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What’s next? – OIL 13.03.18

Mar 13 2018, 01:59 PM (+06) | Fortfs.com

Oil prices were lower in Asian trading hours on Tuesday, with market participants awaiting for fresh crude and refined products inventory estimates later in the session.

 

The US West Texas Intermediate crude contracts were down 0.18 percent to $61.25 per barrel as of 05:20 GMT. Meanwhile, Brent futures dropped 0.14 percent to $64.86 a barrel.

 

Oil benchmarks settled in red territory on Monday over rising concerns that an increasing US shale production will undermine output cuts by the Organization of the Petroleum Exporting Countries (OPEC) and Russia.

 

Data is suggesting long bets on oil contracts are declining, as there is more evidence US producers continue to ramp up output to take advantage of current prices.

 

Last week, the US Energy Information Agency said US production rose to a peak of 10.4 million barrels per day, surpassing Saudi Arabia and remaining close to Russia. US production has increased more than 23 percent since mid-2016.

 

Meanwhile, OPEC has been reducing its output by nearly 1.2 million barrels per day since January. Iranian oil minister Bijan Zanganeh has recently said there is a chance OPEC leadership will agree on curbing output cuts in 2019.

 

Ahead in the day, investors will be focusing on oil inventory estimates by the American Petroleum Institute, a day before official data from the US Energy Department is released.

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