Report

rss

Iraq News

Kurdistan

Economy

World

All News

Oil slips for third session before U.S. inventories EIA data

Category: Economy

Date: 2021-03-10T07:38:06+0000
Oil slips for third session before U.S. inventories EIA data

Shafaq News/ Oil fell for a third straight session on Wednesday as investors took profits while looking ahead to U.S. inventories data due later in the day for pointers on where prices will head next.

Brent crude for May dropped 62 cents, or 0.92%, to $66.90 a barrel by 0514 GMT, while U.S. West Texas Intermediate crude for April was at $63.51 a barrel, down 49 cents, or 0.77%.

Prices gained support last week from the OPEC+ decision to largely maintain production cuts in April. They then initially jumped on Monday, with Brent rising above $70 a barrel, after attacks by Yemeni Houthis on Saudi's oil heartland, before settling back as the alarm subsided.

"It's a realization that there was no impact on supply from the attack," Virendra Chauhan, a Singapore-based analyst at consultancy Energy Aspects said.

A combination of factors including top importers China and India drawing crude from storage at current high prices and expectations of a return in Iranian supplies have also cooled prices, he added.

In the United States, crude inventories rose by 12.8 million barrels in the week to March 5, according to trading sources, citing data from industry group the American Petroleum Institute. Analysts had expected a build of about 800,000 barrels in a Reuters' poll.

Official figures from the Energy Information Administration (EIA) are expected Wednesday at 10:30 a.m. ET.

Meanwhile, higher prices are expected to bring more U.S. crude supplies back online.

U.S. crude production is still expected to fall by 160,000 barrels per day (bpd) in 2021 to 11.15 million bpd, the EIA said on Tuesday, but that's a smaller decline than its previous monthly forecast for a 290,000-bpd drop.

The OPEC+ grouping - the Organization of the Petroleum Exporting Countries (OPEC) and allied producers - may become the victim of its own success, analysts at EFG bank said, as higher prices resulting from supply restraint could incentivise U.S. oil production.

"The current WTI oil price is well above the level needed to incentivise a substantial increase in U.S. production, which according to surveys by the Dallas Fed and the Kansas City Fed stands at around $56 per barrel," EFG said.

Source: Reuters, Prices updated by Shafaq News Agency

related

Oil prices drop 3% after US president contracted Coronavirus

Date: 2020-10-02 09:37:29
Oil prices drop 3% after US president contracted Coronavirus

Brent jumps over $ 32 after comments of an additional reduction

Date: 2020-04-14 09:42:17
Brent jumps over $ 32 after comments of an additional reduction

Oil drops for fifth straight day after U.S. inventories rise

Date: 2021-03-18 07:29:35
Oil drops for fifth straight day after U.S. inventories rise

Basra crude reached $81.01 last week

Date: 2021-10-09 07:38:55
Basra crude reached $81.01 last week

Oil prices edge lower as COVID-19 lockdown concerns overshadow demand prospects

Date: 2021-01-25 08:14:44
Oil prices edge lower as COVID-19 lockdown concerns overshadow demand prospects

Oil resumes rally as Russia-Ukraine tensions stay high

Date: 2022-02-16 19:46:54
Oil resumes rally as Russia-Ukraine tensions stay high

Oil prices slide as Chinese fuel demand falters

Date: 2021-08-16 05:55:10
Oil prices slide as Chinese fuel demand falters

Oil majors begin evacuating at Gulf of Mexico

Date: 2020-08-22 15:38:11
Oil majors begin evacuating at Gulf of Mexico