Published: Sat, January 13, 2018
Finance | By Loren Pratt

TSX May Open Higher As Oil Prices Rise

TSX May Open Higher As Oil Prices Rise

According to experts, oil prices rose to a three-year high on Wednesday as ongoing antigovernment protests in Iran, the Wall street Journal reported. How long can the party go on?

Brent crude futures, the worldwide benchmark for oil prices, were at $68.23 a barrel, up 0.9 percent, after revisiting a May 2015 high of $68.27 shortly before, Reuters reported.

"All New Mexicans benefit from a strengthened economy anchored by oil and natural gas, and can expect these trends to hold up for the foreseeable future as market prices continue to steady and if New Mexico remains a favorable place for oil and gas producers to do business".

How likely is that?

That has helped to tighten markets.

Lower domestic crude oil prices made US crude oil more competitive in worldwide markets and supported record USA crude oil exports.

While OPEC producers have made a decision to roll over the production cuts through the end of 2018, non-OPEC supply will increase more than previously expected, and total supply growth could exceed demand growth next year, the International Energy Agency (IEA) said in December's Monthly Oil Market Report.


Distillate inventories increased by a whopping 8.9 million barrels last week and remain in the middle of the average range for this time of year.

With Equatorial Guinea, production in December totalled 32.41 million bpd, up 20,000 bpd from November. The line, which begins at the Russian town of Skovorodino, running through Mohe, which borders Russia, to the city of Daqing in northeast China's Heilongjiang Province, will raise China's annual imports of Russian crude oil from 15 million to 30 million tonnes annually through the pipeline. Refineries were running at 96.7% of capacity, with daily input averaging 17.6 million barrels a day, about 210,000 barrels a day more than the previous week's average. Crude exports rose to 1.73 million bpd in October compared with 1.47 million bpd in September.

The Brent market has cycled regularly between backwardation and contango over the last 25 years as it moves between periods of under- and oversupply.

Here is a look at how share prices for two blue-chip stocks and two exchange traded funds reacted to this latest report.

But a seasonal increase in stocks is normal during the first six months, which includes the principal maintenance period for many refineries.

The six-month Brent calendar spread is trading around the 78th percentile of its historical range, up from the 22nd percentile at the same point past year.

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