Martes, 06 Diciembre 2016

Oil dips on oversupply worry

US crude futures strengthened Monday before retreating in post-settlement trade as the market lost confidence Opec cuts would be sufficient to reduce oversupply given increased US drilling.
UPSTREAMONLINE.COM

US West Texas Intermediate crude rose early in the day and began to pare gains in the late afternoon, settling at $51.79 a barrel, up 11 cents or 0.21%, before retreating to as low as $51.11 a barrel. Brent crude settled at $54.94 a barrel, up 48 cents - or 0.88%- before retreating to $54.22 a barrel. Monday's retreat indicated a potential halt to the rally that drove the market up as much as 19% since Opec's agreement was struck on Wednesday. Last week's 12.2% increase was the largest one-week rise since February 2011. The market fell as investors shifted their focus to rising drilling, said Tariq Zahir, managing member of Tyche Capital Advisors in New York.

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