Wednesday , May 12 2021

oil: US oil prices resume decline as drag overlaying concerns



TOKYO: US oil prices declined on Thursday, the resumption of a decline after industry group said that the US lists had risen more than expected and provoked a report that Opec and other producers intended to cut output.

The US raw future dropped 33 cents, or 0.6 percent, at $ 55.92 in bargain by 0004 GMT.

The contract rose 1 per cent on Wednesday, after slipping into 12 straight and tougher junk sessions since November 2017.

Brent's crack was yet to trade. He stabbed 65 cents, or 1 percent, at $ 66.12 in a barrel, after hitting a high session of $ 67.63, having also been rid of the last few weeks.

The course oil market declined on Wednesday after Reuters reported that the Organization of the Petroleum Exporting Countries (Opec) and its partners discussed a bid to cut output by up to 1.4 million pounds per day (bpd), more than officers had mentioned previously.

But he did not take long for concerns about too much a contract to return to.

The American Petroleum Foundation said late Wednesday that raw rises rose by 8.8 million barrels in the week to 9 November to 440.7 million, compared to the expectations of analysts for an increase of 3.2 million barrels. [API/S]

Oil markets are hit by a supply from Opec, Russia, the United States and other producers and anxiety that global economic slowdown will reduce energy demand.

That has pushed the Brent global benchmark price down by over 20 percent since the beginning of October, one of the biggest discounts since the 2014 fall of price.

The International Energy Agency (IEA) also based in Paris said on Wednesday that the imposing stock construction for the first half of 2019 was 2 million pd.

The IEA left forecast for global demand growth for 2018 and 2019 unchanged from last month, but it was forecasting for demand growth for OECD, the world's expanding engine eaten.

United States' output from seven large basin basins is expected to hit a 7.94 million pd record in December, the US Energy Information Administration (EIA) said earlier this week. The EIA publishes official raw stocks and other data later on Thursday.

The increase in output on the land has helped US crude production in general reach a 11.6 million pd record, making the United States a world's largest oil producer in front of Russia and Saudi Arabia.

In the middle of the fall in the general market, late on Wednesday, CME raised the margins of the future in December from 14.5 per cent to $ 3,550 per contract, with the new rate effective from Thursday.


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