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Aug 27, 2015

Oil soars over 10 percent, biggest gain in six years as shorts scramble

NEW YORK (Reuters) – Oil rocketed more than 10 percent higher on Thursday, posting its biggest one-day rally in over six years as recovering equity markets and news of diminished crude supplies set off a short-covering scramble by bearish traders.

Snapping back from a deep two-month slump that knocked U.S. crude to 6-1/2 year lows below $40 this week, oil climbed as world stock markets rose on hopes Chinese government measures to stimulate the economy would pay off, while the dollar strengthened as risk aversion eased.

Aug 27, 2015

Oil soars over 10 percent as deep shorts scramble for cover

NEW YORK (Reuters) – Oil rocketed as much as 10 percent higher on Thursday, posting its biggest one-day rally since 2009 as recovering equity markets and news of diminished crude supplies set off a short-covering surge by bearish traders.

Snapping back from a deep two-month slump that reached 6-1/2 year lows this week, oil climbed as world stock markets rose on hopes Chinese government measures to stimulate the economy would pay off, while the dollar strengthened as risk aversion eased.

Aug 5, 2015

Analysis – Oil bulls’ hope for quick price dip dimmed by 2020 crude under $70

HOUSTON (Reuters) – As oil prices entered a second steep slide a few weeks ago, bullish traders and analysts had hoped for a repeat of the sharp but short dip that occurred early in the year – a speculative slide below $50 (32.16 pounds) a barrel followed by a quick recovery.

Some are now reconsidering that view, as long-term oil prices take the lead in the market’s latest dive, swaying sentiment toward a lengthier slump that would mean prolonged pain for big producers, from Exxon Mobil Corp (XOM.N: Quote, Profile, Research) to Saudi Arabia.

Aug 5, 2015

Oil bulls’ hope for quick price dip dimmed by 2020 crude under $70

HOUSTON (Reuters) – As oil prices entered a second steep slide a few weeks ago, bullish traders and analysts had hoped for a repeat of the sharp but short dip that occurred early in the year – a speculative slide below $50 a barrel followed by a quick recovery.

Some are now reconsidering that view, as long-term oil prices take the lead in the market’s latest dive, swaying sentiment toward a lengthier slump that would mean prolonged pain for big producers, from Exxon Mobil Corp (XOM.N: Quote, Profile, Research, Stock Buzz) to Saudi Arabia.

Jul 8, 2015

Analysis – Oil under $60 beyond 2016 suggests market rethinking shale

NEW YORK (Reuters) – The almost 10 percent nosedive in headline oil prices this week has many hallmarks of a shocking but short-lived slump, triggered by a confluence of external events and exacerbated by safety-seeking investors and momentum-chasing traders.

By Tuesday afternoon, the crowded race to the exit was winding down, with prices recovering from three-month lows as traders reassessed the factors they blamed for the worst slide in four months: Greece’s debt woes; China’s stock market meltdown; talks with Iran over its nuclear program; a stronger dollar; a rise in the number of U.S. oil rigs; a breach of key technical triggers.

Jul 8, 2015

Oil under $60 beyond 2016 suggests market rethinking shale

NEW YORK (Reuters) – The almost 10 percent nosedive in headline oil prices this week has many hallmarks of a shocking but short-lived slump, triggered by a confluence of external events and exacerbated by safety-seeking investors and momentum-chasing traders.

By Tuesday afternoon, the crowded race to the exit was winding down, with prices recovering from three-month lows as traders reassessed the factors they blamed for the worst slide in four months: Greece’s debt woes; China’s stock market meltdown; talks with Iran over its nuclear program; a stronger dollar; a rise in the number of U.S. oil rigs; a breach of key technical triggers.

Jun 8, 2015

OPEC oil price anchor could be easy to unmoor

VIENNA (Reuters) – To hear OPEC ministers in Vienna last week, one would think the cartel’s battle for market share is a complete success and oil prices are now firmly anchored where they are.

“The strategy is working… It will take time for markets to rebalance,” was the mantra from OPEC kingpin Saudi Arabia’s oil minister Ali al-Naimi and his peers.

Jun 8, 2015

Analysis – OPEC oil price anchor could be easy to unmoor

VIENNA (Reuters) – To hear OPEC ministers in Vienna last week, one would think the cartel’s battle for market share is a complete success and oil prices are now firmly anchored where they are.

“The strategy is working… It will take time for markets to rebalance,” was the mantra from OPEC kingpin Saudi Arabia’s oil minister Ali al-Naimi and his peers.

Jun 4, 2015

OPEC poised to keep pumping even as global oil glut persists

VIENNA (Reuters) – Oil group OPEC is set on Friday to stick by its policy of unconstrained oil output for another six months, setting aside warnings of a second lurch lower in prices as some members like Iran look to ramp up exports.

By agreeing to maintain its existing output ceiling, the Organization of the Petroleum Exporting Countries will renew its support for the shock market treatment it doled out late last year, when Saudi Arabia, the world’s top exporter, said it would no longer cut production in order to keep prices high.

May 22, 2015

U.S. drivers yield ‘swing’ oil demand crown to Saudis

NEW YORK (Reuters) – As the United States raced over the past five years toward becoming a global petroleum powerhouse, the world’s biggest oil exporter Saudi Arabia quietly seized a market milestone from America: the largest source of peak summer demand.

From June through August, when temperatures in Riyadh routinely rise above 100 degrees Fahrenheit (38 degrees Celsius), Saudi Arabia diverts as much as a tenth of its crude output to fuel power plants that run full tilt to meet surging demand from air conditioners.