Are Crude Oil Prices Headed Lower?

Mar 05, 2017, 00:54
Are Crude Oil Prices Headed Lower?

Crude oil prices steadied on Friday after slumping to a three-week low overnight, but pressure from increasing USA production and hefty global stocks are expected to constrain prices.

US crude stockpiles have risen for seven straight weeks.

So far, the market has somewhat reluctantly acknowledged OPEC's surprisingly high compliance rate, which reached 90 percent as of the end of January, but even so, prices have failed to move much higher than US$55 for Brent, the global benchmark, and US$54 for West Texas Intermediate.

The dollar slipped on Friday from its highest in seven weeks against a basket of currencies, although still holding close to a level that anchors Brent crude near $55 a barrel and West Texas Intermediate (WTI) just under $53. The impact of the cuts was offset by gains of a combined 260,000 b/d from Nigeria and Libya, both of which are exempt from the deal, while Iranian production edged up by 30,000 b/d, which again is within the scope of the deal's terms.

Bloomberg calculates Iran's February output to be 3.83 million bpd, above its goal of 3.797 million bpd; as for Angola, the start of two oil projects in that country resulted in a ramp up of 20,000 barrels to 1.69 million bpd last month.

OPEC's compliance with its production cut agreement reached 94% in February, according to a survey from Reuters.

Is Lorde Currently Dating Anyone? "Green Light" Will Make You Wonder
Lorde has released her highly anticipated new single " Green Light " from the new album Melodrama , due this summer. The poetic (and perhaps, semi autobiographical) lyrics and hypnotic vocals fans have come to love remain.

France wants Obama for president
We want people to wake up in the morning and, rather than have to see our usual candidates, rejoice in seeing Obama's face on... Now a petition is calling for an even bigger plot twist: the return of President Barack Obama.

Labour leader lists 7 ways Nigeria can sanction South Africa over xenophobia
He added: "In Nigeria , there are leading big businesses owned by South Africans, especially those with Cyril Ramaphosa's interests".

"The OPEC decision could be the first disappointment even though at the moment members are showing a 90% compliance rate to the production cut deal", said Vivek Dhar, a commodities strategist with Commonwealth Bank of Australia.

Most OPEC countries typically overshoot their pledged amounts by about 20 percent.

The oil markets extended losses from Wednesday when government data showed crude inventories in the United States, the world's biggest oil consumer, rose for an eighth straight week to a record 520.2 million barrels last week.

Away from the oil market, precious metals continued to register massive slides as the dollar remained strong, with gold sliding below $1,235 an ounce from $1,250-levels earlier in the week.

Natural-gas prices inched down to trade about flat for the week. It closed down $1.28, or 2.3 percent, in the previous session.

YOU MIGHT ALSO LIKE
  • Drone strikes kill 4 Qaeda suspects in Yemen

    Drone strikes kill 4 Qaeda suspects in Yemen

    On Thursday, the Pentagon said it had carried out more than 20 strikes in Shabwa, Abyan and Baida provinces. Six American soldiers were wounded and a military aircraft had to be destroyed after a hard landing.
    Kroll, Mulaney take jab at Mel Gibson, Bannon at Spirit Awards

    Kroll, Mulaney take jab at Mel Gibson, Bannon at Spirit Awards

    Denzel Washington, seen as Affleck's chief rival for the best-actor prize at the Oscars , was not nominated. Hosted by Nick Kroll and John Mulaney , the awards will take place in Santa Monica, California.
    Apple Watch Series 3 To Use New Touch Panels

    Apple Watch Series 3 To Use New Touch Panels

    Apple says its watches now are designed for 18 hours of battery life , though performance varies based on how you use the watch. Such technology could be delivered by Hong-Kong based Biel Crystal Manufactory or Taiwanese-based General Interface Solution.
  • Church plans Ash Wednesday drive-thru

    A Christian think tank says an LGBT advocacy group is attempting to politicize the beginning of the 40-day Lenten season. The " Glitter Ash Wednesday" initiative was created by the NY faith-based organization "Parity".

    Wizards get Bojan Bogdanovic in trade with Nets

    The Wizards hope Bogdanovic, a restricted free agent, will help them challenge the Cavs and Raptors for the East title. He added that the 27-year-old is a starter in the National Basketball Association and is a bench "boost".

    Verizon Gets a Fix on 5G Trials

    Verizon's announcement comes shortly after AT&T described its plans for "5G evolution" testing in Austin and Indianapolis . Verizon has yet to comment on what kind of speeds the pilot cities will be experiencing.
  • Case-Shiller: Home prices set 30-month high in December

    Case-Shiller: Home prices set 30-month high in December

    Since 1975, the average pace is 1.3 percent; about two-thirds of the time, the rate is between -4 percent and +7 percent. The index's 10-city and 20-city composites each saw home prices increase 0.9%, on an adjusted basis, month over month.

    Doctors Say Pot Can Be Dangerous For Developing Brains

    Alterations in motor control, coordination, judgment, reaction time, and tracking ability have also been documented. A doctors' group is stepping up warnings to teenagers as the use of marijuana becomes more mainstream.
    Nintendo Switch Midnight Release Event: GameStop and More Retailers

    Nintendo Switch Midnight Release Event: GameStop and More Retailers

    One of the Nintendo Switch's main attractions is the promise of playing the same games on the go as you do at home. Shovel Knight: Treasure Trove is a game developed by Yacht Club Games which features the original Shovel Knight.
  • Kyle Lowry to have wrist surgery, likely gone until playoffs

    This injury could potentially be devastating for a Raptors team hoping to remain a legitimate contender in the Eastern Conference. DeRozan's now fifth in the National Basketball Association in scoring this season, averaging 27.7 points per game.
    Iraqi Forces Reportedly Enter Western Mosul

    Iraqi Forces Reportedly Enter Western Mosul

    One captain in Iraq's emergency response division told the BBC inside western Mosul: "We very close to liberating Mosul". Iraqi officials said they had information that recent attacks in Baghdad had been organised from inside Syria.

    'People's Court' Judge Joseph Wapner Has Passed Away At 97

    The People's Court was canceled in 1993, but aired in syndication until it was revived for a second time in September 1997. Markey was not about to retire to go on TV but told Edwards that Wapner would be flawless for television.
popular