Crude oil is off to a great start this month. Crude oil gained traction at 42 cents trading at 103.14. Last week, U.S. crude-oil imports increased by the most since 2008. This was as a result of rebounding from a 17-year low, as Gulf Coast shipments gained. The Ukraine crisis and Libya are also attracting attention from Forex traders as the current situation with the countries are producing oil and OPEC is resulting in black gold records.
As the situation eases in the Ukraine, Forex traders are becoming more optimistic oil prices will also ease. The Ukraine interim pro-Western government last Tuesday that it had recaptured the airport in the eastern city of Donetsk after a day of air strikes and fierce gun battles with pro-Moscow separatist militants that left dozens of people dead.
Billionaire Petro Poroshenko, a candy tycoon known as the "Chocolate King" led all candidates last Monday with 54% vote count Ukraine's presidential election, the Central Elections Commission reported. Poroshenko said Monday the military would press on with its offensive against the insurgents who now control about a dozen cities and towns in the east. Poroshenko insisted"no talks with terrorists" who he said were trying to turn Ukraine into Somalia.
Libya's oil production stands at 150,000 barrels a day, or about 10% its normal level. The US State Department told citizens to leave Libya and avoid any travel to the country, citing "security concerns" in the country, which has been unstable since the 2011 toppling of the former regime. In a statement, the department said it "warns US citizens against all travel to Libya and recommends that US citizens currently in Libya depart immediately." The US embassy in Tripoli's staffing was sharply reduced due to the security situation and could offer only "very limited emergency services" to US citizens in Libya. The NOC expects its oil production to jump by one million barrels a day by 2019.
The strength in Chinese manufacturing activities were indicators in the Asia market with oil prices rising. The Chinese government had reported that Chinese manufacturing activities were at a five-month high in May. China also indicated growth with its PMI (purchasing managers index) reached 50.8 in May.
Iraq's oil exports averaged 2.582 million barrels a day in May. The oil exports resulted in an increase from 2.510 million barrels per day in April. US. Natural-gas stockpiles are also recovering strongly due to poor weather in the U.S. The natural gas futures had its third monthly decline in 2014.
The impact on the violent crises in Ukraine and Libya continue to affect crude supplies. As energy remains up, crude oil prices have resulted in a positive US economic impact with higher oil demand on the rise. US orders for durable goods rose by 8%, increasing in its third month as of April. Consumer confidence also gauged in April. U.S. crude production climbed 38,000 barrels a day last week to 8.47 million, the most since October 1986, the EIA reported.