Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UPDATE 8-Oil dips as Wall Street dives; tensions over Iran support crude

Published 20/03/2018, 07:06 am
Updated 20/03/2018, 07:06 am
© Reuters.  UPDATE 8-Oil dips as Wall Street dives; tensions over Iran support crude

© Reuters. UPDATE 8-Oil dips as Wall Street dives; tensions over Iran support crude

* Climbing U.S. output pressures prices

* Middle East tensions, strong demand limit price drops

* Facebook (NASDAQ:FB) slide drags Wall Street stocks (Adds settlement prices, commentary)

By Ayenat Mersie

NEW YORK, March 19 (Reuters) - Oil prices slipped on Monday as Wall Street slid more than 1 percent and energy market investors remained wary of growing crude supply, although tensions between Saudi Arabia and Iran gave prices some support.

Brent crude futures LCOc1 dropped 16 cents, or 0.2 percent, to settle at $66.05 a barrel. U.S. West Texas Intermediate (WTI) futures CLc1 fell 28 cents, or 0.5 percent, to end at $62.06 a barrel.

"The equity markets are certainly a driving factor behind this slide today," said Brian LaRose, technical analyst at United-ICAP in Jersey City. "Since the open, they have been hit pretty hard," he said.

Wall Street's main indexes fell more than 1.5 percent as investors worried about a potential trade war and as Facebook shares dragged down the tech sector. .N Oil prices have been increasingly moving in tandem with equities.

Strong demand, however, prevented oil from sliding further, said Phil Flynn, analyst at Price Futures Group in Chicago. "We keep talking about all this shale oil production, but it's not really showing up that much in global inventories; they continue to be tight," Flynn said.

Still, last week's rise in the U.S. rig count remains a potential headwind for oil bulls. U.S. drillers added four oil rigs last week, bringing the total count to 800, Baker Hughes said on Friday. the current oil price level, drilling activity – and thus output – in the U.S. is likely to increase further," analysts at Commerzbank (DE:CBKG) said in a note.

U.S. crude oil production C-OUT-T-EIA has risen more than a fifth since mid-2016, to 10.38 million barrels per day (bpd).

Prices also climbed on Friday after Saudi Crown Prince Mohammed bin Salman said the kingdom would develop nuclear weapons if arch-rival Iran did. week there will be ... a pricing of some geopolitical risk with the crown prince going on a visit to the United States which is likely to provide a lot of headlines against Iran and the (sanctions) deal," Petromatrix analyst Olivier Jakob said, referring to Iran's pact that has removed sanctions on that country in return for limits on its nuclear program.

President Donald Trump has criticized the deal frequently, raising the possibility that the United States could stop its sanctions relief.

Britain, France and Germany have proposed fresh European Union sanctions on Iran over its ballistic missiles program and its role in Syria's war. GRAPHIC: U.S. oil rig count

http://reut.rs/2HHhBao GRAPHIC: Russia vs Saudi vs U.S. oil production

http://tmsnrt.rs/2G3bKz0 GRAPHIC: World oil supply and demand balance

http://reut.rs/2FIxGvP

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.