UPDATE 8-Oil prices flat, all eyes on U.S. production data

UPDATE 8-Oil prices flat, all eyes on U.S. production data

Reuters  | Feb 14, 2018 06:30

UPDATE 8-Oil prices flat, all eyes on U.S. production data

* IEA says global supply to outstrip demand this year

* IEA raises demand growth forecast to 1.4 mln bpd in 2018

* Coming up: API inventory estimates Tuesday, EIA Wednesday (New throughout, updates prices, market activity and comments)

By Ayenat Mersie

NEW YORK, Feb 13 (Reuters) - Oil prices were flat on Tuesday, bouncing back from an early slide as the dollar fell to a one-week low, which encouraged buying of dollar-denominated crude at session lows.

Global benchmark Brent futures hit a two-month low early, but by 2:02 p.m. EST (1902 GMT), Brent LCOc1 rose 11 cents to $62.70 a barrel. U.S. West Texas Intermediate crude futures CLc1 were down 9 cents at $59.20 a barrel.

The U.S. dollar .DXY hit a one-week low, which can attract investors to oil by making crude cheaper for buyers using other currencies.

"We have chipped away at crude losses today, and you could easily say it's a function of a weak dollar," said Bob Yawger, director of energy futures at Mizuho.

Since the stock market began falling sharply early this month, oil prices have wiped away the year's gains amid a volatile stock market.

"There are a lot of people who are praying that last week's collapse in crude...was some anomaly, and that as soon as the stock market recovered, the crude market would recover with it," said Walter Zimmerman, chief technical analyst at United-ICAP.

"So far its looking a little ominous but WTI has not broken down," Zimmerman said, adding the contract would have to decline more to enter a bear market.

Paris-based International Energy Agency said global oil supply would outstrip demand this year, prompting fears that efforts to reduce inventories would fall short of expectations. been under pressure...it's all been a function of the IEA report," said Yawger.

The IEA revised its global demand forecast upward by 7.7 percent. Still, rising production, particularly from the United States may outweigh demand gains. The United States overtook Saudi Arabia last week to become the second-largest global producer.

U.S. oil production is expected to surpass 11 million barrels per day in late 2018, a year earlier than projected last month, the U.S. Energy Information Administration said last week. EIA/M

Seasonality may also be affecting prices, analysts said.

"A driving force behind the next few weeks of pricing vulnerability stems from the current peak in U.S. refinery maintenance season," Michael Tran, commodity strategist at RBC Capital Markets, wrote in a research note.

The private American Petroleum Institute is due to publish crude inventory estimates on Tuesday.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC: Global crude oil supply & demand balance



Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes