Oil currents to find foothold after 7 percent slide that looks darker

SINGAPORE (Reuters) – Oil worn to find its foot on Wednesday after throwing 7 percent in the previous session, with increasing supply and the range of staggering demand scared investors.

PHILPHOTO: Oil extracts from a spout from Edwin Drake's original 1859 well launching the modern petroleum industry at Drake Well Museum and Park in Titusville, Pennsylvania, USA, October 5, 201[ads1]7. REUTERS / Brendan McDermid / File Photo [19659003] USA Crude oil futures in the West Texas Intermediate (WTI) were at $ 55.52 per barrel 0732 GMT, down 17 cents, or 0.3 percent, from their last settlement.

International benchmark Brent crude futures LCOc1 was down at 9 cents at $ 65.38 a barrel.

Crude oil has lost more than a quarter of its value since the beginning of October, which has become one of the biggest downsides since the price cut in 2014.

"Crude oil futures contributed to overwhelming bearish pressure in the midst of … weaker market fundamentals" , said Benjamin Lu, analyst at Mediation Phillip Futures in Singapore.

The decline in spot prices has hit the entire forward curve of crude oil upside down.

Spot prices in September were significantly higher than those for later delivery, a structure known as a reversal that involves a tight market, as it is not attractive to put oil in storage.

By mid-November the basket had turned into contango when the raw prices for immediate delivery are cheaper than those for later shipment. This entails an exaggerated market, as it makes it attractive to save oil for subsequent sales.

Oil markets are squeezed from two sides: an increase in supply and increasing concerns about economic slowdown, seen the economic contraction in Japan and Germany power plants in the third quarter, as well as China's falling car sales.

US .. Crude oil production from its seven major slate bases is expected to hit record 7.94 million barrels per day (bpd) in December, the US Department of Energy Energy Information Administration (EIA) said Tuesday.

This increase in land-based production has helped total US crude production C-OUT-T-EIA hits record 11.6 million bpd, making the United States the world's largest oil producer in front of Russia and Saudi Arabia.

Most analysts expect US production to climb over 12 million bpd in the first half of 2019.

"In our opinion, this would have something higher than $ 85 a barrel (for oil prices)," says Jon Andersson, head of commodities at Vontobel Asset Management.

US production increases storage.

Official stock data expires on Wednesday from Energy Information Administration, with analysts expecting a 3 million bar increase in commercial commodity inventories.

Producers' OPEC has monitored the jump in offer and price decline with concern.

OPEC has been making frequent public statements that it would start crude oil in 2019 to tighten its offer and raise prices.

" OPEC and Russia are under pressure to reduce today's level of production, which is a decision we expect to be taken at the next OPEC meeting 6th of December ember, "said Andersson.

It sets OPEC on a collision course with US President Donald Trump, who publicly supports low oil prices and has asked OPEC not to cut production.

Reporting by Henning Gloystein; Editing Joseph Radford and Richard Pullin

Our Standards: Thomson Reuters Trust Principles.

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