Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Crude futures snap 3-day losing streak to settle higher

Published 06/22/2017, 03:54 PM
Updated 06/22/2017, 03:57 PM
© Reuters.

© Reuters.

Investing.com – Crude futures settled higher on Thursday, paring some of the losses sustained in recent sessions but sentiment remained bearish as investors continue to fret about rising global stockpiles.

On the New York Mercantile Exchange crude futures for August delivery rose 0.5% to settle at $42.74 a barrel, while on London's Intercontinental Exchange, Brent added 1.03% to trade at $45.27 a barrel.

Crude futures snapped a three-day losing streak, despite a growing number of analysts scaling back their forecast for crude prices over the near-term amid fears that the glut in crude stockpiles would persist.

Oil is in a downtrend and risks trending into the $30's,” Paul Ciana, a technical strategist at Bank of America Merrill Lynch (NYSE:BAC), said in a note on Tuesday.

The move higher in crude futures comes a day after the Energy Information Administration said that crude stockpiles fell by roughly 2.45m barrels in the week ended June 16, above expectations of draw of about 2.1m barrels.

Despite the draw in U.S. crude stockpiles, rising shale output remains a principal concern among investors – The U.S. Department of Energy recently estimated that supply will grow by 122,000 barrels a day.

Since the turn of the year oil prices have slumped more than 20%, reflecting negative investor sentiment on oil, as doubts continued to mount as to whether Opec and its allies can tackle the glut in supply.

In May, Opec and non-Opec members agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.8 million bpd agreed in November last year.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.