Oil falls, lowest settlement since November output cut deal
Oil prices fell again on Thursday, with a sell-off continuing the day after data showed a surprise surge in U.S. crude inventories, and Brent settled at its lowest since Nov. 29, the eve of an OPEC production cut deal, APA reports quoting Reuters.
Brent crude LCOc1 fell 20 cents to settle at $47.87 a barrel, while U.S. crude futures CLc1 settled down 8 cents to $45.64 a barrel.
"The market is catching its breath after the inventory report which, as far as the oil market was concerned, stunk," said Andrew Lipow, president of Lipow Oil Associates in Houston.
"The market continues to be impatient with the OPEC and non OPEC cuts and is looking for more data world wide that inventories are indeed falling."
Oil prices have slipped below $50 a barrel despite a pledge by the world's largest exporters, led by the Organization of Petroleum Exporting Countries, to extend a cut in production of 1.8 million barrels per day (bpd) into next year.
OPEC agreed to output cuts in November, and shortly after that Russia and other non-OPEC producers also agreed to cut production in an effort to reduce a global glut that has forced prices into a steep and long-lasting slump.
Last month the countries agreed to extend the cuts, yet global supplies of crude remain strong, especially in the United States where booming shale production has the country on track to rival Saudi Arabia and Russia in crude output.
On Wednesday, prices fell 5 percent after data showed U.S. inventories of crude oil and gasoline surprisingly rose last week. [EIA/S]
U.S. crude production fell to 9.318 million barrels per day, the first drop in four weeks, according to data on Wednesday from the Energy Information Administration.
But Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, said that for the oil market, the high U.S. inventory figures "overshadowed any moderation in production."
Adding to concerns about the swelling global supplies, Royal Dutch Shell (RDSa.L) on Wednesday lifted a force majeure on exports of Nigeria's Forcados crude, bringing all the country's crude grades fully online for the first time in 16 months.
Nigeria, along with Libya, is exempt from the production cut made by the OPEC and its 11 partners.
"Unless data are released that make the latest inventory build appear an anomaly, oil prices are hardly likely to make any lasting recovery," Commerzbank said in a note.
Related news releases
- 20.03.2018Bolivia takes Chile to world court over maritime access
- 20.03.2018Trump sends Nowruz greetings and attacks Iranian government
- 20.03.2018Trump still wants summit of Gulf states
- 20.03.2018Russia blocks U.N. Security Council meeting on human rights in Syria
- 20.03.2018Uber halts self-driving cars after pedestrian fatality
- 19.03.2018U.S. blocks use of Venezuela's digital currency - White House
- 19.03.2018Engine failure forces Ivanka, Jared's helicopter to return to airport
- 18.03.20181 person dead in shooting at Southern California mall, authorities say
- 18.03.2018Florida officials knew about bridge crack
- 17.03.2018Trump, South Korea's Moon discuss engagement with North
- 16.03.2018US: At least 6 dead in Florida bridge collapse
- 16.03.2018At least four dead in pedestrian bridge collapse at university in Miami - UPDATED
- 16.03.2018Nike brand president resigns; company probes workplace complaints
- 16.03.2018Colombia resumes peace talks with ELN rebels
- 16.03.2018Facebook Lite to launch in developed countries, including US
- 16.03.2018Broadcom tops revenue, profit on demand from smartphone makers
- 16.03.2018Several reported dead after pedestrian bridge collapses in Miami
- 15.03.2018Mueller subpoenas Trump organization, demands Russia-related docs
- 15.03.2018Explosion hits chemical plant in Texas, building ablaze - UPDATED
- 15.03.2018Former Trump campaign manager Manafort files to dismiss charges
- 15.03.2018U.S. Ambassador Haley tells U.N. Russia responsible for chemical attack
- 15.03.2018Trump taps commentator Kudlow for top economic adviser
- 15.03.2018US students rally nationwide against gun violence
- 15.03.2018Russian UN Envoy: 'Unacceptable' for UK to accuse Moscow of nerve agent attack
- 15.03.2018At least six die in Bolivia prison uprising
- 14.03.2018Three arrested, charged in US mosque bombing
- 13.03.2018White House fires top Tillerson aide after comments on Boss' firing
- 13.03.2018US defense secretary backs Afghan overtures to Taliban
- 13.03.2018Trump: Tillerson and I "disagreed on things" like the Iran deal
- 13.03.2018Trump sacks Rex Tillerson as state secretary
- 13.03.2018White House expects North Korea summit to happen despite Pyongyang's silence
- 13.03.2018US: House Republicans find no Trump-Russia collusion
- 13.03.2018U.S. may lift travel ban on 'important partner' Chad, Tillerson says
- 13.03.2018U.N. blames Honduras security forces for killing electoral protesters
- 12.03.2018U.S. warns if Security Council doesn't act on Syria, it will
- 12.03.2018Tillerson says several steps needed for U.S. talks with North Korea
- 11.03.2018Trump says North Korea talks could fail or bring 'greatest deal'
- 10.03.2018US Secretary of State Tillerson Ill, Cancels Africa Tour Events
- 10.03.2018Trump to rally for endangered Republican in Pennsylvania
- 10.03.20183 hostages and gunman dead at California veterans' home
- 10.01.2017U.S. adds 2 senior Hezbollah officials to terrorist list
- 10.01.2017Venezuela Congress says Maduro 'abandoned post'; Congress called 'disobedient'
- 10.01.2017Kerry warns of 'authoritarian populism,' takes jab at Trump tweets
- 09.01.2017US officer shot dead in Florida
- 09.01.2017US Navy ship fires warning shots at Iranian boats: official
- 08.01.2017Florida airport gunman charged, could face death penalty