by Daniel J. Graeber
Washington (UPI) Aug 4, 2017
OPEC production concerns were balanced by strong labor figures from the United States, the world's largest economy, leaving oil prices flat early Friday.
The U.S. Labor Department reported non-farm payrolls increased by 209,000 last month and hourly earnings in the same broad sector increased 9 cents to $26.36.
"Over the year, average hourly earnings have risen by 65 cents, or 2.5 percent," the report read. That's greater than the rate of U.S. inflation as measured in a report this week from the Organization of Economic Cooperation and Development.
Private payroll processor ADP earlier this week reported private sector employment increased from June to July by 178,000, with the services sector far outpacing manufacturing.
U.S. inflation, however, is below a target rate of 2 percent. Among other metrics gauged by the Labor Department, labor force participation, the average workweek and the number of discouraged worked, those who gave up on finding a job, remained relatively unchanged.
Demand had been a driving force in a late July rally in crude oil prices. On the supply side, a report Friday from S&P Global Platts found production strains from Iraq, Libya and Nigeria would undermine broader efforts from the Organization of Petroleum Exporting Countries to balance a market with an output ceiling.
Crude oil prices were moving in volatile territory in early Friday trading, but trended mostly lower in overnight trading. The price for Brent crude oil was down 0.08 percent at 9:15 a.m. EDT to $51.97 per barrel. West Texas Intermediate, the U.S. benchmark for the price of oil, was up 0.06 percent to $49.06 per barrel.
Vandana Hari, an industry analyst for Vanda Insights, said in an emailed newsletter that deeper cuts from OPEC may be necessary to drive the price of oil much higher, but that's unlikely without support from Libya and Nigeria, two OPEC members exempt from the agreement because of national security issues.
"The emphasis has turned to ensuring full discipline, something that will need a lot of effort for relatively small immediate gains," she said. "OPEC wants to achieve compliance through monitoring members' exports, which is neither easy nor fail-safe."
The price of oil will be influenced later in the day when drilling services company Baker Hughes issues data on exploration and production, which is reported as rig counts. An increase in rig counts from last week could spook traders as it would indicate the possibility for future growth in U.S. shale, where production gains have contributed to supply-side strains.
A survey from the Federal Reserve Bank of Dallas noted that Texas rig counts more than tripled from last year, but said the pace of increase might not be sustainable and could drop off in the second half of the year.
Hanoi (AFP) Aug 3, 2017
Spanish oil giant Repsol said it has suspended a multi-million-dollar oil exploration project in an area of the South China Sea off Vietnam claimed by both Hanoi and Beijing, amid reports of a spike in tensions between the communist neighbours. Vietnam and China have long traded barbs over competing claims in the strategically important waterway, through which $5 trillion in trade passes ann ... 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|