Oil off as U.S. rig count rises, OPEC eyes output cut extension Commodities 51 minutes ago (Mar 27, 2017 08:32 AM ET ) Investing.com – Oil was lower Monday as U.S. drilling activity continued to pick up.
That outweighed talk about a possible extension of an output cut by major producers to address the global supply glut.
weekly data Friday showed an increase in the U.S. rig count of 21 to 652, the highest level since September 2015.
Adherents to the agreement met in Kuwait over the weekend to review compliance with the cuts and a possible extension of the accord beyond June.
Oil falls on rising U.S. drilling, uncertainty of OPEC-led cut extension
“We believe that the rebalancing of the oil market is in fact making progress,” it said, adding that an OPEC-led extension of the production cut was therefore not needed.
ReutersUPDATE 3-Oil falls on rising U.S. drilling, uncertainty of OPEC-led cut extension* OPEC, non-OPEC producers review extension of production cuts * However, no firm decision taken on extending reductions * Rising U.S. drilling, production erode OPEC’s output cut * WTI discount to Brent widens * Goldman Sachs says oil markets are rebalancing (Updates prices) By Henning Gloystein SINGAPORE, March 27 (Reuters) – Oil prices fell on Monday, pulled down by rising U.S. drilling activity and by doubts whether an OPEC-led production cut initially due to end in mid-2017 would be extended.
In the United States, West Texas Intermediate (WTI) crude futures were down 41 cents, or 0.85 percent, at $47.56 a barrel.
[nL2N1H11RA] Since mid-2016, U.S. oil production has risen by 700,000 barrels per day (bpd), or 8.3 percent, to 9.13 million bpd, government data shows .
Vijayakar said there also “seems to be a difficulty in reaching consensus on extending the production cuts”.
Oil slips toward $50 on doubts over duration of output cut
Oil also came under pressure from further evidence that higher prices as a result of the OPEC-led supply cut are helping boost supplies in the United States.
“Against a backdrop of rising U.S. crude output and underwhelming OPEC-led efforts to normalize bulging global oil inventories, positives are in short supply.”
Despite ample inventories and rising U.S. output, Goldman Sachs said the market was rebalancing and it may not be necessary to keep output curbed.
“These are troubling times for oil bulls,” said Stephen Brennock of oil broker PVM.
LONDON Oil fell further toward $50 a barrel on Monday, pressured by uncertainty over whether an OPEC-led production cut will be extended beyond June in an effort to counter a glut of crude.
collected by :Molly Tony