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

Oil prices stable on OPEC-led production cuts, but bloated inventories weigh

Published 10/02/2017, 12:07 pm
Updated 10/02/2017, 12:10 pm
© Reuters.  Oil prices stable on OPEC-led production cuts, but bloated inventories weigh
LCO
-
CL
-
DXY
-

By Henning Gloystein

SINGAPORE, Feb 10 (Reuters) - Oil prices were stable early on Friday, with OPEC-led production cuts supporting the market while soaring U.S. fuel inventories were weighing on crude.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading at $53.08 per barrel at 0106 GMT, up 8 cents from their last settlement.

Brent crude futures LCOc1 , the international benchmark for oil prices, were up 3 cents at $55.66 a barrel.

Both crude futures have traded within a $5 range since the beginning of the year, and traders said this was due to competing price drivers.

"Oil prices continue to struggle to break out of the current range," ANZ bank said on Friday.

"The push and pull between competing forces in the crude oil market continued overnight. Despite the stronger U.S.-dollar .DXY and lingering concerns about U.S. (oil) inventories, traders returned their focus to the OPEC production cuts being implemented at the moment," it added.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers including Russia have agreed to cut output by almost 1.8 million barrels per day (bpd) during the first half of 2017 in a bid to rein in a global fuel supply overhang.

There was widespread scepticism that all producers would actually make the promised cuts, but compliance with the announced reductions is now estimated to be between 80 and 90 percent as especially OPEC's de-facto leader Saudi Arabia has enforced sharp production cuts.

And this is likely to remain until the release of OPEC data next week.

Despite this, oil markets remain bloated as inventories especially in the United States are brimming and rising U.S. drilling activity is pushing up production there as well. EIA/S

As a result, WTI and Brent crude oil futures are 4 to 5 percent below their early January peaks.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC: OPEC vs U.S. oil production

http://tmsnrt.rs/2kPMpyh GRAPHIC: Global oil supply vs demand

http://tmsnrt.rs/2jUJLWm GRAPHIC- U.S. crude oil stocks

http://tmsnrt.rs/2kqt9D

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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.