Mexico



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Oil rises Tuesday on expected stockpile drop, but U.S. output, possible OPEC increase drag

By Jane Chung

SEOUL
Petroleumworld 06 05 2018

Oil prices rebounded on Tuesday on expectations that inventories in the United States may decline, but increasing U.S. production and concerns that OPEC may raise output continue to weigh on sentiment.

Brent crude futures LCOc1 added 25 cents, or 0.33 percent, to $75.53 a barrel by 0717 GMT, after settling down 2 percent at $75.29 on Monday.

U.S. West Texas Intermediate (WTI) crude CLc1 was up 44 cents, or 0.68 percent, at $65.19 a barrel. It finished the previous session 1.6 percent lower at $64.75.

“It's all about supply, whether it's OPEC raising output or U.S. increasing production, all roads lead to higher global oil supplies, which is leaving oil traders shaking in their boots,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.

Reuters technical analyst Wang Tao said Brent may test a support at $75.05 a barrel, while WTI may test a support zone of $64.33-$64.41.

“The gains are seen to be a technical rebound from the last session's losses, but the market's focus is on the OPEC meeting and how much Saudi Arabia and Russia would increase output,” said Kim Kwang-rae, commodity analyst at Samsung Futures in Seoul.

The Organisation of the Petroleum Exporting Countries (OPEC) is due to meet in Vienna on June 22 to decide whether the group and non-OPEC producers, including Russia, will raise output to ease concerns over potential supply shortfalls from Iran and Venezuela.

Over the weekend, OPEC and non-OPEC Arab oil ministers agreed on the need for continued cooperation to balance global supply, Kuwait's state news agency KUNA reported.

Despite signs of an impending rise in OPEC production, “for the moment the output will remain low,” ANZ bank said in a note on Tuesday.

Global oil supply has tightened with the OPEC-led production cuts that began in early 2017.

Crude stocks in the United States, the world's biggest oil consumer, were forecast to fall about 2.5 million barrels on average in the week ended June 1, according to five analysts polled ahead of the reports. [EIA/S]

But increasing U.S. crude oil production has also put pressure on oil prices.

In March, U.S. crude output rose to 10.47 million barrels per day, the highest on record, according to a monthly report by the Energy Information Administration (EIA).

The number of rigs drilling in the United States was up by two in the week to June 1, bringing the total to 861, the most since 2015, General Electric Co's ( GE.N ) Baker Hughes energy services said on Friday.

Industry group American Petroleum Institute (API) is due to release its data for last week's U.S. crude oil inventories at 2030 GMT on Tuesday. The EIA report is scheduled at 1430 GMT on Wednesday.

___________________

Twitter: @petroleumworld1


Petroleumworld.com

Hit your target - Advertise with Us

Story by Jane Chung ; Additional reporting by Roslan Khasawneh in SINGAPORE; Editing by and Christian Schmollinger and Tom Hogue from Reuters.

reuters.com
06 05 2018 03:05 GMT

We invite all our readers to share with us
their views and comments about this article.
Write to editor@petroleumworld.com

By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

Twitter: @petroleumworld1


November 13 - 15, 2018.

Gubkin University, Moscow
SPE Student Chapter

 

 

 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:Elio Ohep/
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2017, Petroleumworld ™  / Elio Ohep - All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.