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

UPDATE 8-Oil ends down on U.S. inventory surge, doubts on OPEC resolve

Published 04/11/2016, 06:57 am
© Reuters.  UPDATE 8-Oil ends down on U.S. inventory surge, doubts on OPEC resolve
US500
-
CSGN
-
LCO
-
CL
-

* Genscape reports 1.2 mln bbls build at Cushing -traders

* Militants attack oil pipeline in Niger Delta

* Market hit 5-week lows on Wednesday on U.S. stock build (New throughout, updates prices, market activity and comments to settlement)

By Ethan Lou

NEW YORK, Nov 3 (Reuters) - Oil prices settled down more than 1 percent on Thursday as investors reeled from a record weekly surge in U.S. crude inventories, and remained skeptical about whether OPEC can actually implement its planned output cap.

U.S. crude CLc1 fell 68 cents, or 1.5 percent, to settle at $44.66 per barrel. At one point, oil had fallen more than $1 a barrel and hit a session low of $44.37.

Brent crude LCOc1 was down 51 cents, or 1.1 percent, at $46.35 a barrel. It hit a session low of 45.99.

Traders said energy monitoring service Genscape reported a weekly build of 1.2 million barrels at the U.S. delivery base in Cushing, Oklahoma.

That kept a lid on oil prices a day after crude fell to a five-week low, when U.S. data on Wednesday showed stockpiles of oil surged a record 14 million barrels last week. Thursday, prices were also pressured as U.S. equities fell, with the S&P 500 stock index headed for its longest losing streak since the 2008 financial crisis. .N

Oil ministers from the Organization of the Petroleum Exporting Countries (OPEC) meet on Nov. 30 in Vienna to agree on a production cap to reduce a global glut and combat low prices.

Market watchers have grown skeptical that a concrete deal can be reached or enforced.

OPEC has not made clear how much each member should cut, and several have been resistant. A Reuters survey this week based on shipping data and industry sources indicated that OPEC output probably set a record high in October. got this rally a few weeks ago, recent weeks on the expectation that we'll see some cohesive cut coming through from OPEC, but that's been slowly unwound," said Matt Smith, director of commodity research at energy data provider ClipperData.

News of an attack on a Nigerian pipeline, which sources say cut output by at least 200,000 barrels, lent some support to crude prices. Nigeria, Africa's largest crude producer, has been hamstrung in months by rebel activity. prices have been falling for four days and have not recovered to levels reached in October after the preliminary agreement by OPEC to cap production, reached at a meeting in Algiers.

"If there were broadly three drivers propelling oil prices from about $45 per barrel ahead of Algiers to $53 - OPEC expectations, inventories and a more or less benign macro environment - they suddenly seem spent," Credit Suisse (SIX:CSGN) analysts said in a note.

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.