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NYMEX crude down in Asia as investors take profits on last week's gains

Published 09/27/2015, 11:40 PM
Updated 09/27/2015, 11:41 PM
© Reuters.  NYMEX crude weaker in Asia on profit taking

Investing.com - Crude oil prices dipped in Asia on Monday as investors took advantage of U.S. gains last week.

On the New York Mercantile Exchange, crude oil for delivery in November fell 0.98% to $45.25 a barrel.

Last week, West Texas Intermediate oil futures rose sharply on Friday, amid indications U.S. oil drillers are cutting back on production following a collapse in prices over the summer.

Industry research group Baker Hughes (NYSE:NYSE:BHI) said late Friday that the number of rigs drilling for oil in the U.S. decreased by four last week to 640, the fourth straight weekly decline.

A lower U.S. rig count is usually a bullish sign for oil as it signals potentially lower production in the future.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for November delivery tacked on 43 cents, or 0.89%, to close the week at $48.60 a barrel.

Crude oil prices have been under heavy selling pressure in recent months, as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.

Global oil production is outpacing demand following a boom in U.S. shale oil production and after a decision by the Organization of Petroleum Exporting Countries last year not to cut production.

Federal Reserve Chair Janet Yellen said after markets closed on Thursday that she expected the central bank to begin raising rates later in 2015, as long as inflation remained stable and the U.S. economy was strong enough to boost employment.

In the week ahead, investors will be focusing on Friday’s U.S. jobs report for September, which could help to provide additional clarity on the likelihood of a near-term interest rate hike.

Market participants will also be watching Wednesday’s euro zone inflation report amid concerns that the European Central Bank could ramp up its monetary stimulus program.

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