Oil prices on track for third weekly loss in row
Global oil prices rose on Friday for the first time in three sessions away from five-week lows after Saudi Arabia raised crude prices significantly for March, while the US imposed new sanctions on Iranian crude exports.
Despite the rebound, global oil prices are still heading for the third weekly loss in a row on concerns about a supply glut in the US following a surge in crude stocks last week, while President Trump vowed to increase crude output.
Prices
US crude rose 1.2% today to $71.29 a barrel, with a session-low at $70.46.
Brent rose 1.2% to $75.08 a barrel, with a session-low at $74.20.
On Thursday, US crude lost 0.9%, plumbing a five-week trough at $70.44, while Brent shed 0.6% to $74.14 a barrel, the lowest since December 31.
Saudi Crude
Saudi Arabia’s Aramco announced a large hike in its light crude prices aimed at Asian markets by $2.9 a barrel.
The increase reflects higher demand on Saudi oil, especially from China and India, which reflects stronger economic activities in the two largest fuel consumers in Asia.
New US Sanctions on Iran
The US Treasury Department said it imposed new sanctions on a number of individuals and oil tankers that help ship millions of barrels of Iranian crude yearly to China, in another step aimed at increasing pressures on Tehran.
Weekly Trades
Oil prices are down 2.55% so far this week, about to mark the third weekly loss in a row.
US Stocks
The Energy Information Administration reported a huge buildup of 8.7 million barrels in US crude stocks last week to a total of 423.8 million barrels, while analysts only expected a build of 1.3 million barrels.
Gasoline stocks rose 2.2 million barrels to 251.1 million barrels, while distillate stocks fell 5.5 million barrels to 118.5 million barrels.
US Production
The EIA also reported an increase of 255 thousand bpd in US crude stocks last week to 13.475 million bpd, cementing the US status as the world’s top crude producer.
