Economy

Oil falls as U.S. maintains record output, inventories climb

Oil falls as U.S. maintains record output, inventories climb”

Countering the rising U.S. crude output and inventories are voluntary supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) aimed at tightening the market and propping up prices.

U.S. crude oil inventories increased in the week ending February 1, the U.S. Energy Information Administration (EIA) said in a report on Wednesday. Later in the year, it expects markets to remain fairly balanced due to a combination of waivers expiring for importers of Iranian oil, and because of a roll-over of the OPEC+ agreement into H2 2019.

US oil prices pared losses and turned positive after the data release.

National Security Adviser John Bolton and Treasury Secretary Steven Mnuchin announce sanctions against Venezuela state-owned oil company PDVSA and embattled president Nicolas Maduro.

Crude oil prices hit a 2019 high on Monday.

US crude inventories rose by 2.5 million barrels last week, the American Petroleum Institute said on Tuesday.

At 11:00 GMT, March WTI crude oil is trading $53.69, down $0.32 or -0.57% and April Brent crude oil is at $62.44, down $0.25 or -0.40%. The global benchmark crude was at an $8.36 premium to WTI for the same month. The S&P Global Platts survey had shown expectations for supply increases of 1.7 million barrels each for gasoline and distillates. These factors have helped lift the price from a low of $42.95 in late December to its current level around $55.30 per barrel - not far from the 2-1/2 month high reached Monday.

On Tuesday, The Wall Street Journal reported that OPEC officials said Saudi Arabia and its Persian Gulf allies were looking to create a formal partnership with a 10-nation group led by Russian Federation to manage the world's oil market.

"The collapse in oil prices late a year ago has resulted in more cautious spending by USA oil explorers", said Dhar.

Worries about weaker global economic growth and the trade dispute between the United States and China have also weighed on the market. Senior U.S. and Chinese officials are poised to start another round of trade talks next week.

A flotilla loaded with Venezuelan oil has formed in the Gulf of Mexico, some holding cargoes bought ahead of the latest US sanctions on Venezuela and others whose buyers are weighing who to pay.

The producers known as OPEC+ began cutting production from last month to avert a new supply glut and OPEC has delivered nearly three-quarters of its pledged cutback already, according to a Reuters survey.

In his State of the Union address, U.S. President Donald Trump said a trade deal was possible with China.



Like this

loading...
loading...

Latest


07 February 2019
Elizabeth Warren planned fanfare, but instead she's getting panned
On Tuesday, the senator confirmed to the Post that she had apologized to Bill John Baker, principal chief of the Cherokee Nation. There's no indication that Warren had anything to gain by reporting herself as Native American on the Texas bar card.

07 February 2019
At first MPC meet, Shaktikanta Das votes in favour of rate cut
The 'repo rate is a key interest rate at which the Central Bank lends short-term funds to commercial banks. This is the first policy of new RBI Governor Shaktikanta Das , who also heads the MPC.

07 February 2019
Super Bowl ads you have to see
Anheuser-Busch InBev has sparked an argument in the U.S. after it used its Bud Light Super Bowl ad to take a swipe at the ingredients of Molson Coors's top-selling lagers.

07 February 2019
A new 'Titanfall' game is in development
EA CEO Andrew Wilson said that the game peaked at almost 600,000 concurrent players by the middle of Tuesday, a day after launch. As you may expect that will include new legends, new weapons, and new loot to help in the fight.

07 February 2019
Hugh Jackman's commercial for Ryan Reynolds' gin company is hilariously brutal
The clip starts rolling and opens with Jackman sitting in a library with a bottle of Aviation Gin on the table in front of him. The whole advertisement was quite complimentary to Hugh - and apparently, the older actor was shocked.

07 February 2019
Nissan cancels X-Trail production in England
Nissan had announced its plan to build new SUV models at the Sunderland plant about a week after Clark's letter was sent. Nissan's announcement comes a week after Jaguar Land Rover said it plans on cutting its global workforce by 4,500.

06 February 2019
Star Sports Live Streaming India vs New Zealand First T20I
Watch the second Twenty20 worldwide between New Zealand and India from 5.55am, Friday on Sky Sports Cricket and Main Event. Seifert, whose previous best innings in eight internationals was an unbeaten 14 on debut, gave New Zealand a flying start.

06 February 2019
USA general: I wasn't told about Syria troop withdrawal
He hopes to maintain a military presence in the country despite withdrawing troops from Syria and Afghanistan . John Thune (R-S.D.), the No. 3 Senate Republican, told reporters on Wednesday.

06 February 2019
Trump's China tariffs seen delivering on effort to curb targeted imports
But I don't blame China for taking advantage of us, I blame our leaders and representatives for allowing this travesty to happen. The study also said that positive effect for some countries will likely be outweighed by the negative global effects .

06 February 2019
Wait What - The Mavs Just Got Kristaps Porzingis
NY (10-40) has the worst record in the National Basketball Association and is headed toward landing a high pick in the draft. However, Mills and Perry saw otherwise, noticing how often Porzingis was in the gym and how long he stayed when he did come.