Oil market averts major breakdown, bounces aggressively off one-month low

Jun 12, 2017, 14:42

NEW YORK, June 7 (Reuters) - Oil prices slid more than 3.5 percent on Wednesday after the USA government reported an unexpected increase in inventories of crude and gasoline, fanning fears that output cuts by major world oil producers have not drained a global glut very much.

American benchmark West Texas Intermediate (WTI) lost 5 percent to reach as low as $45.78 per barrel - its lowest level since May 8.

According to the Energy Information Administration (EIA), US crude production averaged around 9m bpd in the first quarter, up almost 200,000 bpd from the previous quarter, and it is expected to reach a record 10m bpd next year.

"The OPEC agreement stands and is highly unlikely to change because of tension with Qatar. crude production in the Middle East and it will not change because of Qatar", said Oystein Berentsen, managing director for oil trading company Strong Petroleum.

Official inventory data from the EIA will be published later on Wednesday.

Oil prices rallied sharply during the USA session on Tuesday with WTI moving back above the $48.0 p/b level with anticipation that there would be a further decline in oil inventories.

Patriots, Julian Edelman Agree on Multi-Year Contract Extension
A seventh-round pick by New England in 2009, Edelman has played his entire National Football League career with the Patriots. Wide receiver Julian Edelman will remain with the New England Patriots after both sides agreed to a contract extension.

Eoin Morgan praises 'outstanding' England bowlers after New Zealand win
Guptill said his role as an opener was to provide some stability and set up a platform to launch the New Zealand innings . Williamson pleaded guilty and was fined 40 per cent of his match fee, while the rest of his team got 20 per cent fines.

Trump administration approves tougher visa vetting, including social media checks
After a contentious public comment period, the Office of Management and Budget (OMB) approved the expansive questionnaire on May 23.

Iran is the only OPEC member with room for growth under a current deal to stem production in an effort to balance the market.

An oil production platform in the Soroush oil fields alongside an Iranian flag in the Gulf July 25, 2005.

Oil prices fell about 1 per cent on Monday on concerns that the cutting of ties with Qatar by top crude exporter Saudi Arabia and other Arab states could hamper a global deal to reduce oil production. The declines in the global crude oil market also trickled down to the energy sector of the US stock market as the S&P 500 energy sector lost 1.8% in the trading session.

Crude futures came under additional pressure on Thursday from signs of rising output in Libya and Nigeria, two OPEC members exempt from production cuts.

Crude inventories rose by 3.3 million barrels (bbl) in the week ended June 2, compared with expectations for a decrease of 3.5 million bbl, the first such increase in 10 weeks. Export demand fell by 370,00 barrels a day and total overall demand fell by 1.8 million barrels a day.

July WTI crude oil is now trading inside its May range, but below a key technical retracement area that had been providing support for several days.

YOU MIGHT ALSO LIKE
  • Thursday weather: Wet and windy, with highs in the 60s

    Thursday weather: Wet and windy, with highs in the 60s

    Thursday night is forecast to be mostly cloudy with temperatures down in the mid 50s, according to the NWS. FRIDAY: There will be a 20 percent chance of rain and maybe even a thunderstorm after 9 a.m.

    Ariana Grande critic Piers Morgan apologizes to singer

    The concert, which sold out with an attendance of around 50,000, raised over $3 million for the Manchester Emergency Fund. I just want to take a moment to honor the people who were lost, who were taken. "To the families, we love you so much".
    Ohio State parts ways with men's basketball coach Thad Matta

    Ohio State parts ways with men's basketball coach Thad Matta

    Athletic director Gene Smith said a conversation between him and Matta led to the determination that a change was needed. I just felt as if I was to de-commit, actually take my time, figure everything out it would just be a lot better".
  • Israel's in love with its homegrown Wonder Woman Gal Gadot

    With Jenkins now a proven commodity, she could potentially demand a much higher payday to come back for another film. Wonder Woman is now screening in cinemas.

    Elon Musk will quit Trump's councils if US leaves Paris Agreement

    Quitting the Paris accord may not resonate with members of Trump's Republican Party as much as his administration expects. Trump claimed before taking office that climate change was a "hoax" created by the Chinese to hurt the US economy.

    The most misspelled word in each state

    Using video from her performance, NEWS CENTER wants to give you a chance to match your own spelling skills against Naomi. When asked to spell "hospitality", Propper requested the word's definition from pronouncer Jacques Bailly.
  • French 'keeper's stoppage time blunder hands Sweden a vital win

    French 'keeper's stoppage time blunder hands Sweden a vital win

    Sweden is doing well in the 2018 World Cup qualifying stage, now in second in Group A of the competition with 10 points. Unfortunately, the ball was intercepted at midfield by Sweden's Ola Toivonen who took aim at the empty net.

    Mumford & Sons singer holds moment of silence

    Other acts at the sold-out show include Coldplay , Katy Perry , Miley Cyrus and Usher . "And I want to thank you for that". The Manchester concert comes the day after attackers targeted the heart of London, killing seven people.
    Trump to announce decision on Paris climate pact Thursday

    Trump to announce decision on Paris climate pact Thursday

    So withdrawal from the agreement would appear to be consistent with Trump's avid support of domestic fossil fuel production. On Wednesday, global figures began reiterating their own commitment to the Paris deal as Trump prepared to withdraw .
  • Awkward! Donald Trump gaffe prompts Israeli Ambassador to face-palm during meeting

    Awkward! Donald Trump gaffe prompts Israeli Ambassador to face-palm during meeting

    Trump also mentioned his talk with Abbas, telling the audience, "They [Palestinians] are ready to reach for peace". "And (Trump) really does want to work together with Israel in countering the threat from Jihadist Islam".

    Putin Says A Child Could Fake Hacking Evidence

    Putin also said that India was facing a serious problem on account of terrorism and it was not an "imaginary thing". Macron said discussion with Russian Federation region is vital in tackling a number of worldwide disputes.

    US adds modest 138000 jobs, dropping unemployment to 4.3 percent

    Employers have added more than 2 million jobs in the past year, and a month or two of slow growth isn't unusual. WASHINGTON-The unemployment rate fell to the lowest level in 16 years even as the pace of hiring slowed in May.
popular