, last year—but the likelihood of recently rising prices remaining high is not good, says economist Loren Scott. “We have to have oil prices at this level if we want the Gulf of Mexico to come back,” Scott says. David Dismukes, executive director of LSU’s Center for Energy Studies, agrees but does say the region could benefit if natural gas prices stay relatively flat in the face of rising crude oil prices. “Our economy is more leveraged … [Read more...] about What do high oil prices mean for Louisiana?
Oil prices rise today
"Geopolitical concerns in the Middle East, together with Venezuela's deteriorating macroeconomic situation, are supporting oil prices".Oil rose Thursday morning as markets poised themselves for the possibility of a United States exit from the Iran nuclear deal. That's an increase of more than a quarter since mid-2016.Some analysts, meanwhile, believe that the market is underestimating the effect of new sanctions on oil prices.Some of the traders buying Iranian oil said their existing contracts contain clauses allowing them to stop taking cargoes if sanctions are reimposed. Restricting the flow of oil from the third largest producer will no doubt have a widespread effect despite the fact America has amped up their oil production in the previous year.Imports rose according to the DEO inventory report. That was also off the late-2014 highs of $69.56 a barrel marked earlier in April. The OPEC has been successful in restricting its output, the same can not be said of United States.Official … [Read more...] about Oil Prices Rise Over Iran Sanctions
By Benoit Faucon, Benoit Faucon The Wall Street Journal BiographyBenoit Faucon @benoitfaucon [email protected] Summer Said and Summer Said The Wall Street Journal BiographySummer Said @summer_said Google+ [email protected] Georgi Kantchev Georgi Kantchev The Wall Street Journal BiographyGeorgi Kantchev @georgikantchev [email protected] April 20, 2018 12:50 p.m. ET 0 COMMENTS JEDDAH, Saudi Arabia—Saudi Arabia’s oil minister and President Donald Trump engaged in a short, public exchange over oil prices Friday—sending crude on an early roller-coaster ride and punctuating the economic and geopolitical stakes stemming from recently climbing crude prices. Senior officials from OPEC, Russia and other big producers gathered here to discuss compliance over a deal they had put in place in 2016 to limit production and erase what was then a large glut of stored oil sloshing around the world. The pact has largely worked: The members of the … [Read more...] about Saudi Oil Minister, President Trump Spar Over Oil Prices
At 11:00 a.m. EDT on Tuesday, WTI Crude was up 0.06 percent at $66.26, while Brent Crude was up 0.31 percent at $71.64."It shows an underlying bullish USA supply-demand balance, despite the record production", said Kyle Cooper, director of research at IAF Advisors in Houston. "It would depend on market conditions whether to extend this agreement beyond 2018 or to reach a permanent agreement between OPEC and non-OPEC to support market stability".McGillian was referring to comments from Kuwait that OPEC and allied producers will discuss prolonging their deal to reduce output into 2019. OPEC and Russian Federation will probably look at ways to prolong their cooperation on cuts when they meet in Saudi Arabia this week.Crude oil prices rallied sharply for most of last week amid worldwide saber-rattling over Syria. "You should start to see some support soon", said Gene McGillian, a market research manager at Tradition Energy in Stamford, Connecticut.Still, bullish sentiment may be capped by … [Read more...] about Oil prices rise on fall in US crude inventories, global supply risks
HONG KONG (AP) — Most Asian and European shares rose and oil prices touched fresh multi-year highs on Thursday as improving optimism about the global economy helped investors shake off worries about geopolitical risks for the moment. KEEPING SCORE: European shares were mostly higher in early trading. Britain's FTSE 100 rose 0.3 percent to 7,335.40 and France's CAC 40 edged 0.1 percent higher to 5,387.97. Germany's DAX slipped 0.1 percent to 12,577.06. Wall Street was poised to open slightly lower. Dow futures were less than 0.1 percent lower at 24,731.00 and broader S&P 500 futures dipped 0.1 percent to 2,707.70. ASIAN SCORECARD: Japan's benchmark Nikkei 225 index rose 0.2 percent to 22,2191.18 and South Korea's Kospi added 0.3 percent to 2,486.10. Hong Kong's Hang Seng jumped 1.4 percent to 30,708.44 and the Shanghai Composite in mainland China gained 0.8 percent to 3,117.38. Australia's S&P/ASX 200 advanced 0.3 percent to 5,881.00. Shares were higher in Taiwan and most … [Read more...] about Asian shares, oil prices rise on upbeat global outlook
