Oil falls 1 percent as bullish bets fade with United States output rise

21 March, 2017, 07:58 | Author: Leticia Walters
  • Oil supply deficit in first half likely despite rising stocks

On the New York Mercantile Exchange crude futures for May delivery lost 56 cents to settle at $48.22 a barrel, while on London's Intercontinental Exchange, Brent lost 14 cents to settle at $51.63 a barrel.

"We are maintaining our this year's average Brent crude price at US$50 a barrel as we see more uncertainty with crude oil prices towards the downside bias", said an analyst at MIDF Research.

A possible extension of OPEC's crude oil production cut deal in 2H17 could support oil prices.

Oil prices fell back Monday, set to erase the prior week's gain, as another rise in active US oil rigs raised concerns over growing domestic production and some analysts anxious that a change to the G-20 policy statement may impact global trade.

Reacting to the oil glut, financial oil traders cut their net long U.S. crude futures and options positions in the week to March 14, the third consecutive reduction, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

"The continued increase in U.S. oil rigs adds to the bearish sentiment", he added. "Over the coming one and a half to two years, we're probably going to be back at the previous high levels of production". This means that speculators last week cut more than 150,000 contracts betting on firmer oil prices, a record high. OPEC was also able to work out a deal with a consortium of non-OPEC producers such as Russian Federation and Venezuela to cut their production.

However, other market commentators expect oil markets will tighten soon, arguing that the Opec-led cuts will only start to take effect from April. "The seven major oil and gas basins in the country would have an output of more than almost five million barrels a day collectively", it said. Iraq now outputs about 4.3 million barrels a day. However, if OPEC doesn't extend its deal, it could pressure crude oil prices.

But Iraq has lagged behind other Opec members in its efforts to reduce output.

The data from the United States thwarts the Organization of the Petroleum Exporting Countries (OPEC) deal with Russian Federation and other producers to cut production to prop up prices. After forecasting production declines for 2017, US federal data instead show steady gains and production so far in March has been at around 9 million barrels per day. Russian Federation is expected to reach its pledged 300,000 b/d cut only by the end of April, while some OPEC members are also busting their quotas, prominent among them Iraq and the UAE.


  • Oil Slides on concerns over US Output

    Oil Slides on concerns over US Output

    Brent Crude Futures were 20 cents down from their last close, as recorded at 0025 GMT, and stand at $51.56 per barrel. This extended a recovery that is expected to boost shale production by the most in six-months in April.
    Donald Trump slides down Forbes list of world's billionaires

    Donald Trump slides down Forbes list of world's billionaires

    The 2017 net worth of all 2,043 billionaires also set a record - $7.7 trillion - an 18 percent jump from past year . This year marks the first time Forbes' billionaire club features more than 2,000 people.
    Celtics hold off Wizards for 110-102 win

    Celtics hold off Wizards for 110-102 win

    Within minutes the Celtics extended their lead by continuing to share the ball and cycling through scoring options. The official Boston Celtics Twitter Page is providing the Live Score of this match and also, other Celtics games.
  • Pakistanis are happier than Indians, reveals United Nations  report

    Pakistanis are happier than Indians, reveals United Nations report

    The five least happy countries were Rwanda, Syria, Tanzania, Burundi and the Central African Republic . In Africa, Ghana placed 25th happiest country on the continent out of the 44 countries looked at.
    Gold, silver futures settle higher

    Gold, silver futures settle higher

    Thai baht was down 0.23%, Singapore dollar 0.15%, Japanese yen 0.14%, China offshore 0.06% and Philippines peso fell 0.05%. US oil production has risen to over 9.1 million barrels per day from below 8.5 million barrels per day last June.

    Seres Therapeutics Inc. (MCRB) Surged To A 4-Month High

    Working capital declines Seres Therapeutics Inc . has witnessed a decline in the working capital over the a year ago . Fox Run Management L.L.C. purchased a new position in Seres Therapeutics during the third quarter valued at $257,000.
  • Scenes from the Sunshine Canyon fire

    Scenes from the Sunshine Canyon fire

    The contained area is off the "heel" of the fire near Sunshine Canyon Drive and the Centennial Trailhead, officials said. More than 1,000 homes have been evacuated on the west end of Boulder because of a fire burning in Sunshine Canyon.
    Brady's Super Bowl jersey, swiped in Houston, turns up in Mexico

    Brady's Super Bowl jersey, swiped in Houston, turns up in Mexico

    The suspect in question, according to the Houston Police Department, "had legitimate access to the Super Bowl". The Patriots erased a 28-3 deficit with an historic comeback for their fifth Super Bowl victory.
    Flames' Matthew Tkachuk suspended 2 games for elbow

    Flames' Matthew Tkachuk suspended 2 games for elbow

    However, after Sunday's loss the Kings are now 11 points behind the Flames and 10 points behind Edmonton with 11 games remaning. Kopitar scored for the Kings with 1:20 to play in the opening period when he redirected a pass from Dustin Brown past Elliott.
  • Australia makes top 10 but cold-winter countries are the world's happiest

    Australia makes top 10 but cold-winter countries are the world's happiest

    Interestingly, two of the other countries in top five-which include Iceland , Switzerland, and Finland-are also Nordic. The least happy countries included the African and Arab countries of Yemen , South Sudan, Syria, Tanzania and Burundi.

    Apple's own website hints new products might launch tomorrow morning

    There are no plans for a big keynote, but there's still a chance the Apple store will return with some sweet surprises. We've been expecting a 2017 March Apple Event for weeks and multiple sources pointed to new Apple products this month.
    Uber President Resigns Amid Troubles At Ride-Hailing Company

    Uber President Resigns Amid Troubles At Ride-Hailing Company

    The post prompted Uber's early investors to called on Kalanick to change what they said was the company's "destructive culture." . Google sister company Waymo is now suing Uber for allegedly stealing its self-driving auto technology and infringing its patents.


Report Suggests iPhone 8 Will Feature a 'Water Drop' Design
The original iPhone, iPhone 3G and iPhone 3GS both had curved rear casings, made with either aluminium or plastic. The Korean news site says the rounder corners are supposed to resemble those from the original iPhone.

Jharkhand: Engineer was declined jobs 40 times because of his name
The 25-year-old marine engineer has knocked the court's door for new identity. Finally, last week, a hearing was set for 5 May.

Antonio out of England squad with hamstring injury
The 28-year-old was left out of Gareth Southgate's most recent England squad, despite good form this season. Michail Antonio has been forced to withdraw from the England squad due to injury, West Ham have confirmed.

Taveion Hollingsworth named Kentucky Gatorade Boys' Basketball Player of the Year
Cartwright averaged 21 points per game this season and helped the Knights win their first Class AA championship since 2012. Wesson has also been named the Ohio Capital Conference, District 10 and Central District Player of the Year.

Donald Trump looks very lonely with wiretapping accusation
Comparing the alleged action to "McCarthyism", Trump charged in a tweet last weekend that "This is Nixon/Watergate". The Republican president offered no evidence for the allegation, which an Obama spokesman said was "simply false".