Stockpile Hike Leads to Plunging Oil Prices

An office worker walks past a logo of the Singapore Stock Exchange outside its premises in Singapore

An office worker walks past a logo of the Singapore Stock Exchange outside its premises in Singapore

Brent crude futures were trading at $49.94 per barrel at 0041 GMT, down 18 cents, or 0.4 per cent, from their last close. Brent is 7 percent below its open on May 25, when OPEC said they, along with producers outside of the group such as Russian Federation, would extend their oil output cuts through to the first quarter of 2018.

Crude inventories USOILC=ECI rose by 3.3 million barrels in the week ended June 2, compared with expectations for a decrease of 3.5 million barrels, the Energy Information Administration said.

If the EIA reports a draw, it would be the ninth straight decline for United States crude oil inventories, which could support oil prices.

Crude prices, in addition, continued to remain under pressure after several Saudi-led Gulf states cut diplomatic ties with Qatar on Monday claiming national security concerns.

OPEC's largest producer Saudi Arabia saw its production fall to 9.93 million barrels per day in May, down 40,000 barrels per day from the previous month, as survey panelists said exports were down significantly despite a rise in direct crude burn. But stubbornly high fossil fuel inventories - which have been maintained worldwide, but are most readily measured in the US due to open customs data - have prevented the measures from buttressing oil prices in a lasting way.

Marex Spectron said that the demand outlook for coming weeks from refineries was strong, also supporting prices.

According to the latest official data, the Indian basket, comprising 73 per cent sour-grade Dubai and Oman crudes, and the balance in sweet-grade Brent, closed trade on Monday at $48.58 for a barrel of 159 litres.

As Qatar is one of the OPEC member countries, this unprecedented move has instantly drawn world attention to the oil-producing region, sending shockwaves through the oil markets.

Crude stocks at the Cushing, Okla., delivery hub fell by 1.4 million bbl, the EIA said.

But tensions within the Organization of the Petroleum Exporting Countries could potentially impact on an agreement to cut production in order to support global prices.

Analysts say the cuts have created a floor for oil prices, which has benefited USA shale producers, who are aggressively expanding their operations and raising their oil exports.

Distillate inventories also rose this week by 1.75 million barrels, while inventories at the Cushing, Oklahoma, site fell by 1.56 million barrels.

Notícias recomendadas

  • Fans already lining up for Penguins' Stanley Cup parade

    And judging from signs and chants from the crowd, this championship was sweetened by the adversity the team overcame. Stan Schaffer, of South Park, remembered watching the Penguins celebrate their back-to-back wins in the '90s.

    Trump attacks Hillary Clinton again on Twitter for 'bleaching' emails

    They later concluded Clinton did not do anything illegal and declined to charge her. Clinton "destroyed phones w/ hammer, "bleached" emails, & had husband meet w/AG".

    Trump on Scalise's condition: 'He's in some trouble'

    Scalise, two Capitol Police officers, and another two staffers were wounded, before Hodgkinson was taken down in the shootout. Scalise and four others were shot Wednesday morning during a Republican practice for the annual congressional baseball game.
  • Non-Standard Finance PLC's (NSF) Buy Rating Reiterated at Shore Capital

    Meeder Asset Mgmt owns 5,738 shares or 0.01% of their United States portfolio. 2,839 are held by Enterprise Fincl Service Corp. First Eagle Investment Management Llc decreased Graphic Packaging Hldg Co (GPK) stake by 61.83% reported in 2016Q4 SEC filing.
    Leonardo DiCaprio rend son Oscar

    Leonardo DiCaprio rend son Oscar

    Car l'Oscar , acheté pour 600.000 dollars en 2012 par la société Red Granite, pourrait avoir été payé avec de l'argent détourné. L´acteur a été contraint de rendre sa deuxième statuette probablement acquise avec de l´argent sale.

    Trump keeps much of Obama's Cuba policy

    However, Trump stopped short of breaking diplomatic relations restored in 2015 after more than five decades of hostilities. The ban on doing business with GAESA and its subsidiaries should be another blow to the regime's finances.
  • Après Messi, le contribuable Ronaldo rattrapé par la justice — Espagne

    Après Messi, le contribuable Ronaldo rattrapé par la justice — Espagne

    A Bola affirme même que la décision de Ronaldo est " irrévocable et que le président Florentino Perez en a été averti". Le journal portugais parlait d'une offre de 180 millions d'euros pour Cristiano Ronaldo .
    Trump Denounces Reports Of Widening Russia Probe

    Trump Denounces Reports Of Widening Russia Probe

    The Twitter attacks came as Vice President Mike Pence hired a personal lawyer to represent him in the intensifying investigation. And it also suggests that Mueller isn't narrowing the scope of the investigation he took over on May 18 , he's widening it.
    Wife: Man who shot congressman wanted to work on tax policy

    Wife: Man who shot congressman wanted to work on tax policy

    There, agents recovered a cellphone, a computer and camera that are being processed for clues related to the rampage. Five people were wounded on Wednesday morning when a gunman opened fire at a baseball field in Alexandria, Virginia.
  • Uber considering the future of CEO Travis Kalanick

    This also comes at a time when Uber is facing an intellectual property dispute with Waymo over self-driving vehicle technology. Seeing Kalanick step down, even temporarily, would come as a surprise, given the large power that he wields at the company.

    Jana Partners LLC Buys Shares of 2956230 Liberty Interactive Corporation (QVCA)

    Mn Services Vermogensbeheer B.V. boosted its position in shares of Liberty Media Corporation by 7.5% in the first quarter. Equities analysts predict that Liberty Interactive Corporation will post $1.06 earnings per share for the current year.

    Admin revokes blocked program to protect immigrant parents

    DACA was created five years ago and, as of March 31, has protected 787,000 young immigrants, according to government data. Bortolleto said the administration has continued to maintain an adversarial stance toward undocumented immigrants.

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.