{"id":28669,"date":"2017-05-09T06:18:02","date_gmt":"2017-05-09T06:18:02","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=28669"},"modified":"2017-05-09T06:18:02","modified_gmt":"2017-05-09T06:18:02","slug":"oil-gives-up-earlier-gains-as-rising-us-output-china-concerns-weigh","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/oil-gives-up-earlier-gains-as-rising-us-output-china-concerns-weigh.html","title":{"rendered":"Oil gives up earlier gains as rising US output, China concerns weigh"},"content":{"rendered":"

\n\tOil gives up earlier gains as rising US output, China concerns weigh<\/span><\/span><\/span><\/strong>
\n<\/h2>\n

\n\tOil prices gave up earlier gains on Tuesday, as concerns over slowing demand and a relentless rise in U.S. crude output undermined the impact of hopes that OPEC-led production cuts could be extended.<\/span><\/span><\/span>\n<\/p>\n

\n\tBrent crude futures, the international benchmark for oil prices, were at $49.37 per barrel at 0252 GMT on Tuesday, down from a high of $49.60 earlier in the day and near their last close.<\/span><\/span><\/span>\n<\/p>\n

\n\tU.S. West Texas Intermediate (WTI) crude oil futures were trading at $46.46 per barrel, down from an intra-day high of $46.66 and also little changed from their last settlement.<\/span><\/span><\/span>\n<\/p>\n

\n\tTraders said that oil markets were under pressure as persistent climbs in U.S. production, especially from shale oil drillers, and concerns over a slowdown in China undermine efforts led by the Organization of the Petroleum Exporting Countries (OPEC) to prop up prices.<\/span><\/span><\/span>\n<\/p>\n

\n\tU.S. crude production has risen by over 10 percent since mid-2016 to 9.3 million bpd, close to the output of top producers Russia and Saudi Arabia.<\/span><\/span><\/span>\n<\/p>\n

\n\t"That's making it difficult to drive the stockpiles down to a level OPEC thinks will see prices rise sustainably," said Greg McKenna, chief market strategist at futures brokerage AxiTrader.<\/span><\/span><\/span>\n<\/p>\n

\n\tU.S. bank Goldman Sachs said that U.S. shale drillers "fundamentally changed" the oil industry due to their ability to ramp up output much faster than conventional producers.<\/span><\/span><\/span>\n<\/p>\n

\n\tBank of America Merrill Lynch said the low oil prices were also due to a slowdown in demand.<\/span><\/span><\/span>\n<\/p>\n

\n\t"Oil demand growth this year is underwhelming, in part explaining why crude oil prices and refining margins have sold off sharply recently," it said.<\/span><\/span><\/span>\n<\/p>\n

\n\tAxiTrader's McKenna said that there were concerns about Chinese economic growth as imports and exports slowed.<\/span><\/span><\/span>\n<\/p>\n

\n\t"The economy could slow more sharply than … expected," he said.<\/span><\/span><\/span>\n<\/p>\n

\n\tTop exporter and de-facto OPEC leader Saudi Arabia said on Monday it would "do whatever it takes" to rebalance a market that has been dogged by oversupply for over two years, resulting in crude prices below $50 per barrel.<\/span><\/span><\/span>\n<\/p>\n

\n\tA cornerstone of the Saudi promise to rebalance the market would be to extend, potentially into 2018, a pledge led by OPEC and other producers including Russia to cut output by almost 1.8 million barrels per day (bpd) during the first half of the year.<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-global-oil-idUSKBN185033<\/p>\n

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