{"id":27367,"date":"2017-04-24T05:38:19","date_gmt":"2017-04-24T05:38:19","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=27367"},"modified":"2017-04-24T05:38:19","modified_gmt":"2017-04-24T05:38:19","slug":"oil-recovers-lost-ground-but-market-remains-under-pressure","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/oil-recovers-lost-ground-but-market-remains-under-pressure.html","title":{"rendered":"Oil recovers lost ground, but market remains under pressure"},"content":{"rendered":"

\n\tOil recovers lost ground, but market remains under pressure<\/span><\/span><\/span><\/strong>
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\n\tOil prices recovered ground on Monday following last week's big losses, driven by expectations that OPEC will extend a pledge to cut output to cover all of 2017, although a relentless rise in U.S. drilling capped gains.<\/span><\/span><\/span>
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\n\tU.S. West Texas Intermediate (WTI) crude oil futures CLc1 added 26 cents, or 0.5 percent, by 0401 GMT (12:01 a.m. ET), but were still below the $50 mark pierced on Friday at $49.88 a barrel.<\/span><\/span><\/span>\n<\/p>\n

\n\tBrent crude futures LCOc1 rose 30 cents, or 0.6 percent, to $52.26 per barrel.<\/span><\/span><\/span>\n<\/p>\n

\n\tOil prices fell steeply last week on the back of stubbornly high crude supplies, despite a pledge by the Organization of the Petroleum Exporting Countries (OPEC) and some other producers to cut production by almost 1.8 million barrels per day (bpd) for six months from Jan. 1 to support the market.<\/span><\/span><\/span>\n<\/p>\n

\n\tU.S. drillers added oil rigs for a 14th week in a row, to 688 rigs, extending an 11-month recovery that is expected to boost U.S. shale production in May by the biggest monthly increase in more than two years.<\/span><\/span><\/span>\n<\/p>\n

\n\t"Since its trough on May 27, 2016, producers have added 372 oil rigs (+118 percent) in the U.S.," Goldman Sach said in a note following the release of the data.<\/span><\/span><\/span>\n<\/p>\n

\n\tU.S. crude production is at 9.25 million barrels per day (bpd) C-OUT-T-EIA, up almost 10 percent since mid-2016 and approaching that of OPEC's top exporter Saudi Arabia.<\/span><\/span><\/span>\n<\/p>\n

\n\t"WTI oil slipped back below the $50 per barrel level, amid concerns that the lack of inventory drawdown since the OPEC production cuts is a sign that the cuts are not enough to rebalance supply and demand and put a floor under prices," said William O'Loughlin, investment analyst at Rivkin Securities in a note on Monday.<\/span><\/span><\/span>\n<\/p>\n

\n\tBoth the Brent and WTI oil benchmarks are down more than 7.5 percent since the end of last year.<\/span><\/span><\/span>\n<\/p>\n

\n\tKeen to halt a further decline in prices, a panel made up by OPEC and other allied producers has recommended an extension of output cuts by another six months from June, a source said.<\/span><\/span><\/span>\n<\/p>\n

\n\tThis, and an expected fall in Iranian production lent markets some support on Monday, traders said.<\/span><\/span><\/span>\n<\/p>\n

\n\tIran's crude oil exports are set to hit a 14-month low in May, suggesting the country is struggling to raise exports after clearing out stocks stored on tankers.<\/span><\/span><\/span>\n<\/p>\n

\n\tIranian oil exports, especially to its core markets in Asia, had soared since the ending of most sanctions against it in January 2016.<\/span><\/span><\/span>\n<\/p>\n

\n\tsource:-http:\/\/www.reuters.com\/article\/us-global-oil-idUSKBN17Q023<\/span><\/span><\/span><\/p>\n

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