Prices Tumble on API Build; EIA Report Next

US light crude was down 70 cents at $47.54 a barrel, also slipping towards a three-month low.

Saudi Arabia trailed behind in these two months, with its daily output averaging 9.95 million barrels in January, the data showed. Each OPEC nation has a specific domestic demand for oil based on population numbers and the share of oil and petroleum products in the energy mix and electricity generation. It then cut production by 166,000 bpd in January, but from that higher December level, taking it down to 4.476 mb/d, according to OPEC's secondary sources, or only slightly below its baseline and still above its targeted level as part of the deal. Price barely made it up to the retracement areas, much less the rising channel resistance for a continuation of the climb as bearish pressure remains in play. OPEC oil output cuts forced OPEC member Saudi Arabia to assist its rival oil producers. More than 30 supertankers are sitting off the coasts of Singapore and southern Malaysia filled with oil, despite a price structure that makes it unattractive to buy oil now and store it for sale at a later date.

"The risks that OPEC has painted itself into a corner can not be ignored and it may need to extend, or even increase, cuts if the response from shale producers is more vigorous than we now model", they said in a report. The Opec cuts were surely good enough to prevent a repeat of massive gluts seen in the yesteryears, but it has not proved anything beyond it.

Oil for April delivery also moved down Rs 26, or 0.80 per cent lower to Rs 3,219 per barrel in 1,229 lots. There are major doubts whether non-OPEC countries would be willing to extend cuts which also undermined expectations of any deal and WTI dipped to lows near $48.00 p/b in NY with Brent testing support below $51.00.

World's oldest spacewoman sets spacewalking record
The duo will be assisted by European Space Agency astronaut Thomas Pesquet, who carried out spacewalk last week with Kimbrough. Whitson will be making the eighth and ninth spacewalks of her career more than any other female astronaut.

Some still predict oil prices to rebound stronger, as the likes of Morgan Stanley and Citigroup Inc. expect higher prices in the second half of 2017.

Last week speculators cut more than 150,000 contracts betting on firmer USA and Brent oil prices, a record high.

Last week, Saudi Energy Minister Khalid Al-Falih told Bloomberg Television that OPEC would extend the deal beyond June if stockpiles were "still above the five-year average". He also downplayed the lack of compliance from Kazakhstan and Russian Federation, citing the fact that some of the non-OPEC countries "are trying to learn the process of controlling production not having done it before".

The American Petroleum Institute (API) reported that United States crude oil inventories soared by 4.5 million barrels in the week ending 17 March to reach 533.6 million barrels.

  • Ronnie Bowen