62767
Brent crude futures were up 27 cents at $55.16 a barrel.
Energy

Crude Prices Move Higher

Oil edged higher on Wednesday as OPEC said it was committed to eroding a global surplus of crude, but increasing shale production in the United States and still-high global stocks threatened to pull prices lower.
Brent crude futures were up 27 cents at $55.16 a barrel, while US West Texas Intermediate crude futures were up 20 cents at $52.61, CNBC reported. Crude fell in the previous two sessions, but it received a boost from comments on Wednesday by the secretary-general of the Organization of Petroleum Exporting Countries that the group was committed to cutting inventories to the five-year average.
Analysts warned that prices could quickly turn negative.
"It seems that the optimism in the oil market we have seen since the last few days of March is running out of steam," wrote Tamas Varga, PVM Oil Associates analyst, noting concerns about the "ever-increasing rise" in US shale output. OPEC and other producers such as Russia agreed to cut output by almost 1.8 million barrels per day in the first half of 2017 to drain a supply overhang that has persisted for nearly three years. The cuts, and talk of a possible extension, enabled a rally in major oil contracts of some 10% between March 22 and April 12, Varga said. Geopolitical concerns have also helped underpin oil.
This week, US President Donald Trump ordered a review of whether the lifting of sanctions against Iran was in the United States' national interests. A lifting of certain sanctions against Iran in late 2015 under a nuclear deal allowed Tehran to more than double its crude exports over 2016.
But US stockpiles - and shale production - have cast doubt on whether the production cuts were enough. Data from the American Petroleum Institute showed on Tuesday that although crude inventories fell by 840,000 barrels in the week to April 14, they remained near record highs.
Gasoline stocks also posted a counter-seasonal build of 1.4 million barrels. Gasoline margins have since come under downward pressure, which analysts warned could undermine crude prices as well.

 

Short URL : https://goo.gl/nM8qlX
  1. https://goo.gl/jd04Ac
  • https://goo.gl/sRIlvZ
  • https://goo.gl/kyxVVV
  • https://goo.gl/SFsEiM
  • https://goo.gl/GI0kPY

You can also read ...

Iraq Oil Output Stable Amid Mass Protests
Iraq is pumping oil at normal levels even as protests spread...
Iran Oil Exports Could Shrink
Iran’s oil exports could fall by as much as two-thirds by the...
Treasury Secretary: US to Mull Iran Waivers
The United States in certain cases will consider waivers for...
EIA forecasts total US crude oil production to average 10.8 million bpd in 2018.
In the July 2018 update of its Short–Term Energy Outlook, the...
Completion of Petrochem  Projects High on Agenda
The completion of value chain, development of petrochemical...
LNG Share to Rise in Global Energy Mix
Liquefied natural gas is projected to come into sharp focus...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus