Lunes, 26 Junio 2017

Oil inches higher in early trade

Weaker dollar gives some support but oversupply worries remain as US drillers add more rigs.
UPSTREAMONLINE.COM

REUTERS

Oil prices rose early on Monday on a weaker dollar, but increased US drilling activity stoked worries that a global supply glut would persist despite efforts by some producers to curb output.
 
Brent crude futures were up 24 cents, or 0.53%, at $45.78 per barrel early on Monday.
 
US West Texas Intermediate crude futures were up 21 cents, or 0.49%, at $43.22 per barrel.
 
The US dollar index stayed low on Monday against a basket of currencies amid fading expectations for the Federal Reserve to hike interest rates again later this year. A weaker dollar also makes oil cheaper for countries using other currencies.
 
"Commodities stabilised after a turbulent week where most sectors suffered large falls," ANZ bank said in a note. "A slightly weaker US dollar also helped improve investor appetite."
 
Although oil prices have bounced back from 10-month lows, they are still down about 13% since late May, when Opec and some other producers agreed to extend a deal to reduce output by 1.8 million barrels per day until the end of next March.
 
But crude supplies in the US, which is not part of the Opec-led deal, have been dampening the impact of curbs.
 
US energy companies added 11 oil rigs in the week to 23 June, bringing the total count up to 758, the most since April 2014, according to data from energy services firm Baker Hughes.
 
Amid the rise in US drilling activity, money managers cut net long US crude futures and options holdings to their smallest long position since November.