Oil Falls as Signs of Rising US Output Obscures Cuts
Oil Falls as Signs of Rising US Output Obscures Cuts

Oil Falls as Signs of Rising US Output Obscures Cuts

Oil Falls as Signs of Rising US Output Obscures Cuts

Oil prices fell 1% on Monday as signs of a strong recovery in US oil drilling activity outweighed news that OPEC and non-OPEC producers were on track to meet output reduction goals set in December.
Global benchmark Brent crude prices were down 53 cents to $54.96 a barrel, while US West Texas Intermediate crude futures traded at $52.61 a barrel, down 61 cents, or 1.1%, on Friday's close, Reuters reported.
Ministers representing members of the Organization of Petroleum Exporting Countries and non-OPEC producers said at a meeting on Sunday that of almost 1.8 million barrels per day they had agreed to be taken out of the market, 1.5 million bpd had already gone.
"A lot of this is already priced in and the US rig count keeps rising and gathering pace," said Carsten Fritsch, commodities analyst at Commerzbank in Frankfurt.
US drillers added most rigs in nearly four years last week, data from energy services firm Baker Hughes showed.
This extends an eight-month drilling recovery and is supporting signs that US production will continue to rise strongly just as other producers are cutting output.
"Baker Hughes said that 35 new rigs were activated last week, fuelling fears of a significant rise in US production which would offset the reduction by OPEC – and making a mockery of the Saudis' claim that they had managed to break the US shale drillers," said Ashley Kelty, research analyst at Cenkos Securities.
US oil production has risen more than 6% since mid-2016, although it remains 7% below a historic high in 2015. It is back to levels of late 2014, when strong US crude output contributed to a crash in oil prices.

Short URL : https://goo.gl/zzGMhC
  1. https://goo.gl/EQNcxX
  • https://goo.gl/cI4zV5
  • https://goo.gl/ZbptsR
  • https://goo.gl/nlnWXV
  • https://goo.gl/iytMCK

You can also read ...

Swap operations resumed earlier this month after a seven-year break.
Iran is ready to ramp up oil swap capacity after receiving the...
Iran is pinning hopes on the investment and know-how of foreign oil companies to enhance extraction rates.
The National Iranian Drilling Company has completed drilling...
Chinese Refinery Blaze Extinguished
A fire that broke out on Thursday at state oil major...
Citi Forecasts $40-60 Crude for Next 5 Years
Citibank's commodities research team has tempered its outlook...
Pertamina Reiterates Interest in Khuzestan Oilfields
The chief executive officer of Indonesia's state-owned oil and...
GE to Help Develop Biggest Wind Farm in Australia
GE has announced that it has entered into an agreement with...
Tavanir Urges Prudent Power Consumption
Hardwiring the culture of judicious electricity consumption in...
Major Gas Pipeline Launch in December
The construction of the 6th Iran Gas Trunkline (IGAT-6)–a...

Add new comment

Read our comment policy before posting your viewpoints

Enter the characters shown in the image.