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
- 17.10.2017US to 'not take sides' in Iraqi-Kurdish dispute: Trump
- 17.10.2017US forces kill dozens of Daesh fighters in Yemen
- 15.10.2017Powerful Hurricane Ophelia heads toward Ireland
- 15.10.2017Approach to Iran exposes growing irritation between U.S. and allies
- 14.10.2017Magnitude 5.4 quake rumbles southern Mexico, no reports of damage
- 14.10.2017Mattis says U.S. working to ensure situation around Kirkuk does not escalate
- 13.10.2017Donald Trump makes a statement on new Iranian strategy
- 13.10.2017US adds Iranian Revolutionary Guard corps to sanctions list
- 13.10.2017Trump strikes blow against Iran nuclear deal in major U.S. policy shift
- 13.10.2017Tillerson: Trump to stay in Iran nuclear deal, but decertify Tehran's compliance
- 13.10.2017US hopes to dialogue with Turkey over visa spat
- 13.10.2017Trump to announce US strategy on Iran on Friday: White House
- 13.10.2017Niger ambush that killed eight the work of new ISIL offshoot: Pentagon
- 13.10.2017US ready to return flags to Russia - State Department official
- 13.10.2017Officers killed, schools on lockdown after North Carolina prison break
- 12.10.2017Russian MoD delegation traveling to UN Headquarters denied US entry visas
- 12.10.2017UN secretary general ‘deeply regrets’ US pulling out of UNESCO
- 12.10.2017Trump signs executive order changing affordable Care Act Healthcare Insurance rules
- 12.10.2017U.S. withdraws from UNESCO
- 12.10.2017At least 23 dead, hundreds missing as winds fan California wildfires
- 12.10.2017US officials ‘respectfully' took down Russian flags - State Department
- 12.10.2017Mattis says U.S. will work to stay aligned with Turkey despite diplomatic tensions
- 12.10.2017US energy agency revises up oil price forecast
- 12.10.2017US: Fed officials split on interest rate increase
- 12.10.2017Trump says could envision trade deal with Canada without Mexico
- 12.10.2017US ‘committed’ to restarting Mideast talks: Jordan king
- 12.10.2017Trump denies seeking nearly tenfold increase in U.S. nuclear arsenal
- 11.10.2017At least 13 killed in prison riot in northern Mexico
- 11.10.2017US: Turkey visa decision a 'coordinated effort'
- 11.10.2017Sears Canada to seek liquidation, then closure
- 11.10.2017Trump to announce broad Iran strategy this week: White House
- 10.10.2017Trump says he's likely to sign healthcare order this week
- 10.10.2017Texas Tech Police Officer Shot and Killed; Suspect in Custody
- 10.10.2017Oil prices climb after OPEC signals possible deal extension
- 07.10.2017Fed must hike rates in face of hot U.S. labor market: Rosengren
- 07.10.2017US: 3 men charged for Daesh-inspired plot attack in NY
- 07.10.2017Oil down 2 percent, breaks five-week rally as oversupply fears resurface
- 07.10.2017Trump to unveil new responses to Iranian 'bad behavior': White House
- 07.10.2017Pentagon says fourth U.S. soldier killed in Niger ambush
- 07.10.201722 dead in Central America from Tropical Storm Nate
- 09.06.2017Russia intercepts US aircraft over Baltic Sea - Pentagon
- 10.06.2017Trump '100 percent' ready to testify under oath about private talks with Comey
- 10.06.2017US' Tillerson urges Saudi allies to ease Qatar blockade
- 09.06.2017Trump attorney disputes Comey testimony, slams leak
- 09.06.2017House passes bill to replace Dodd-Frank Wall Street reform law
- 08.06.2017Al-Shabaab Militants Attack Somalian Military Base Killing Dozens