Oil prices fall as rising US production counters OPEC supply cuts
Oil prices fell more than 0.5 percent on Wednesday as bullish output forecasts by two big U.S. producers outweighed recent OPEC-led efforts to rein in crude production.
Oil prices fell more than 0.5 percent on Wednesday as bullish output forecasts by two big U.S. producers outweighed recent OPEC-led efforts to rein in crude production. U.S. West Texas Intermediate (WTI) crude futures were at $56.15 per barrel, down 41 cents, or 0.7 percent. WTI futures closed little changed on Tuesday.
International Brent futures had yet to trade after closing up 0.3 percent on Tuesday.
"Oil is likely to play `tug of war` here, with production cut promises to be countered with rising output from the U.S.," said Edward Moya, senior market analyst, OANDA. Chevron Corp and Exxon Mobil Corp released duelling Permian Basin projections on Tuesday pointing to big increases in shale oil production.
If realized, the increases would cement the rivals as the dominant players in the West Texas and New Mexico field, with one-third of Permian production potentially under their control within five years. Data from the American Petroleum Institute (API), an industry group, also showed larger-than-expected U.S. crude stockpiles.
U.S. crude inventories rose by 7.3 million barrels in the week ending March 1 to 451.5 million, compared with analysts` expectations for an increase of 1.2 million barrels, API said. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.1 million barrels.
Watch this Zee Business video here:
The rise in North American production added to concerns over a much anticipated U.S.-China trade deal. U.S. Secretary of State Mike Pompeo said President Donald Trump would reject any trade deal that is not perfect, but added the White House would keep working on an agreement.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
RCB vs CSK IPL 2024 Ticket Booking Online: Where and how to buy RCB vs CSK tickets online - Check IPL Match 68 ticket price, other details
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
Go Digit IPO: Should you subscribe Virat Kohli, Anushka Sharma-backed issue? Here's what Anil Singhvi suggests
Women loco pilots speak about their struggle; many men have to be informed even for 'washroom break' in a moving train
Bandhan Bank Q4 FY24 Results Preview: PAT, interest income likely to grow in almost double digits; asset quality may improve
Gold and Silver rate today (May 16, 2024): Yellow metal futures subdued; white metal hits record high breaches Rs 87,000 mark
06:46 AM IST