@Crude Oil Prices Settle Lower but Remains on Track for Weekly Gain(29/09/2560)

29 Sep 2017
62 times

Investing.com – Crude oil prices settled lower on Thursday as traders unwound some of their bullish bets on crude but sentiment on oil remained positive following inventory data on Wednesday showing a surprise draw in crude oil supplies. On the New York Mercantile Exchange crude futures for November delivery fell 1.1% to settle at $51.56 a barrel, while on London's Intercontinental Exchange, Brent fell 0.78% to trade at $57.17 a barrel. Crude oil prices fell as investors appeared to take profit on the recent rally which has seen oil prices hit multi-month highs on expectations that higher global demand would nudge the market closer toward rebalancing. Geopolitical tensions, meanwhile, limited downside momentum as Turkey vowed to deal only with the Iraqi government on crude oil exports after Iraqi Kurdistan voted overwhelmingly in favour of independence earlier this week. The pipeline linking northern Iraq to the Turkish port of Ceyhan carries 500,000-600,000 barrels of crude per day. Crude oil prices are on track extended their weekly winning streak to four weeks following strong gains earlier this week on the back of data showing weekly crude exports jumped to their highest on record while refinery activity showed signs of stabilizing. Inventories of U.S. crude fell by roughly 1.9m barrels in the week ended Sept. 22, the Energy Information Agency reported Wednesday, confounding expectations of a rise of 3.4m barrels. “Hurricane Harvey disrupted refining operations in the Gulf Coast, which resulted in notable oil supply builds” because of lower refinery input demand, and sizable gasoline draws due to lower refinery runs, said Richey, in his daily newsletter. However, “operations seem to have stabilized based on this most recent EIA report.” The widening spread between brent and crude oil prices reached $7 earlier this week, prompted a sharp rise in demand for crude, spurring an increase in exports. The U.S exported a record 1.5m barrels per day of crude oil last week, the EIA said Wednesday. The recent uptick in U.S. oil prices - above $50 a barrel – has spurred drilling activity, however, raising investor expectations of an uptick in shale output, which could weigh on upside momentum. Baker Hughes on Friday, will provide investors with its weekly update on the number of U.S. rigs drilling for oil. Source: investing.com (28/09/2017)

Rate this item
(0 votes)