Crude palm oil futures fall 0.30% on profit-booking
Feb 09 2018
Oil prices hit their lowest in six weeks on Thursday after data showed USA crude output had reached record highs and the North Sea's largest crude pipeline reopened following an outage.
Futures for WTI crude oil dropped even more - by 2.57% to 63,77 dollars per barrel.
The North Sea's Forties Pipeline System - one of the world's most important crude oil conduits - resumed overnight after a short halt, coming on the heels of a more significant stoppage in December. Those changes made more US production profitable, allowing them to open their taps. The Americans approached the levels of Russian Federation and Saudi Arabia.
"Once we are out of the winter season, into summer, we should see better data and better demand on the back of a global synchronized growth", Lennox said.
Oil fell for a third day on Tuesday as the United States dollar rose to its highest in more than a week in the wake of a sharp sell-off early this week on Wall Street and other stockmarkets.
On February 6, in its monthly short-term forecast, EIA announced that it expects oil production in the U.S.in 2018 at a record level of 10.6 million barrels per day. "Thus a real pain-trade has not yet hit the oil market", said Bjarne Schieldrop, head of commodity strategy.
"Ongoing infrastructure expansions will likely contribute to further increases in China's crude oil imports", EIA reported. "Once the weekly EIA data showed crude output assessments at 10.25 million barrels a day, selling pressure started to mount in earnest", the analysts wrote in a daily note Thursday.
DNO ASA plans to increase investments in Iraqi Kurdistan by 50 percent this year after the region's semi-autonomous government made more regular payments for crude exports.
In early afternoon trading the Dow Jones Industrial Average fell 594.71 points, or 2.33 percent, to 24,926.25, the S&P 500 lost 57.18 points, or 2.07 percent, to 2,704.95 and the Nasdaq Composite dropped 110.38 points, or 1.52 percent, to 7,130.57.
Most of the crude-oil contracts traded globally are priced in United States dollars.
The Energy Department recently said it expected that USA oil production to reached a record 10.2 million barrels a day in January. As you recall, the same agency announced last month that the U.S. will pass Saudi Arabia and Russian Federation in crude oil volumes by the end of the year.
Baker Hughes on Friday said the number of active rigs drilling for oil in the USA had risen by six the preceding week, in the second consecutive weekly rise.