Market intelligence firm Genscape reported a build of more than 307,000 barrels at the Cushing, Oklahoma delivery hub for WTI futures in the week to August 5, traders said, even as analysts forecast a total USA crude inventory drop of 1 million barrels.
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Since the plunge in oil prices that began in mid-2014, Venezuela has repeatedly tried to broker deals to freeze production and reduce a supply glut, with limited success.
The Energy Information Administration increased its domestic output forecast for 2017 to 8.31 million barrels a day from 8.2 million projected in July, according to its monthly Short-Term Energy Outlook released Tuesday. Eastern time. The Standard & Poor’s 500 index gained five points, or 0.3 percent, to 2,186. Total volume traded was about 60 percent below the 100-day average.
Oil prices continued to rise on Monday, with benchmark crude moving up more than a dollar per barrel in both NY and London.
“Today, it seems like whatever oil does, equities will follow”.
Investors will continue to assess the rest of second-quarter earnings and economic data to justify valuations. Natural gas fell 2 cents to $2.75 per 1,000 cubic feet.
However, a forecast-beating payrolls report on Friday has helped bring back some of the risk-on mode in the markets.
Oil prices dipped on Tuesday in choppy trade as forecasts for a weekly drop in US crude inventories were countered by worries of a stubborn global petroleum glut. Around 1600 GMT, Brent North Sea crude for delivery in October was up Dollars 1.12 at USD 45.39 a barrel compared withthe close on Friday.
“Canadian producers and the public needs to look at issues regarding the pipelines, issues regarding the USA election, issues regarding the importance of Canadian oil as a feedstock to the United States”.
Despite low oil prices, the growth in crude production is continuing unabated.
People walk by an electronic stock board of a securities firm in Tokyo, Monday, Aug. 8, 2016.
Al-Sada earlier said that the recent decline observed in oil prices and the current market volatility is only temporary.
Crude oil prices rallied Monday, following a brief dip below $40 per barrel last week, after Qatari Energy Minister and President of the Organization of Petroleum Exporting Countries Mohammed bin Saleh al-Sada said the 14-member group would hold an extraordinary meeting in late September to consider the status of the market.
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“Even if a freeze were to materialize, it is unlikely to impact physical OPEC supplies”, Seth Kleinman, European head of energy research at Citigroup Inc.in London, said in a report.
