Brent Price Reaches $47 Per Barrel
Brent Price Reaches $47 Per Barrel

Brent Price Reaches $47 Per Barrel

Brent Price Reaches $47 Per Barrel

Oil prices fell more than 2% on Friday after data showed US production rose last week just as OPEC exports hit a 2017 high, casting doubt on efforts by producers to curb oversupply.
Global benchmark Brent futures were down $1.07, or 2.2 %, at $47.04 a barrel, after falling to as low as $46.75, its weakest level in more than a week. US West Texas Intermediate crude futures traded at $44.40 a barrel, down $1.12 or 2.5 %. Their session low of $44.20 was also the lowest in over a week, CNBC reported.
“We are seeing some head scratching today. Following a sharp rally, which was mostly driven by short-covering, the failure of Brent to break back above $50 earlier in the week has once again given sellers appetite for sending it lower,” said Ole Hansen, the head of commodity strategy at Saxo Bank. Weekly US government data showed on Thursday that US oil production rose 1% to 9.34 million barrels per day, correcting a drop in the previous week that was down to one-off maintenance and hurricane shutdowns.
The rise in US output coincides with exports from the Organization of Petroleum Exporting Countries climbing for a second consecutive month in June to the highest this year. Russian President Vladimir Putin, whose country is cooperating with OPEC in a deal to stem oil production, said on Friday he wanted to continue cooperation with other countries to reduce price volatility.
The market largely ignored news from the US Energy Information Administration that US crude inventories fell by 6.3 million barrels in the week to June 30 to 502.9 million barrels, the lowest since January.
If OPEC was unable to balance the market, change would likely be forced on it by oil prices, said Morgan Stanley.
The US bank said a WTI price of $46-50 per barrel would likely prevent US production rising in the mid- to long-term, but “prices will need to be in the low $40s” for US output to fall significantly. Morgan Stanley said it expected WTI to remain below $50 until mid-2018.


Short URL : https://goo.gl/eS84EA
  1. https://goo.gl/MsC4fn
  • https://goo.gl/Kogt9Z
  • https://goo.gl/UWGrma
  • https://goo.gl/hqovKb
  • https://goo.gl/2mcZhf

You can also read ...

Iran Petrochemical Revenues at  $5.5 Billion in Six Months
Iran exported $5.57 billion worth of petrochemical and polymer...
NIORDC Priorities Outlined
Rehabilitating dilapidated refineries, completing the Persian...
New projects at home come as Iranian firms aim to play a more active role in regional power projects.
In the face of tight state funding and financial pressure,...
Renewed worries over US sanctions against Iran also drew attention in the market.
Oil markets jumped on Monday as Iraqi forces entered the oil...
Gazprom Neft Slams Oil Cuts   Agreement
Russian energy firm Gazprom Neft is chafing at a global deal...
Asian Buyers Turn to US in Hunt for Cheap Oil
Asia is set to ramp up crude oil imports from the United...
OPEC Sees Healthy Crude Demand Growth to 2022
Oil demand will grow at a healthy pace over the next five...

Add new comment

Read our comment policy before posting your viewpoints

Enter the characters shown in the image.