x
Breaking News
0

Oil prices start the week lower amid relentless increase in U.S. drilling

CommoditiesJun 19, 2017 03:35AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Oil prices start the week lower

Investing.com - Oil prices were under slight pressure in European trading on Monday, holding near the lowest in around seven weeks as concerns over a steady increase in U.S. production added to fears over a glut in the market.

The U.S. West Texas Intermediate crude July contract was at $44.77 a barrel by 3:35AM ET (0735GMT), down 19 cents, or around 0.4%. Elsewhere, Brent oil for August delivery on the ICE Futures Exchange in London shed 14 cents to $47.23 a barrel.

WTI lost $1.13, or about 2.4%, last week, while Brent fell 78 cents, or roughly 1.6%.

Both have now posted losses four weeks in a row, which marks the longest weekly losing streak since August 2015 for WTI, amid concern that the ongoing rebound in U.S. shale production is derailing efforts by other major producers to rebalance the market.

Energy services company Baker Hughes said on Friday that U.S. drillers last week added rigs for the 22nd week in a row, the longest such streak on record, implying that further gains in domestic production are ahead.

The U.S. rig count rose by six to 747, extending a year-long drilling recovery to the highest level since April 2015.

The increase in U.S. drilling activity and shale production has mostly offset efforts by OPEC and other producers to cut output in a move to prop up the market.

Last month, OPEC and some non-OPEC producers extended a deal to cut 1.8 million barrels per day in supply until March 2018.

So far, the production-cut agreement has had little impact on global inventory levels due to rising supply from producers not participating in the accord, such as Libya and Nigeria, and a relentless increase in U.S. shale oil output.

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 evidence that they are complying with their agreement to reduce output this year.

Elsewhere on Nymex, gasoline futures for July was little changed at $1.454 a gallon, while July heating oil dipped half a cent to $1.420 a gallon.

Natural gas futures for July delivery slumped 8.3 cents to $2.954 per million British thermal units.

Oil prices start the week lower amid relentless increase in U.S. drilling
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. 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.

 
Are you sure you want to delete this chart?
 
Write your thoughts here
 
Replace the attached chart with a new chart ?
Post
Post also to:
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.
 
Are you sure you want to delete this chart?
 
 
Replace the attached chart with a new chart ?
Post 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