Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Oil slides back towards 2-week lows as focus turns to U.S. stockpile data

Published 2017-07-11, 07:45 a/m
© Reuters.  Oil falls as focus turns to U.S. stockpile data
LCO
-
CL
-
NG
-
NYF
-
GPR
-

Investing.com - Oil prices were lower in North American trade on Tuesday, moving back towards a two-week trough, as investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products.

Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (2030GMT) later on Tuesday. Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock drop of around 3.2 million barrels.

The U.S. West Texas Intermediate crude August contract was at $43.94 a barrel by 7:45AM ET (1145GMT), down 45 cents, or around 1%. It touched its lowest since June 27 at $43.65 in the prior session.

Elsewhere, Brent oil for September delivery on the ICE Futures Exchange in London dipped 50 cents to $46.40 a barrel, after sliding a two-week low of $46.11 a day earlier.

Oil ended modestly higher Monday, bouncing back from the lowest level in around two weeks, amid reports that Libya and Nigeria may be asked to cap production in a bid to reduce a global supply glut.

The two countries had been exempted from the pact among major oil producers, led by the Organization of the Petroleum Exporting Countries, to limit global production and ease a glut of oil that has plagued the industry.

So far, the production-cut agreement has had little impact on global inventory levels due to rising supply from producers not participating in the accord, such as Libya and Nigeria, and a relentless increase in U.S. shale oil output.

U.S. drillers added seven oil rigs last week, marking a 24th week of increases out of the last 25. That brings the total count up to 763, the most since April 2015, implying that further gains in domestic production are ahead.

Elsewhere on Nymex, gasoline futures for August declined 2.0 cents, or roughly 1.4%, to $1.481 a gallon, while August heating oil slumped 1.4 cents to $1.438 a gallon.

Natural gas futures for August delivery rose 2.6 cents to $2.955 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.