Published: Wed, May 30, 2018
Finance | By Cynthia Curry

Oil prices fall as Russia, US look to boost supplies

Oil prices fall as Russia, US look to boost supplies

Baker Hughes' weekly rig count, released on Friday, showed USA energy companies added 15 new oil rigs to production last week, taking total drilling activity to its highest since March 2015.

USA oil got some support as US crude inventories likely fell by 1.8 million barrels last week, a preliminary Reuters poll showed on Tuesday.

The fall in prices of oil for drivers has been welcome news as it has been for companies that purchase large amounts of energy.

US oil production has surged by more than 27 percent in the last two years to 10.73 million barrels per day (bpd). However, an oil expert said these are short-term blips and there are plenty of options for oil producers to ease price hikes.

At the moment the barrel of WTI is losing 1.32% at $66.53 facing the next down barrier at $65.73 (low May 28) seconded by $65.56 (low Apr.17) and finally $65.16 (100-day sma).

China has also raised concerns about whether enough oil is being pumped, according to a Saudi statement issued after Energy Minister Falih called China's energy chief on Friday to discuss cooperation between their countries and to review the oil market.

Oman raises death toll in aftermath of Cyclone Mekunu to 6
Salah is home to about 2,00,000 people and portion of it lost power after being hit by the storm. Civil defense authorities said they had set up 65 shelter centers in the two affected provinces.

Saudi Arabia, recently made a decision to do an initial public offering (IPO) of its state-owned company Aramco, and the future valorisation of the company will be based on the price of oil.

RECORD crude oil volumes exported from the United States will be heading to Asia in the next couple of months to take another piece of the market away from Russian Federation and producers in the Organisation of the Petroleum Exporting Countries (OPEC).

Recent data from the U.S. Commodity Futures Trading Commission suggests that the steep plunge in crude oil last week may have been part of a well-orchestrated plan by hedge fund managers to take out a few or the weaker longs, or to trap them at such high levels that they'll be forced to sell at unfavorable prices.

Oil traders believe the price may have already hit its ceiling, one analyst says. Without compensating supply from other members, this number looks likely to expand as the USA reimposes sanctions on Iran and the collapse of Venezuela's oil industry worsens.

Crude oil futures were hammered Tuesday in catch-up trade after the Memorial Day break. The price of oil is rising due to a supply problem, even of shale oil, largely produced by the U.S., which has also become one of the largest oil producing nations in the world in the past five years. U.S. President Trump last month criticized OPEC for contributing to higher crude.

The global sulfur limit on fuel oil will be set at 0.5% m/m (mass/mass) in 2020 down from the 3.5% m/m current global limits.

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