Oil prices fall on recovery in U.S. output

Oil prices fall on recovery in U.S. output

Oil prices dropped more than 1 percent on Friday as a bounce-back in U.S. production outweighed ongoing declines in crude inventories, Reuters reports.

If Friday’s falls last, this week will see the biggest weekly price declines since October.

Brent crude futures LCOc1 were at $68.65 a barrel at 0802 GMT, down 66 cents, or 0.95 percent, from their last close. On Monday, they hit their highest since December 2014 at $70.37.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $63.23 a barrel, down 72 cents, or 1.1 percent, from their last settlement. WTI marked a December-2014 peak of $64.89 a barrel on Tuesday.

Traders said the lower prices were prompted by a recovery in U.S. oil production after a recent drop, as well as by an expected fall in demand when winter ends in the northern hemisphere.

U.S. crude oil production C-OUT-T-EIA stood at 9.75 million barrels per day (bpd) on Jan. 12, data from the Energy Information Administration showed.

Output had fallen to 9.49 million barrels at the start of the year, due largely to a cold snap that shut down some production.

Most analysts expect U.S. output to break through 10 million barrels per day soon.

Analysts also pointed to excessive long positions in financial oil markets as a likely brake on any upward momentum in prices, with many traders soon likely to cash in on recent price rises, which have seen crude jump by around 14 percent since early December.

Jeffrey Halley, market strategist at futures brokerage Oanda in Singapore, said crude futures had been at “overbought levels for an extended period as record speculative longs built on the futures markets”.

ANZ bank said “an upcoming soft patch in demand and extreme investor positioning does open up the possibility of some short-term weakness”.

Overall, however, oil prices remain well supported, and most analysts do not expect steep declines.

The main price driver has been a production cut by a group of major oil producers around the Organization of the Petroleum Exporting Countries (OPEC) and Russia, who started to withhold output in January last year.

The supply cuts by OPEC and its allies, which are scheduled to last throughout 2018, were aimed at tightening the market to prop up prices.

In the United States, crude inventories fell 6.9 million barrels in the week to Jan. 12, to 412.65 million barrels.

That’s their lowest seasonal level in three years and below the five-year average marker around 420 million barrels.

