Oil prices rise on slower US output growth, strong Chinese demand

Ikaba Koyi Sharecast | 17 Jul, 2017 13:36 - Updated: 13:39 | | |

Oil & gas refinery, energy

Oil prices were climbing at the start of the week thanks to a slowdown in the pace at which new oil rigs were being brought into play in the US and signs of strong refinery demand from China.

Brent crude futures were at $49.11 per barrel, up 0.41% by 0946 BST from their last close, while US West Texas Intermediate crude futures were at $46.71 up 0.36%.

In the week to July 14, US drillers added two oil rigs bringing the total to 765, according to Baker Hughes.

One year ago they stood at just 357, but over the past month the pace of additions had ebbed to its slowest since November.

Meanwhile, data published overnight revealed strong fuel demand out of China.

Crude throughput at Chinese refineries rose by 2.1% month-on-month June to 11.26m barrels a day, its second-highest level ever.

Analysts at Citi predicted refinery runs would climb even further in August, when PetroChina's Anning refinery was due to come on line.

More news

13:40 Allergan announces $2bn share buyback, CFO to retire

Dublin-based biopharmaceutical group Allergan said it has authorised a new $2bn stock repurchase programme and affirmed its commitment to increasing its cash dividend yearly on Monday as it announced the departure of its chief financial officer.

13:13 Asia report: Markets mixed as investors digest New Zealand, Germany elections

Markets in Asia finished mixed on Monday, with investors given plenty of political news to digest after general elections in both New Zealand and Germany over the weekend.

13:05 Warehouse REIT buys four industrial estates in first deal after IPO

Specialist warehouse investor Warehouse REIT announced its first pipeline acquisitions on Monday following its admission to AIM last week.

13:02 Aldi posts record sales but profits drop on price war

German discounter Aldi reported record sales for last year on Monday but profits fell as the company continued to invest in prices and infrastructure.

12:53 Ultra Electronics wins £37m contract with BAE Systems

Ultra Electronics said on Monday that its Staffordshire-based PMES business has won a £37m contract with BAE Systems Maritime-Submarines in relation to a UK naval defence programme.

13:51 Japan's Shinzo Abe calls snap elections, seeks constitutional reform

Japanese Prime Minister Shinzo Abe has called early elections, citing the need for a new mandate in order to deal with the crisis on the Korean peninsula and for constitutional reform to strengthen the country's military.

12:42 Europe midday: Single currency slips on news from Germany, Spain

European stocks were trading on a mixed note following a weak showing for Germany's two mainstream political parties in elections held at the weekend, amid news of possible delays in the approval of the Spanish government's 2018 Budget Law, which sent the single currency scurrying lower.

12:15 Blenheim Natural Resources raises £900,000 in placing

AIM-listed Blenheim Natural Resources has raised £900,000 before expenses through a placing of 200m shares at 0.45p each.

12:14 London midday: Stocks off lows as sterling slips versus dollar

London stocks were down but off earlier lows by midday, helped along by a weakening of the pound versus the dollar, although the currency remained firmer against the euro after Angela Merkel secured a fourth term as German chancellor but with the tricky task of setting up a coalition.

12:13 Volkswagen eyeing cobalt contracts to accelerate electric vehicle swerve

Cobalt suppliers are working on potential long-term contracts with Volkswagen as the car manufacturer looks to pivot towards electric vehicles, boosting potential demand for a metal that is often a key component in lithium-ion batteries.