Published: Wed, June 28, 2017
Worldwide | By Gretchen Simon

Crude prices continue to decrease

Crude prices continue to decrease

Oil prices slipped on Wednesday despite a larger-than-expected decline in USA crude and gasoline inventories, as investors remained concerned about high global crude output and the nagging supply glut.

Brent crude futures were down 15 United States cents at US$44.67 a barrel at 0715 GMT, after spending much of the Asian trading day in positive territory.

American benchmark West Texas Intermediate lost 2.8 percent to reach as low as $42.95 a barrel - its lowest level since November 14.

Oil prices lost more than 2% on Wednesday, plunging deeper into bear market territory, after US government data revealed a rise in domestic crude production, which more than offset a drop in oil and gasoline stockpiles.

Oil stocks in Europe's Amsterdam-Rotterdam-Antwerp hub hit 64.2 million barrels in the week to June 16, the highest in a year, and some 24 percent above the January low, according to data from industry monitor Genscape.

USA oil production rose by 20,000 barrels a day last week to 9.35 million, the EIA reported Wednesday.

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Barreto also called on the Government to start talking about who should pay for the crucial building inspections and repairs. The national testing was ordered after flammable cladding was blamed for the rapid spread of the Grenfell Tower inferno.

Both benchmarks were down more than 15 percent since late May, when OPEC, Russia and other producers extended limits on output until the end of March 2018.

In Libya's case, official confirmation of a 900,000 bpd production level - deemed a four-year high - is awaited, while Nigerian exports are tipped to exceed 2m bpd by August; likely to be the highest on data aggregators' records in almost 17 months, according to Reuters.

While compliance with the output deal reached 106 percent in May, BMI Research said in a note that activity prior to the deal made such cuts less potent.

"His aggressive stance against Iran makes it unlikely to see greater Saudi participation in supply cuts without Iran cutting production as well", Petromatrix analysts wrote in a daily market report. On Tuesday, WTI settled at the lowest level since last August, at US$43.23 a barrel.

Oil prices recovered slightly on Thursday morning, after falling to their lowest level in around ten months a day earlier amid lingering concerns over strong shale output growth in the U.S. OPEC members are in talks about making further curbs to supply, but reaching a consensus will be hard, according to the Iranian oil minister.

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