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

UPDATE 2-Oil prices edge up on reports of Saudi supply cuts, but details murky

Published 11/01/2017, 02:38 pm
Updated 11/01/2017, 02:40 pm
© Reuters.  UPDATE 2-Oil prices edge up on reports of Saudi supply cuts, but details murky
LCO
-
CL
-

* Saudis reportedly cut supplies slightly to some Asian buyers

* But details of such cuts remain obscure

* Extreme cold likely knocks out some Russian production

* But rising U.S. output, high stocks keep markets well supplied (Re-leads, updates prices)

By Henning Gloystein

SINGAPORE, Jan 11 (Reuters) - Oil edged up on Wednesday, lifted by reports of Saudi supply cuts to Asia, but prices were prevented from rising further over a lack of detail of these reductions and because of signs of rising supplies from other producers.

Prices for Brent crude futures LCOc1 , the international benchmark for oil prices, were trading at $53.75 per barrel at 0316 GMT, up 11 cents from their last close.

U.S. West Texas Intermediate (WTI) crude oil futures CLc1 were at $50.97 a barrel, 15 cents above their last settlement.

Traders said that the price rises were a result of reports that Saudi Arabia, the world's top oil exporter, was telling some Asian customers that it will curb crude supplies slightly from contracted volumes in February, although Reuters was not able to confirm any details of the reductions. were also doubts that the overall cuts would go deep enough to rebalance a market suffering from oversupply for the past two years. Both Brent and WTI futures are down around 6 percent since the start of the year.

"Traders continued to fret about rising U.S. supply and compliance by OPEC to agreed-upon production cuts," ANZ bank said.

The U.S. Energy Information Administration (EIA) said on Tuesday that American crude production in 2017 would rise by 110,000 barrels per day (bpd) to 9 million bpd. concern for traders were high U.S. crude stockpiles, with the EIA scheduled to release its latest figures on Wednesday.

"With inventories at the highest seasonal level in three decades, another increase in this week's report could see prices come under further pressure," ANZ said.

Outside the United States, there were lingering doubts over compliance with planned production cuts from members of the Organization of the Petroleum Exporting Countries (OPEC).

OPEC's second-biggest producer Iraq plans to raise crude exports from its southern port of Basra to an all-time high in February, keeping shipments high even as OPEC production cuts take effect this month.

Iraq State Oil Marketing Company (SOMO) plans to export 3.641 million bpd of crude in February, according to trade sources and preliminary loading schedules, potentially beating a record of 3.51 million bpd from December. cuts, however, are happening. In non-OPEC member Russia, which also agreed to cut output, extreme cold as low as minus 60 degrees Celsius has helped to knock out production by around 100,000 bpd in the first few days of January, and many oil engineers expect more reductions as production facilities struggle to cope with the extreme conditions.

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.