New York - The continuing concerns about the global oversupply of crude oil hit the market on Thursday (Friday morning GMT), after US inventories surged to record highs this week.
The benchmark US light sweet crude or West Texas Intermediate (WTI) for delivery in April, dropped 77 cents to 50.76 dollars a barrel on the New York Mercantile Exchange at the end volatile session, where WTI spend some time in positive territory, report AFP.
In London, Brent North Sea crude for delivery in April, the international benchmark, fell seven cents to 60.48 US per barrel dolara.
US crude oil inventories rose 10.3 million barrels in the week ended February 27 became 444.4 million barrels, US Department of Energy (DoE) reported on Wednesday.
It marks the highest record fifth consecutive weekly data which began in 1982 and the highest level in a monthly record for 84 years, as US manufacturers produce 9.3 million barrels of crude oil per day.
"What we continue to see is a market increasingly dubious about the large production cuts that some people expect," said Bart Melek, head of commodity strategist at TD Securities.
Traders await the weekly reports of oil rigs latest Baker Hughes on Friday.
The number of operating drilling rigs continue to fall for several weeks, prompting some people say that the production will go down, but the recent decline in rig has slowed.
"As far as the picture of the supply / demand as a whole, we see ongoing surplus of supply / demand for the first half of 2015 on the order of 1.4 million barrels per day which is being confirmed by a sharp rise in US crude inventories," said Tim Evans of Citi Futures said in a note research,
"The market continues to tolerate the growth of this stock, no new lows in price since mid-January despite the jump, but we wonder whether the market will not be forced to acknowledge the ongoing excess at some point."
Earlier, the Organization of Petroleum Exporting Countries (OPEC) decided to maintain the collective production quota at 30 million barrels per day at last November 27 meeting in Vienna.
There are no signs that the producers will cut production in response to kerosotan price. OPEC to increase production to 30.6 million barrels per day in February, according to a Bloomberg survey recently.
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The benchmark US light sweet crude or West Texas Intermediate (WTI) for delivery in April, dropped 77 cents to 50.76 dollars a barrel on the New York Mercantile Exchange at the end volatile session, where WTI spend some time in positive territory, report AFP.
In London, Brent North Sea crude for delivery in April, the international benchmark, fell seven cents to 60.48 US per barrel dolara.
US crude oil inventories rose 10.3 million barrels in the week ended February 27 became 444.4 million barrels, US Department of Energy (DoE) reported on Wednesday.
It marks the highest record fifth consecutive weekly data which began in 1982 and the highest level in a monthly record for 84 years, as US manufacturers produce 9.3 million barrels of crude oil per day.
"What we continue to see is a market increasingly dubious about the large production cuts that some people expect," said Bart Melek, head of commodity strategist at TD Securities.
Traders await the weekly reports of oil rigs latest Baker Hughes on Friday.
The number of operating drilling rigs continue to fall for several weeks, prompting some people say that the production will go down, but the recent decline in rig has slowed.
"As far as the picture of the supply / demand as a whole, we see ongoing surplus of supply / demand for the first half of 2015 on the order of 1.4 million barrels per day which is being confirmed by a sharp rise in US crude inventories," said Tim Evans of Citi Futures said in a note research,
"The market continues to tolerate the growth of this stock, no new lows in price since mid-January despite the jump, but we wonder whether the market will not be forced to acknowledge the ongoing excess at some point."
Earlier, the Organization of Petroleum Exporting Countries (OPEC) decided to maintain the collective production quota at 30 million barrels per day at last November 27 meeting in Vienna.
There are no signs that the producers will cut production in response to kerosotan price. OPEC to increase production to 30.6 million barrels per day in February, according to a Bloomberg survey recently.
Note: Comment and share please. Get the book "Rocket Marketing" by rocket marketer Yeheskiel Zebua, for you are lucky. Lottery will be conducted on PANCASILA DAY.
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