oil edges up in quiet holiday trade focus on crude glut
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Oil edges up in quiet holiday trade, focus on crude glut

Arab Today, arab today

Arab Today, arab today Oil edges up in quiet holiday trade, focus on crude glut

London - Arab Today

Oil prices rose slightly on Monday, paring steep losses from last week but the market remained cautious as increases in US drilling activity undercut a push led by the Organization of the Petroleum Exporting Countries (OPEC) to tighten supply.
Trading was subdued due to public holidays in China, the US and Britain but the market remains unsettled because of uncertainty over whether or not the impact of OPEC’s latest action to curb oversupply would be enough to support prices.
Brent crude futures were up 37 cents at $52.52 per barrel at 1554 GMT. Brent fell nearly 3 percent the previous week.
US West Texas Intermediate (WTI) crude futures were 42 cents higher at $50.22 per barrel.
OPEC and some non-OPEC producers pledged last week to extend production cuts of around 1.8 million barrels per day (bpd) until March 2018.
An initial agreement, in place since January, would have expired in June this year.
Commerzbank analyst Carsten Fritsch called Monday’s price moves little more than “intraday noise” but said hints of deeper cuts or a longer extension from OPEC left the market deflated after the final decision.
“They increased expectations to such an extent that nine months was a disappointment,” Fritsch said.
High compliance with the cuts so far was unlikely to last, he said, adding to worries about whether the pledge would dent physical oil stockpiles that remain near record levels.
“The pain for OPEC will increase to such a point that 100 percent compliance is unrealistic,” Fritsch said.
Despite ongoing cuts, oil prices have not risen much beyond $50 per barrel.
OPEC’s success in drawing down inventories may hinge on output in the US, which is not participating in the cuts. US production has soared 10 percent since mid-2016 to more than 9.3 million bpd, close to levels of major producers Russia and Saudi Arabia.
US drillers have added rigs for 19 straight weeks, bringing the total to 722, the highest number since April 2015 and the longest run of additions on record, according to energy services firm Baker Hughes Inc.
Almost all of the recent US output increases have been onshore, from so-called shale oil fields.
Even if the rig count did not rise further, Goldman Sachs said it estimated US output would increase by 785,000 bpd between the fourth quarter of 2016 and the fourth quarter of 2017 across the Permian, Eagle Ford, Bakken and Niobrara shale plays.
Analysts say that reducing bloated global stocks will be key to reining in oversupply.
“It is going to be all about inventories and whether they fall as much as OPEC thinks,” said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

oil edges up in quiet holiday trade focus on crude glut oil edges up in quiet holiday trade focus on crude glut

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

oil edges up in quiet holiday trade focus on crude glut oil edges up in quiet holiday trade focus on crude glut

 



GMT 03:28 2018 Tuesday ,09 January

Dior Paris fashion exhibition breaks

GMT 21:23 2017 Friday ,28 July

US State Secretary arrives in Kuwait

GMT 23:54 2017 Wednesday ,27 September

DEWA to give away great prizes during GITEX 2017

GMT 19:22 2017 Thursday ,05 October

PM confers with AFDB delegation on ways

GMT 14:52 2017 Thursday ,19 October

Goalkeeping gaffe hands Man Utd win

GMT 14:42 2018 Wednesday ,26 September

Ukrainian leader stumbles into Russian delegation’s room

GMT 07:46 2018 Wednesday ,26 September

HRH Premier to address UN high-level health meetings

GMT 13:50 2017 Wednesday ,27 December

WAM to launch ‘Kids' Bulletin

GMT 12:36 2017 Sunday ,05 February

Nadia Murad calls Trump for not closing his country

GMT 14:26 2017 Friday ,13 October

UAE’s first hydrogen station opened

GMT 16:16 2017 Thursday ,23 February

Argentine, Spanish leaders discuss how to boost ties

GMT 14:09 2017 Thursday ,02 November

Tillerson touts US-India partnership on South Asian tour
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday