• News
  • Finance

Oil prices inch down as oversupply concerns fester

Oil prices inch down as oversupply concerns fester

US crude for June was down 27 cents at $49.06 a barrel. The respondents expect smaller price cuts for Arab Medium and Arab Heavy crude as Saudi Arabia could continue to tighten exports of these grades to comply with a deal by OPEC and some non-OPEC producers to cut output.

OPEC and participating non-OPEC countries meet on May 25 to discuss whether to extend the reduction.

The U.S. rig count rose by 9 to 697, extending an 11-month drilling recovery to the highest level since August 2015.

Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce the output by 558,000 barrels per day starting from January 1 for six months, extendable for another six months.

Reports of an extension of the OPEC-led plan to cut output should provide support.

"During these last days we received a positive signal from OPEC members and non-OPEC contributors in this agreement for cutting the production for extending this agreement for the second half of 2017", Minister Bijan Zanganeh told reporters.

The oil market is expected to rebalance in 2017 and oil price is likely to be at $55/b.

Elsewhere on Nymex, gasoline futures for June lost 0.6 cents, or about 0.4% to end at its lowest since February 28 at $1.548 on Friday.




Reflecting weak demand, the spread for first and third month cash Dubai prices widened in contango in April from a month ago, traders said. For April, it was down around 4.5%.

Producers in Texas are leading the longest shale revival since 2011, making OPEC-led efforts to rebalance the market increasingly hard. Prices traded roughly 2.5% higher for the month.

USA production has risen steadily since the latter part of 2016 as oil prices consolidated between $55-60, the estimated range of United States shale breakeven costs.

Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.

Rystad's forecast is well above the US Energy Information Administration's forecast of an increase of 29,000 bpd this year and 57,000 bpd next year.

The U.S. government is to produce a weekly report on natural gas supplies in storage.

Investing.com offers an extensive set of professional tools for the financial markets.

Leave Your Comment

Leave Your Comment


Latest News

  • Sindhu's downfall ends India's challenge at Badminton Asia Championships

    Sindhu's downfall ends India's challenge at Badminton Asia Championships

    The match began after the fourth seeded Indian took the first game 21-15 and looked in a phenomenal touch. A win in this game would have actually assured a Bronze Medal for Sindhu which has now become a dream.
    Kylo Ren & Rey's New Costumes Revealed in Star Wars: The Last Jedi

    Kylo Ren & Rey's New Costumes Revealed in Star Wars: The Last Jedi

    Well done droid builders! "BB-8 seemed like the right fit because he's such a fun character, and this book is amusing , too". This is because despite his efforts to turn his students to the light side, one was still seduced by the dark.

    Nintendo sees Switch console doubling full-year profit

    Nintendo also called out 1-2 Switch, though all it said was that the game is "generating buzz"; no sales numbers were provided. Nintendo made the disclosure in its new earnings report [PDF] for the fiscal year 2016, released on Thursday, April 27.
  • Area residents will participate in DC People's Climate Movement

    Area residents will participate in DC People's Climate Movement

    Trump's "America First" energy policy had pledged to boost the USA oil and gas drilling and coal mining industries. In some ways, we in the environmental community have been most effective when faced with the longest odds.

    Trump's First 100 Days

    The comedian acknowledged that not all president's could have been judged by what they did in their first 100 days. LINDSEY GRAHAM: And I'm for a wall where it makes sense, but a 2,200-mile wall doesn't make a whole lot of sense.
    All The Goals From A Thriller Between Bayern And Dortmund

    All The Goals From A Thriller Between Bayern And Dortmund

    Bayern looked to be cruising to another win on Wednesday night, leading 2-1 at halftime with an overwhelming edge in possession. However, Pierre-Emerick Aubameyang leveled matters for Dortmund after 70 minutes after finishing off a well-worked move.
  • Nintendo Randomly Reveals New 2DS XL, Coming This Summer

    Nintendo Randomly Reveals New 2DS XL, Coming This Summer

    On July 28, 2017, new Nintendo 2DS XL game system makes its debut in the United States at a suggested retail price of $149.99. So, you would ask yourself whether the all-new Nintendo 2DS XL is worth getting than the other members of the 3DS family?

    Former Cowboys star Drew Pearson trolls Eagles fans

    He raised his fist in the arm, waved to fans and did a slight bow while flashing a huge smile as he walked off stage. Pearson was as fired up as someone getting ready to run out of the tunnel onto the field for a game.
    NFL Draft Grades for All 32 First-Round Picks

    NFL Draft Grades for All 32 First-Round Picks

    Gareon Conley , the former Ohio State cornerback who was accused of rape this week, was picked 24th overall by the Raiders. By virtue of moving down to No. 25 in the Houston swap, the Browns landed MI linebacker/safety Jabrill Peppers.
  • Acer's Leap Ware Smartwatch Launched

    Acer's Leap Ware Smartwatch Launched

    Acer's Leap Ware smart fitness watch features a polished stainless steel circular frame with a simple and minimalistic design. With the Liquid Life smartphone app, users can can keep a track of who is calling and even set daily fitness goals.

    All eyes on Philly for NFL Draft

    One of the best parts of the growing cable trend is how easily it now is to watch sporting events, like the NFL Draft . Then Kansas City made an even more surprising jump from 27 to 10 via a trade with the Bills to take Mahomes .
    Apple mulling a Venmo-like service

    Apple mulling a Venmo-like service

    At that time, Apple was said to be working with several US -based banks about the service, but nothing came of the talks. Person-to-person payment services, however, have become incredibly popular, especially amongst millennials.
  • Tekken 7 Producer talks about a possible Nintendo Switch version

    Tekken 7 Producer talks about a possible Nintendo Switch version

    Bandai Namco's latest Tekken launched in Japan over two years ago and is schedule for its North America release in June. Because of them, Roger Jr., aka the boxing kangaroo, has been removed from the Western version of Tekken 7 .
    Andy Murray beats Albert Ramos-Vinolas in Barcelona to reach semi-finals

    Andy Murray beats Albert Ramos-Vinolas in Barcelona to reach semi-finals

    It was the Spaniard who edged ahead again, though, with a break at 4-4 only to play his worst game of the match serving for it. Sugita is the first lucky loser to reach an ATP quarterfinal since Lucas Pouille reached the final four a year ago in Rome.

    Hacker threatens to release stolen copies of Netflix series

    In the ransom note , The Dark Overlord claimed to have stolen series from other studios, too, by breaking into a single company. The hacker claimed to have properties from studios besides Netflix , including ABC , National Geographic , Fox , and IFC .
  • Ontario budget promises billions in health care and drives up debt

    Ontario budget promises billions in health care and drives up debt

    Thurston said, overall, the Liberal's spending plan is a "great news budget for the health care sector and the hospital sector". Developing a new website to provide better information about careers and the labour market to students, parents and employers.

    Guardiola Rules Silva Out Of Manchester Derby; Aguero, Jesus Ready To Play

    Good rival, good quality and a long run in the Premier League without defeat". "And to make sure we finish in the top four". Mourinho believes the situation has helped galvanise the spirit among the players he does have at his disposal.
    Will Smith reuniting with DJ Jazzy Jeff for a summertime tour

    Will Smith reuniting with DJ Jazzy Jeff for a summertime tour

    Two dates have been confirmed, including a slot in Blackpool at Livewire Festival on August 27th. Will Smith and DJ Jazzy Jeff are officially reuniting, and it's all going down very soon.

Breaking News



Recommended

India welcomes Cyprus support for NSG bid

Earlier, External Affairs Minister Sushma Swaraj called on the Cypriot President and discussed areas of bilateral cooperation. Throughout your country's struggle against colonialism, India was happy to offer her wholehearted and substantive support.

Cardinals Draft Haason Reddick First

But he's also valuable in coverage as his speed and mobility enable him to cover even the NFL's most athletic tight ends. That is why it is no shock that the Arizona Cardinals selected Haason Reddick with the 13th pick in the 2017 NFL Draft.

Bayern sign Coman from Juventus on permanent deal

Bayern Munich have announced Spain worldwide Thiago Alcantara has put pen to paper on a new deal at the club. Thiago also took to Twitter to express his happiness at "continuing my journey with the Bayern family".

Steelers select USC wide receiver in second round

The Pittsburgh Steelers chose three new teammates Friday night, including University of Pittsburgh James Conner. Smith-Schuster returned some kickoffs in college but said he has not returned punts since high school.

UCLA's Lonzo Ball passed over by Nike Under Armour and adidas

But being the next big thing in Los Angeles without an endorsement deal would be a tall task for the soon-to-be rookie. LaVar was representing Lonzo during the process and he insisted that the company license his Big Baller Brand .

Trump names anti-abortion leader to high post at HHS

That helped her become the face of what Bazelon described as "a deft reframing of the abortion debate". In a statement , Marjorie Dannenfelser, president of the Susan B.

Yes, we made mistakes: Kejriwal after Delhi loss

He said with the poll results it has also become "obvious" that people did not vote for the AAP. It is ironical, considering Kejriwal and AAP blamed party "fixed" EVM for this defeat.

Redskins Day one draft grade

Humphrey became the first Alabama player taken off the board when the Baltimore Ravens selected him with the 16th overall pick . Arguably the best player on the Crimson Tide in 2016, Jonathan Allen led all interior linemen with 67 pressures.

Beyond coincidence: Top B.C. political donors gave $56M, got $15B

She said the goal is to ensure fewer kids end up in care, but support needs to be there for those who do. Horgan said his party tried six times to get legislation passed to ban union and corporate donations.

NFL Draft: Weak year for offensive linemen

The greatest wide receiver in Redskins history, Monk also goes down as one of the greatest in football history. Kratch also mentions that the Giants only had "limited interaction" with Robinson during the draft process.