Oil prices ease on signs of steady output from some producers
Oil prices were about 1 percent lower on Monday as investors continued to await strong indications that an OPEC-led effort to drain a glut was proving effective but output increases in some top producers eased, keeping losses in check, APA reports quoting Reuters.
Libya's national oil production stood at 1.03 million barrels per day (bpd), little changed from its level since the end of last month, an oil industry official said.
U.S. drillers added two oil rigs in the week to July 14, bringing the total to 765, Baker Hughes (BHGE.N) said on Friday. RIG-OL-USA-BHI Rig additions over the past four weeks averaged five, the slowest pace of growth since November.
Still, U.S. shale oil production was forecast to rise for the eighth consecutive month, climbing 112,000 barrels per day (bpd) to 5.585 million bpd in August.
Key technical indicators are bullish, however, with prices rising above the short-term 50-day moving averages, traders said.
Brent crude LCOc1 fell 49 cents, or 1 percent, to settle at $48.42 a barrel. U.S. crude CLc1 ended the session 52 cents, or 1.1 percent lower at $46.02. Prices had earlier touched their highest since July 5.
"The idea of higher production levels, particularly in the U.S., Libya and Nigeria ... I think that seems to have been priced in for the moment," said Gene McGillian, manager of market research at Tradition Energy.
"I am skeptical. I think the market has bounced but it's having trouble finding traction to move higher probably because some the drop off in inventories are likely due to gasoline demand picking up."
A sharp drop in U.S. crude inventories in the week to July 7 supported prices last week. [EIA/S] But crude stocks in industrialized nations remained high, putting a brake on the oil price rally. [IEA/M]
"The market is not doing too much today - it feels like wait and see," said Olivier Jakob of oil analyst Petromatrix. "There is some rebalancing in products, but overall the layers of stocks are still very large."
U.S. gasoline margins RBc1-CLc1 rose to the highest since April 24 amid signs of improved demand and inventory declines, traders said.
Oil prices are less than half their mid-2014 level because of a persistent glut, even after the Organization of the Petroleum Exporting Countries with Russia and other non-OPEC producers cut supplies since January.
While OPEC-led cuts have offered prices some support, rising supplies from Nigeria along with Libya, two OPEC states exempt from the pact, and increasing U.S. production have weighed on the market.
Kuwait said on Friday the market was on a recovery track due to rising demand and said it was premature to cap Nigerian and Libyan output. An OPEC and non-OPEC committee meets in Russia on July 24 to discuss the impact of the deal.
In a sign of strong demand, data on Monday showed refineries in China increased crude throughput in June to the second highest on record. OPEC is hoping higher demand in the second half will drain excess inventories.
Related news releases
- 24.09.2017US Army helicopter patrolling over New York collides with unknown drone
- 24.09.2017Trump accuses Iran of cooperation with North Korea after missile test launch
- 24.09.2017Death toll reaches 305 in central Mexico quake
- 24.09.2017North Korea: Nobody Except Trump Himself Is on a 'Suicide Mission'
- 23.09.2017Earthquake-hit Mexico struck by 6.1 aftershock
- 23.09.2017Canada to impose sanctions on Venezuela's Maduro and top officials
- 23.09.2017Azerbaijani FM speaks at OIC Annual Coordination Meeting
- 22.09.2017Mexico earthquake: Death toll rises as search for survivors goes on
- 22.09.2017Erdogan, Trump hold talks in New York
- 22.09.2017Storm Maria brings fear, pain and shock to Puerto Ricans
- 21.09.2017US imposes new sanctions on North Korea
- 21.09.2017Trump to make 'important sanctions-related announcement' about North Korea, says White House
- 21.09.2017Erdogan, Trump to meet in NYC on Thursday
- 21.09.2017Mexico rescuers work into night to save trapped girl as quake toll tops 230
- 21.09.2017Palestinian Abbas says Middle East peace closer with Trump engaged
- 21.09.2017Hurricane Maria brings destruction, heavy floods to Puerto Rico
- 21.09.2017US: 1 shot at Illinois high school
- 20.09.2017Afghan president says Trump war plan has better chance than Obama's
- 20.09.2017Oil up 2 percent despite U.S. crude build
- 20.09.2017Death toll from Mexico earthquake hits 226- UPDATED-2
- 20.09.2017Russia calls on US to engage in dialogue with North Korea — Lavrov
- 20.09.2017Lavrov, Abbas discuss efforts to restore Palestinian unity
- 19.09.2017Mexico city International airport suspends operations after strong earthquake
- 19.09.20177.1 magnitude earthquake hits Mexico city
- 19.09.2017Trump says if threatened, U.S. will 'totally destroy' North Korea
- 19.09.2017Azerbaijani President attends opening of General Debate of 72nd Session of UN General Assembly in New York
- 19.09.2017Hurricane Maria betters Dominica, heads to Puerto Rico
- 19.09.2017Trump calls out ‘radical Islamic terrorism’ by name at UN
- 19.09.2017US to pay 'high cost' if it leaves Iran deal: Rouhani
- 19.09.2017Powerful Hurricane Maria targets Caribbean, Puerto Rico
- 19.09.2017US Senate overwhelmingly approves defense spending bill
- 19.09.2017Xi and Trump discuss sanctions pressure on North Korea: White House
- 18.09.2017France defends Iran nuclear deal, Trump to decide soon
- 18.09.2017President Ilham Aliyev attended Political Declaration for UN Reform High Level Event in New York
- 18.09.2017128 Nations Sign US Declaration on Reform of United Nations
- 18.09.2017UN stunted by 'bureaucracy and mismanagement': Trump
- 17.09.2017US denies U-turn on climate deal
- 17.09.2017UN Security Council to hold ministerial meeting on non-proliferation next week
- 17.09.2017Jets strike U.S.-backed forces in eastern Syria
- 17.09.2017St Louis police killing: 30 arrests after acquittal protests
- 18.07.2017US to maintain dialogue with Israel on halting Iranian ambitions in Syria
- 18.07.2017US Navy tests laser weapons system in Persian Gulf
- 18.07.2017Tillerson Recertifies Iran's compliance to nuclear agreement
- 16.07.2017US Navy commissions new Arleigh Burke-class destroyer at Pearl Harbor base
- 16.07.2017Turks in Germany mark anniversary of defeated coup
- 16.07.2017Cat killer jailed for 16 years in San Jose, California