Wednesday, 5 July 2017
LONDON: Oil snapped its longest run of gains this year as the Organisation of Petroleum Exporting Countries (Opec) output rose amid a boost from members exempt from supply cuts.
Futures slid 0.3% in New York after advancing almost 11% the previous eight sessions. Opec production in June climbed to the highest level this year as Libya and Nigeria ramped up output. In the United States, crude inventories probably fell by 2.5 million barrels last week.
While prices have surged in the past week, oil in New York and London posted a monthly loss in June after tumbling into a bear market on concerns that rising global supply will counter curbs from Opec and its partners. US crude inventories remain more than 100 million barrels above the 5-year average.
“Given the run of gains and the highest Opec production in 2017, there might be some closing of positions that temporarily puts pressure on prices,” said Jan Edelmann, an analyst at HSH Nordbank AG in Frankfurt. Nonetheless, the higher supplies from Libya and Nigeria probably aren’t sustainable “given the ongoing political tension in this region,” he said.
West Texas Intermediate for August delivery was at US$46.95 a barrel on the New York Mercantile Exchange, down 12 US cents. Total volume traded was 39% below the 100-day average.
Source by: Internet