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

Oil Prices Slump To 5-Week Low Amid Rising U.S. Output

Published 08/02/2018, 08:56
Updated 08/02/2018, 09:00
© Reuters.  Oil falls to 5-week lows
LCO
-
CL
-
NG
-
NYF
-
GPR
-

Investing.com - Crude oil futures extended losses on Thursday, as lingering concerns over rising production in the U.S. sent prices to their lowest levels in around five weeks.

U.S. West Texas Intermediate (WTI) crude futures fell 30 cents, or 0.5%, to $61.49 a barrel by 3:55AM ET (0855GMT). The U.S. benchmark sank $1.60, or 2.5%, in the last session, after touching its lowest level since Jan. 5 at $61.25.

Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S., dipped 31 cents, or roughly 0.5%, to $65.20 a barrel, after hitting its lowest level since Dec. 26 earlier in the session.

Oil settled lower for the fourth session in a row on Wednesday, after data showed U.S. oil production topped the 10 million barrels per day (bpd) mark last week.

Domestic oil production, driven by shale extraction, rose 3.3% to an all-time high of 10.25 million bpd, the U.S. Energy Information Administration said. That figure is above that of top exporter Saudi Arabia and within reach of Russia's output levels.

Weighing further on prices was that U.S. commercial crude stocks rose by 1.9 million barrels in the week to Feb. 2, to 420.25 million barrels.

That added to fears that rising U.S. output would dampen OPEC’s efforts to rid the market of excess supplies.

The producer group, along with some non-OPEC members led by Russia, agreed in December to extend oil output cuts until the end of 2018.

The deal to cut oil output by 1.8 million barrels a day (bpd) was adopted last winter by OPEC, Russia and nine other global producers. The agreement was due to end in March 2018, having already been extended once.

In other energy trading, gasoline futures held steady at $1.764 a gallon, while heating oil was little changed at $1.925 a gallon.

Natural gas futures ticked up 1.5 cents, or 0.6%, to $2.718 per million British thermal units, as traders looked ahead to weekly storage data due later in the global day amid expectations for a withdrawal of 116 billion cubic feet.

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.