Oil Set for 2nd Weekly Gain Amid Most Volatility in 6 Yrs

[Wiljor]

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Oil Set for 2nd Weekly Gain Amid Most Volatility in 6 Yrs
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Oil Set for 2nd Weekly Gain Amid Most Volatility in 6 Yrs
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by Ben Sharples
7:26 PM EST
February 5, 2015


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(Bloomberg) -- Oil headed for a second weekly advance amid the highest volatility in almost six years.

 

Futures rose for a second day in New York and are poised for a 5.3 percent gain for the week. The CBOE Crude Oil Volatility Index, which measures price fluctuations using options of the U.S. Oil Fund, ended at 63.14 on Thursday, the highest level since April 2009. Traders are storing record amounts of fuel in Europe, according to data from PJK International, after crude slumped almost 50 percent last year amid a global glut.

 

Oil halted its biggest four-day rally since January 2009 on Wednesday after U.S. government data showed crude stockpiles in the world’s largest consumer expanded to the highest level since at least 1982. Saudi Arabia cut its prices for March sales to Asia to the lowest in at least 14 years, signaling OPEC’s biggest producer is fighting for market share.

 

“There is a big debate as to whether the market should focus on the current bearish supply situation versus signs that may change,” Phil Flynn, a senior market analyst at the Price Futures Group in Chicago, said by e-mail. Capital spending reductions by companies and the idling of drill rigs signal “there could be a change in the air,” he said.

 

West Texas Intermediate for March delivery climbed as much as $1 to $51.48 a barrel in electronic trading on the New York Mercantile Exchange and was at $50.82 at 11:13 a.m. Sydney time. The contract gained 4.2 percent to $50.48 on Thursday. The volume of all futures traded was about 38 percent below the 100-day average.

 

Brent for March settlement increased $2.41, or 4.5 percent, to $56.57 a barrel on the London-based ICE Futures Europe exchange on Thursday. The European benchmark crude ended the session at a premium of $6.09 to WTI.

http://www.bloomberg.com/news/articles/2015-02-06/oil-set-for-second-weekly-gain-amid-most-volatility-in-six-years

[temperament5]

The country's finance minister told CNBC this week "Saudi Arabia is OK with cheap oil for some time" the kingdom will continue to dip into cash reserves and borrow to temper the storm in crude.

 

They are doing their best to maintain market share and hurt others at the same time.  Based on this, I think we will see Oil hover around these prices give or take a few dollars.

[new york kevin]

So we are real close to a PPB that will place Iraq back in the black ,Manx help eliminate their projected deficit. This is good. One more plus int the right direction.

What was the budget PPB set at again, $60 right. If so may it rise to that level and stay there ASAP.