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CORRECTED-Oil prices weaken post-Christmas, U.S. crude defends premium over Brent

Published 2015-12-28, 12:33 a/m
CORRECTED-Oil prices weaken post-Christmas, U.S. crude defends premium over Brent
LCO
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CL
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(Corrects Brent price in paragraph 3 to $37.71, from $17.71)
By Henning Gloystein
SINGAPORE, Dec 28 (Reuters) - Oil prices fell on Monday
after the long Christmas weekend, with U.S. crudes defending a
newly gained premium over internationally traded Brent
contracts.
Front-month U.S. West Texas Intermediate (WTI) futures
CLc1 were trading at $37.91 per tonne at 0015 GMT, down 19
cents from their last settlement.
Brent LCOc1 was down 18 cents at $37.71 a barrel, meaning
that U.S. crude defended a premium it gained over the globally
traded benchmark last week.
"Markets are generally weak, so the trend remains for lower
prices, but do watch out for sharp moves in the low liquidity
days between Christmas and New Year," one oil trader said.
The U.S. market tightened in December following reduced
drilling activity, a dip away from record stockpiles and the
prospect of crude exports following a 40-year export ban.

At the same time, international markets remain over supplied
as producers like Russia and the Organization of the Petroleum
Exporting Countries (OPEC) produce between half a million and 2
million barrels of crude every day in excess of demand.
At the same time, developed and emerging economies
especially in Asia are slowing.
Japan's industrial output fell 1.0 percent in November from
the previous month, government data showed on Monday, suggesting
that sluggish emerging market demand continues to cloud the
outlook for the economy.

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