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Economics Discuss Crude oil markets at the Political Forums; Oil prices decline slightly... Oil touches three-month lows, as U.S. supply swells Mon Mar 13, 2017 | Oil hovered around ...

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Old 03-13-2017, 09:14 AM
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Cool Crude oil markets

Oil prices decline slightly...

Oil touches three-month lows, as U.S. supply swells
Mon Mar 13, 2017 | Oil hovered around three-month lows on Monday, as rising U.S. inventories and drilling activity offset optimism over OPEC's efforts to restrict crude output.
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Brent crude LCOc1 was down 7 cents on the day, at $51.30 a barrel by 1202 GMT, having hit a session trough of $50.85, its lowest level since Nov. 30. U.S. West Texas Intermediate crude (WTI) CLc1 fell 15 cents to $48.34 a barrel. The price has fallen by more than 8 percent since last Monday, its biggest week-on-week drop in four months, and analysts said the slide may not have much further to run. "The market is bearish because sentiment has turned. The risk is still towards the downside, but we are nowhere near the precipice," PVM Oil Associates Tamas Varga said.

Goldman Sachs said in a note it remained "very confident" about commodity prices and maintained its price forecast of $57.50 a barrel for WTI in the second quarter. U.S. drillers added oil rigs for an eighth consecutive week, Baker Hughes said on Friday, lifting spending to benefit from an earlier recovery in crude prices since the Organization of the Petroleum Exporting Countries (OPEC) agreed to cut output. [RIG/U] OPEC and other major oil producers including Russia reached an agreement late last year to rein in production by almost 1.8 million barrels per day (bpd) in the first half of 2017.


Fuel pump nozzles are pictured at a Helios petrol station in Almaty, Kazakhstan

Although OPEC states have been complying with supply curbs, led by Saudi Arabia, it has not been enough to overshadow a rise in U.S. inventories to a new high. [EIA/S] "It will be interesting to see how OPEC rhetoric will evolve with this price correction. Is price the only consideration when it comes to the decision of extending cuts?" BNP Paribas global head of commodity strategy Harry Tchilinguirian told the Reuters Global Oil Forum. He added that OPEC's task was more difficult as it aimed to cut inventory levels rather than simply target a specific price.

Money managers cut their net long positions in U.S. crude futures and options in the week to March 7. For the broader financial markets, the focus will be on the Federal Reserve's policy meeting later this week at which it could likely raise U.S. interest rates. "The week ahead is packed with potentially market defining releases," Michael McCarthy, chief market strategist at Sydney's CMC Markets, said. "However, the key to market performance this week is the response to the U.S. lift in rates."

Oil touches three-month lows, as U.S. supply swells | Reuters
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Old 07-03-2017, 03:12 AM
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Looks like gas prices goin' up...

Oil prices rise on first drop in U.S. drilling in months
Mon Jul 3, 2017 | Oil markets edged up on Monday, lifted by the first fall in U.S. drilling activity in months, although price gains were capped by reports of rising OPEC output last month even as the group has pledged to cut supply.
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Brent crude futures had climbed 13 cents, or 0.3 percent, to $48.90 per barrel by 0643 GMT, after jumping 5.2 percent last week in their first weekly gain in six weeks. U.S. West Texas Intermediate (WTI) crude futures rose 17 cents, or 0.4 percent, to $46.21 per barrel, adding to last week's 7-percent gain. U.S. prices were lifted as drilling activity in the United States for new oil production fell for the first time since January, dropping by two rigs. Futures brokerage AxiTrader said on Monday that this was "the first crack in the resolve of U.S. shale oil to continue to ramp up production regardless of the big fall in price" earlier this year.


A wellhead is seen at an Occidental Petroleum Corp carbon dioxide enhanced oil recovery project in Hobbs, New Mexico

Despite the dip in U.S. drilling activity, the total rig count was still more than double the 341 rigs in the same week a year ago, according to energy services firm Baker Hughes Inc. However, traders said that WTI prices were also being supported by expectations of strong gasoline consumption on the July 4 holiday in the United States. Globally, oil markets remain oversupplied as output from within the Organization of the Petroleum Exporting Countries (OPEC) hit a 2017 high.

June OPEC production was up by 280,000 barrels per day (bpd) to 32.72 million bpd, according to a Reuters survey, despite the group's pledge to hold back output in an effort to tighten the market. "To put that in context, that is nearly a quarter of the 1.2 million barrels (per day) OPEC agreed to cut," said Greg McKenna, chief market strategist at AxiTrader, adding this increase was driven by higher output from Nigeria and Libya, which were exempted from the cuts.

Oil prices rise on first drop in U.S. drilling in months | Reuters
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