LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS

Read in App
Business News » World News

Oil prices dip over doubts that recent rally will last

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Wed, Oct 04, 2017
12:22 pm
Reuters
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

Oil prices eased on Wednesday, pulled down by caution that a rally that lasted for most of the third quarter would not extend through the last three months of the year.

U.S. West Texas Intermediate (WTI) crude futures were at $50.16 per barrel at 0648 GMT, down 26 cents, or 0.5 percent, from their last close. They fell below $50 per barrel earlier in the session.

Brent crude futures were down 22 cents, or 0.4 percent, at $55.78 a barrel.

The drops came over concerns that a third-quarter market rally that had lifted Brent to mid-2015 highs by late September had been overdone.

"Fundamentals may not yet be strong enough to support a continued rally, especially in growth-dependent commodities such as oil," said Ole Hansen, head of commodity strategy at Denmark`s Saxo Bank in a quarterly outlook to investors.

Traders said that a so-called market rebalancing is now well underway, meaning that demand is no longer undershooting available supply.

The re-balancing is a result of strong consumption and also due to efforts led by the Organization of the Petroleum Exporting Countries (OPEC) to cut output by around 1.8 million barrels per day (bpd) in 2017 and the first quarter of next year.

"Compliance with the OPEC production cuts was over 100 percent in August (meaning members produced less than their quotas, on average) and U.S. oil inventories have been declining for several months now," said William O`Loughlin, investment analyst at Australia`s Rivkin Securities.

But rising production in the United States, which is not participating in the deal to cut output, has prevented prices from climbing further.

U.S. production hit 9.55 million bpd in late September, its highest level since July 2017 and not far off its 9.61 million bpd record from June 2015.

"The number of active drilling rigs in the U.S. increased last week, highlighting the fact that higher oil prices will inevitably lead to more production from U.S. shale. These factors have kept WTI oil in a relatively tight trading-range for several months now," O`Loughlin wrote in a note to clients.

Drillers added six oil rigs looking for new production in the week to Sept. 29, bringing the total count up to 750, according to energy services firm Baker Hughes.

Due largely to rising U.S. output, Saxo Bank`s Hansen said that "an extension of output curbs beyond March (2018) will be needed to ensure continued support for the oil market".

Traders said they would be watching for fuel inventory data from the U.S. Energy Information Administration (EIA), due to be published later on Wednesday, for further market guidance.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

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.

TAGS:
Economy
RELATED NEWS
Expert Views: BIG! India's retail inflation eases to 4.59% in December Expert Views: BIG! India's retail inflation eases to 4.59% in December
Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands Budget 2021 Expectations – HOME BUYERS to benefit if Govt accepts this demand; JLL CEO lists following demands
Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED Jobs, land prices, Covid-19 vaccine, rural India, household savings, NBFCs, banks, consumption, capex - Positives and Negatives | EXPLAINED
Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED    Economy, markets, FIIs, chemicals, IT and Pharma - Make money, as India powers to new highs | EXPLAINED
Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY! Setback for China – Trend reversing in favour of India; SFI lands big blow! Know here WHY!

LATEST NEWS

In chat with Anil Singhvi, Sandeep Jain recommends Goldiam International as a stock to buy

Republic Day Parade 2021: When and where to watch live telecast of R-Day Parade - timing to traffic routes, all details here

NEET, IIT JEE, NDA, CDS, UPSC exams: Free coaching for students, Abhyudaya scheme, announced by Yogi Adityanath-led UP government

Stock Market Holidays 2021 India: Trading to remain suspended on Sensex, Nifty, others Tomorrow for Republic Day 2021

Stock Market Holidays 2021 India: Sensex, Nifty, other markets closed today for Republic Day celebration

7th Pay Commission Latest News: Salary up to Rs 2.08 lakh plus NPA; take the first step to get this government job available on upsc.gov.in

PNB account holder? Alert! Do this before March 31 or you won't be able to transfer money

Republic Day Parade 2021 LIVE Telecast: Watch R-day parade coverage as it happens on this Ministry of Defence app, also check parking and route map

Vi vs Jio vs Airtel: Check some of the best cheap prepaid recharge plans for you | Full details here

PUBG Mobile India launch: Important notification issued by govt | Check reason for BIG Trouble here

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved