Oil prices were modestly higher on Thursday thanks to continued supply cuts by OPEC and ongoing sanctions against Venezuela and Iran by the United States. Prices were prevented from rocketing higher by a rise in U.S. crude output. According the weekly report released by the Energy Information Administration (EIA) yesterday, U.S. inventories rose by 7.1 million barrels to 452.93 milllion barrels. The country’s crude oil production is also at record highs, hitting 12.1 million barrels per day, more than 2 million barrels per day more than its production in early 2018.
U.S. WTI futures were up 0.07 percent as of 2:16 p.m. HK/SIN to $52.26 per barrel. Brent crude futures were up 0.21 percent to $66.13 per barrel.
On Wednesday, oil giant Exxon Mobil issued new financial guidance, revealing that its profit potential and ability to generate cash are looking better than they did last year. The company’s stock price has gained 16 percent this year, but it has been struggling recently, and it fell 1 percent yesterday as investors worried about increased spending in the coming years. Exxon’s strategy contrasts that of many other oil drillers who are increasing output while decreasing spending. The company expects earnings to increase by $4 billion in 2019 and has set forth it’s expectation that earnings potential will increase by 140 percent between 2017 and 2025.
Currency Markets
The currency markets were relatively unchanged on Thursday afternoon. The dollar index was up 0.01 percent to 96.88 .DXY. The greenback was down 0.01 percent against the yen to 111.74, and it was down 0.05 percent against the British pound to $1.3176. It was unchanged against the euro and the Canadian dollar.