66303
Brent Breaks Losing Streak
Brent Breaks Losing Streak

Brent Breaks Losing Streak

Brent Breaks Losing Streak

Oil rose on Monday to break a three-day losing streak, after futures traders increased their bets on a renewed price upswing even though physical markets remain bloated, especially from a relentless rise in US drilling. Brent crude futures rose 23 cents to $48.38 per barrel, while US West Texas Intermediate crude futures gained 17 cents to $46.00 per barrel, Reuters reported.
Traders said the price rises came as data showed speculative traders had increased their investment in crude futures by taking on large volumes of long positions. Brent and WTI futures have lost around 10% in value since May 25, when the Organization of Petroleum Exporting Countries and 11 of its partners extended a restriction on supply into the first quarter of 2018.
"Oil bulls have reset for a technical bounce," said Stephen Schork, founder of energy news and analysis website the Schork Report. While financial traders have confidence in rising prices, the physical market remains under pressure, especially due to a rise in US drilling for new oil production. US drillers added eight oil rigs in the week to June 9, bringing the total count to 741, the most since April 2015, energy services firm Baker Hughes Inc said on Friday. This drive to find new oil has pushed up US output by more than 10% since mid-2016, to 9.3 million barrels per day. The US Energy Information Administration says that figure will likely rise above 10 million bpd by next year, challenging top exporter Saudi Arabia.
Soaring US output undermines OPEC-led efforts to cut almost 1.8 million bpd of production until the first quarter of 2018 in order to prop up prices. Oil prices hit one-month lows last week, as evidence of rising output beyond the United States, in the likes of Libya and Nigeria, added to investor bearishness over supply.

 

Short URL : https://goo.gl/0XoRTD
  1. https://goo.gl/nmCuSU
  • https://goo.gl/XThBEY
  • https://goo.gl/e570vh
  • https://goo.gl/SEZF5t
  • https://goo.gl/RZPgMx

You can also read ...

Eni Returns to Profit
New oil and gas project startups and higher oil prices helped...
Europe Keen on Iran Joining SGC
Europe wants countries rich in natural resources to join the...
Oil Gains in Weekly Recovery
Oil prices edged up on Friday as a rebound in the global...
Zarubezhneft, IDRO Oil to Study Susangerd Oilfield
Russian oil and gas firm Zarubezhneft Company has signed a...
Tehran Power Grid Wastage Declines to 3.2%
In line with efforts to minimize blackouts in the capital,...
An investment of $211 million is needed to supply 50 mcm of water per annum to the central provinces.
Water transfer from the Caspian Sea in the north and the...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus