Oil declines for fifth week as supply climbs

Brent rose by 31 cents to $45.85 per barrel on Monday, while West Texas settled up 37 cents at $43.38 per barrel, causing Kilduff to remark, "After how much we've fallen, prices are attractive here as a result, so it's not surprising that we're getting some buying, just on a valuation perspective".

Crude oil prices were firmly in positive territory in early Tuesday trading.

Oil held gains above $43 a barrel ahead of USA government data forecast to show crude stockpiles extended declines from a record.


"Traders are also looking ahead to the EIA Energy Conference in Washington, where USA shale oil producers are expected to give their view of current market conditions".

Brent crude futures, the worldwide benchmark for oil prices, gained 46 cents to $46.29 per barrel by 1356 GMT.

"Any outside interference with a free market is often the wrong thing to do and in the oil market we are seeing that despite the OPEC production cuts, there remains a glut of new supply and growth is disappointing". Oil prices initially rose above $50 when the reduction began in January, but have become bearish in recent weeks as Libya, Nigeria, the United States and other producers continue to increase output. While inventories have steadily declined since then, American oil production has climbed above 9.3 MMbpd to the highest level since August 2015. USA crude hit its highest since June 19 at $44.44.


Iran, which was given a small increase so it could recover market share lost while under Western sanctions, said its production has surpassed 3.8-million bpd and is expected output to reach 4 million bpd by March.

The advance comes after WTI and Brent both settled higher Monday (http://www.marketwatch.com/story/oil-prices-up-1-rising-for-third-session-in-a-row-2017-06-26), helped by forecasts for a weather-related weekly decline in US crude supplies, despite ongoing pressure from expectations of further growth in USA output.

Analysts at Bank of America-Merrill Lynch said demand had not grown quickly enough to mop up excess output. Yet global crude inventories have not fallen as expected, as US producers and others outside the OPEC-led regime have boosted output. "I don't think OPEC is going to cut deeper, at least not for now".



Popular
  • JK Rowling marks 20 years since Harry Potter appeared

    Twitter is showing their Harry Potter appreciation by launching a special emoji that shows up with the hashtag #HarryPotter20 . Rowling , who was a struggling, divorced mother when she wrote the first Potter book , has conjured quite a world .
    New Zealand beats Oracle in America's Cup opener in Bermuda

    New Zealand beats Oracle in America's Cup opener in Bermuda

    Although they've won the first four races, the Kiwis lead Oracle 3-0. For race two Emirates Team New Zealand again led around mark one.
    Former Sun Devils Coach Frank Kush passes awsy at 88

    Former Sun Devils Coach Frank Kush passes awsy at 88

    Lengyel was the inspiration for the film, "We Are Marshall", in which he is portrayed by actor Matthew McConaughy. Kush's assistant coaches were allegedly told to lie in an effort to hide the actions.
  • Uber to allow tipping for drivers, reversing long-standing policy

    Uber to allow tipping for drivers, reversing long-standing policy

    It's also allowing more drivers to designate the routes that they want to travel to keep them closer to a preferred destination. A rider boycott in late January knocked Uber ridership down to 52.7 percent, while Lyft grew to a 12.8 percent share.

    Doctor says Otto Warmbier has brain damage

    He said Otto "is not in great shape right now" and that his family is "adjusting to a different reality". On Monday, Yun and two physicians medically evacuated Warmbier.
    Sensex ends higher; RBI keeps key interest rate unchanged

    Sensex ends higher; RBI keeps key interest rate unchanged

    However, pharma stocks such as Dr Reddy , Sun Pharma and Cipla attracted fresh buying and gained up to 3.79 percent. However, the BSE market breadth was slightly bullish - with 1,351 declines and 1,330 advances.
  • Singapore Airlines named world's second best airline

    Singapore Airlines named world's second best airline

    The Qatar Airways Cargo fleet now includes eight Airbus 330Fs, 11 Boeing 777 freighters and one Boeing 747 freighter. It is also investing heavily in improving frontline services with new aircraft, seats and airport lounges.
    Cavs, Suns, Timberwolves interested in trading for Jimmy Butler

    Cavs, Suns, Timberwolves interested in trading for Jimmy Butler

    Johnson of the Chicago Tribune reported the Phoenix Suns could be the third team in a multi-club trade involving the Cavs. In the meantime, the Bulls are preparing for the draft, in which they own the 16th and 38th picks.
    Alberta fighter Tim Hague dies following boxing match in Edmonton

    Alberta fighter Tim Hague dies following boxing match in Edmonton

    Hague had a Bachelor of Arts from Augustana University College and an Elementary Education degree from the University of Alberta. Hague was in critical condition on Saturday and Sunday morning until he passed away just after 1:30 p.m., CTV News reported.
  • Tillerson and Mattis to hold joint news conference after talks with China

    Tillerson and Mattis to hold joint news conference after talks with China

    The talks are meant to build on progress made when President Donald Trump met China's president in Florida in April. But she said the USA wants more action against blacklisted North Korean companies doing business through China.
    Canelo says Vegas bout will prove superiority to GGG

    Canelo says Vegas bout will prove superiority to GGG

    They know what they're going to pick", Alvarez said Tuesday at he and Golovkin's news conference at Madison Square Garden . McGregor will undoubtedly torch that bout when it comes to pay-per-view and ticket sales, not to mention overall revenue.
    Lead found in 20 percent of baby food samples, report says

    Lead found in 20 percent of baby food samples, report says

    Around 20 percent of the baby samples contained lead , while only 14 percent of the non-baby food samples had the substance. Certain amount of lead was also found in cookies like teething biscuits, according to CNN reports.

CONNECT