dglobalnews.com Crude Oil Accelerates Higher To Extend Win Streak
Published: Wed, June 28, 2017
Markets | By Armando Jensen

Crude Oil Accelerates Higher To Extend Win Streak

Crude Oil Accelerates Higher To Extend Win Streak

Oil prices were sharply higher in North American trade on Tuesday, putting futures on track for their fourth up session in a row, as investors looked ahead to weekly data from the US on stockpiles of crude and refined products.

USA benchmark West Texas Intermediate (WTI) prices were trading 1.23 per cent higher at $43.54 per barrel this morning. USA crude futures ended the session up 86 cents, or about 1.98 percent, at $44.24 per barrel.

The raises are suggesting that the market is somewhat looking optimistic so far this week after last month's losses.

"Traders are also looking ahead to the EIA Energy Conference in Washington, where US shale oil producers are expected to give their view of current market conditions".

The price of oil has fallen as concerns over a global supply glut have yet to subside, and OPEC-led production cuts have had relatively little impact.

Despite the cuts, which started in January, markets remain well supplied due to rising output elsewhere.

However, Nigeria and Libya have raised output.

News from other markets show, an increase of 63 cents to $15.42 was observed in shares of Home Capital Group.

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"For one thing, United States crude oil production continues to rise and inventories remain high".

Since the deal was ratified, the oil price (WTI) has declined more than 15 percent.

Analysts at Bank of America-Merrill Lynch said demand had not grown quickly enough to absorb excess output.

In December 2016, OPEC and 11 countries outside the cartel agreed to withdraw 1.8 million barrels per day from the oil market in the first half of 2017.

Commerzbank said in a research note was quoted by the news agency as saying: "Short-term financial investors also significantly scaled back their net long positions in Brent on the ICE last week. and find themselves at their lowest level in a year and a half".

Libya's oil production stands at about 935,000 barrels per day (bpd) this week after touching as high as 950,000 bpd last week, Libyan oil sources said.

The commodity has fallen almost 20 percent year to date, the biggest first-half slide in 20 years, according to Reuters. The contract rose 37 cents, or 0.9 percent, to $43.38 on Monday.

"We don't think we're going to go below the low 40s". Non-OPEC nations must also cut production in order to reverse the supply glut.

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