Oil Sinks on Output Complications

Oil Sinks on Output Complications

The crude oil prices are falling because of fears that rising USA production could lead to even larger volumes of stocks.

Oil prices fell yesterday as investors grappled with ongoing concerns over rising USA output and tight Opec supply, while last week's data showing speculators cut bets on oil suggested more selling could be seen. Gross short positions on the New York Mercantile Exchange climbed to their highest in almost a month.

At 0640 GMT, May WTI crude oil is trading $61.86, down $0.06 or -0.10% and June Brent crude oil is at $65.35, up $0.08 or +0.12%.

Both WTI and Brent as recently as Thursday had marked their lowest settlements since mid-February.

Latest US oil production data will be released on Wednesday.

While the U.S.is now pumping more than 10 million barrels a day, surpassing a record set in 1970, that boom is being accompanied by a surge in overseas shipments, helping drain stockpiles at the nation's largest storage hub.

Scaring off traders betting on further price increases has been a relentless rise in USA crude oil production, which soared past 10 million barrels per day (bpd) in late 2017, overtaking output by top exporter Saudi Arabia.

Donald Trump fires Secretary of State hours after backing UK's Russian Federation claim
The Secretary of State had previously been forced to deny media reports that he called Mr Trump a "moron". Mike and Gina have worked together for more than a year, and have developed a great mutual respect.

Healthy demand and ongoing supply restraint by a group or producers led by the Organization of the Petroleum Exporting Countries (OPEC) and Russian Federation, however, are preventing further price falls.

Traders attributed the recent increase to a drop in the number of USA drilling rigs for production and the reported job increase in the U.S. which is expected to push fuel demand higher.

While US news has been dominated by the aluminum and steel tariffs proposed by President Donald Trump, the oil markets will not sustain significant price reactions, Poulsen said. That split is driven by differing views over whether $70 a barrel sends US shale companies into a production frenzy that could cause prices to crash.

The increase in rig count in the USA also points to more output to come in the future.

"Rising production and inventory in the United States has been reducing fund sentiment since it peaked at the end of January", ING commodities analysts said in a note.

April natural gas bucked the downtrend among its energy peers, settling up 1.7% at $2.778 per million British thermal units, with forecasts for more cold weather in the eastern US boosting expectations for heating demand.

Related News:



Most liked

Matt Damon, Ben Affleck Become Next Stars to Formally Adopt Inclusion Riders
Jordan in which he announced his own production company would be adopting the rider. In a speech at the Oscars, Frances McDormand made mention of the inclusion rider .

Joy Behar apologizes to Christians after Mike Pence's interview on "Hannity"
In contrast, "Pence didn't back down and that sets a good standard", Showalter opined . The controversial remarks were made on " The View " by Behar on February 13.

Rex Tillerson out as Secretary of State
The Washington Post reports that Trump asked Tillerson to step aside on Friday, March 9 moments after he had arrived in Kenya. The gold subsector rose 0.65 percent as pot gold percent to $1,322.36 an ounce following the ouster of U.S.

SC extends deadline for linking Aadhaar to mobile, bank accounts
The Supreme Court has not extended the deadline for welfare schemes like LPG, MNREGA, and ration card, among others. Attorney General KK Venugopal submitted that the directives of the Supreme Court are being properly complied with.

'Light at the end of the tunnel' but no end to austerity
Hammond added the Treasury will today publish information about how the £1.5bn set aside for Brexit planning will be spent. He claimed there was "light at the end of the tunnel" but refused to rule out further cuts.

Man United's Paul Pogba could still be fit vs. Sevilla - Jose Mourinho
He keeps things very simple, often passing sideways or backward, and is positionally sound, and does the basics well. Not many were expecting him to start against Liverpool and he had a good match not just about scoring goals .

Potential trade war threatens global economic growth, OECD warns
Britain was seen missing out on the global upturn, lagging all other G20 countries with growth of only 1.3 percent this year. The latest round of protectionism was triggered by USA steep tariffs on imported steel and aluminum.

United States notes Taliban 'interest' in peace talks
The group has insisted it would only negotiate with the United States, which it calls a "foreign occupying force". In return, the militants would have to recognize the Kabul government and respect the rule of law.

Dodgeville singer makes her mark on American Idol
I thought I was going to be the authority... but, no, no, I am the Kindergarten teacher. Noah Davis brought his love of alpacas and his wig-based lexicon to his audition.

Tiger Woods to return to Australia as Presidents Cup captain
When asked last month about being named as an assistant to Furyk in this year's Ryder Cup, Woods hinted at being a player-captain. Captains alone will not change the outcome, a position that former worldwide captains Greg Norman and Nick Price have expressed.

Gaza blast targets Palestinian PM Hamdallah's convoy
Gaza's interior ministry spokesperson Iyad al-Buzom told Al Jazeera that pointing blame in the attack "has a political dimension". Radical Islamists opposed to Hamas also operate within the Gaza Strip and have regularly been behind unrest there.

Salma Hayek And Frida Kahlo's Family Object Barbie Doll
And the contract never granted the Corporation rights to Kahlo's image in the first place, only "certain uses of her name", he said.

Declassified Military Video Shows Fast-Moving UFO Tracked By Navy Fighter Pilots
He said they followed the "proper process" to get the video and that "the Department of Defense approved the release ". The video was released online by To the Stars Academy of Arts and Sciences , a private scientific research company.

Southampton should replace Pellegrino with Mark Hughes - Robbie Savage
Mark Hughes has been named as the "leading candidate" for the vacant Southampton manager's position, not Marco Silva . Southampton legend Matt Le Tissier believes Mauricio Pellegrino was sacked because of his negative style of football.

GameMaker Studio 2 adds Nintendo Switch support
EF Games will bring you more information on GameMaker Studio 2 Nintendo Switch edition and the games it powers as it is released. You can verify your current menu version and manually start the update from the System Settings menu if necessary.