Oil futures were up Wednesday after U.S. inventories dropped, following fresh signs that OPEC and Russia will stay the course with their output cuts. X OPEC and Russian officials will meet in Jeddah, Saudi Arabia, later this week to discuss extending cuts beyond the planned expiration at year's end, even as the global supply glut is nearly vanished and geopolitical tensions have sparked worries of a supply squeeze. "Would they declare victory now and stop? No way," said Mike Wittner, head of oil market research at Societe Generale SA told Bloomberg. "They're happy to see inventories continue to go down, to see prices of $70 or $80. In the end, it's about revenue. The question is at what point do they become uncomfortable with higher prices?" Last month, Saudi Arabia, the de facto leader of OPEC, reportedly hinted that the cartel would continue coordinating production cuts with non-OPEC members into 2019. Oil prices also got a boost after President Trump fired missiles at Syria … [Read more...] about Oil Prices Rise As OPEC, Russia Avoid ‘Mission Accomplished’ Victory Lap
BANGKOK The price of crude rose today, following stock markets in Asia higher hours ahead of a last-ditch effort in Washington for political leaders to strike a budget deal before the year-end deadline. Benchmark crude for February delivery rose 13 cents at late afternoon Bangkok time to $91 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell yesterday following a reported drop in U.S. consumer confidence and growing pessimism that President Barack Obama and Republican lawmakers will reach a compromise on ways to avoid the so-called "fiscal cliff" -- hundreds of billions of dollars in government spending cuts and tax increases that take effect automatically in 2013 unless lawmakers act. … [Read more...] about Oil prices rise ahead of “fiscal cliff” talks
A combination of factors, including an upsurge in violence in Iraq, is causing a spike in the price of precious metals, which on Thursday posted their best one-day gain since September. The strength of the move was impressive, with both gold and silver moving clear of their 50-day and 200-day moving averages. The Gold Trust (GLD) gained 3.5 percent while the iShares Silver (SLV) added 4.6 percent. Gold futures have moved back over the $1,300 an ounce threshold. Mining stocks also surged, with the Market Vectors Gold Miners (GDX) jumping 5.4 percent yesterday to bring its month-to-date gain to nearly 16 percent as it returns to its early March trading levels. It looks like additional gains lies ahead as the factors contributing to the rise all look set to continue. Mainly, it's the rising risk of runaway inflation. Wholesale gasoline prices have already jumped near 2013 highs and are only 10 percent from the all-time highs hit in 2011 and 2012. Driving the volatility is a military … [Read more...] about Gold surges as risk of 1979-style oil shock rises
If American motorists are enjoying the cheapest gas in years, oil companies are taking a big hit from slumping crude prices. Royal Dutch Shell (RDS.A) said Thursday that its profits in the last three months of 2015 had fallen $1.4 billion, a whopping 44 percent drop from the year-ago quarter. In a call with Wall Street analysts to discuss the latest results, company executives sought to emphasize that the company is moving to cut costs to adapt to what CEO Brian Van Beurden described as a "challenging industry environment." Exxon Mobil (XOM) also reported a sharp downturn in earnings this week, as its fourth-quarter profits fell to their lowest level in more than a decade. BP's (BP) earnings took an even bigger dive, plunging 91 percent in its latest quarter and spurring the British oil giant to announce thousands of job cuts. Over the longer term, the question for consumers and energy players is the same: How long will low oil prices last? "There is a reasonable probability oil prices … [Read more...] about How long will oil prices scrape bottom?
Tuesday was a down day on Wall Street, with major benchmarks falling more than 1% after several days of gains. Most of those following the market focused their attention on Capitol Hill, where new Federal Reserve Chair Jerome Powell gave testimony to Congress. Fears of as many as four interest rate increases from the Fed spooked investors, sending bond yields back upward and prompting new concerns about a longer-term stock market correction. Bad news from several individual companies also didn't help improve sentiment. AutoZone (NYSE: AZO), Nutrisystem (NASDAQ: NTRI), and Carrizo Oil & Gas (NASDAQ: CRZO) were among the worst performers on the day. Here's why they did so poorly. AutoZone deals with slower growth Shares of AutoZone fell 11% after the auto parts giant reported its fiscal second-quarter financial results. Same-store sales grew 2.2% compared to the year-earlier quarter, but the impact on the company's bottom line was less than some had hoped, with adjusted net … [Read more...] about Why AutoZone, Nutrisystem, and Carrizo Oil & Gas Slumped Today