Fed says stimulus wind down to begin ‘relatively soon,’ leaves rates unchanged

The Federal Reserve laid the groundwork Wednesday to begin winding down shortly the massive stimulus program it embarked on to rescue the economy from the financial crisis. As expected, the Fed also unanimously declined to raise interest rates this month. After its two-day policy meeting, the Federal Open Market Committee released a statement containing key language that points to starting the move in September. At that time, the central bank will begin rolling off the $4.5 trillion portfolio...
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Is It Time for OPEC to Rebalance the Crude Oil Market?

By Gordon Kristopher | May 1, 2017 7:51 am EDT Crude oil prices   June WTI (West Texas Intermediate) crude oil (XLE) (USO) (XOP) futures contracts rose 0.7% and closed at $49.33 per barrel on April 28, 2017. The S&P 500 (SPY) (SPX-INDEX) fell 0.2% on April 28, 2017. Prices rose due to optimism that a possible extension of major producers’ production cut deal in 2H17 could remove the oil market’s surplus. Iran and major oil producers’ deal   On April 29, 2017, Iran’s Oil Minister Bij...
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Oil prices sink on U.S. shale oil growth

IEA warns the world can't live on U.S. shale oil growth alone, expressing concerns about a supply shortage. By Daniel J. Graeber April 27 (UPI) -- The resiliency of U.S. shale oil basins offset production declines elsewhere in the world, sending crude oil prices on a downward trajectory early Thursday. Crude oil prices were volatile in Wednesday trading as investors were left navigating through a market characterized by official supply and demand data, geopolitical concerns tied to Nort...
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Global Rig Count Suggests An Oil Price Rally Is Near

Like us humans, it seems that oil markets have two ears. Going in one ear, is the squeal of the resurgent U.S. oil industry. In the other ear, it’s loud chatter about whether or not OPEC and friends are complying with production cuts. In between the ears, in the minds of the traders, the price of a barrel of oil reacts to every sound, most recently tumbling on the back of a noisy EIA report. Occasional bullish shout outs of unrelenting consumption growth, scary geopolitics and declining produ...
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Oil touches three-month lows as U.S. supply swells

By Jessica Resnick-Ault NEW YORK (Reuters) - Oil hovered around three-month lows on Monday, as rising inventories and drilling activity in the United States, the world's top energy consumer, offset optimism over OPEC's efforts to restrict crude output and reduce a global glut. After more than two months of reduced production from the Organization of the Petroleum Exporting Countries, the market is facing evidence that U.S. production remains high and global markets remain oversupplied. "The...
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Booming again: U.S. poised for record oil output in 2018

The American oil industry may be on the cusp of an incredible revival. Following a painful war with OPEC, U.S. oil output is poised to rebound this year, thanks to healthier prices and a strengthened business model. That could set the stage for America to set a record-breaking 2018, taking out the all-time oil production high set in 1970, according to new forecasts published this week by the U.S. Energy Information Administration. The U.S. oil comeback is being led by the Permian Basin, a...
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U.S. crude oil inventory data drag prices lower

By Daniel J. Graeber March 2 (UPI) -- Steady gains in U.S. crude oil inventories, coupled with an increase in exports from a key OPEC member, sent oil prices into deep red territory early Thursday. The U.S. Energy Information Administration reported commercial crude oil stocks increased 1.5 million barrels for the week ending Feb. 24 to reach a record high. Stocks have been building for most of the year, though recent movements may be skewed by refiners planning to shift to a summer bl...
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OPEC’s Crude Oil Production: How It Could Impact the Surplus

By Gordon Kristopher | Feb 22, 2017 8:24 am EST OPEC’s crude oil production   The EIA (U.S. Energy Information Administration) estimates that OPEC’s (Organization of the Petroleum Exporting Countries) crude oil production fell by 903,000 bpd (barrels per day) to 32.28 MMbpd (million barrels per day) in January 2017—compared to the previous month. OPEC’s production fell due to due to major producers’ production cut deal. Production fell 2.7% month-over-month, but rose 0.5% year-over-year. The f...
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Oil prices tad up in Asia after OPEC says cuts on target

Oil prices are edging up in Asia on Monday after the Organization of the Petroleum Exporting Countries said it was near its target of cutting 1.8 million barrels of crude oil a day, two months after committing to the deal. Early in Asia, benchmark U.S. West Texas Intermediate crude oil futures were 0.1 percent higher at $53.27 a barrel while international benchmark Brent crude oil futures were also up 0.1 percent at $55.53 a barrel, reflecting caution even after the OPEC statement. Vanda Insig...
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$50 oil is here to stay if OPEC sticks to its deal

by Zahraa Alkhalisi   @CNNMoneyInvest It was a roller coaster year for oil prices. And little wonder. Iranian oil flooded onto world markets after sanctions were lifted, OPEC squabbled over production levels and then ended the year with a rare agreement to cut supply. The icing on the cake: big producers outside the cartel promised to help curb output and drain a huge oil glut. After starting the year around $30 a barrel, prices plunged to $26 in February -- the lowest since 2003 -- be...
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