{"id":24911,"date":"2017-03-23T06:10:49","date_gmt":"2017-03-23T06:10:49","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=24911"},"modified":"2017-03-23T06:10:49","modified_gmt":"2017-03-23T06:10:49","slug":"oil-bounces-off-november-lows-but-bloated-u-s-stockpiles-pressure-market","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/oil-bounces-off-november-lows-but-bloated-u-s-stockpiles-pressure-market.html","title":{"rendered":"Oil bounces off November lows, but bloated U.S. stockpiles pressure market"},"content":{"rendered":"

\n\tOil bounces off November lows, but bloated U.S. stockpiles pressure market<\/span><\/span><\/strong><\/span>
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\n\tOil bounces off November lows, but bloated U.S. stockpiles pressure market:- Oil prices recovered on Thursday from losses chalked up the session before, but the market remained under pressure as bloated U.S. crude inventories and rising output dampen OPEC-led efforts to curb global production.<\/span><\/span><\/span>\n<\/p>\n

\n\tBrent crude futures, the international benchmark for oil, were at $51.02 per barrel at 0451 GMT, up 38 cents, or 0.8 percent, from their last close. That came after Brent briefly dipped below $50 a barrel on Wednesday for the first time since November.<\/span><\/span><\/span>\n<\/p>\n

\n\tU.S. West Texas Intermediate (WTI) crude futures were up 38 cents, or 0.8 percent, at $48.42 a barrel, after testing support at $47 overnight.<\/span><\/span><\/span>\n<\/p>\n

\n\tAnalysts said Brent had found technical support around $50 a barrel and was being pushed up as traders took new long positions after crude hit multi-month lows overnight.<\/span><\/span><\/span>\n<\/p>\n

\n\tDespite the bounce, traders said the market remained under pressure, largely due to a big U.S. inventory and doubts that an effort led by the Organization of the Petroleum Exporting Countries (OPEC) to cut output was reining in a global fuel supply overhang.<\/span><\/span><\/span>\n<\/p>\n

\n\tGreg McKenna, chief market strategist at futures brokerage AxiTrader, said OPEC was "underwriting the investment plans and returns of their competition in U.S. shale oil."<\/span><\/span><\/span>\n<\/p>\n

\n\tMcKenna said there was a risk of oil prices dropping further due to U.S. output and a lack of compliance by some producers who said they would cut production.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe Energy Information Administration (EIA) said U.S. inventories climbed almost 5 million barrels to a record 533.1 million last week, far outpacing forecasts of a 2.8 million-barrel build.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe high inventories come as U.S. oil production has risen over 8 percent since mid-2016 to more than 9.13 million barrels per day (bpd) to levels comparable in late 2014, when the oil market slump started.<\/span><\/span><\/span>\n<\/p>\n

\n\tThere were also signs of a bloated market in Asia, where China's gasoline imports slumped while its refiners sent huge volumes overseas as they refine more fuel than the domestic market can absorb.<\/span><\/span><\/span>\n<\/p>\n

\n\tChina's gasoline exports in February hit the second highest on record, up 76.6 percent over a year earlier at 1.06 million tonnes, data from the Chinese customs showed on Thursday. Diesel exports last month surged 66.7 percent on year at 1.32 million tonnes.<\/span><\/span><\/span>\n<\/p>\n

\n\tChina imported just 7,245 tonnes of gasoline in February, tumbling 94 percent from the same period last year. Diesel imports dropped 52 percent from a year ago to 50,000 tonnes.<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-global-oil-idUSKBN16U034<\/span><\/span><\/span><\/p>\n

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