Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

Oil falls to seven-month low on more signs of growing crude glut

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/19/2017 | 10:28pm CEST
FILE PHOTO: A worker checks the valve of an oil pipe at Nahr Bin Umar oil field north of Basra

Oil prices fell about 1 percent on Monday to a seven-month low as market players saw more signs that rising crude production in the United States, Libya and Nigeria undercut OPEC-led efforts to support the market with output curbs.

"We're seeing more tankers used for storage and more crude from West Africa and Europe being offered into the U.S. Gulf Coast at the same time the Gulf Coast has been an exporter of light sweet crude," said Andrew Lipow, president of Lipow Oil Associates in Houston.

"These are all signs of an oversupplied market."

Brent <LCOc1> futures for August fell 46 cents, or 1 percent, to settle at $46.91 a barrel, their lowest since Nov. 29, the day before the Organization of the Petroleum Exporting Countries agreed to cut output for the first six months of 2017.

U.S. West Texas Intermediate crude <CLc1> futures for July dropped 54 cents, or 1.2 percent, to settle at $44.20 per barrel, the lowest close since Nov. 14. The July contract will expire on Tuesday, and August will become the front month.

Both benchmarks are down more than 15 percent since late May, when producers led by OPEC extended by nine months their pledge to cut output by 1.8 million barrels per day (bpd).

There were still almost 70,000 WTI contracts for July outstanding at the end of trade on Friday, which would require delivery of about 70 million barrels of oil to Cushing, Oklahoma after Tuesday's expiration.

"Some of the pressure on Monday is because it is hard to get rid of that many (WTI) contracts in just two days," said Phil Davis, managing partner at PSW Investments in Woodland Park, New Jersey, noting "very few traders actually want to take physical delivery."

Traders noted the Brent front-month contract was at the highest premium since late May over the same WTI contract <WTCLc1-LCOc1>.

OPEC supplies jumped in May as output recovered in Libya and Nigeria, two countries exempt from the production cut agreement.

Libya's oil production has risen more than 50,000 bpd after the state oil company settled a dispute with Germany's Wintershall, a Libyan source told Reuters.

Analysts said rising U.S. crude production has fed the global glut. Data on Friday showed a record 22nd consecutive week of increases in U.S. oil rigs.

Investment bank Goldman Sachs said if the U.S. rig count holds, fourth-quarter domestic oil production would rise substantially.

There are also signs of stalling demand growth in Asia, the world's biggest oil-consuming region.

Japan's customs-cleared crude imports fell 13.5 percent in May from a year earlier. India took in 4.2 percent less crude in May than the year before.

(Additional reporting by Libby George in London and Henning Gloystein in Singapore; Editing by Louise Heavens and David Gregorio)

By Scott DiSavino

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
12:36p DGAP-NEWS : Drillisch AG: Statement of Drillisch AG on the publication of the acceptance rate of the voluntary public tender offer
12:36p LAMB WESTON : Initiating Research Reports on Food Equities -- Blue Buffalo Pet Products, Kraft Heinz, Pilgrim's Pride, and Lamb Weston
12:36p Banks Fail to Deliver Guidance, Services Consumers Want – GfK research
12:35p China to relax further curbs on foreign investment
12:35p BLACKBERRY : Reports Profitability in Fiscal 2018 First Quarter
12:35p WEST SUFFOLK FOREST HEATH AND ST EDMUNDSBURY COU : Museum finalist “a winner” in the green stakes
12:35p AMEC FOSTER WHEELER : Form 8.5 (EPT/NON-RI) - AMEC FOSTER WHEELER PLC
12:35p SVG CAPITAL : Result of General Meeting and Resignation of Directors and Company Secretary
12:35p BLACKBERRY : Announces Election Results for the Company's Board of Directors
12:35p BLACKBERRY : Enables the Enterprise of Things to Thrive with Enhanced Mobile-Security Platform
Latest news
Advertisement
Hot News 
-10.65%Stagecoach shares hit seven-year low after East Coast rail charge
2.82%LEGRAND : French industrial group Legrand to buy U.S. company Milestone
3.68%BUNZL : sees higher first-half revenue, more acquisitions
-7.58%PETRA DIAMONDS' : stock tumbles on lower output outlook
6.41%INSURANCE AUSTRALIA : Anticipates Higher Reserve Release
Most Read News
05:03a Oil slips further below $47 as U.S. inventory report revives glut worries
06/27 KAZUO OKADA : Family help oust Japan casino mogul Okada in boardroom coup
06:35a China to relax further curbs on foreign investment
03:03a LLOYDS BANKING : fraud victims bemoan 'pyrrhic victory' as compensation scheme drags
01:02aDJWARREN BUFFETT : How Buffett's Bank of America Bet Changes With the Fed Stress Test
Most recommended articles
06/23ECONOMY : The Federal Reserve: Dismal Failure or Shrewd Complicity?
06:35a China to relax further curbs on foreign investment
06:28aDJGold Gains After Central Bank Speeches
06:27a AP MOLLER MAERSK : MSC says working on sharing data after Maersk cyber attack
06:25aDJWPP : Working to Return to Normal After Cyberattack