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Oil prices rise slightly as oversupply concerns mount again

Published 2016-03-14, 08:56 p/m
© Reuters. Oil prices rise slightly as oversupply concerns mount again
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TOKYO, March 15 (Reuters) - Oil prices rose in early Asian
trade on Tuesday, coming off six day lows reached the session
before, as concerns that a six-week market recovery has gone
beyond the fundamentals of oversupply start to take hold.
Saudi Arabia kept its crude oil production steady in
February at just above 10 million barrels per day (bpd),
suggesting the world's biggest oil exporter is keeping to a
preliminary deal with other producers to freeze output.
U.S. crude futures CLc1 were 17 cents higher at $37.35 a
barrel at 0054 GMT. On Monday, they settled down 3.4 percent at
$37.18 a barrel.
Brent LCOc1 was also 17 higher at $39.70, after finishing
$39.53 in the previous session.
Saudi Arabia and non-OPEC member Russia, the world's two
largest oil exporters, along with Qatar and Venezuela said last
month they would freeze output at January levels to prop up
prices if other oil-producing nations agreed to join the first
global oil pact in 15 years.
But with U.S. crude stockpiles continuing to build and Iran
showing little interest in joining major producers in freezing
production, oil prices may have gained too much too soon.
Crude inventories across the United States likely hit record
highs for a fifth straight week last week, rising 3.3 million
barrels, a Reuters poll of analysts said. EIA/S
With sanctions on Iran removed in January, Tehran is keen to
increase its production of crude to levels before the
restrictions hit exports.
Iran currently produces around 3.1 million bpd of oil. The
sanctions also cut crude exports from a peak of 2.5 million bpd
before 2011 to just over 1 million bpd in recent years.

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