Oil prices dip on high OPEC supplies, rising United States production

Oil prices dip on high OPEC supplies, rising United States production

Brent crude prices are seen averaging US$52.45 per barrel this year, down from the previous US$53.96 forecast, while WTI prices are expected to average US$50.08 in 2017, compared to US$51.92 in the June poll.

Similarly, the oil for delivery in September went up by Rs 2.40, or 0.50 per cent, to Rs 480.50 per 10 kg in 95 lots.

Iaccino offered his own take on rig counts and their effect on the market: "We've had two up one down, two up one down: that's not going to maintain given the legacy decline in production that we've got in the USA shale patch right now, down 350,000 barrels in legacy production from July to August: you have to have these rigs count at least going in the right direction given the legacy drop-off we've had in order for prices to continue lower - that's not happening in the short, short term".

But as the summer driving season ends next month, the boost it has given to the oil market may fade.

"Absent further production cuts or a sustained uptick in demand, prices are likely to remain in the low to mid $50s for the remainder of the year".

"Fundamentals continue to suggest a more-balanced crude-oil market", said ANZ. Russian Federation says it has kept output levels from May and plans to do so until the OPEC production-cut pact expires.

Global benchmark Brent crude, which leapt more than three per cent to above $50 a barrel on Tuesday, rose today for the third straight session, adding 0.3 per cent to hit $50.36.

Duterte urges Asean to push for a 'secure, stable' region
Duterte said the ASEAN governments must work together with the private sector to help solve poverty within the region. Before the pullout of the U.S. , the TPP would have covered 40 percent of the global economy.

U.S. West Texas Intermediate (WTI) crude futures were at $48.95 per barrel at 0707 GMT, down 8 cents, or 0.1 percent, from their last close and set to drop 1.5 percent for the week. The lack of supply constraints mean that effects on the price of oil from the deal have been apparently slight.

"Nigeria. promised to limit its daily production to 1.8 million barrels per day", says MarketWatch.

Libya's Sharara oil field, which has been producing 270,000 barrels a day (bpd), was facing a gradual shutdown after the closure of a control room in a northern city of Zawiya, an engineer at the field said late on Sunday. Japan's cuts in supplies were close to 2 million barrels as a total in September, the source added. The OPEC's own official monthly report will be published on Thursday.

Nevertheless, the moves were seen as positive by traders hoping for more concerted action to rebalance the market and erase a massive supply overhang from the past three years.

Croft expects this could be a catalyst pushing oil prices to $70 to $80 a barrel by fall.The Trump administration imposed sanctions on Venezuela, one of the world's top crude producers, earlier this week as political turmoil continued to cause chaos and the country runs out of cash.

However, PVM oil analyst Stephen Brennock, in a note reported by Reuters, warned: "Relieved bulls should be careful what they wish for".

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