Oil slides as OPEC exports rise, prices end eight days of gains
Oil prices tumbled about 4 percent on Wednesday, ending their longest string of daily gains in more than five years, as climbing OPEC exports and a stronger dollar spurred selling, APA reports quoting Reuters.
Brent crude futures settled down $1.82, or 3.7 percent, at $47.79 a barrel. Prices had climbed for eight straight sessions to Monday.
U.S. West Texas Intermediate crude fell $1.94, or 4.12 percent, to settle at $45.13 a barrel.
"It's a transition from being overbought for a while," said Tyche Capital Advisors senior research analyst John Macaluso.
"I really don't think it's too much fundamentals driving the move today - seems more like a reversal of the trend. Eventually someone comes out of the market and everyone follows and you have to take profits."
Prices pared losses in post-settlement trade after data from industry group the American Petroleum Institute showed U.S. crude inventories fell 5.8 million barrels in the week to June 30 to 503.7 million barrels, exceeding forecasts for a draw of 2.3 million barrels. The API data, normally released Tuesday, was delayed by the U.S. Fourth of July holiday.
Official data from the U.S. Department of Energy is due on Wednesday at 11:00 a.m. EDT, also delayed a day.
Oil traders hope vacationing motorists heading for the beach in July will help U.S. gasoline demand heat up along with sweltering summer temperatures, helping drain crude inventories.
Oil exports by the Organization of the Petroleum Exporting Countries climbed for a second month in June, Thomson Reuters Oil Research data showed.
OPEC exported 25.92 million barrels per day (bpd) in June, up 450,000 bpd from May and 1.9 million bpd more than a year earlier.
The rise came despite OPEC's vow to rein in production until March 2018 and came on the heels of Reuters' monthly OPEC production survey which found output jumped to a 2017 high last month as Nigeria and Libya continued to pump more. Both OPEC members are exempt from the output cut deal.
Russia, which led other non-OPEC producers to join the deal, would oppose any proposal for deeper cuts at OPEC ministerial meeting later this month, Bloomberg reported, citing four Russian government officials.
Related news releases
- 27.07.2017Oil jumps to near eight-week high after big draw in U.S. crude stocks
- 25.07.2017Azerbaijan increases gas export to Turkey
- 25.07.2017BP: TANAP is significant project for us
- 25.07.2017Anglo Asian Mining earns $19.4M from sale of gold
- 25.07.2017Oil extends gains as Saudi pledges export curbs
- 24.07.2017Country manager: TAP construction won’t have negative impact on environment
- 22.07.2017Oil dives 2 percent; consultant sees OPEC crude output rise in July
- 21.07.2017President Ilham Aliyev opens Pirallahi solar power plant
- 20.07.2017Rovnag Abdullayev: 90% works copmleted in STAR refinery
- 20.07.2017SOCAR President: $8.5B invested in TANAP so far
- 20.07.2017Azerbaijan’s investments in Turkey to reach $20B
- 20.07.2017Oil jumps to six-week high on surprisingly big U.S. inventory draws
- 18.07.2017Ischinger: Sanctions against Russia pose threat on European energy security
- 18.07.2017Import of certain types of gasoline to Azerbaijan exempted from duties
- 18.07.2017Azerbaijani President: "The Southern Gas Corridor is probably the largest infrastructure project in Europe"
- 17.07.2017Azerbaijan increases gas transportation 10% this year
- 17.07.2017Azerbaijan sees 8% rise in gasoline production
- 17.07.2017Azerbaijan sees 3.2-fold increase in gold production
- 17.07.2017Azerbaijan investing billions of dollars for realization of SGC soon – president
- 17.07.2017Israel to join TANAP
- 15.07.2017S&P: SOCAR plays critical role in Azerbaijan’s economy
- 15.07.2017SOCAR to attend tender for construction of underground gas storage facility in Georgia
- 15.07.2017Price of gasoline Aİ-92 increased in Azerbaijan - OFFICIAL
- 14.07.2017EBRD to allocate $39M for Tamiz Shahar
- 14.07.2017SOCAR gets 7% decline in gas production
- 14.07.2017SOCAR reduces oil output by 2%
- 13.07.2017Azerbaijan gets 9% decline in oil production
- 13.07.2017Oil rises as U.S. crude stocks drop by more than expected
- 11.07.2017Iran to spend $140B for increase of oil and gas output
- 11.07.2017IEA Executive Director: Oil producers’ efforts result in failure - INTERVIEW
- 10.07.2017Oil rises slightly, but growing global supply a worry
- 10.07.2017WPC President: Azerbaijan is sensitive about its investments and natural gas export
- 10.07.2017President Ilham Aliyev: Turkey-Azerbaijan friendship brings stability to the region
- 10.07.2017President: Shahdeniz 2 will be completed soon
- 10.07.2017Erdogan: Southern Gas Corridor is priority for Turkey
- 10.07.2017PM: Turkey, Georgia and Azerbaijan demonstrated significance of regional cooperation
- 10.07.2017Saudi Aramco to invest $300B to oil production
- 10.07.2017SOCAR increases transfers to state budget adn SSPF
- 10.07.2017Azerbaijan quadruples revenues from energy export
- 10.07.2017Secretary of State: US intends to cooperate with Turkey on SGC
- 06.07.2017Oil to rally 20% before year’s end: UBS analyst
- 06.07.2017Kakha Kaladze: Shahdeniz 2 will allow Georgia to purchase additional gas
- 07.07.2017SOCAR makes AZN 40 bln revenue in Switzerland
- 06.07.2017Oil snaps rally; stocks, dollar steady after Fed minutes
- 05.07.2017Representatives of Saudi Arabia’s giant petrochemical corporation to visit Azerbaijan
- 05.07.2017Volume of Azerbaijani oil transported via BTC pipeline announced