{"id":38313,"date":"2017-08-03T05:32:52","date_gmt":"2017-08-03T05:32:52","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=38313"},"modified":"2017-08-03T05:32:52","modified_gmt":"2017-08-03T05:32:52","slug":"oil-dips-on-high-opec-supplies-defying-falling-u-s-crude-stocks","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/oil-dips-on-high-opec-supplies-defying-falling-u-s-crude-stocks.html","title":{"rendered":"Oil dips on high OPEC supplies, defying falling U.S. crude stocks"},"content":{"rendered":"

Oil dips on high OPEC supplies, defying falling U.S. crude stocks<\/span><\/strong><\/span><\/h2>\n

Oil dips on high OPEC supplies, defying falling U.S. crude stocks: Oil dipped on Thursday as a rally that has pushed up prices by almost 10 percent since early last week lost momentum despite renewed signs of a gradually tightening U.S. market.<\/span><\/p>\n

Strong demand in the United States provided prices with support, traders said, but ongoing high supplies from OPEC producers were restricting further gains.<\/span><\/p>\n

Brent crude futures, the international benchmark for oil prices, were trading down 17 cents, or 0.3 percent, at $52.19 per barrel at 0147 GMT.<\/span><\/p>\n

U.S. West Texas Intermediate (WTI) crude futures were at $49.44 per barrel, down 15 cents, or 0.3 percent, from their last settlement.<\/span><\/p>\n

U.S. crude prices held below $50 per barrel despite record gasoline demand of 9.84 million barrels per day (bpd) last week and a fall in commercial crude inventories in the week to July 28 of 1.5 million barrels to 481.9 million barrels, according to the U.S. Energy Information Administration (EIA).<\/span><\/p>\n

That’s below levels seen this time last year, an indication of a tightening U.S. market.<\/span><\/p>\n

Traders said ongoing high supplies by the Organization of the Petroleum Exporting Countries (OPEC) were capping prices.<\/span><\/p>\n

The high OPEC supplies come despite a pledge by the group, supported by other producers including Russia, to restrict output by 1.8 million bpd between January this year and March 2018 in order to tighten the market.<\/span><\/p>\n

Trading data in Thomson Reuters Eikon shows that crude oil shipments by OPEC and Russia, which excludes pipeline supplies, hit a 2017 high of around 32 million bpd in July, up from around 30.5 million bpd in January.<\/span><\/p>\n

BMI Research said that the industry had adapted to the low oil prices.<\/span><\/strong><\/span><\/h3>\n

“Of the major projects sanctioned by the big five oil companies (ExxonMobil, Royal Dutch Shell, Chevron, BP and Total) over H1 2017, there has been a clear breakeven target price of $40 per barrel or lower at offshore oil projects,” BMI said.<\/span><\/p>\n

This followed U.S. investment bank Goldman Sachs saying earlier this week that the oil industry had successfully adapted to oil prices around $50 per barrel.<\/span><\/p>\n

Source: http:\/\/www.reuters.com\/article\/us-global-oil-idUSKBN1AJ05F<\/span><\/p>\n

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