x
Breaking News
0

Oil Ticks Up but Stays Near 3-Week Lows Amid Rising US Output

CommoditiesDec 07, 2017 03:52AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Crude oil prices tick up but stay near 3-week lows

Investing.com - Crude prices inched higher in early dealings on Thursday, but held near the prior session's three-week lows amid concerns over rising production in the U.S.

U.S. West Texas Intermediate (WTI) crude futures tacked on 17 cents, or about 0.3%, to $56.13 a barrel by 3:50AM ET (0850GMT), after plunging 2.9% a day earlier, its biggest daily decline in more than two months. Prices touched an intraday low of $55.82, their worst level since Nov. 20.

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., were at $61.50 a barrel, up 28 cents, or around 0.5%, from their last close. The contract suffered a drop of 2.6% in the prior session after hitting its lowest since Nov. 17.

Oil prices sank on Wednesday after data from the U.S. Energy Information Administration showed a big jump in U.S. fuel inventories while domestic production hit another weekly record.

The latest EIA weekly data showed U.S. gasoline stocks rose by 6.8 million barrels, much higher than expectations.

U.S. crude oil production rose by 25,000 barrels per day (bpd) last week to 9.71 million bpd, bringing output close to levels of top producers Russia and Saudi Arabia.

The report also showed that U.S. crude oil inventories fell by 5.6 million barrels to 448.1 million, putting stocks below seasonal levels in 2015 and 2016.

Fears that rising U.S. output would dampen OPEC’s efforts to rid the market of excess supplies are weighed on sentiment, according to market participants.

The producer group, along with some non-OPEC members led by Russia, agreed last week to extend current oil output cuts for a further nine months until the end of 2018. The deal to cut oil output by 1.8 million barrels a day (bpd) was adopted last winter by OPEC, Russia and nine other global producers. The agreement was due to end in March 2018, having already been extended once.

In other energy trading, gasoline futures tacked on 0.3 cents, or 0.2%, to $1.670 a gallon, after hitting its lowest since mid-October in the previous session, while heating oil added 0.7 cents to $1.868 a gallon.

Natural gas futures sank 5.3 cents, or 1.8%, to $2.869 per million British thermal units, as traders looked ahead to weekly storage data due later in the global day.

Oil Ticks Up but Stays Near 3-Week Lows Amid Rising US Output
 

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