India could be next happening market for SPAC-driven investor frenzy
India could be next happening market for SPAC-driven investor frenzy
Amazon, Google vie for piece of India digital payment market
Amazon, Google vie for piece of India digital payment market
India’s Wipro to acquire UK company for $1.45 bn
India’s Wipro to acquire UK company for $1.45 bn
Loading Bars
Latest
U.S. Senate passes 1.9-trln-USD relief bill after marathon overnight session
UK records another 6,040 coronavirus cases, 158 deaths
India could be next happening market for SPAC-driven investor frenzy
Amazon, Google vie for piece of India digital payment market
India’s Wipro to acquire UK company for $1.45 bn
Indian-American named 1st VP, COO of Federal Reserve Bank of New York
Indian Govt to support Sri Lanka – Keheliya
Canada thanks India for sending 500,000 doses of COVID-19 vaccines
India proposes inclusion of Chabahar Port in INSTC multi-lateral corridor project
Nepali Parliamentarians take COVID-19 vaccine ahead of reinstated lower house meeting
Twitter tests audio chat tool Spaces on Android in India
WHO reports over 353,000 new daily cases of COVID-19
U.S. administers 87.9 million doses of COVID-19 vaccines: CDC
Foreign diplomats acquainted with Gulebird HPP in liberated Lachin of Azerbaijan (PHOTO)
Uzbekneftegaz eyes increasing daily production of liquefied gas at Shurtan oil&gas dep’t
Maduro receives Russia’s Sputnik V COVID-19 vaccine
Prices for fuels and lubricants increase in Kyrgyzstan 10-15% in one month
Turkey reports 11,770 COVID-19 cases in 24 hours
Iran, Iraq confer on expansion of transportation coop.
Visitors from Central Asia countries to enter Georgia with PCR tests
Armenian occupants seriously damage Azerbaijan's ecology - Ministry (PHOTO)
Paris police clear Seine riverside over lack of social distancing
Twitter's Dorsey auctions first ever tweet as digital memorabilia
Tibetan spiritual leader Dalai Lama gets vaccine shot
Five people killed in Ukrainian bus crash in Poland
Azerbaijani oil & gas sector's weekly review
Air France plane forced to land in Sofia due to disruptive passenger
Turkmenhimiya SC opens tender for construction of plants for technical iodine production
Georgian GlenBerries company launches arrangement of greenhouses for growing vegetables and fruits
Azerbaijani Ministry of Education implementing innovative projects with Microsoft
Bahar Azadi gold coin price continues to fall in Iran
We successfully completed all steps taken, including ending occupation of Nagorno-Karabakh - Erdogan
WHO official advises against introducing ‘immunity passports’ for travelers now
Russia logs 11,022 new COVID-19 cases
Azerbaijan confirms 149 more COVID-19 recoveries
Turkish FM pays official visit to Turkmenistan (PHOTO)
Iran reveals COVID-19 data for March 6
Uzbekistan transfers funds to UN Trust Fund for Aral Sea region
Turkish FM announces trilateral meeting between Azerbaijan, Turkey, Turkmenistan
Lybian diplomat harshly condemns Armenia using mosque in Azerbaijani Fuzuli as stable
Iran discusses relations with IAEA
Iran's nuclear activities completely peaceful - Rouhani
Who could say that Azerbaijan was wrong when the war started? - President Aliyev
New stage already evident in economic sphere, period of transparency, precision, when monopolies suppressed - President of Azerbaijan
As Commander-in-Chief, I know where our weaknesses are - Azerbaijani president
Today we are working on equal agreement with EU, it has been agreed by 90% - President of Azerbaijan
At new stage, we need to further deepen political dialogue - President Aliyev
Why are our “democrats” silent? Why aren’t they saying that Pashinyan should become example for us? - Azerbaijani president
Popular Front-Musavat ruined relations with almost all countries in just one year - Azerbaijani president
Azerbaijan today is country conducting large-scale reforms - President Aliyev
We have no problems with any political entity in country - President of Azerbaijan
If there were no outside help now, Armenia would be gone, completely - President Aliyev
If we are building road, asphalt is ours, bitumen is ours, gravel is ours, so why should we take external credits - Azerbaijani president
We never begged like Armenia, never humiliated ourselves, never asked anyone for help - Azerbaijani president
2003-2020 period was one of preparations - President Aliyev
Younger generation should know at what cost we were able to maintain independence - Azerbaijani president
Today Armenia shies away from cooperation, we will force them - President Aliyev
Absolute majority of participants in battles are people who were children when I came to power in 2003 - President of Azerbaijan
To put it mildly, Luxembourg does not have special political weight in world for its foreign minister to make any claims to us - President Aliyev
So many accused me – Ilham Aliyev does not want peace - Azerbaijani president
Hands of Popular Front-Musavat tandem were imbrued in blood of Azerbaijani people - President Aliyev
Country was in absolutely uncontrollable state during PFPA-Musavat tandem - President Aliyev
It is necessary to plan future of country in such way as to ensure long-term sustainable development - President Aliyev
I highly appreciate activities of “91”, for whom national interests were paramount at time - President Aliyev
Establishment of New Azerbaijan Party was necessity - President Aliyev
Heydar Aliyev's unambiguous, resolute steps related to independence were highly appreciated by people - President of Azerbaijan
Turkish investors have interest in Azerbaijan's business environment - Turkey's MUSAID
We turned Azerbaijan into country enjoying great authority, respect in international arena - President Aliyev
We are a country that creates realities - President of Azerbaijan
Program I announced after presidential elections is being implemented, we are consistently achieving our goals - President Aliyev
Many important events taken place in life of country in three years since sixth congress of New Azerbaijan Party - President Aliyev
Reps of diplomatic corps in Azerbaijan visit Fuzuli airport's construction area
Uzbekistan reveals its COVID-19 data for March 6
U.S. Embassy Announces 2021-2023 GIPA Master’s Degree Program in Journalism
Georgia reports 355 new cases of COVID-19 cases for March 6
Azerbaijan shows footage from Zangilan's Garadere village (VIDEO)
Democrats advance Biden's $1.9 trillion COVID-19 bill in marathon Senate session
President Ilham Aliyev congratulates Azerbaijani women on International Women's Day
Iran's Revolutionary Guard has disrupted airplane hijacking attempt
Diplomats accredited in Azerbaijan start visits to liberated lands (PHOTO)
Iranian currency rates for March 6
Azerbaijani Nakhchivan's Separate Combined Arms Army holding live-fire training classes (PHOTO/VİDEO)
Azerbaijani Agency for Development of SMEs continues to support self-employment program
COVAX delivers over 20 mln doses of COVID-19 vaccines to 20 countries - WHO
Interest-free funding regulation may boost Turkey's home sales
Iran records 0.8% economic growth under sanctions, pandemic
2021 Index of Economic Freedom: Georgia 12th in world and 7th in Europe
Electricity consumption in February amounted to 1.6 bln kWh in Kyrgyzstan
Chinese investors have major potential for attracting cargoes to Georgian Anaklia seaport
Belgium announces phased plan to ease COVID-19 restrictions
More than 20,000 U.S. organizations compromised through Microsoft flaw
U.S. detained nearly 100,000 migrants at Mexico border in February
Number of German enterprises in Uzbekistan increases in last four years
Spike in Canada exports to U.S. leads to surprise January trade surplus
Brazil working with Biden on climate, Amazon deforestation - foreign minister
Luxembourg ratifies protocol on tax agreement with Russia
U.S., Britain announce 4-month tariff suspension in aircraft subsidy dispute
Aeroflot to make flights to Seychelles from April 2
Kazakh MFA talks great importance of developing relations with Turkic-speaking countries
Georgia expands list of countries from which tourists can travel to country
All news