Stock Market Cafe
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Stock Market Cafe
No Result
View All Result
Home Trading News

Oil jumps 5%, recouping some losses following worst day of the year

by
November 29, 2021
in Trading News
0
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

Inflation Adjusted House Prices 3.4% Below Peak; Price-to-rent index is 7.4% below recent peak

Forget About ‘Timing the Market’: Schwab Research Reveals the Optimal Way to Invest

Oil derrick pumps operate at the Inglewood Oil Field in Culver City, California, on Sunday, July 11, 2021.

Kyle Grillot | Bloomberg | Getty Images

Oil prices jumped on Monday as traders bet that Friday’s sharp sell-off, prompted by fears that the new omicron Covid variant will curb demand for petroleum products, was overdone.

West Texas Intermediate crude futures, the U.S. oil benchmark, gained $3.31, or 5.3%, to trade at $71.48 per barrel at about 8:15 a.m. on Wall Street. The move puts the contract back above $70, after it broke below that key level on Friday.

WTI tumbled 13% on Friday for its worst day since April 2020, and also closed below its 200-day moving average — a closely-followed technical indicator — for the first time since November 2020.

Brent crude, the international oil benchmark, advanced 4.3% on Monday to $75.90. The contract declined 11.55% on Friday, and along with WTI registered a fifth straight week of losses.

“Friday’s price slide was excessive,” said analysts at Commerzbank. “Admittedly, the omicron variant is fueling concerns about demand, but it is not yet possible to put any serious figure on what effect this will genuinely have on demand,” the firm added.

Even before Friday’s sharp drop oil had been trending lower after WTI hit a seven-year high above $85 in October. Brent crude hit a three-year high last month.

Given oil’s strong 2021 rebound, analysts at RBC added that some of Friday’s sell-off can be attributed to traders locking in profits.

“At least part of the air pocket lower on Friday was a function of winding down risk, potentially for the year,” the firm said Sunday in a note to clients. “Following a strong 11 months of pricing, oil traders would rather de-risk and protect the nest egg, than fight the tide of market moving events like COVID for another month into year-end.”

Oil’s whipsaw moves come ahead of a key meeting between OPEC and its oil-producing allies, where the group will decide on production policy for January. At present the alliance, known as OPEC+, has been returning 400,000 barrels per day to the market each month as it unwinds the historic production cuts it implemented in April 2020 as the pandemic sapped demand for petroleum products.

In addition to the latest price action, the group will also be evaluating the supply and demand trajectory after the U.S. and other nations last week announced plans to tap the Strategic Petroleum Reserve in an effort to curb the rapid side in fuel costs. The Biden Administration said that the U.S. would release 50 million barrels from the SPR.

Wall Street’s divided over what OPEC+ may announce when it meets on Thursday. “With uncertainty over omicron, we expect that OPEC will shelve its target to increase output in January and keep its quota flat,” Morgan Stanley wrote in a note to clients.

Citi, on the other hand, believes that OPEC+ will “hold the line, and stick to its planned 400-k b/d quota increase.”

– CNBC’s Michael Bloom contributed reporting.

ShareTweetPin

Related Posts

Inflation Adjusted House Prices 3.4% Below Peak; Price-to-rent index is 7.4% below recent peak

by
September 27, 2023
0

Forget About ‘Timing the Market’: Schwab Research Reveals the Optimal Way to Invest

by
September 27, 2023
0

MBA: Mortgage Applications Decreased in Weekly Survey

by
September 27, 2023
0

Daily Spotlight: Fed’s Favorite Inflation Indicator Out Friday

by
September 27, 2023
0

Warren Buffett Says Apple Is Better Than Any Businesses Berkshire Owns — Unmatched Brand Loyalty Proven As Consumers Would Give Up A Second Car For An iPhone

by
September 27, 2023
0

Next Post

NAR: Pending Home Sales Increased 7.5% in October

Twitter CTO Parag Agrawal will replace Jack Dorsey as CEO

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Crocs sees fourth-quarter sales up 42%, CEO Andrew Rees says 2021 was ‘exceptional year’

    0 shares
    Share 0 Tweet 0
  • Biden didn’t accept Putin’s ‘red lines’ on Ukraine – here’s what that means

    0 shares
    Share 0 Tweet 0
  • Ford partners with GlobalFoundries to increase chip supplies

    0 shares
    Share 0 Tweet 0
  • CEOs across the market, economy agree on one big 2022 prediction: More volatility

    0 shares
    Share 0 Tweet 0
  • Inflation is sticking around – and Biden will likely have to wait it out like the rest of us

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.stockmarket-cafe.com
No Result
View All Result
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.stockmarket-cafe.com