Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Crude Oil Futures - Weekly Outlook: May 1 - 5

CommoditiesApr 30, 2017 05:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Oil logs a gain, but suffers weekly, monthly losses

Investing.com - Oil futures settled a bit higher on Friday, but still registered a weekly and monthly loss as signs of further gains in U.S. crude output and doubts over whether OPEC will extend output cuts at its May meeting pressured prices.

The U.S. West Texas Intermediate crude June contract tacked on 36 cents, or around 0.7%, to end at $49.33 a barrel by close of trade Friday. It fell to its lowest since March 28 at $48.20 on Thursday.

The U.S. benchmark lost 35 cents, or almost 0.6%, on the week. For April, it fell around 3%, the second straight monthly decline.

Elsewhere, on the ICE Futures Exchange in London, Brent oil for July delivery ticked up 23 cents to settle at $52.05 a barrel by close of trade. The global benchmark sank to $51.01 a day earlier, a level not seen since March 27.

For the week, London-traded Brent futures recorded a loss of 38 cents, or nearly 0.5%. The benchmark ended about 2% lower for the month.

Crude has been under pressure in recent weeks amid fears that an ongoing rebound in U.S. shale production is derailing efforts by other major producers to rebalance global oil supply and demand.

U.S. drillers last week added rigs for the 15th week in a row, data from energy services company Baker Hughes showed on Friday, implying that further gains in domestic production are ahead.

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

The relentless increase in U.S. output has overshadowed pledged output cuts by major producers.

In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8 million barrels per day between January and June, but so far the move has had little impact on inventory levels.

A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.

Saudi Energy Minister Khalid al-Falih said on Friday that it was important to try and agree on an extension of a global oil cuts deal into the second half of the year with both OPEC and non-OPEC members.

Non-OPEC member Russia said it would define its position on whether to extend its cuts by May 24, a day before OPEC meets in Vienna.

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. It closed down around 6% for the week and about 9.5% for the month on concern over lackluster demand.

June heating oil fell 0.4 cents to finish at $1.507 a gallon, not far from a more than one-month low. For the week, the fuel lost roughly 3.2%. For April, it was down around 4.5%.

Natural gas futures for June delivery rose 3.7 cents to $3.276 per million British thermal units, up 1.2% for the session and about 5.7% higher for the week. Prices traded roughly 2.5% higher for the month.

In the week ahead, market participants will eye fresh weekly information on U.S. stockpiles of crude and refined products on Tuesday and Wednesday to gauge the strength of demand in the world’s largest oil consumer.

Meanwhile, traders will also continue to pay close attention to comments from global oil producers for further evidence that they are complying with their agreement to reduce output this year.

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

Tuesday, May 2

The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.

Wednesday, May 3

The U.S. Energy Information Administration is to release weekly data on oil and gasoline stockpiles.

Thursday, May 4

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

Friday, May 5

Baker Hughes will release weekly data on the U.S. oil rig count.

Crude Oil Futures - Weekly Outlook: May 1 - 5
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Kim Boesgaard Lauritsen
Kim Boesgaard Lauritsen Apr 30, 2017 1:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thanks again for sharing your analysis with me. Hope you have had a Great weekend.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email