US oil plunges more than 2 percent on supply glut woes

US oil plunges more than 2 percent on supply glut woes

Crude futures lost ground in early Asian trading on Monday, with US oil plunging more than 2 percent, pressured by a global supply surplus despite a cut in the number of US rigs for an eleventh week out of 12, Reuters reported.

US crude's West Texas Intermediate (WTI) January contract CLc1 had dropped 91 cents, or 2.17 percent, to $40.99 a barrel by 02:15 GMT. That was near levels seen on Friday before the US crude December contract expired.

Benchmark front-month Brent futures for January LCOc1 fell 60 cents, or 1.34 percent, to $44.06 a barrel, after ending up 48 cents at $44.66 a barrel on Friday.

"The burden of carrying high US crude oil inventories is large," Kang Yoo-jin, commodities analyst at NH Investment and Securities in Seoul, said in a note on Monday.

"The markets would likely rebound only if they saw a fall in US crude inventories, while declining US crude output and seasonal demand provide some support to oil at low prices."

Venezuela's oil minister said on Sunday that OPEC cannot allow an oil price war and must take action to stabilize the crude market soon. When asked how low oil prices could go in 2016 if OPEC doesn't change its policy, he said: "Mid-20s."

BMI Research, part of the Fitch ratings agency, said: "What is underway now is a structural market rebalancing in which low oil prices clear out high cost production - a relatively small part of which is US shale. It is not the result of OPEC policy, but of the basics of supply and demand."

US crude was briefly supported on Friday as US drillers removed 10 oil rigs in the week ended Nov. 20, the biggest weekly decline since late October, bringing the total rig count down to 564, oil services company Baker Hughes Inc (BHI.N) said in its closely followed report.

US crude's December futures CLZ5 which expired on Friday ended 15 cents down at $40.39 after hitting a low of $38.99, the cheapest since Aug. 27.

Markets were keeping an eye on developing geopolitical tensions in the oil-producing Middle East as Jordan's King Abdullah, a US ally, will hold talks in Moscow on Tuesday with Russian President Vladimir Putin on how to tackle "terror groups" led by Islamic State in Syria, an official source said.

Meanwhile, Algeria's energy earnings are forecast to fall to $26.4 billion next year after low oil prices cut into the OPEC nation's economy, Finance Minister Abderrahmane Benkhalfa said on Sunday.

