Monday, 6 March 2017

Crude oil will below the 55 Bl dollar

DSR Broking - The oil market’s failure to break out of the tightest range in more than a decade is sapping investor interest. 

After hitting a record high last week, hedge funds reduced wagers that US oil prices would rise as concern grows that the market is again becoming vulnerable to a drop. Earlier bullish sentiment was based on optimism that OPEC production cuts would ease supply gluts. Now record US crude stockpiles are raising doubts about that outlook. 

They’ve gone so far on hopes and dreams," Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts, said by telephone. "I’m worried they’ve overdone it, since we haven’t seen much happen with measures that would support the market -- i.e. inventories." 

The Organization of Petroleum Exporting Countries deal with 11 other major producers to reduce output spurred a 17 per cent rally in US oil prices during the last five weeks of 2016. This year, the rally has stalled as American production and supplies advanced. West Texas Intermediate bounced between $51.22 and $54.94 in February, the tightest range since August 2003.

Hedge funds trimmed their net-long position on WTI, or the difference between bets on a price increase and wagers on a decline, by 6.5 per cent in the week ended Feb. 28, US Commodity Futures Trading Commission data show. WTI slipped 5 cents to $54.01 a barrel in the report week, and lost 19 cents to $53.14 a barrel at 1:57 p.m in Singapore. 


Opec crude output fell by 65,000 barrels a day to 32.17 million in February oil companies and ship-tracking data. The 10 members of the group that pledged to make cuts in Vienna in November implemented 104 per cent of those reductions, largely because saudi went beyond its target.
US crude inventories climbed to 520.2 million barrels in the week ended Feb. 24, the highest in weekly data going back to 1982, according to the Energy Information Administration. Production rose to 9.03 million barrels a day during the same period, the highest since March 2016. The American oil rig count rose to 609 last week, the highest since October 2015, according to Baker Hughes Inc. 

No comments:

Post a Comment

Featured post


DSR Broking Crude oil - Sell 4880  Made TGT at 4848 at stop loss at 4800  Short term and Intraday Level of CRUDEOIL Currently Crude...