🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Crude oil eases for 2nd day on rising U.S. inventories

Published 13/04/2017, 10:48 am
© Reuters.  Crude oil eases for 2nd day on rising U.S. inventories
LCO
-
CL
-

SINGAPORE, April 13 (Reuters) - Crude oil futures slid for a second session on Thursday, moving away from a one-month high touched in the last session as rising U.S. inventories stoked worries about global oversupply.

Benchmark Brent crude futures LCOc1 slid 24 cents, or 0.4 percent, to $55.62 a barrel in early Asian trade. The market climbed to a one-month high of $56.65 on Wednesday before losing ground.

U.S. West Texas Intermediate crude futures CLc1 were down 23 cents, or 0.4 percent, at $52.88 a barrel. They touched their highest since March 7 at $53.76 barrel in the last session.

Traders focused on preliminary U.S. production estimates in the weekly Energy Information Administration (EIA) report that suggested domestic output is still climbing. The report also showed stockpiles at the U.S. crude hub at Cushing, Oklahoma, rose 276,000 barrels in the week.

"U.S. oil production rose to the highest level in over a year, leaving oil prices weaker on the day after the U.S. EIA released its data," ANZ said in a note.

"U.S. production rose 36,000 barrels per day, the most since January 2016 and the Baker Hughes rig count of 672 is the highest since August 2015."

Brent and WTI have rallied in recent sessions after Saudi Arabia was reported to be pushing fellow OPEC members and some rivals to prolong supply cuts beyond June.

OPEC and other producers, including Russia, agreed late in November to curb output by around 1.8 million barrels per day in the first half of 2017 to rein in oversupply.

The U.S. data followed bullish reports from OPEC nations, which said they had cut March output beyond measures they had promised, according to figures the group published in a monthly report, as it sticks to an effort to clear a glut that has weighed on prices.

However, OPEC also raised its forecast for supplies from non-member countries in 2017 as higher prices encourage U.S. shale drillers to pump more, reducing demand for OPEC's oil this year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.