Published: Tue, March 13, 2018
Money | By Armando Alvarado

Oil prices retreat as data point to continued gains in USA output

Oil prices retreat as data point to continued gains in USA output

Brent crude futures were at $64.93 per barrel at 1233 GMT, down 56 cents from their previous close.

Oil risks sliding back under $60 a barrel as a surge in USA shipments to Asia threatens to undermine a deal between OPEC and its allies, according to ING Groep NV.

Crude oil prices slipped into negative territory early Monday, following big gains last week, as broader worldwide trade concerns spill into commodities. "They continue to give market share away to the U.S".

"Secretary of Commerce Wilbur Ross will be speaking with representatives of the European Union about eliminating the large tariffs and barriers they use against the United States of America", he stated.

Crude's rebound since past year is encouraging American drillers to pump even as they make efforts to be disciplined on spending, Patterson said.

"Nothing really stood out", said Goncalves, head of US rates strategy at Nomura Securities International in New York."You can consider that a good thing, given this year will see more and more Treasuries issued".

Traders are saying the early price action was related to a drop in the number U.S. rigs drilling for more production and Friday's robust U.S. Non-Farm Payrolls report, which could lead to increased demand.

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He also said the Department for Education would release up to £80 million to help small businesses with the apprenticeship levy. However, its forecast for coming years remained unchanged, with GDP growth expected to sit at around 1.3% until 2020.

"Our view is still that we have more downside oil prices ahead of us in the short term", SEB said in a note.

The predictions and the forecasts for the oil production are looking grim at an expected 11 million barrels per day and more by the end of the year.

Oil prices settled with a loss on Monday (, giving back part of the sharp gains seen in the previous session as recent data showed a rise in weekly USA output, as well as expectations for a further increase in domestic production next month.

Showing the lowest level since 2015, U.S. crude inventories dropped 1.1 million barrels in the week of January 19, according to the Energy Information Administration (EIA). Asia is the biggest buyer of the supplies.

US stocks, though, were mixed on Monday, with the S&P 500 down 2.08 points, or 0.07 percent, at 2,784.49 and the Dow Jones Industrial Average lower by 127.52 points, or 0.5 percent, at 25,208.22. Crude shipped overseas from the USA will soar to nearly 4 million barrels a day by the mid-2020s, rivaling shipments from Iraq and Canada, it said last week.

"Nothing really stood out", said Goncalves, head of U. "We think compliance is likely to slip".

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