by Daniel J. Graeber
Washington (UPI) Sep 27, 2017
Strong showing for the pace of U.S. economic growth in the second quarter gave further strength Thursday to the sustained rally in crude oil prices.
The U.S. Commerce Department reported real gross domestic product increased at an annual rate of 3.1 percent in the second quarter, the strongest level in years. In a nod to efforts by President Donald Trump to favor the domestic side, the department attributed the GDP growth to a deceleration in imports and an upturn in federal government spending.
In a speech in Indiana on efforts to overhaul the U.S. tax policy, the president said Wednesday the economy hit the 3 percent growth mark sooner than anticipated.
"America is back on the right track," he said.
The price for Brent crude oil was up 0.67 percent as of 9:00 a.m. EDT, shortly after the Commerce Department release, to $58.29 per barrel. West Texas Intermediate, the U.S. benchmark for the price of oil, was up 0.75 percent to $52.53 per barrel.
U.S. crude oil exports are at record levels and WTI is gaining ground on Brent as more refineries come back online after Hurricane Harvey. All of the refineries knocked out by Harvey are back in service, though several are still operating at reduced rates.
Market analyst Ole Hanson of Saxo Bank told UPI that at least some of the recent support for crude oil prices came from the potential for disruptions after the referendum for independence in the Kurdish north of Iraq. Turkey said it could shut the tap on the estimated half million barrels of oil per day that flows north from the region to a port on the Mediterranean Sea.
"The risk of a supply disruption from the Kurdish region is, however, viewed as slim with Turkey probably sticking to saber-rattling for now," he said. "On the basis of increased U.S. export and production, combined with Libya announcing intentions to increase production by another 30 percent before year end, we remain of the belief that we are currently looking for a peak instead of an extension to upside."
Trump in his comments from Indiana acknowledged, meanwhile, that U.S. economic growth would likely see lingering impacts from the series of strong hurricanes that hit the mainland and its island territories in recent weeks.
In its report Thursday, the Commerce Department said "the general picture of economic growth remains the same."
Elsewhere, the U.S. Labor Department reported first-time claims for unemployment for the week ending Sept. 23 jumped 12,000 from the previous week. The four-week moving average, a less-volatile metric, increased 9,000 from the previous average.
"Hurricanes Harvey and Irma impacted this week's claims," the department's report read.
Washington (UPI) Sep 27, 2017
U.S. shale exploration and production company Sanchez Energy said its production from its assets in Texas was accelerating even after Hurricane Harvey. "Despite the previously announced temporary suspension of completion operations due to Hurricane Harvey, strong well results across all of our western Eagle Ford acreage have led to a steady increase in production during the quarter," CE ... read more
All About Oil and Gas News at OilGasDaily.com
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement|