{"id":33228,"date":"2017-06-27T10:32:14","date_gmt":"2017-06-27T10:32:14","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=33228"},"modified":"2017-06-27T11:14:48","modified_gmt":"2017-06-27T11:14:48","slug":"oil-weaker-dollar-supply-glut-caps-gain","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/oil-weaker-dollar-supply-glut-caps-gain.html","title":{"rendered":"Oil up on weaker dollar, supply glut caps gain"},"content":{"rendered":"

Oil up on weaker dollar, supply glut caps gain<\/span><\/strong><\/span><\/h2>\n

Oil prices rose for a fourth consecutive session on Tuesday boosted by a weaker dollar and investors covering short positions, but worries over persistent oversupply capped gains.<\/span><\/p>\n

Brent crude futures LCOc1, the international benchmark for oil prices, had gained 25 cents to $46.08 per barrel by 0901 GMT.<\/span><\/p>\n

U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 23 cents at $43.61 per barrel.<\/span><\/p>\n

The gains mean the market is up slightly so far this week, after spending much of the last month in negative territory.<\/span><\/p>\n

The dollar fell 0.1 percent against a basket of six major currencies .DXY, propping up oil, ahead of a speech by U.S. Federal Reserve Chair Janet Yellen. <MKTS\/GLOB><\/span><\/p>\n

“Short-term financial investors also significantly scaled back their net long positions in Brent on the ICE last week…and find themselves at their lowest level in a year and a half,” Commerzbank said in a research note.<\/span><\/p>\n

“Short positions have soared to a new record high, having increased more than four-fold since the beginning of the year.”<\/span><\/p>\n

The Organization of the Petroleum Exporting Countries and its partners have been trying to reduce a global crude glut with production cuts. OPEC nations and 11 other exporters agreed in May to extend cuts of 1.8 million barrels per day (bpd) until March 2018.<\/span><\/p>\n

Despite the cuts, which started in January, markets remain well supplied due to rising output elsewhere.<\/span><\/p>\n

OPEC members Nigeria and Libya are exempt from the cuts and have raised production. OPEC member Iran was also allowed a small increase to recover market share lost under Western sanctions over its nuclear programme.<\/span><\/p>\n

Libya’s oil production rose to 935,000 bpd, up from 885,000 bpd last week, a Libyan oil source said on Tuesday.<\/span><\/p>\n

Meanwhile Nigeria’s projected August exports are at their highest since March 2016 at around 2 million bpd.<\/span><\/p>\n

Adding to the bearish supply outlook is an apparent glut in U.S. East Coast product supplies.<\/span><\/p>\n

Colonial Pipeline Co said that demand on its main distillate line fell below capacity for the first time in nearly six years as the East Coast remained awash in fuel.<\/span><\/p>\n

Meanwhile, U.S. shale oil output has risen about 10 percent since last year to 9.4 million bpd C-OUT-T-EIA, with the number of U.S. oil rigs in operation at the highest in more than three years. [RIG\/U]<\/span><\/p>\n

“Traders are also looking ahead to the EIA Energy Conference in Washington, where U.S. shale oil producers are expected to give their view of current market conditions,” ANZ bank said.<\/span><\/p>\n

Analysts at Bank of America-Merrill Lynch said demand was not growing quickly enough to absorb output, especially since imports in Asia are stuttering.<\/span><\/p>\n

A fuel glut in China, a hangover from demonetisation in India, and an ageing, declining population in Japan are holding back crude oil demand growth in three of the world’s top four oil buyers.<\/span><\/p>\n

Source:-\u00a0http:\/\/www.reuters.com\/article\/us-global-oil-idUSKBN19I01H<\/span><\/p>\n

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