Oil prices up after falling to minimum since OPEC deal

Dr Fatih Birol executive director of IEA told reporters on CERAWeek that the leadership of Prime Minister Narendra Modi has provided a strong impetus to Indian economy

Dr Fatih Birol executive director of IEA told reporters on CERAWeek that the leadership of Prime Minister Narendra Modi has provided a strong impetus to Indian economy

Market confidence faltered after news of another big rise in U.S. crude inventories that have built steadily to record highs as USA oil production has grown this year.

Brent crude oil was down 10 cents at US$52.09 a barrel by 1445 GMT, after falling 1.7% on Thursday and 5% the day before in its biggest percentage decline in a year. It fell below $50 on Thursday for the first time since December.

"Record high inventory levels are reason for pause, but we believe that the market is overly focused on United States stocks".

USA crude prices edged up on Friday after dropping below $50 per barrel for the first time since December in the previous session, pressured by concerns that a global supply glut is proving stubbornly persistent.

After having dipped 5 percent on Wednesday, oil prices continued plunging on Thursday by more than 2 percent, as speculators have started exiting the almost record long positions in oil futures that they had amassed.

Brent for May settlement fell as much as $1.51 a barrel, or 2.8 percent, to $51.60 a barrel on the London-based ICE Futures Europe exchange.

The Organisation of the Petroleum Exporting Countries and other exporters including Russian Federation agreed a year ago to cut output by around 1.8 million barrels per day in the first half of 2017, but so far the move has had little impact on inventory levels.

"I still think we will stick in a fairly narrow range with the current levels reflecting the average price for the remainder of the year and a bottom of around $40 and a top end of somewhere around $60", said Chris Gaffney, president of EverBank World Markets in St. Louis, Missouri.

Options trade also reflected hopes that prices would recover. The global benchmark crude traded at a premium of $2.36 to May WTI.

USA drilling has also picked up, with producers planning to expand crude production in North Dakota, Oklahoma and other shale regions, while the Permian, America's largest oilfield, has seen output jump. The Permian, America's largest oilfield, has seen output jump.

"The discussion will now center around whether or not Saudi Arabia is willing to give back market share to USA producers. or are they ready for yet another round of the market share war", Dominick Chirichella, senior partner at the Energy Management Institute in NY, told Reuters on Thursday.

Recommended News

  • Quest Diagnostics Incorporated (NYSE:DGX) Reviewed By Analysts

    Smucker Company (NYSE:SJM) last session's volume of 1.31 million shares was higher than its average volume of 1.13 million shares. Finally, WMS Partners LLC acquired a new stake in Quest Diagnostics during the third quarter worth approximately $208,000.

    A BIG announcement from Major Ravi!

    Young hero Nivin Pauly has agreed to do a romantic film, which will be directed by Major Ravi, suggest some reports. Malayalam filmmaker Major Ravi has carved a name for himself in the industry by making war and action-packed movies.
    Marathon Oil Corporation (NYSE:MRO) & Calpine Corporation (NYSE:CPN) Stocks Buzz

    Marathon Oil Corporation (NYSE:MRO) & Calpine Corporation (NYSE:CPN) Stocks Buzz

    The company has a market cap of $26,811 million and the number of outstanding shares has been calculated to be 527,875,060 shares. Marathon Oil Corporation (MRO) stock price tumbled -0.58% to finalize at $15.46 throughout previous buying and selling session.
  • Mac-to-Surface Migration Tool Released

    You can grab a free copy of Mac to Surface Assistant direct from Microsoft. Microsoft has launched its new tool rather quietly.
    Dixon High School student brings gun to school

    Dixon High School student brings gun to school

    Manito was captured on school surveillance video wandering the halls. "I asked him, 'So why are you here?'" Shirola said. Within about 15 minutes, police found the student at a Dixon home and took the firearms.
    Man claims bomb in trunk at White House checkpoint

    Man claims bomb in trunk at White House checkpoint

    Prosecutors said in a statement that at a Monday court hearing Keoughan was ordered held in jail until another hearing Thursday. The Secret Service closed the area around the security checkpoint for about 4 ½ hours overnight Saturday to Sunday.
  • In Bid To Improve Air Quality, Beijing Shutters Last Coal Plant

    In Bid To Improve Air Quality, Beijing Shutters Last Coal Plant

    However, Beijing , with more than 30 million residents, can not not produce enough power to meet its own energy demand. The move is part of the capital's efforts to reduce carbon emissions and reduce air pollution.
    Upsets spark best NCAA Tournament ratings in 24 years

    Upsets spark best NCAA Tournament ratings in 24 years

    The ratings for the Orlando-Melbourne area drew a 4.2 household rating - up 27 percent from a comparable market from last season. It's interesting to see the TV ratings keep rising in an era where so many sports ratings have seen some declines.
    Immigration judges headed to 12 USA  cities to speed deportations

    Immigration judges headed to 12 USA cities to speed deportations

    The cities were chosen because the have a high proportion of illegal immigrants with criminal charges, according to The Hill . Most of these cases should be slam dunks, so the process of deportation will be expedited-at least for criminal aliens.
  • Watch a very pregnant Natalie Portman in James Blake's intimate music video

    Watch a very pregnant Natalie Portman in James Blake's intimate music video

    The clip is for " The Colour In Anything " track " My Willing Heart " and sees actress Portman swimming underwater while pregnant. When she isn't delicately floating in the pool, the Academy Award-winning actress peacefully lies around, rubbing her belly.
    Apple Inc. Stock Heading To $155 With iPhone 8

    Apple Inc. Stock Heading To $155 With iPhone 8

    Presently, it has a Return on Equity (ROE) of 34.90% and Return on Investment (ROI) of 20.60%. (NASDAQ:AAPL) reported $1.9 EPS. Its price to free cash flow for trailing twelve months is 18.30 and Current ratio for most recent quarter of 1.20.
    Oklahoma Senate Democrats call for immediate resignation of Sen. Ralph Shortey

    Oklahoma Senate Democrats call for immediate resignation of Sen. Ralph Shortey

    Ralph Shortey, who was Oklahoma chair for the US President during the primaries, is now under pressure to resign from the Senate. The Oklahoma Senate imposed sanctions Wednesday on Shortey, voting 43-0 for a that accuses him of "disorderly behavior".

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.