Crude slips below $53 as United States drilling surge stokes output fears

Increasing U.S. output is proving a constant source of irritation to attempts by the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers to curb output and sustain a rally in prices in a market that has been oversupplied since mid-2014. Prices lost 53 cents to US$52.65 yesterday, the lowest close since April 7. Overall, however, the IEA said gains in crude oil prices are making US shale oil recover as operators respond to the improved market conditions.

Brent for June settlement dropped as much as 58 cents, or 1 percent, to $55.31 a barrel on the London-based ICE Futures Europe exchange.

More barrels could be on their way to market from US shale fields as financial companies are investing billions in production, a Reuters analysis showed.

Before the holidays, energy services provider Baker Hughes reported that the number of US rigs drilling for oil rose by 11 to 683 in the latest week.

Oil prices rose from around $51.20 to about $52.60 upon news that the United States military launched 59 missiles against an airbase in Syria, after the country's government allegedly used chemical weapons Tuesday in a rebel-held area.

Benchmark Brent crude futures were down 18 cents at $55.71 at 11:37 a.m. EDT while U.S. West Texas Intermediate (WTI) crude futures were down 23 cents at $52.95 a barrel.




USA drillers last week added rigs for a 13th straight week.

"So that gives the market pause at how effective they're going to be at taking oil out of the market". Vandana Hari, an industry analyst for Vanda Insights, said that some of the older data on global stocks of oil isn't as helpful as weekly metrics. Some traders may also be disappointed by reported comments from Saudi Arabia's Energy Minister Khalid al-Falih, who said it's too early to talk about an extension to the production-cut agreement led by OPEC, he said.

It is now half time for the six-month oil production cuts agreed by Opec and eleven non-Opec countries and so far, the game has gone fairly well for producers, says the International Energy Agency (IEA) in a new report. While U.S. crude supplies fell from a record, OPEC said Wednesday in a report that rivals in the American shale patch are growing stronger.

The U.S. oil rig count climbed to 683 last week, the highest since April 2015 and a 13th week of gains, Baker Hughes data showed on Friday. "The amount of crude not being processed at the Riyadh refinery is reflected in the oil stockpiles in February as they increased from January".

Julian Lee, oil strategist for Bloomberg First Word, notes that "the grand re-balancing of supply and demand has yet to take place" and that "the OPEC output cut was also meant to usher in a period when demand would start running ahead of supply, and when inventories would be reduced".

(Copyright © 2015. All Rights Reserved.)
 
Recommended

Nokia 6 Starts Receiving Android 7.1.1 These Days
Nokia 9 is speculated to feature an iris scanner, so we can expect the fingerprint scanner to be placed under the display. Both smartphones were rumoured to get launched at HMD Global's Mobile World Congress (MWC) press conference in February.

San Bernardino school shooter fired 10 shots, reloaded once
The superintendent said the Martinez family wanted to honor Jonathan's memory by getting the word out about Williams syndrome . He went to her classroom and "without saying anything" shot her with a large-calibre revolver, Mr Burguan said.

VP Pence says United States commitment to Korea "iron-clad"
Trump has stated that he wants to see China take a larger role in pressuring the North Korean regime. Kim stressed that U.S. (Pence) "We hope to achieve this objective through peaceable means".

Pence aims to reassure allies amid North Korea threat
In Seoul, Pence will try to steer clear of South Korea's tumultuous domestic politics ahead of elections next month. After visiting the DMZ, Pence is expected to hold talks with South Korea's Acting President Hwang Kyo-Ahn in Seoul.

Ethiopia's champions in Boston to defend marathon titles
One day after the Easter Bunny was hopping all over MA , thousands of runners hit the road to race in the Boston Marathon. Keflezighi, who finished 13th in the 2017 race with a time of 02:17:00, is stepping away from competitive running.

Panthers sign DT Kawann Short to 5-year extension
Jourdan Rodrigue of the Charlotte Observer confirmed some details on the numbers, confirming that it is a 5 year $80 million deal. The Carolina Panthers haver re-signed defensive tackle Kawann Short to a five-year deal, after using the franchise tag on him.

Fowler sits 3rd at Masters: 'Right where I'm supposed to be'
He picked up two more on the par 5s and finished with birdie putts of 20 feet and 12 feet on the last two holes for a 5-under 67. There are quite a few certainties at the Masters - Amen Corner, green jackets, fast greens, pimento cheese sandwiches.

New state law authorizes school nurses/others to administer drugs in opioid overdoses
He says the state must also ensure West Virginia patients get treatment from providers "who are current with clinical knowledge". It also would apply $90 million from the state's rainy-day fund to help close a projected budget deficit.

Didier Drogba joins United States side Phoenix Rising as player and executive
I have taken my time in deciding what I wanted to do next and am really excited about the opportunity at Phoenix Rising FC . The USL has continued to elevate its role in the North American soccer landscape, securing Division II status from the U.S.

US sends dozens of troops to Somalia, 1st time in decades
In 1993, 18 United States special forces personnel were killed in the incident dramatised in the Hollywood film Black Hawk Down . Following those deaths, the American public was shocked and support for the operation evaporated.

Kylie Jenner debuts neon hair
A people source revealed that Kylie and Scott were seen together at a private table where they were joined by friends. Blac Chyna then started to throw shade on Kylie in 2015 through her Instagram account.

Harrison, Villa score; NYCFC beats winless Union 2-0
The Frenchman said: "When I realised that the ball was in the back of the net, it was fantastic". Jack Harrison had opened the scoring for City, whose win was sealed thanks to Villa's goal.

Sprint HTC One M9 Nougat Update Rolling Out
Besides the updated Android OS build, the update includes the February 2017 security update and system performance enhancements. The carrier has already updated the official pages for the two phones, confirming that the update is indeed rolling out.

Palestinian prisoners go on hunger strike over treatment
In recent years, previous Palestinian hunger strikers in Israeli custody have come close to death and had to be hospitalized. Barghouti was arrested in 2002 during the violent Palestinian uprising and convicted on multiple counts of murder.

Cops fired after videos surface of them punching and kicking motorist
Gwinnett County Police Chief Butch Ayers reacted to the video at a news conference Thursday afternoon saying it was disturbing . In his report, the 19-year veteran said the vehicle did not have a license plate and continued moving as he tried to stop it.


More News

News
More News