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 – higher 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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