Oil prices fall on relentless rise in USA crude output

While accelerating global growth and OPEC's supply cuts have helped crude oil rally since last summer, the prospect of surging United States production and slowing growth in the future is weighing on the commodity.

Unlike Middle Eastern nations such as Saudi Arabia, which wants high crude prices to boost the value of its IPO of state-run Aramco, Iran expressed its concern over steadily-rising US production by stating it wants to work with the Organization of the Petroleum Exporting Countries (OPEC) to keep prices at $60 and curtail the output.

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading mixed early Monday. The contract on Friday jumped over 3% to settle at $62.04 a barrel on the New York Mercantile Exchange, turning what would've been a weekly loss into a climb of roughly 1.3% from the week-ago settlement.

Brent crude futures were at $65.11 per barrel, down 38 cents from their previous close.

The crude oil production in the U.S. rose to over 10 million barrels per day by the end of 2017, according to the International Energy Agency.

OPEC has been reducing output by around 1.2 million barrels per day (bpd) since January 2017.

Latest US oil production data will be released on Wednesday.

Oil markets continued to flip back and forth over the past weeks due to excless supply, increasing US production and soaring global demand.

"The longer the deal goes on, it's going to start falling apart", Patterson said in an interview in Singapore, referring to an output-cut agreement between the Organization of Petroleum Exporting Countries and other producers including Russian Federation.

Crude oil prices are lower today after falling yesterday. "We need to see prices in the short-term trade below US$60 to reduce that incentive for USA producers", he said.

On Friday, Baker Hughes (BHGE) said that the number of active USA rigs drilling for oil (http://www.marketwatch.com/story/baker-hughes-reports-first-fall-in-us-oil-rig-count-in-7-weeks-2018-03-09) fell by four to 796 this week. The dollar tends to have an inverse relationship with oil prices, as a weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies.

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.

(Copyright © 2015. All Rights Reserved.)
 
Recommended

Allen Robinson reportedly agrees to Chicago Bears switch
Wide receiver has been a trouble spot for him, with Meredith being the only true bright spot at the position. Robinson is a bit of a wildcard after a down year in 2016 and a season-ending ACL tear in 2017.

Spectris (LON:SXS) Rating Lowered to Hold at Liberum Capital
The stock was acquired at an average price of GBX 1,522 ($21.03) per share, for a total transaction of £50,226 ($69,392.10). The stock of Hunting plc (LON:HTG) earned "Underweight" rating by Morgan Stanley on Wednesday, July 19.

Donald Trump sacks Rex Tillerson as US Secretary of State
President Donald Trump announced Tuesday that he will replace Secretary of State Rex Tillerson with CIA Director Mike Pompeo. Tillerson just returned from a trip overseas to Chad and Nigeria, before cutting his trip short to refocus on North Korea.

Secretary Of State Rex Tillerson Fired, Replaced By CIA Director Mike Pompeo
Tillerson exits shy of 14 months on the job, making his one of the shortest tenures for a secretary of state in US history. Tillerson continued to insist his relationship with the president was solid and brushed off rumors of strain between them.

Kim's 'special message' for Trump sets media abuzz
The South Korean presidential office later reported Xi as saying after the meeting: "I support the US-NK talks". The U.S. nuclear umbrella would also be maintained to protect Japan and South Korea from North Korean attacks.

Carrick has one Man Utd ambition left as he winds down career
McTominay and Matic plugged the gaps and, along with Ashley Young hounding Mohamed Salah, blunted Liverpool's lethal forward line. The first leg in Seville finished 0-0, thanks largely to a superb first-half save from United's David de Gea .

Newly-released DoD video purportedly shows Navy pilot's encounter with UFO
It is time to set aside taboos regarding " UFOs " and instead listen to our pilots and radar operators. Unfortunately, we have no idea, because we aren't even seeking answers .

Actress Salma Hayek blasts new Frida Kahlo Barbie doll
Fans across Twitter have spoken out, sharing their regrets that Kahlo's Barbie isn't an accurate representation of the artist. In a statement, the family insisted Mattel was not authorised to base a doll on Kahlo.

Joy Behar apologizes to Christians after Mike Pence's interview on "Hannity"
Last week, Disney CEO Bob Iger became the first person to break the news that Behar had made an apology to Pence. Pence said he accepted Behar's apology and asked her to make a broader one.

Silva ruled out as Southampton's leading candidate named
It was widely believed that Silva would top Southampton's list of replacements for Mauricio Pellegrino , who was sacked by the club on Monday.

Regeneron's anti-cholesterol drug Praluent reduces death risk in trial
The benefit was even greater among those with stubbornly high "bad", or LDL cholesterol, above 100 mg/dL. A price of $4,500 to $8,000 per year would be justified for patients with LDL over 100, the group said.

Rapper Craig Mack, Who Put 'Flava in Ya Ear,' Dies at 46
Craig Mack , who found fame as a rapper with Diddy 's Bad Boy Records in the 1990s, has passed away at the age of 46. Mack's debut album Project: Funk da Word was his most successful peaking at 21 on the USA album charts.

Pyeongchang Winter Paralympics open as biggest in history
The two Korean nations agreed to "respect each other's stance and march separately" following the flag disagreement, BBC reported. There was a silver lining, though, in the unity among the two torchbearers - one North Korean and one South Korean.

TDP renominates Ramesh for Rajya Sabha seat
In the Lok Sabha, members belonging to Congress, Trinamool Congress and others trooped into the well raising slogans. With members continuing their protest, the Chair was forced to adjourn the House till 2pm.

OECD Sees Better Outlook, if Trade Escalation Avoided
The Paris-based organisation said the world economy was on course to expand at an annual pace of 3.9% over the next two years. The world's largest economy is expected to grow 2.9 percent this year and 2.8 percent next year.


More News

News
More News