Oil prices dip on rising USA rig count

Oil Price Fundamental Daily Forecast – Rising US Production Concerns Pressuring Prices

Oil Price Fundamental Daily Forecast – Rising US Production Concerns Pressuring Prices

Until we start to see some inventories numbers this week, the biggest influences on crude oil prices are likely to be concerns over U.S.

Concerns are also being raised about the sustainability of the OPEC-led supply cuts which include Russian Federation.

An oil pump jack pumps oil in a field near Calgary, Alberta, Canada on July 21, 2014.

At 06:50 GMT, March WTI crude oil is trading $52.23, down $0.49 or -0.93% and April Brent crude oil is at $61.85, down $0.25 or -0.40%.

"Oil prices are still trying to figure out what lead to follow. On the one hand, there is the OPEC+ cut story, now coupled with increasing issues around Venezuelan supply", Vienna-based consultancy JBC Energy said. "Chinese trade talks are also seemingly not progressing very fast".

Energy firms in the United States last week increased the number of oil rigs operating for the second time in three weeks, pointing to a further rise in USA crude production, a weekly report by Baker Hughes said on Friday.

WTI (oil futures on NYMEX) kicked-off the week on a negative note and remained on the back foot, as the sentiment was dented by a rise in the USA rigs count while a shutdown of a large crude distillation unit in the U.S. state of IL fuelled crude demand concerns.

U.S. President Donald Trump said on Thursday he did not plan to meet with Chinese President Xi Jinping before the March 1 deadline, dampening hopes of a quick trade pact. The US delegation has already arrived in Beijing today for pre-negotiations ahead of the key meeting on the trade talks on February, 14 and 15. China has already said that it will retaliate if this increased tariff is imposed, leading to the U.S. saying tat it will impose duties on another $267 billion of Chinese imports.

Still, oil prices have been buoyed this year by output curbs from the Organization of the Petroleum Exporting Countries and its allies, including Russian Federation, a group known as OPEC+. This shutdown could decrease demand by 120,000 barrels-per-day (bpd).

USA sanctions on Venezuela, along with older sanctions on fellow OPEC member Iran, have also prevented crude prices from falling further.

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