Oil ticks up on supply cuts, but rising US output caps gains
Oil prices edged higher on Monday, with Brent oil set to rise for five out of seven sessions as a global supply glut appears to ease, but rising US production limited gains. Brent crude oil climbed 0.2 percent to USD 56.09 a barrel, while US West Texas Intermediate added 0.1 percent to USD 54.04 a barrel. Oil prices tumbled on Friday after US Energy Information Administration data showed US crude inventories rose for a seventh straight week.
But the market has been supported within a tight USD 4 to USD 5 range since November, when the Organization of the Petroleum Exporting Countries (OPEC) and other producers agreed to cut production.
OPEC's record compliance with the deal has surprised the market, and the biggest laggards, the United Arab Emirates and Iraq, have pledged to catch up with their targets.
The International Energy Agency put OPEC's average compliance at a record 90 percent in January, and based on a Reuters average of production surveys, it stands at 88 percent.
Money managers raised their net long US crude futures and options positions in the week to Feb. 21, to the highest on record, based on data going back to at least 2009, the US Commodity Futures Trading Commission (CFTC) said on Friday.
"The market is trading in a range. OPEC supply cuts are putting a base under the market at this stage,"
Get Free Silver Tips With Accurate Calls By Our Expert Researcher, Amazing MCX Bullion Tips, Commodity Trading Tips, Crude Oil Tips...
0 comments:
Post a Comment