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What’s next? – OIL 08.12.17

Dec 8 2017, 02:10 PM (+06) | Fortfs.com

Oil futures were slightly lower in early trading hours on Friday, as market participants turned their attention to the weekly oil rig count, which is due later in the day.

 

Oilfield services firm Baker Hughes will release its weekly oil rig count as of 18:00 GMT. Last week, it reported a raise by 2 rigs to a total count of 749 units, the highest level since Sept.

 

The US West Texas Intermediate crude contracts were down 0.09 percent to $56.64 per barrel as of 06:50 GMT. Meanwhile, Brent futures eased 0.05 percent to $62.17 a barrel.

 

Sentiment in the oil market continued to be influenced by the same factors: OPEC-led output cuts and speculation on a larger US shale oil production.

 

Earlier this week, the Energy Information Agency (EIA) said crude stockpiles fell by 5.6 million barrels in the week ended December 2, more than a forecasted 3.4 million barrels drop.

 

The agency also said gasoline supplies added 6.8 million barrels, above an estimated 1.7 million barrels build. Distillate products grew 1.7 million barrels vs a 967,000-barrel draw seen.

 

Previously, the American Petroleum Institute had said crude inventories dropped by 5.481 million barrels last week.

 

Last week, OPEC and its allies agreed to extend its output cuts agreement beyond March 2018 for a nine-month period, with a steady reduction target of 1.8 million barrels per day.

 

Despite this deal has already supported growth of oil benchmarks in the past few months, traders are moderately skeptical about its ability to counteract rising supply levels.

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