🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Crude Oil Prices Mixed, U.S. Production Worries Persist

Published 2017-12-14, 09:59 a/m
© Reuters.  Crude oil prices mixed on U.S. production concerns vs. global supply cut hopes
LCO
-
CL
-
NG
-
GPR
-

Investing.com - Crude oil prices were mixed on Thursday, as concerns over rising U.S. shale production persisted despite ongoing supply cut efforts by global oil producers.

The U.S. West Texas Intermediate crude January contract was down 11 cents or about 0.21% at $56.48 a barrel by 10:00 a.m. ET (14:00 GMT), the lowest since December 12.

Elsewhere, Brent oil for February delivery on the ICE Futures Exchange in London was up 16 cents or about 0.26% at $62.59 a barrel, the lowest since December 8.

Prices came under pressure after a larger-than-expected surge in U.S. gasoline stockpiles outweighed a larger-than-expected decline in U.S. crude inventories.

Also weighing on crude prices was a rise in production to record highs as data showed weekly U.S. crude production jumped by 73,000 barrels a day to 9.78 million barrels per day (bpd), bringing output close to levels of top producers Russia and Saudi Arabia.

Separately, the International Energy Agency on Thursday warned that there were signs the ongoing rise in U.S. crude oil production could continue into 2018.

The U.S. report came after OPEC revealed in its monthly report that production in November, fell by 133,000 bpd to 32.5 million bpd but revised upward its 2018 forecast for non-OPEC output.

Fears that rising U.S. output would dampen OPEC’s efforts to rid the market of excess supplies have been recently weighing on sentiment, according to market participants.

The producer group, along with some non-OPEC members led by Russia, agreed last week to extend current oil output cuts for a further nine months until the end of 2018.

The deal to cut oil output by 1.8 million barrels a day (bpd) was adopted last winter by OPEC, Russia and nine other global producers. The agreement was due to end in March 2018, having already been extended once.

Elsewhere, gasoline futures were up 0.53% at $1.663 a gallon, while natural gas futures declined 0.74% to $2.695 per million British thermal units.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.