Crude oil futures fall on weak global cues

  • Crude oil futures fall on weak global cues

Crude oil futures fall on weak global cues

The global market is oversupplied by about 2 million barrels of oil a day.

"We're seeing inventories draw", Morse said. The trading range has been 5034 to 4991. The current price is $2.91 per mmBtu.

After a positive week of rising prices, the oil price moved lower in Monday trading, on fresh worries on oversupply, coupled with the still strengthening U.S. dollar. One expert told the media the momentum in the physical and financial markets will boost oil prices.

The crude oil roller coaster continues.

Despite a deal made by OPEC and top non-OPEC producers to remove 1.8 million bpd from the global market, OPEC has had trouble sticking to the terms. The mixed signals are keeping the traders on guard. The country's largest oilfield, Sharara, has been closed since Sunday, an engineer at the field and a Libyan oil source said. As refiner's max out diesel, we may see less gasoline produced. Market surveys estimate that Russia's crude oil production could average 11.1 MMbpd in 2017. A fall in Russia's oil exports is bullish for crude oil (BNO) (UWT) prices.

Oil prices slipped United States dollars 1 per barrel on Monday as a rise in USA drilling and higher OPEC output capped the rally in prices which witnessed biggest third-quarter gain in 13 years. He says that USA production will only rise half of what they have been projecting. Petrol supplies rose by 4.91 million barrels last week, the American Petroleum Institute was said to report.

We are steadfast in our prediction that the global oil market is rebalancing. In August, OPEC claimed compliance of 116% with that target.

OPEC had agreed in November to let Libya and Nigeria pump without restrictions, due to their internal strife; output for Libya had reached a four-year high in July before shutdowns at various fields stalled the recovery.

"WTI oil price lagging by nearly $6 also gives some guarantees that the U.S. shale companies will not increase production yet", Hansen said. Natural gas prices rise in the winter as heating demand rises. Yet a growing minority - notably oil trading giant Trafigura Group - believe the paradox will be resolved next year as US shale proves it isn't an immovable object that can continue capping prices.