yet zombies will still say Nigeria crude Oil shut down will not influence international oil price increase

.
Reuters Jun 7, 2016 5:16 PM

By Barani Krishnan

NEW YORK (Reuters) - Oil prices jumped more than 1 percent on Tuesday, hitting 2016 highs, with U.S. crude settling above $50 a barrel the first time in almost a year, on expectations of domestic stockpile draws and worries about global supply shortfalls from attacks on Nigeria's oil industry.

U.S. crude stockpiles likely fell by 2.7 million barrels last week to mark a third straight week of declines, an updated Reuters poll showed. [EIA/S]

A report by trade group American Petroleum Institute (API), released after prices settled, showed a higher-than-expected crude draw of 3.6 million barrels.

The U.S. Energy Information Administration (EIA) will issue official inventory numbers on Wednesday.

Crude oil rallied in the past two sessions after rebels in Nigeria's Niger Delta vowed to halt output in the country, Africa's biggest producer until last year. The Nigerian government said it was initiating talks with the rebels.

"The market remains concerned about unscheduled supply interruptions with the latest coming from additional shut-ins in Nigeria," said Dominick Chirichella, senior partner at the Energy Management Institute in New York.

"With the industry projecting a decline in total U.S. crude oil stocks in this week's reports, the market bears are remaining on the sidelines."

U.S. crude's West Texas Intermediate (WTI) futures (CLc1) settled up 67 cents, or 1.4 percent, at $50.36 a barrel. It was WTI's first settlement above $50 since July 2015. The session high was $50.53, a peak from October.

Brent crude futures (LCOc1) settled up 89 cents, or 1.8 percent, at $51.44 a barrel. In post-settlement trade, Brent reached $51.54, a peak since October.

Both Brent and WTI have almost doubled in value since winter, when they hit their lowest since 2003.

Prices bounced off those lows on talk of an OPEC production freeze, which did not materialize. The rally heightened after last month's wildfires in Canada's oil sands region and also has been supported by supply outages elsewhere, including Nigeria, Venezuela and Libya.

In its latest short-term energy outlook issued on Tuesday, the EIA said it expects U.S. crude production declines for 2016 and 2017 to remain unchanged from a month ago.

Production will fall by 830,000 bpd this year to 8.6 million bpd, and drop next year by 410,000 bpd to 8.19 million bpd, the agency said.

The EIA also raised its 2016 U.S. oil demand growth forecast.

(Additional reporting by Amanda Cooper in LONDON; editing by Marguerita Choy and David Gregorio)
http://finance.yahoo.com/news/brent-down-seven-month-high-015402474.html

Americans Comments

by M12
17 hours ago After reading the
comments, I can see
how 'Muricans are
dumb enough to buy
10 mpg vehicles and
then complain about
$2.50 per gallon.


Rose
1 day ago
I rarely read a
comment here where
ANYONE is happy
with and defending
higher oil prices.
They, almost
unanimously
complain because it
only makes life
harder for most
middle class and
lower. Yet, despite
little to no public
support for it, there
is NO effort to keep
them low. EVERY
EFFORT OUT THERE
is aimed specifically
at PUSHING PRICES
HIGHER regardless of
how it affects the
middle class and
below. Can ANYONE
truly say they are
surprised by this
article? I'm only
disgusted!




Commenter
1 day ago
You may not have noticed but
with low oil prices the US oil
companies can't drill for oil. This
means we have to buy more oil
from overseas. So much for
energy independence.
The oil companies lay off people
and don't use the services of
other companies. So those
companies lay off people and
don't buy from their suppliers.
And so on and so on.
Low oil prices also means the oil
companies don't pay as much
federal, state, and local taxes.
Less taxes means less money for
things like building schools,
repairing roads, watching shrimp
on treadmills.
Laid off workers don't go out to
eat or buy things at stores. They
don't buy new cars. So those
businesses are hurt.
And in case you haven't noticed,
when oil prices go down the stock
market goes down.
Who does that hurt? Anyone with
a retirement plan (401k, IRA, etc)
or pension.





Bev
1 day ago
Its not good for the oil and gas
economy so our corrupt
government and Wall Street have
been manipulating the price back
up. We need to boycott gas one
day a week to stop this
manipulation.



Time to rev up the fracking and inundate the market with cheap oil. This will also send thousands of oil workers back to work in the Dakotas, Pa., Montano, etc. Get it going.




Prices going up more and more each day now. just a matter of time before we are paying up the #$%$ for a gallon of gas. Wall Street will get it done one way or another and now that we are exporting more oil, it will all cost us more, but remember the experts told us that it would not make oil prices go up, right?




Ms Yellen will now give daily speeches about the wonderful economy. The wealthy rejoice on their yachts.



Isn't it about time the auto industry starts production on the electric car we know they have designs for. Should we keep making opec richer while the technology is already flying a plane around the world without a drop of fuel




The price will crash back down to the low 40s or even into the 30s once the increased production in Iran, Russia, Saudi Arabia, Nigeria, and Canada comes on line.




Looks like the con artists are back at it. Get ready for all the b/s excuses to pump this commodity back up to $100/bbl, even though there is still a glut of oil out there.




anyone notice workers are being recalled to North dakota in large numbers? very simple now to stop these communist little countries from trying to ruin the US




Idiots. The US is drawing so much, because they are exporting it. Same for the increased demand. We are not using we are exporting it, thanks to the Congress. Hey those of you in Congress who said this would keep our prices low, how is that working out now?"




haha yes!told ya stinky jobless white Americans u guys r nothing ur dreams to see Arabs go broke is being shattered thanx to rising oil prices




So, if the dollar has weaken, doesn't that mean most middle class and poor people can't buy as much! It's interesting how 'oil' has become the center of economy. Must be, other products and service can't make as much gain or the small countries depend on higher oil prices to buy more weapons! Or, greedy cartel - probably hedge fund people- need more money for their coke stuffing!