GET Stock QuotesNews18 APP
News18 English
»
1-min read

Oil Prices Drop on Rising Supplies From Top Three Producers

The Organization of the Petroleum Exporting Countries (OPEC), together with some non-OPEC producers, including Russia, started withholding output in 2017 to reduce a global supply overhang and push up prices.

Reuters

Updated:June 13, 2018, 12:51 PM IST
facebookTwittergoogleskypewhatsapp
Oil Prices Drop on Rising Supplies From Top Three Producers
Oil pumpjacks are seen in Lagunillas, Venezuela May 24, 2018. Picture taken May 24, 2018. REUTERS/Isaac Urrutia
Singapore: Oil prices fell on Wednesday, hit by rising supplies in the United States and expectations that producer cartel OPEC could relax voluntary output cuts.

Brent crude futures, the international benchmark for oil prices, were at $75.36 per barrel by 0708 GMT, down 52 cents, or 0.7 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $65.87 a barrel, down 49 cents, or 0.7 percent, from their last settlement.

The Organization of the Petroleum Exporting Countries (OPEC), together with some non-OPEC producers, including Russia, started withholding output in 2017 to reduce a global supply overhang and push up prices.

OPEC on Tuesday said the oil market outlook in the second-half of 2018 was highly uncertain, and warned of downside risks to demand.

The group is due to meet on June 22 in Vienna, Austria, to discuss future production policy.

"The prospect of easing supply curbs from OPEC-led producers continues to be reflected in oil's overall depressed price action," said Lukman Otunuga, analyst at futures brokerage FXTM.

Dutch bank ING, however, said that some OPEC members would "struggle to push production back to October 2016 levels".

In the United States, the American Petroleum Institute (API) reported on Tuesday that crude oil inventories rose by 830,000 barrels in the week to June 8, to 433.7 million.

The rising stocks are in part a result of the surge in U.S. crude oil production, which has jumped by 28 percent in the last two years, to a record 10.8 million barrels per day (bpd).

With output in Russia rising back above 11 million bpd in June and Saudi production climbing back above 10 million bpd, supplies from the top three producers are increasing.

"With rising production from U.S. shale adding to oil's woes and reviving oversupply concerns, further downside could be a possibility in the short to medium term," Otunuga said.

Official U.S. production and inventory data is due to be published on Wednesday by the Energy Information Administration (EIA).

Also Watch

Read full article
Most Active
Company Price Change %Gain
Reliance 1,019.25 +23.20 +2.33
ICICI Bank 293.20 +0.40 +0.14
TCS 1,822.45 -2.05 -0.11
Cipla 602.85 +1.00 +0.17
HDFC Bank 2,056.15 +32.65 +1.61
Company Price Change %Gain
HDFC 1,846.55 +19.85 +1.09
Ambuja Cements 197.40 -2.60 -1.30
Power Grid Corp 199.60 +1.25 +0.63
HDFC Bank 2,055.70 +30.30 +1.50
TCS 1,826.30 +0.45 +0.02
Top Gainers
Company Price Change %Gain
Reliance 1,019.25 +23.20 +2.33
Vedanta 228.70 +4.40 +1.96
IndusInd Bank 1,967.40 +35.90 +1.86
Kotak Mahindra 1,324.60 +21.35 +1.64
HDFC Bank 2,056.15 +32.65 +1.61
Company Price Change %Gain
Reliance 1,019.95 +24.30 +2.44
IndusInd Bank 1,967.45 +37.20 +1.93
Yes Bank 335.90 +5.50 +1.66
Kotak Mahindra 1,327.75 +20.60 +1.58
Tata Steel 563.30 +8.45 +1.52
Top Losers
Company Price Change %Gain
UPL 652.25 -21.85 -3.24
IOC 165.40 -3.20 -1.90
HPCL 307.90 -5.10 -1.63
ONGC 162.75 -2.05 -1.24
Dr Reddys Labs 2,367.75 -25.25 -1.06
Company Price Change %Gain
ONGC 162.80 -2.05 -1.24
Dr Reddys Labs 2,369.05 -25.65 -1.07
Coal India 270.60 -2.50 -0.92
ITC 263.75 -2.40 -0.90
Wipro 259.80 -1.85 -0.71

Live TV