OPEC MEETS: Amid little market-moving news, oil was in focus after the Organization of the Petroleum Exporting Countries announced Monday that oil ministers of the 14-nation organization will meet next month, well ahead of their previously scheduled November meeting.
Advertisement
OPEC members and other producers including Russian Federation did not manage to reach an agreement on freezing supply at a meeting held in Doha in April.
The EIA now forecasts a 2016 average price of $42 a barrel for Brent and “slightly less” for WTI crude oil, down $2 a barrel over last month’s estimate.
The West Texas Intermediate for September delivery added 1.22 US dollars to settle at 43.02 USA dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery increased 1.12 USA dollars to close at 45.39 US dollars a barrel on the London ICE Futures Exchange.
The recent drop-off in oil prices is “related to overproduction and inventory, as well broader [economic] growth issues across markets”, said Vic Sperandeo, president and chief executive of EAM Partners, known for the Trader Vic Index.
The current developments in global oil markets show the effects of oil reserves of consuming countries on prices, said the Organization of Arab Petroleum Exporting Countries (OAPEC).
The Wall Street Journal reported last week that Opec countries such as Venezuela, Ecuador and Kuwait want to take another stab at cooperation between the 14-nation Organisation of the Petroleum Exporting Countries and non-members such as Russian Federation.
“It would appear that OPEC calls for restraint would be inevitable”, said Jim Ritterbusch of Ritterbusch & Associates, a Chicago-based oil markets consultancy. In China, fuel exports increased more than 50 per cent from a year earlier to a monthly record 4.57 million tonnes, adding to a global glut. Energy stocks surged the most as oil prices rose, while health care companies were the biggest laggard.
Brent futures LCOc1 were up 15 cents at $44.42 per barrel Monday, though still lag a 2016 high near $53 a barrel hit in June.
Brent crude settled the session down US41 cents, or nearly one per cent, at $US44.98 a barrel.
Just a day ago, oil prices had rallied, with WTI gaining almost three per cent, rebounding from last week’s selloff when it fell to an April low of $US39.19.
“You can have massive up moves like this, and if you can trade it, great”.
Advertisement
The latest American Petroleum Institute (API) weekly inventory data recorded a build of 2.1mn barrels compared with expectations of a draw of around 1.0mn for the week and following the 1.3mn draw reported last week.
