Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Oil sits near half-year lows as global supply overhang weighs

Published 2017-06-15, 09:06 p/m
© Reuters.  Oil sits near half-year lows as global supply overhang weighs
LCO
-
CL
-

* Despite pledge, OPEC and Russian oil supplies remain high

* Soaring U.S. output also weighs on market

* Global oil supply & demand balance: http://tmsnrt.rs/2s2OtVQ

By Henning Gloystein

SINGAPORE, June 16 (Reuters) - Oil prices dipped early on Friday and were not far off six-months lows as an ongoing supply overhang weighed on markets despite an OPEC-led effort to cut production and prop up prices.

Brent crude futures LCOc1 were down 6 cents, or 0.1 percent, at $46.86 per barrel at 0045 GMT.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 8 cents, or 0.2 percent, at $44.38 per barrel.

Prices for both benchmarks are down by more than 13 percent since late May, when producers led by the Organization of the Petroleum Exporting Countries (OPEC) extended a pledge to cut production by 1.8 million barrels per day (bpd) by an extra nine months until the end of the first quarter of 2018.

The price falls are due to ongoing high supplies despite the pledge to cut from within OPEC, and also because of rising output from the United States. production in the U.S. was ... higher (and) oil tanker tracker data also suggests OPEC shipments remain strong," ANZ bank said.

High exports and production from other countries, including Russia and the United States, are also contributing to the ongoing glut.

Top producer Russia, not an OPEC-member but participating in the deal, is expected to export 61.2 million tonnes of oil in the third quarter (around 5 million bpd), against 60.5 million tonnes in the second quarter, via pipelines, according to industry sources and Reuters calculations. in Russia's tanker shipments and its total exports are likely above 9 million bpd.

In the United States, which is not participating in any deal to hold back production, oil output C-OUT-T-EIA has risen over 10 percent over the past year to 9.3 million bpd, and the Energy Information Administration (EIA) expects that figure to rise above 10 million bpd in 2018. a sign of the ongoing supply overhang, traders are increasingly hiring tankers again to store unsold crude, waiting to sell later at a higher price. CHART - World Oil Supply vs Demand

http://reut.rs/2s31S0e

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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.