🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Oil extends gains, but upside limited as dollar edges up

Published 19/02/2018, 00:27
© Reuters. An oil-rig is pictured amongst vessels moored along a row of shipyards northwest of Waterfront City on Batam island, in Indonesia's Riau Islands Province
LCO
-
CL
-

TOKYO (Reuters) - Oil prices extended gains on Monday, but the increases were limited as the dollar recaptured some ground after touching its lowest level in more than three years on Friday.

U.S. West Texas Intermediate crude for March delivery (CLc1) was up 5 cents, or 0.1 percent, at $61.73 a barrel by 2348 GMT, after rising 4.2 percent last week.

London Brent crude (LCOc1) was up 15 cents, or 0.2 percent, at $64.99 after rising more than 3 percent last week.

The U.S. oil rig count, an indicator of future production, rose by seven to 798, its highest since April 2015, according to a weekly report from General Electric's Baker Hughes unit. [RIG/U]

That marked the first time since June that drillers added rigs for four consecutive weeks, and the figure was well up on the 597 rigs that were active a year earlier as energy companies have boosted spending since mid-2016 when crude prices began recovering from a two-year crash.

Surging U.S. production is offsetting efforts by the Organization of the Petroleum Exporting Countries (OPEC) and some other producers including Russia to curb production by 1.8 million barrels per day (bpd) till the end of 2018.

Iranian oil minister Bijan Zanganeh said on Saturday that Iran hoped to continue to export 2.1 to 2.2 million barrels per day beginning around April and to sell 500,000 bpd to India in the next fiscal year.

Money managers slashed their bullish wagers on ICE Brent crude oil futures by the most in nearly eight months in the week to Feb. 13, data showed, as prices plunged amid concerns of oversupply.

Speculators also cut net long U.S. crude futures and options positions in the week to Feb. 13 by the most since late August, the U.S. Commodity Futures Trading Commission (CFTC) said. [CFTC/]

A little-noticed addition to the U.S. budget deal approved last week will help oil producers by more than tripling a tax credit for injecting carbon dioxide back into the earth to increase crude output.

© Reuters. An oil-rig is pictured amongst vessels moored along a row of shipyards northwest of Waterfront City on Batam island, in Indonesia's Riau Islands Province

U.S. financial markets are closed on Monday for the Presidents Day holiday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.