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What’s next? – OIL 16.02.18

Feb 16 2018, 01:50 PM (+06) | Fortfs.com

Crude oil prices were higher in early Asian hours on Friday, with market players looking ahead to the weekly oil rig count and keeping an eye on the dollar’s dynamic.

 

The US West Texas Intermediate crude contracts were up 0.54 percent to $61.50 per barrel as of 06:50 GMT. Meanwhile, Brent futures added 0.47 percent to $64.63 a barrel.

 

Crude benchmarks settled to the downside as market participants continued to digest supportive remarks from Saudi Arabia Oil Minister Al-Falih on the future market conditions.

 

"If we have to overbalance the market a little bit, then so be it," said Al-Falih.

 

The Organization of the Petroleum Exporting Countries and a group of independent producers led by Russia agreed to extend output cuts by 1.8 million barrels per day until the end of 2018.

 

However, both parts have been showing constant support to a potential extension in case it is required to prevent oversupply to take over again and push prices down.

 

Sentiment remained positive, but oil prices gave up some previous session gains as excitement over the latest crude and refined products inventories data.

 

Earlier this week, the US Energy Information Administration said crude supplies rose 1.841 million barrels in the week ended Feb 9, compared to a 2.825 million barrels build seen.

 

The agency also said refinery utilization eased to 89.8 percent last week, as the industry entered a period of maintenance, which is expected to last nearly one month.

 

The US dollar index, which measures the greenback against six major currencies, was trading 0.21 percent lower at 88.82 by the time of this writing.

 

Ahead in the day, Baker Hughes’ weekly oil rig count is due for release as of 18:00 GMT.

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