Oil Ends Longest Bull Run
Oil Ends Longest Bull Run

Oil Ends Longest Bull Run

Oil Ends Longest Bull Run

Oil prices fell more than 2% on Wednesday, ending their longest bull run in more than five years, as climbing OPEC exports and a stronger dollar turned sentiment more bearish. Benchmark Brent crude futures were down $1.14, or 1.3%, at $48.47 a barrel. Prices had climbed for eight straight sessions to Monday. US WTI crude futures were down $1.35, or 2.8%, at $45.72 a barrel, CNBC reported.
“The air is getting thin for oil prices. The price increase just ran out of steam, which is not very surprising, given the news flow of rising OPEC supplies,” said Carsten Fritsch, senior commodity analyst at Commerzbank. Another analyst said the strong dollar provided less incentive to invest in greenback-denominated commodities such as crude oil. Oil exports by the Organization of Petroleum Exporting Countries climbed for a second month in June, Thomson Reuters Oil Research data showed. OPEC exported 25.92 million barrels per day in June, up 450,000 bpd from May and 1.9 million bpd more than a year earlier.
The rise in exports comes despite OPEC’s vow to rein in production until March 2018 and follows hot on the heels of Reuters’ monthly OPEC production survey that found output jumped to a 2017 high last month, as OPEC members Nigeria and Libya continued to pump more. Nigeria and Libya are both exempt from the output pact.
The bearish outlook also led Saxo Bank to cut its yearend Brent crude price forecast to $53 a barrel from $58.
“OPEC’s ability to maintain exports should be tempered by the need to keep more oil at home to meet increased domestic demand during the peak summer months,” said Ole Hansen, the head of commodity strategy at Saxo Bank.
Traders were also eying weekly US crude inventory data, delayed by a day due to the US public holiday on Tuesday.
A Reuters poll showed analysts expected weekly crude stocks to have fallen by 2.8 million barrels. The weekly data showed a surprise rise in inventories last week.


Short URL : https://goo.gl/V4mwAq
  1. https://goo.gl/zLfgVm
  • https://goo.gl/z4T3tx
  • https://goo.gl/Cd3qNg
  • https://goo.gl/d7jzgX
  • https://goo.gl/NNj5CC

You can also read ...

BP: Electric Vehicles to Cut Oil Consumption
The emergence of self-driving electric cars and travel sharing...
OPEC Deal Closer to Market Rebalancing
The OPEC deal is closer than ever to meeting its market...
Brent, WTI Prices Slide Over Higher US Production
Oil prices fell on Wednesday, weighed down by a rebound in the...
SP Phases 17-18  Output Increases
Major overhaul operations in phases 17 and 18 of the giant...
The lion's share of petrochemical exports is bound for China, India and South Korea.
Boosting the country's petrochemical revenues entails...
NISOC in Close Cooperation With Domestic Academic Centers
National Iranian South Oil Company can implement complicated...
Special Devices for Gas Regulating Stations
Some 150 natural gas pressure regulating stations have been...

Add new comment

Read our comment policy before posting your viewpoints