Chevron Acquisition Keeps Oil Prices Buoyant

By Glenn Dyer | More Articles by Glenn Dyer

Oil futures rose on Friday, recovering a portion of the sharp loss suffered a day earlier, after trouble in Libya raised fears of a cut to global supplies which were offset a major takeover (Chevron buying independent Anadarko for $US33 billion) and solid March trade data from China.

In New York May West Texas Intermediate crude rose 31 cents, or 0.5%, to settle at $US63.89 a barrel, after losing 1.6% on Thursday.

In Europe, June Brent added 72 cents, or 1%, to $US71.55 a barrel, recovering some of the 1.3% loss the contract put in a day ago.

For the week, WTI gained of 1.3%, while Brent, the international benchmark, saw a weekly advance 1.7%.

Prices rose after Chevron Corp revealed plans to buy independent shale player, Anadarko Petroleum Corp.

China’s exports for the month of March were better than expected Рhigher than expected at 14.2% while imports were down 7.6% (even though oil imports remained steady at near record levels).

The weekly Baker Hughes rig report showed a second weekly rise in oil rigs in use in the US last week – up 2 to 833, down from the rise of 15 the week before.

The US Energy Information Administration reported that US crude production was unchanged in record territory at 12.2 million barrels a day, while crude supplies rose by 7 million barrels for the week.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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