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
- 21.09.2017Shah Deniz-2 is making good progress towards full completion on schedule and below the planned budget - BP
- 21.09.2017Vice President: Favorable oil price for SOCAR is $60-65, but we take into account realities in our strategy
- 21.09.2017SOCAR sells 1.4 million tonnes of gasoline, 1.2 million tonnes of diesel in Azerbaijan
- 20.09.2017$42.7B to be invested in ACG
- 20.09.2017AZN 16B transferred to SOCAR’s accounts in authorized banks
- 20.09.2017SOCAR imports 1.1 bcm of gas this year
- 20.09.2017SOCAR announces base price of crude oil and gas
- 20.09.2017Volume of oil and condensate extracted from Shahdeniz so far announced
- 20.09.2017BTC transported nearly 340 million tonnes of Azerbaijani oil so far
- 20.09.2017Azerbaijan oil output to reach 2 billion tonnes
- 19.09.2017President Ilham Aliyev awards some oil workers
- 18.09.2017Azerbaijan gets decline in solar power production
- 18.09.2017Azerbaijan triples gold production
- 18.09.2017Gas processing plant processes 1.7 bcm of gas this year
- 15.09.2017Azerbaijan sees 18.5% decline in diesel production
- 15.09.2017SOCAR reduces oil output by 9%
- 14.09.2017SOCAR, Statoil discuss development of "Karabakh" oilfield and "Ashrafi" and "Dan Ulduzu" structures
- 14.09.2017President Ilham Aliyev receives Statoil Executive Vice President - UPDATED
- 14.09.2017President Ilham Aliyev meets with UK Minister of State
- 14.09.2017Ambassador: US is pleased to continue cooperation with Azerbaijan within extension of agreement on ACG development
- 14.09.2017UK PM: I’m sure the new contract will further develop our coop with Azerbaijan
- 14.09.2017Turkish presidents sends message to participants of signing ceremony of new ACG contract
- 14.09.2017Georgian PM: Signing of new ACG contract ‘a historic event’
- 14.09.2017BP: Over $40B to be invested in ACG development
- 14.09.2017Turkey says will continue to be important partner of Azerbaijan
- 14.09.2017New ACG participating interests announced
- 14.09.2017President: We established very profitable cooperation with BP during 23 years
- 14.09.2017Ilham Aliyev: Azerbaijan lives at its own expense
- 14.09.2017Azerbaijani goverment and co-venturers sign amended and restated Azeri-Chirag-Deepwater Guneshli PSA
- 14.09.2017President: Azerbaijan’s currency reserves will increase more
- 14.09.2017President: New contract on ACG development is signed with more favorable and better conditions for Azerbaijan
- 14.09.2017Ceremony being held for signing a new contract on development of ACG field by 2050
- 13.09.2017IGB to sign agreement with Azerbaijan in early 2018 - OFFICIAL
- 13.09.2017Non-OPEC countries fulfill agreement by 118% thanks to Azerbaijan
- 13.09.2017Oil up on OPEC output decline; U.S. refinery restarts
- 12.09.2017Azerbaijan gets 41% decline in export of oil products
- 12.09.2017Azerbaijan gets 22% rise in revenues from natural gas export
- 12.09.2017Azerbaijan gets 22% decline in revenues from crude oil export
- 12.09.2017Azerbaijan quadruples revenues from energy export
- 12.09.2017Oil prices dip as traders assess U.S. hurricane impact
- 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