Oil prices rise ahead of rig count, with weekly gain in sight
- Author: Todd Kelly Mar 18, 2017,
Mar 18, 2017, 1:08
"There was none of that in the statement", John Canally, investment strategist and economist at LPL Financial in Boston.
During his campaign, President Trump had vowed that the USA would leave the Paris Climate Agreement, claiming it is hurting the economy.
The loonie was trading at 74.81 US cents after the announcement, rising 0.78 per cent or 0.58 cents on the day.
Canada's main stock index began recovering on Wednesday from a 2017 low hit in the previous session, helped by gains for its heavyweight natural resource sectors as commodity prices rose. The aim was to reduce a glut in global oil supply that has depressed prices, which now stand at around $48-$51 per barrel.
If however, there has been no significant reduction or an increase in long positions, markets will be very wary over the risks of position liquidation on any limited corrective move higher. On Wednesday CBC said employees at the nation's other biggest banks had also come forward, saying they had engaged in similar practices.
MSCI's all-country world stock index gained 0.7 per cent. Production rose 0.2% week-over-week and 0.5% year-over-year.
The latest COT positioning data will also be an important focus late in the U.S. session.
Oil prices rose on Friday, helped by a weaker dollar, as investors weighed the impact of OPEC production cuts against rising US shale oil output and persistently high inventories.
Distillate: Distillate fuel supplies (including diesel and heating oil) went down by 4.23 million barrels last week, again significantly trumping analysts' expectations for a 1.8 million-barrels fall.
In November, when the OPEC cartel of Oil producers collectively agreed to cut production, the Saudis agreed to cut production down to 10.058 million barrels a day, so the latest increase remained below that agreed-upon number.
For those looking for a re-balancing of the oil market the message is that they should be patient, and hold their nerve.
Technically, MCX Crude Oil saw the biggest weekly decline in more than four months, closing the last week near Rs 3,230, down by more than 9 per cent for the period after the price had breached key support near Rs 3,455 level. The global benchmark on Tuesday settled at its lowest level since November 30. According to Sachdeva of Religare Securities, though sporadic pullback rallies are quite likely after the steep decline, broadly the outlook on crude oil prices is bearish what with the US Federal Reserve expected to hike interest rates and the expected strength in the dollar, which will be negative for oil prices.
Light, sweet crude for April delivery settled up $1.14, or 2.4%, at $48.86 a barrel on the New York Mercantile Exchange. That's despite Opec's (Organization of the Petroleum Exporting Countries) efforts to cut production and stabilize the market.
"Oil bulls will have breathed a collective sigh of relief yesterday as the stubborn climb of United States crude stockpiles into record territory came to an unexpected halt", said Stephen Brennock, an analyst at PVM Oil Associates Ltd.in London.