Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

UPDATE 7-Oil resumes tumble on Iraqi export deal, futures margin hike


Brinx65
 Share

Recommended Posts

http://www.reuters.com/article/2014/12/02/markets-oil-idUSL3N0TM1LC20141202

 

 

* Iraqis makes deal with Kurds to export oil

* CME hikes margin requirement for crude traders by almost 16 pct

* Stronger dollar weighs on oil prices (Recasts and updates with market extending declines; changes byline and dateline, previous LONDON)

 

By Barani Krishnan

 

NEW YORK, Dec 2 (Reuters) - Oil prices resumed their slide on Tuesday after a deal that will add more Iraqi crude to the oversupplied markets, higher margin requirements to trade U.S. crude and a stronger dollar whipsawed oil markets a day after the biggest rally in two years.

Iraq's government said it has agreed with Kurdish authorities to export 300,000 barrels per day of oil from Kirkuk and 250,000 bpd from the northern Kurdish region through Turkey. The agreement aims to overcome months of dispute which all but halted exports from Kirkuk.

"The Iraqis deal with the Kurds for oil exports is the one headline sticking out in today's market, a reminder that the oversupply in oil isn't going away easily," said Joseph Posillico, an analyst at Jefferies in New York.

Benchmark Brent crude oil dropped $1.08, or 1.5 percent, to $71.46 a barrel by 12:34 p.m. EST (1734 GMT) after falling $2 earlier to $70.54.

Brent jumped more than 3 percent on Monday for its largest one day gain since October 2012 on concerns that the U.S. shale output, blamed for much of the world oil glut, was shrinking.

U.S. crude fell $1.20 to $67.80, after a session bottom at $66.72. It rose 4 percent on Monday for its biggest move up since August 2012.

The CME Group Inc, the world's largest commodities exchange, said initial margins for crude oil futures on the New York Mercantile Exchange will go up by 15.6 percent from the close of business on Tuesday, raising the financial requirements for oil traders as the market turned more volatile.

"When the exchanges raise margins, it usually does have some effect on prices as it becomes more expensive to hold positions," said a New York-based futures broker, who thought the CME was protecting itself against potential defaults.

The dollar hit a 4-1/2-year high, helped by comments from two influential Federal Reserve officials stressing the positive impact on the U.S. economy from the drop in energy prices. A stronger dollar often weighs on prices of commodities denominated in the currency.

Losses in the oil markets were pared after comments from Saudi Arabia's former intelligence chief that world's top oil exporter would consider cutting production if joined by many other producers.

Former Saudi intelligence chief Prince Turki bin Faisal, said the kingdom would only consider cutting production if other countries, including non-OPEC producer Russia, joined in limiting their output."

Saudi Arabia, the most influential member of the Organization of the Petroleum Exporting Countries, sent oil prices into a tailspin last week when it blocked moves by some smaller producers to curb output.

"Volatility sometimes begets volatility, and the oil markets are not being helped by all the conflicting signals they're getting now," said John Kilduff, partner at Again Capital, an energy hedge fund in New York. (Additional reporting by Robert Gibbons in New York, Ahmed Aboulenein in London, and Florence Tan and Henning Gloystein in Singapore; Editing by Jessica Resnick-Ault, Dale Hudson, Louise Heavens and Marguerita Choy)

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.