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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Oil Climbs as U.S. Supplies Shrink to Lowest Since Start of Year

Oil surged to an eight-week high after the government said U.S. stockpiles shrank to levels last seen at the start of the year. Futures rose 1.8 percent in New York. Crude inventories declined by 7.21 million barrels last week to the lowest since Jan. 6, according to data from the Energy Information Administration Wednesday. Gasoline stockpiles fell for a sixth week to the lowest level since December, the data showed. “The primary driver behind the rally is that you’ve got more inventory d...
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OPEC is out of options: How low can oil prices go?

by Ivana Kottasová   @ivanakottasova OPEC is running out of options. The price of crude has plummeted 13% in recent weeks to below $46, suggesting that the cartel's efforts to vanquish cheap oil are falling short. OPEC and other major producers had been enjoying higher prices since agreeing in November to slash production, a strategy designed to rid global markets of excess supply. Now, the magic appears to be wearing off. The cartel has responded to the sharp decline in prices by sug...
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Oil trades near five-month lows despite Saudi assurances on cuts

By Dmitry Zhdannikov | LONDON Oil prices fell to five-month lows on Friday on concerns about a persistent glut despite assurances from Saudi Arabia that Russia is ready to join OPEC in extending supply cuts. U.S. West Texas Intermediate (WTI) crude oil futures fell more than 3 percent in early trading to less than $44 a barrel, the lowest since Nov 14. It fell 4 percent on Thursday. Benchmark Brent also fell 3 percent to below $47, its lowest since Nov. 30, which was the date the Organi...
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OPEC May Need to Extend Production Cuts to End of Next Year

OPEC is certain to extend cuts in oil output when its ministers meet later in May and will need to keep limiting production until as late as the end of 2018, a veteran market analyst said. The reaction of global crude inventories to the cuts will determine how long the Organization of Petroleum Exporting Countries and allied producers stick with their policy of pumping less oil to counter a global glut, said Fereidun Fesharaki, the head of industry consultant FGE. Oil may drop to as low as $4...
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OPEC says oil stocks still increasing, Saudis raise output

By Alex Lawler LONDON (Reuters) - OPEC said on Tuesday oil inventories have risen despite a global deal to cut supply and raised its forecast of production in 2017 from outside the group, suggesting complications in an effort to clear a glut and support prices. In a monthly report, OPEC also said its biggest producer Saudi Arabia increased output in February by 263,000 barrels per day to 10 million bpd, after in January making a larger cut than required by the OPEC accord to ensure strong in...
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Oil rises in thin trade, but swelling U.S. output caps rally

By Devika Krishna Kumar NEW YORK (Reuters) - Oil prices inched higher on Monday, as investor optimism over the effectiveness of producer cuts encouraged record bets on a sustained rally, although growing U.S. output and stubbornly high stockpiles kept price gains in check. Top OPEC exporter Saudi Arabia's crude oil shipments fell in December to 8.014 million barrels per day (bpd) from 8.258 million bpd in November, official data showed on Monday. Brent futures (L...
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US drillers pumped like crazy last week, and that’s a ‘major concern’ for OPEC

Thanks, OPEC. U.S. crude oil production surged by about 100,000 barrels a day last week, providing further evidence that American drillers are responding quickly to the higher prices that OPEC created by agreeing to curtail their own production. The Organization of Petroleum Exporting Countries reached an agreement to cut production by 1.2 million barrels a day last month and got commitments from some nonmembers to 558,000 barrels a day in reductions this past weekend. Hopes for output l...
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Oil prices fall after crude inventory, OPEC news

Posted by Jordan Blum Oil prices fell by more than $1 a barrel Wednesday after news that the crude glut is growing in the nation’s storage benchmark of Cushing, Okla. The oil price also felt the impact of OPEC stating its oil production levels grew by 150,000 barrels per day from October to November. The Organization of the Petroleum Exporting Countries agreed Nov. 30 to cut production amounts by 1.2 million barrels daily, but that doesn’t begin until January. U.S. oil prices fell below $51.9...
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