LONDON, 1 hours, 21 minutes ago
Oil prices dipped to around $49 a barrel on Monday as Iraq raised its crude exports target ahead of an Opec meeting while Canadian production was set to restart after huge wildfires.
Oil prices dipped to around $49 a barrel on Monday as Iraq raised its crude exports target ahead of an Opec meeting while Canadian production was set to restart after huge wildfires.
Attention turned to a meeting by the Organization of the Petroleum Exporting Countries (Opec) in Vienna this week, although most analysts did not expect any changes in the group's production.
While the group has been unable to agree on an output freeze in an effort to support prices, Iraq was the latest Middle East producer to raise its exports quota ahead of the meeting, supplying 5 million barrels of extra crude to its partners in June.
Brent crude futures were at $48.97 a barrel at 0959 GMT, down 35 cents in a third straight day of declines.
U.S. West Texas Intermediate (WTI) crude futures were trading at $49.13 per barrel, down 20 cents.
The strengthening of the dollar on higher expectations for a near-term U.S. interest rate hike further weighed on greenback-priced commodities.
While the group has been unable to agree on an output freeze in an effort to support prices, Iraq was the latest Middle East producer to raise its exports quota ahead of the meeting, supplying 5 million barrels of extra crude to its partners in June.
Brent crude futures were at $48.97 a barrel at 0959 GMT, down 35 cents in a third straight day of declines.
U.S. West Texas Intermediate (WTI) crude futures were trading at $49.13 per barrel, down 20 cents.
The strengthening of the dollar on higher expectations for a near-term U.S. interest rate hike further weighed on greenback-priced commodities.
Trade was however limited due to public holidays in Britain and the United States, where Monday's Memorial Day is seen as the traditional start of U.S. peak demand summer driving season.
Vienna-based consultancy JBC Energy said global oil demand between January and April 2016 rose by 1.5 million barrels per day from a year earlier, stronger than many forecasts, driven by strong consumption in the United States, China and India.
U.S. crude output also declined to its lowest since September 2014 after oil drillers cut rigs for a ninth week in the last 10 despite a recent rally in oil prices.
An expected rise in Canadian oil sands production also weighed on WTI, traders said. Oil producer Suncor Energy is planning to ramp up output at its fields in Alberta this week after it was forced to shut them down earlier in May due to massive wildfires.
Outages due to wildfires in Canada and unrest in Libya and Nigeria have helped push oil prices to a seven-month high in recent weeks. – Reuters
http://www.tradearabia.com/news/OGN_307793.html?
Oil trades near $50 as US drilling slows before Opec meeting
Oil traded near $50 a barrel as US drilling slowed before Opec delegates meet in Vienna to discuss production policy
Hong Kong: Oil traded near $50 a barrel as US drilling slowed before Opec delegates meet in Vienna to discuss production policy.
Futures added 0.2% in New York, paring a 0.5% loss over the previous two sessions. Rigs targeting crude in the US slid by 2 to 316 after no change the previous week, Baker Hughes Inc. said Friday. The Organization of Petroleum Exporting Countries (Opec) will discuss issues including an output freeze when the group gathers 2 June, said Iraq’s deputy oil minister Fayyad Al-Nima, who will head his ministry’s delegation to the meeting.
Oil has surged almost 90% since slumping to a 12-year low in February on signs the worldwide surplus is easing amid declining production from the US to Nigeria. Opec is unlikely to reach any agreement to limit output when it meets Thursday as the group sticks with Saudi Arabia’s strategy of squeezing out rivals, according to analysts surveyed by Bloomberg.
“The Saudi strategy is clear and it seems there is less incentive for Opec to do anything given the policy they have in place is starting to work,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. “Significant price gains from here would be a real indication of confidence.”
West Texas Intermediate for July delivery was at $49.41 a barrel on the New York Mercantile Exchange, up 8 cents at 9:40am Hong Kong time. The contract fell 15 cents to close at $49.33 on Friday. Total volume traded was about 59% below the 100-day average.
Opec meeting
Brent for July settlement added 4 cents, or 0.1%, to $49.36 a barrel on the London-based ICE Futures Europe exchange. The contract lost 27 cents to $49.32 on Friday. The global benchmark was at a discount of 4 cents to WTI.
Suncor Energy Inc. restarted oil-sands operations in the Regional Municipality of Wood Buffalo, an area in Canada that includes wildfire-ravaged Fort McMurray. The blaze forced evacuations and halted production of more than 1 million barrels a day. Bloomberg
http://www.livemint.com/Money/Uh4hH3q4jaCCJrEEA2UxWN/Oil-trades-near-50-as-US-drilling-slows-before-Opec-meeting.html?
Vienna-based consultancy JBC Energy said global oil demand between January and April 2016 rose by 1.5 million barrels per day from a year earlier, stronger than many forecasts, driven by strong consumption in the United States, China and India.
U.S. crude output also declined to its lowest since September 2014 after oil drillers cut rigs for a ninth week in the last 10 despite a recent rally in oil prices.
An expected rise in Canadian oil sands production also weighed on WTI, traders said. Oil producer Suncor Energy is planning to ramp up output at its fields in Alberta this week after it was forced to shut them down earlier in May due to massive wildfires.
Outages due to wildfires in Canada and unrest in Libya and Nigeria have helped push oil prices to a seven-month high in recent weeks. – Reuters
http://www.tradearabia.com/news/OGN_307793.html?
Oil trades near $50 as US drilling slows before Opec meeting
Oil traded near $50 a barrel as US drilling slowed before Opec delegates meet in Vienna to discuss production policy
Hong Kong: Oil traded near $50 a barrel as US drilling slowed before Opec delegates meet in Vienna to discuss production policy.
Futures added 0.2% in New York, paring a 0.5% loss over the previous two sessions. Rigs targeting crude in the US slid by 2 to 316 after no change the previous week, Baker Hughes Inc. said Friday. The Organization of Petroleum Exporting Countries (Opec) will discuss issues including an output freeze when the group gathers 2 June, said Iraq’s deputy oil minister Fayyad Al-Nima, who will head his ministry’s delegation to the meeting.
Oil has surged almost 90% since slumping to a 12-year low in February on signs the worldwide surplus is easing amid declining production from the US to Nigeria. Opec is unlikely to reach any agreement to limit output when it meets Thursday as the group sticks with Saudi Arabia’s strategy of squeezing out rivals, according to analysts surveyed by Bloomberg.
“The Saudi strategy is clear and it seems there is less incentive for Opec to do anything given the policy they have in place is starting to work,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. “Significant price gains from here would be a real indication of confidence.”
West Texas Intermediate for July delivery was at $49.41 a barrel on the New York Mercantile Exchange, up 8 cents at 9:40am Hong Kong time. The contract fell 15 cents to close at $49.33 on Friday. Total volume traded was about 59% below the 100-day average.
Opec meeting
Brent for July settlement added 4 cents, or 0.1%, to $49.36 a barrel on the London-based ICE Futures Europe exchange. The contract lost 27 cents to $49.32 on Friday. The global benchmark was at a discount of 4 cents to WTI.
Suncor Energy Inc. restarted oil-sands operations in the Regional Municipality of Wood Buffalo, an area in Canada that includes wildfire-ravaged Fort McMurray. The blaze forced evacuations and halted production of more than 1 million barrels a day. Bloomberg
http://www.livemint.com/Money/Uh4hH3q4jaCCJrEEA2UxWN/Oil-trades-near-50-as-US-drilling-slows-before-Opec-meeting.html?