Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Crude Oil Prices Still Lower Amid Profit-Taking

Published 09/26/2017, 09:00 AM
Updated 09/26/2017, 09:00 AM
© Reuters.  Crude oil on the downside but still supported near multi-month highs

Investing.com - Crude oil prices remained lower on Tuesday, as traders locked in profits from the commodity's recent rally to multi-month highs amid optimism that the market is well on its way towards rebalancing.

The U.S. West Texas Intermediate crude October contract was at $51.83 a barrel, down 40 cents or about 0.73% by 09:00 a.m. ET (13:00 GMT), after hitting a fove-month peak of $52.43 earlier in the day.

Elsewhere, Brent oil for November delivery on the ICE Futures Exchange in London was down 81 cents or about 1.39% at $57.62 a barrel, off an eight-month high of 58.88 reached overnight.

Prices have been supported this week as data showed strong compliance from major producers with their supply cut agreement and as talk grows of a likely extension of the deal.

OPEC and non-OPEC compliance with the deal to curb output rose to 116% in August, a strong increase from the 94% compliance achieved a month ago.

In May, OPEC and non-OPEC members led by Russia agreed to extend production cuts of 1.8 million barrels per day for a period of nine months until March 2018 in a bid to reduce global oil inventories and support oil prices.

Russia’s energy minister suggested that January is the earliest date that an extension to the global accord can be considered, although other ministers suggested such a decision could be taken before the end of this year.

The committee’s next meeting is set for November 29 in Vienna, just a day ahead of OPEC’s regularly scheduled meeting.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Turkey's threat to cut off a major pipeline that carries oil from from Iraq's Kurdistan region to the outside world provided further support. The pipeline to Turkey's port of Ceyhan usually pumps between 500,000-600,000 barrels per day.

Investors now looked ahead to weekly data from the U.S. on stockpiles of crude and refined products to weigh what the impact of recent storm activity was on supply and demand.

Elsewhere, gasoline futures gained lost 1.20% to $1.651 a gallon, while natural gas futures climbed 0.87% to $3.014 per million British thermal units.

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.