Shale to dictate oil prices in the coming quarter

09 April, 2018, 00:19 | Author: Regina Lloyd
  • LPG gas cylinder

Oil prices were broadly steady on Thursday as an easing of trade tensions between the United States and China and a surprise draw in USA crude inventories last week supported the market.

Futures in NY slipped 0.4% after climbing 0.8% on Tuesday.

The fall had exceed $1 per barrel before losses were pared by USA data released mid-morning showing a reduction of 4.6 million barrels to 425.3 million barrels in the previous week's crude inventories.

USA crude stocks in Cushing, Oklahoma, are now close to their minimums, which means that inventory data this week will likely show a build, Yawger said.

"The risks of potential "trade wars" and the potential negative impact on the global economy and on oil demand if these risks do materialize should constitute a serious concern for OPEC", the report read.

Abu Dhabi: Oil prices are expected to trade lower in the coming days due to seasonal weakness in demand and rise in shale oil production in the USA, analysts said. Also lending support for U.S. West Texas Intermediate and international-Brent crude oil was Russian Energy Minister Alexander Novak's comments that a joint organization for cooperation between OPEC and non-OPEC countries may be set up once the current deal on oil output curbs expires at the end of the year.




The West Texas Intermediate for May delivery fell 0.14 USA dollar to settle at 63.37 dollars a barrel on the New York Mercantile Exchange, while Brent crude for June delivery lost 0.10 dollar to close at 68.02 dollars a barrel on the London ICE Futures Exchange. The more-active June contract rose 58 cents to settle at $69.34. Total volume traded was about 39 percent below the 100-day average.

Front-month London Brent crude for June delivery was up 30c, or 0.4%, at $68.32, having ended down 10c. Shanghai trading will resume on Monday.

US drillers cut rigs for first time in three weeks * Fear of renewed USA sanctions against Iran also support crude * But trade spat between USA and China weighs (Adds Shanghai prices and quote) By Henning Gloystein and Meng Meng SINGAPORE/BEIJING, April 2 (Reuters) - Oil prices rose on Monday, lifted by a drop in US drilling activity as well as by expectations that the United States could re-introduce sanctions against Iran. Distillate stockpiles, which include diesel and heating oil, rose by 537,000 barrels, versus expectations for a 1.1 million barrels drop.

Oil also got support from firm global equities, as the United States expressed willingness to negotiate a resolution on trade after proposed US tariffs on $50 billion in Chinese goods prompted a quick response from Beijing that it would retaliate by targeting key American imports.

Despite worldwide objections, the US administration made a decision to impose a 25-percent tariff on steel imports and a 10-percent tariff on aluminum, with tariffs on imports from countries including China. All three major US stock indexes were higher on Thursday [.N], after the United States said it could negotiate with China on trade issues.

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