Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
Oil rose for a third straight day on Feb. 8 as investor concern over U.S. interest rates eased somewhat and an industry report pointed to a drop in U.S. crude inventories.
Comments from U.S. Federal Reserve Chair Jerome Powell on Feb. 7 were seen as less hawkish than feared, boosting risk appetite and weighing on the dollar. A weaker U.S. currency makes dollar-denominated oil cheaper for buyers holding other currencies.
"It would appear traders had become a little more defensive on the expectation of a hawkish shift, but Powell refrained from taking the leap," said Craig Erlam, senior market analyst at brokerage OANDA.
Brent crude rose 80 cents, or 1%, to $84.49 a barrel by 1433 GMT. U.S. WTI crude climbed 93 cents, or 1.2%, to $78.07.
With less aggressive U.S. rate increases, the market is hoping the world's biggest economy can dodge a sharp economic slowdown or even a recession that would hit oil demand. China's ending of COVID-19 curbs, meanwhile, is also expected to support demand for fuel.
"A looming oil demand surge together with lackluster global supply growth will ensure that the oil balance tightens over the coming months," said Stephen Brennock of oil broker PVM.
On supply, OPEC and its allies, together known as OPEC+, last week decided to keep output curbs in place and an Iranian official on Feb. 8 said the group is likely to stick with current policy at its next meeting.
The earthquake that struck Turkey and Syria on Feb. 6 stopped crude oil flows from Iraq and Azerbaijan out of the Turkish port of Ceyhan. BP Azerbaijan has declared force majeure on Azeri crude shipments from the port. Iraq's pipeline to Ceyhan resumed flows on Feb. 7.
Adding further support was weekly inventory data from the API, which showed that crude stocks fell by about 2.2 MMbbl in the week ended Feb. 3, market sources said.
The market will be looking to see if the decline is confirmed by figures from the U.S. Energy Information Administration at 1530 GMT.
Recommended Reading
EQT CEO: Biden's LNG Pause Mirrors Midstream ‘Playbook’ of Delay, Doubt
2024-02-06 - At a Congressional hearing, EQT CEO Toby Rice blasted the Biden administration and said the same tactics used to stifle pipeline construction—by introducing delays and uncertainty—appear to be behind President Joe Biden’s pause on LNG terminal permitting.
Tallgrass Energy Announces Latest Open Season for Pony Express Pipeline
2024-03-12 - Prospective shippers can review details of the open season, which began March 11, after signing a confidentiality agreement with Tallgrass.
FERC Approves ONEOK Pipeline Segment Connecting Permian to Mexico
2024-02-16 - ONEOK’s Saguaro Connector Pipeline will transport U.S. gas to Mexico Pacific’s Saguaro LNG project.
Canadian Railroad Sees Growth in 2024 as Other Transport Centers Struggle
2024-01-25 - Propane exports drove up a cargo increase at the end of 2023, contributing to a year-end bump in Canadian National Railway earnings.
KMI Considers Expanding Capacity out of Permian
2024-01-19 - Kinder Morgan reports customers may need more space on its Gulf Coast Express by 2027.