Fidelity bank card banner Camano banner
Oil prices crash

By Ayenat MersieEjigu on 09/02/2018

Views: 1,345


Oil prices fell to their lowest in seven weeks on Thursday amid fears of rising global supplies after Iran announced plans to increase production and U.S. crude output hit record highs.

Brent futures fell 70 cents, or 1.1 percent, to settle at $64.81 a barrel, their lowest close since Dec. 20.

U.S. West Texas Intermediate (WTI) crude, meanwhile, was down 64 cents, or 1 percent, to settle at $61.15, its lowest close since Jan. 2.

Both benchmarks fell for the fifth straight day, the longest losing streak for Brent since November 2017 and for WTI since April 2017.

Brent futures have lost as much as 15 percent since hitting a four-year high above $71 in late January.

“Oil prices remain under pressure in today’s trading session as market participants continue to digest yesterday’s bearish oil inventories report,” said Abhishek Kumar, Senior Energy Analyst at Interfax Energy’s Global Gas Analytics in London.

The U.S. Energy Information Administration (EIA) on Wednesday said crude production last week rose to a record high of 10.25 million barrels per day (bpd). At that level, U.S. production would overtake the current output in Saudi Arabia, the biggest producer in the Organization of the Petroleum Exporting Countries. (EIA/S)

OPEC and other producers, including Russia, have cut production since January 2017 to force down global inventories, but these cuts have been somewhat offset by rising U.S. oil production.

Oil prices were also pressured by an announcement from Iran that it is looking to boost production over the next four years.

“The Iranians are looking to increase production...despite their alleged adherence to the OPEC-Russia deal. Everybody is itching to produce more oil,” said John Kilduff, partner at energy hedge fund Again Capital LLC in New York.

Traders also noted the restart of the Forties pipeline in the North Sea, added to losses in crude prices.

The pipeline, which carries around a quarter of all North Sea crude output and roughly a third of Britain’s offshore natural gas production, shut on Wednesday for the second time in two months after a valve closure at a Scottish facility.

“It is now clear that oil prices in late January were too high to keep the oil market balanced in the long term,” Commerzbank analysts wrote. “This is because U.S. oil production is now rising so sharply that there is a risk of renewed oversupply if OPEC does not voluntarily renounce market share.”

Earlier this week, the EIA projected U.S. production would rise to a record high annual average of 10.6 million bpd in 2018 and 11.2 million bpd in 2019, up from 9.3 million bpd in 2017. (EIA/M)

The current all-time U.S. annual output peak was in 1970 at 9.6 million bpd, according to federal energy data. (Reuters)

Source News Express

Posted 09/02/2018 11:45:21 AM

 

 

CLASSIFIED ADS

 

You may also like...
Better days ahead for Deltans, says Okowa

Polling units controversy: Restore confidence in INEC, Umeh...

Chibok girls in tearful reunion with families

Ibeto group, Chinese coy to establish 2 cement...

Gas leak reported from Agip’s oil field in...

KWASU to develop drones for oil theft, pipeline...

Crocodile eats woman and her five-year-old baby

Buhari calls for increased pace of African economic...

Obama moves to inspire African youth, holds Town...

Former president accepts to become cabinet minister

Court jails undergraduates for detaining randy lecturer caught...

Military trails terrorists who abducted women and children...

 

Latest News Day TB Joshua took Jesus’ hometown by storm Chartered Accountant, partner found dead in Lagos residence Igbo leaders meet in Ebonyi over 2023 presidential project We’re re-strategising to vanquish Boko Haram — Buratai Nigerian journalist facing terror charges slammed with N100m bail INEC Server: Atiku, PDP head to Supreme Court Mafia boss escapes from prison HDP presents cases against Buhari, INEC as Presidential Election Petitions Tribunal resumes sitting NPA clarifies position on $2.6bn Badagry Deep Seaport project Presidency hails rejection of PDP’s request to inspect INEC’s server Election Server: INEC’s behaviour unfortunate — Obi Oyo APC dares Makinde

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (498,194 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (427,153 views) Shameless Genevieve Nnaji exposes breasts in public (367,402 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (313,331 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (278,011 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (244,871 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (235,382 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (217,373 views) 10 cars more expensive than Jets (215,005 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (205,660 views) Lagos plane crash: Journalist releases victims’ names (185,577 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (184,676 views)

 

NNPC 2019 National Science Quiz Competition

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (94) Business & Economy (4,324) Business Verdict (75) Columnists (1,055) Complaints & Requests (95) Enterprise & Opportunities (209) Entertainment (627) Features (767) Global Business Monitor (384) ICT Monitor (53) International (3,622) Interview (184) Live Commentary (30) Love Matters (162) Maggie's Blog (314) News (47,765) Opinion (1,268) Pidgin (17) Politics (11,068) Religion (1,033) Sports (2,050) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera