60987
Oil Prices in Tight Range
Energy

Oil Prices in Tight Range

Oil prices were little changed on Tuesday, trading in a tight range as rising US shale output offset OPEC crude production cuts, with investors seeking clearer direction from upcoming inventory data and comments from senior oil officials.
Brent crude was down 3 cents at $55.98 a barrel. US West Texas Intermediate crude was flat at $53.20. Both benchmarks have traded in negative and positive territory since the start of Asia trading, Reuters reported.
Oil prices have been entrenched in a $3 band since February, failing to take off after OPEC implemented, to a surprisingly high degree, the first cut in production in eight years.
Capping any upsurge has been an inevitable rise in US shale oil drilling after WTI rose firmly above the $50 a barrel level in December following OPEC's sealing of the deal, which also included several non-OPEC producers such as Russia.
"Brent is pivoting around $56, with focus on last week's low at $55 and resistance at $57.20," said Ole Hansen, Saxo Bank's head of commodity strategy.
"Market-wise, we have seen open interest on Brent fall to a six-week low as non-performing or even loss making longs have begun to reduce exposure," he added.
Fund managers doubled their net long positions in Brent, WTI and options to 951 million barrels between the start of November and Feb. 21, betting OPEC's high compliance with the cut agreement would push up prices.
But with Russia's lackluster participation in the cuts, rising shale output and signs that OPEC countries increased their crude exports in February after a January reduction, that bullish sentiment has wavered.

Short URL : https://goo.gl/7Ls7ko
  1. https://goo.gl/f1b9Ak
  • https://goo.gl/KhA4q3
  • https://goo.gl/v6rYmm
  • https://goo.gl/X3keZ5
  • https://goo.gl/y8Oerl

You can also read ...

Annual Petrochem Revenues  Seen Reaching $40b by 2022
Iranian officials on Sunday spoke of new investments in the...
Gasoline Consumption Up 8% in Six Months
Gasoline consumption in the first half of the current fiscal...
3 Wind  Farms for  Sistan-Baluchestan
Operations to construct three 50-megawatt wind power plants in...
Lukoil Positive About  Iran Investment Plan
Lukoil plans to keep pumping 100 million tons of oil per year...
Iraq Asks UN to Help Build New Nuclear Power Reactor
Iraq asked on Saturday for assistance in building a nuclear...
As the sun sets on Japan’s solar energy boom, companies and...
Shale Pioneer Slams US Oil Production Forecasts
Billionaire oilman Harold Hamm said the government was way too...
NIOC exported an average of 530,000 barrels of gas condensates daily between July 23 and August 22, mostly to South Korea.
The National Iranian Oil Company is voiding export deals for...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus