Oil Prices Dip Amid Rise in US Output

Iran’s Crude Oil Price Up 4.5

Iran’s Crude Oil Price Up 4.5

On Monday, the United States government stated that U.S. shale production for December is set to rise for a 12 consecutive month, rising 80,000 barrels per day.

On the supply side, tensions in the Middle East raised the prospect of disruptions, traders said.

"I am hopeful that we will reach an agreement that will lead to more stabilisation in the market and more investments coming to the market", he said.

An unprecedented mass purge of elite figures in Saudi Arabia has seen more than 200 princes, ministers and businessmen detained in what has widely been seen as a move by Crown Prince Mohammed bin Salman to consolidate his power ahead of his accession to the throne.

Despite the cautious sentiment, traders said oil prices were unlikely to fall far, largely due to supply restrictions led by the Organization of the Petroleum Exporting Countries and Russian Federation, which have helped reduce excess stockpiles.

On the supply side, tensions in the Middle East raised the prospect of disruptions, traders said, adding it was unclear whether a strong natural disaster that hit Iran and Iraq on Sunday had affected the region's oil production.

Bahrain said at the weekend that an explosion that caused a fire at its main oil pipeline on Friday was caused by sabotage, linking the attack to Iran, which denied any role.

Oil prices eased for a third day on Tuesday as traders and investors questioned how much the prospect of further rises in USA output might overshadow some of the optimism that OPEC-led production cuts would tighten the balance between crude supply and demand. However, it also pointed out that Saudi output had risen above 10 million barrels per day.

On the New York Mercantile Exchange crude futures for December delivery fell 0.05% to $56.73 a barrel, while on London's Intercontinental Exchange, edged up 0.03% to $63.16 a barrel.

OPEC has sought to push stocks to the five-year average. That maintained the highest level since mid-April.

Meanwhile events in Saudi Arabia, OPEC's kingpin, "have added extra momentum to the rally that has driven oil prices from lows of $45/bbl (Brent) in late June to around $63/bbl recently", the IEA said. Managers now hold net long positions equivalent to almost 544 million barrels of oil.

"The IEA said warmer temperatures could cut consumption, while sharply rising production from outside OPEC might mean the global market tilts back into surplus in the first half of 2018".

The number of rigs operating in US oil fields rose by nine to a total of 738 rigs this week, oilfield service firm Baker Hughes said in its weekly report on Friday. Currently, RSI on daily chart is above 60 levels indicating high momentum in prices.

Recommended News

  • Emirates orders 40 Boeing 787-10 Dreamliners

    Emirates orders 40 Boeing 787-10 Dreamliners

    But the suite in the middle also gets its own virtual window that shows the same scenery as the real ones. In addition to the deal with Boeing , Emirates unveiled a new first class for its long-range 777 jets.
    Serial killer fears reignited after body found in Seminole Heights

    Serial killer fears reignited after body found in Seminole Heights

    Officers arrived on-scene within seconds and found an adult male, later identified as Ronald Felton, 60, deceased in the street. The killings began on October 9, when 22-year-old Benjamin Mitchell was shot and killed in front of his home, CNN reported .
    Oppo Partners Reliance Jio to Offer Up to 100GB Additional Data

    Oppo Partners Reliance Jio to Offer Up to 100GB Additional Data

    Airtel's Rs 999 recharge pack includes unlimited local/STD calls for non-commercial use as well as outgoing on national Roaming. Apart from the above mentioned combo pack, Airtel has also introduced another recharge pack for Rs 1,999 for 180 days.
  • Hole punching machine celebrates 131st anniversary with a Google doodle

    Hole punching machine celebrates 131st anniversary with a Google doodle

    It's a great news, that Google Doodle is Celebrating Children's Day along with the 131st Anniversary of Hole Punch. The German scientist Friedrich Soennecken, born in 1848, filed patent for the hole puncher on November 14, 1886.
    Kejriwal seeks meeting with Amarinder over pollution

    Kejriwal seeks meeting with Amarinder over pollution

    The Delhi CM has earlier alleged that both Punjab and Haryana CMs have no time to discuss the crop burning issue . The air quality deteriorated on Monday after marginally improving over the weekend.
    Moto X4 vs Oppo F5: Price in India, features and specifications comparison

    Moto X4 vs Oppo F5: Price in India, features and specifications comparison

    Apart from this, for the low light pictures the device comes with a single tone LED flash, to capture the flawless selfies. The Moto Tab is a 10-inch slate that's being touted as a sharing device for families as well as a productivity tool.
  • RTC Group plc Plans Dividend of GBX 1.20 (RTC)

    RTC Group plc Plans Dividend of GBX 1.20 (RTC)

    The Firm operates through five divisions: Commercial, Live Events, High School Park and Recreation, Transportation, and global . With 98,100 avg volume, 19 days are for Daktronics Incorporated (NASDAQ:DAKT)'s short sellers to cover DAKT's short positions.
    West Bengal gets GI tag for Rasagola

    West Bengal gets GI tag for Rasagola

    Now the day of celebration for West Bengal is here after the win over rosogolla origin. Now with this Geographical Indication now rosogolla belongs to Bengal, not Odisha.
    President, Prime Minister Pay Tributes To Pandit Nehru On 128th Birth Anniversary

    President, Prime Minister Pay Tributes To Pandit Nehru On 128th Birth Anniversary

    "Tributes to Pandit Jawaharlal Nehru on his birth anniversary", the Prime Minister tweeted. For his fond love towards children, he got the title of Chacha Nehru or Chacha Ji.
  • Israel nabs top Islamic Jihad terrorist

    Israel nabs top Islamic Jihad terrorist

    In response to Mordechai, the terror group reaffirmed its "right to respond to the crime of aggression on the resistance tunnel". Twelve Hamas and PIJ fighters, including senior military commanders, were killed in the subsequent explosions in the tunnel.
    Top 10 healthy food items that regulate blood sugar

    Top 10 healthy food items that regulate blood sugar

    A chronic disease of the pancreas, diabetes is when the pancreas is unable to produce the required amount of insulin. This medication is created to lower blood sugar levels, but can not cure the disease.
    Trudeau: Legal impediments still preventing Canada from taking back toxic waste

    Trudeau: Legal impediments still preventing Canada from taking back toxic waste

    Trudeau said his government has yet to address "legal impediments" that prevented it from taking back the toxic waste to Canada. Trudeau said Duterte was "receptive" to his comments and their conversation was "very cordial and a positive exchange".

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.