Oil prices fall on rising U.S. output

Oil prices fall on rising U.S. output

Oil prices fall on rising U.S. output

"The general perception is that OPEC is cutting production, which is supporting prices, but high stock levels, rising rig counts and growing US production are capping gains", said Tamas Varga, analyst at London brokerage PVM Oil Associates. Oil fell in NY after the biggest drop in more than two weeks, on estimates that crude stockpiles continued to build up in the US.

Baku, Fineko/abc.az. The world prices for oil, which made a pandemonium yesterday, nevertheless keep the profitable market trends for the USA oil industry.

Gasoline futures for March delivery dropped 1.5 per cent to $US1.4875 a gallon, the lowest close since November 29.

Olivier Jakob, managing director of Switzerland-based consultant Petromatrix, said in an emailed report that US oil production was poised for growth and Canada is back to where it was before Alberta wildfires in May idled about 1 million barrels per day in production.

Ten OPEC members obligated to reduce oil output under the agreement signed in 2016, achieved 91 percent of their required cuts in January, according to the S&P Global Platts survey.

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"Rig counts are increasing at an accelerating pace, and given the technological advances of the past three years, this should translate into significant supply", Wittner told Reuters.

Crude inventories at Cushing, Oklahoma, the delivery point for WTI and the biggest U.S. oil-storage hub, increased by 600,000 barrels last week, according to a forecast compiled by Bloomberg.

US crude futures fell 87 cents, or 1.64%, to $52.14 a barrel on the New York Mercantile Exchange. Brent crude was down 66 cents or 1.18 percent to US$54.82.

The British oil and gas company, whose fourth quarter profits fell short of street expectations, had previously targeted a breakeven oil price of $50-55 a barrel. The global benchmark traded at a premium of US$2.08 to April WTI.

"Traders are betting on prices going up but they are impatient", said Amrita Sen, the chief oil analyst at Energy Aspects.

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