Kyrgyzstan's referendum on new Constitution takes place, turnout was 36.75%
Kyrgyzstan's referendum on new Constitution takes place, turnout was 36.75%
Local elections and referendum in Kyrgyzstan: Voting ends
Local elections and referendum in Kyrgyzstan: Voting ends
President of Kyrgyzstan casts vote in local council elections, referendum
President of Kyrgyzstan casts vote in local council elections, referendum
Loading Bars
Latest
South Korean PM arrives in Tehran
Kyrgyzstan's referendum on new Constitution takes place, turnout was 36.75%
Turkey to emerge from auto chip crisis through local production
Trend, Kabar news agencies talk joint projects, agree to expand co-op
Iran's Saipa Group declares its manufacturing data
Uzbekistan to commission its first solar power plant in September
Exports from Iran's Isfahan Province decreases
Iran - among major countries in terms of diversity in nuclear industry
Iran’s Bahar Azadi gold coin price still falling
Cargo transportation via Baku-Tbilisi-Kars railway in Q1 2021 increases
Iran's Energy Exchange announces products to be on sale on April 12
Pakistan extends full support for reconstruction of Azerbaijani liberated lands - expert
Northeastern Iranian Prov exports $3b non-oil products
Kazakhstan reveals plans on rising petrochemicals production
Int'l community should be involved in restoration of Azerbaijani liberated lands - expert
Azerbaijani FM takes part in round table organized by ADA University (PHOTO)
Europe needs a more ambitious COVID recovery plan, says France's Beaune
Azerbaijan publishes latest data on vaccinated citizens
Local elections and referendum in Kyrgyzstan: Voting ends
NCDC Head: Georgia's epidemiological situation deteriorates
Turkey successfully tests hybrid rocket engine for moon mission
Azerbaijan confirms 2,414 more COVID-19 cases, 1,695 recoveries
Africa's COVID-19 cases pass 4.34 mln: Africa CDC
Those who ordered missile strikes on Ganja are responsible for war crimes - top official
Glad to see that Nagorno-Karabakh conflict is over - Hungarian official
Khazar Consortium in Turkmenistan opens tender for plumbing materials purchase
Azerbaijan showed great heroism during Karabakh war - Turkish Presidential Administration rep (Exclusive) (VIDEO)
Iran - one of radioactive drugs exporters
Turkey names 2M2021 volume of cargo shipment via local ports from Ukraine
Visit of Turkic Council’s delegation to Azerbaijan’s Ganja city starts (PHOTO)
Goal of Turkic Council’s delegation's visit to Aghdam was to see Armenian savagery - Assistant to president
Azerbaijan's Aghdam - clear example of urbicide, says top official (PHOTO)
UAE selects first Arab woman for astronaut training
Azerbaijan moving to new stage of its development – Uzbek Information and Mass Communications Agency rep
Turkmenistan Railways opens tender for purchase of material, technical resources
Cargo movements in Iran’s Bushehr port grow
Kazakhstan’s Vagonservice company opens tender to buy oil filters
Situation in Azerbaijan’s Aghdam district - unprecedented barbarism - Turkish Presidential Administration rep (VIDEO)
Iran reveals COVID-19 data for April 11
Indonesia's 6.1-magnitude quake leaves 8 deaths
Delegation of Turkic Council reviews building of Aghdam Drama Theater destroyed by Armenians (PHOTO)
Azerbaijani Finance Ministry to auction mid-term government bonds
Russia reports over 8,700 daily COVID-19 cases
Turkmen company exports batch of formwork sheets to Turkey
Delegation of Turkic Council visits Azerbaijan’s Aghdam Juma Mosque (PHOTO/VIDEO)
Delegation of Turkic Council visits Imarat cemetery destroyed by Armenians (PHOTO/VIDEO)
President Ilham Aliyev plays very important consolidating role in Turkic Council - SecGen (EXCLUSIVE)
Buy/sell operations at Iran Mercantile Exchange disclosed
Georgia reports 707 coronavirus cases, 592 recoveries, 8 deaths
Uzbekistan, Turkey strengthen trade, economic co-op
Visit of Turkic Council's delegation to liberated Aghdam starts (PHOTO)
Weekly review of Azerbaijani precious metals market
8 rescued, 21 trapped in coal mine accident in Xinjiang
Iran discloses details of exports from industrial parks of Semnan Province
Accident reported at Iran's nuclear facility
Copper ores and concentrates rank first in list of Georgian export
Azerbaijani MoD shows footage from Fuzuli's Ashaghi Rafadinli village (VIDEO)
President of Kyrgyzstan casts vote in local council elections, referendum
India records over 150,000 daily COVID-19 cases, tally at 13,358,805
Saudi-led coalition intercepts Houthi drone
Turkmenistan signs decree on rice production
Number of enterprises put into operation in Iran's Gilan Province revealed
Azerbaijani Gadabay's Executive Office to engage landscaping services via tender
Turkish Airlines to put its 737 Max jets back in the air next week
Kazakh COVID-19 vaccine to be bottled in Turkey
Submarine cable to connect electrical networks of Georgia, Europe to be additional direct channel for telecommunication traffic
IMF, World Bank urged to contain pandemic with fair, efficient distribution of vaccines
South Korean battery makers agree last-minute deal in boost to Biden's EV policy
Egypt, Sudan reject Ethiopian proposal for data sharing on Renaissance dam
Bezos, Musk top Forbes' record-setting billionaire list
Turkey registers more than 52 600 new coronavirus cases
China-Brunei trade grows by over 70 pct in 2020
Argentina's economy minister heads to Europe to woo finance officials over debts
US boosts imports of Turkish-made clothes
Turkey sends off 2nd boron export train to China
First kidney transplant performed in Turkmenistan
Bahar Azadi gold coin price continues to fall in Iran
Iran unveils data of gasoline and petrochemicals exports
New transmission line to provide opportunities for both Georgia’s and EU energy network - expert
Weekly review of key events in Azerbaijan's transport sector
China fines Alibaba record $2.75 billion for anti-monopoly violations
Italy reports 344 coronavirus deaths on Saturday, 17,567 new cases
Azercell’s “Kabinetim” mobile app exceeded 1 million downloads
Pakistani FM to visit Tehran
Funeral for UK's Prince Philip to be held on April 17
Pinterest becomes latest platform to appoint Turkey representative
Italy's economy seen growing 4.1% this year
Volume of cargo loaded, unloaded in Iran’s Bandar Lengeh port announced
Turkmenistan’s growth of trade turnover in 1Q2021 announced
Turkish electrical goods' 1Q2021 export to Uzbekistan spikes
Azerbaijani president's assistant talks Turkic Council media co-op's systematization
Hungary considers Turkic Council member states important partners
Iran's Energy Exchange announces products to be on sale on April 11
Uzbekistan ready to actively partake in restoring Azerbaijan's liberated territories
Azerbaijan confirms 2,192 more COVID-19 cases, 1,554 recoveries
Turkey did its best in media coverage of Azerbaijan's Patriotic war - presidential administration
Azerbaijani president's assistant meets with Turkic Council's secretary-general
Briefing of Turkic Council's high-ranking media officials held in Baku (VIDEO)
Anti-Turkic campaigns periodically carried out - Azerbaijani president's assistant
Azerbaijan's victory in Second Karabakh War is victory for entire Turkic world - top official
All news