Economy

Crude oil futures weaken as USA production climbs further, dollar rises

Crude oil futures weaken as USA production climbs further, dollar rises

The EIA on Tuesday made its latest in a series of upward revisions for U.S. crude oil production, which it now expects to rise by more than 120,000 barrels per day (bpd) to 11.17 million bpd by the fourth quarter of 2018.

The U.S. Energy Informational Administration released its short-term forecast Tuesday, forecasting Brent spot prices will average about $62 barrel in 2018 and 2019 compared with an average of $54 per barrel in 2017.

US crude oil and stock index figures shifted lower Wednesday amid global market fears on a trade war, the resignation of President Donald Trump's chief economic adviser and rising inventories.

Oil prices rose on Tuesday, supported by a weaker dollar but U.S. crude's gains were limited by forecasts for a weekly rise in USA crude stockpiles.

Crude oil prices fell more than 2% amid mounting concerns of a potential trade war and after USA government data showed a second straight weekly increase in crude inventories and production. April WTI crude dropped $1.71, or 2.7%, to trade at $60.89 a barrel on the New York Mercantile Exchange.

With the inventories reports out of the way, traders are likely to go back to focusing on the outcome of the tariff debate and whether Trump will implement his plan to sanction imports of steel and aluminum, and if other countries will take retaliatory action.

Crude oil futures weaken as USA production climbs further, dollar rises

Brent crude futures fell $US1.74 to $US64.05 a barrel, a 2.6 per cent loss.

Analysts polled by Reuters ahead of the data on average expect USA crude stocks rose by 2.7 million barrels in the week ended March 2.

“The overhang from the Cohn resignation. could see oil prices move lower during today's session, ” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.

Meanwhile, total domestic United States oil output rose by 86,000 b/d to hit 10.283m b/d, with the bulk of the increase being funelled towards export markets. The increase, however, almost matched market expectations and came in at less than half the increase reported by trade group the American Petroleum Institute on Tuesday.

Next year, average output will climb to 11.27 million, up from a prior forecast of 11.18 million, the report showed. And the U.S.is set to become part of the top five global crude exporters, according to consultant Wood Mackenzie Ltd. The global benchmark traded at a $3.38 premium to May WTI.

Distillate inventories saw a build this week of 1.487 million barrels.

More news: Clinical India back to winning ways, steamroll Bangladesh — Twitter Reactions
More news: United States mum on SA land expropriation question — Tillerson's Travels
More news: Donald Tusk insists on "Ireland first" approach to Brexit negotiations


  • Real Madrid looking to snatch Can from Juventus' grasp

    Real Madrid looking to snatch Can from Juventus' grasp

    Emre Can said after Tuesday's 0-0 draw with Porto at Anfield: 'I prefer to not play an English team, but I don't care who'. However, that was one of few moments that got the home fans off their feet as Liverpool settled on their substantial lead.
    Dawood Ibrahim's top aid Farooq Takla arrested by CBI

    Dawood Ibrahim's top aid Farooq Takla arrested by CBI

    Yasin Mansoor Mohamed Farooq , alias Farooq Takla , an aide of of Dawood Ibrahim, was brought to India from the UAE on Thursday. Speaking on Dawood Ibrahim's aide Farooq Takla arrest, senior lawyer Ujjwal Nikal said, "This is a huge success".
    Wind-blown fires burn about 40 square miles in Kansas

    Wind-blown fires burn about 40 square miles in Kansas

    Ellis County Emergency Management was urging people to avoid interstate 70 as well as Commerce Parkway and the East side of Hays. Motorists are also urged to stay away from the affected areas and they should not try to drive through heavy smoke.
  • Cheerleaders warned about mumps after national competition

    Cheerleaders warned about mumps after national competition

    Most people are vaccinated against mumps as children, but the health department says people can still be infected. Health officials said children could be infected with the mumps and not even know they are sick.
    TCU Forces Overtime With Buzzer Beater vs. Kansas State

    TCU Forces Overtime With Buzzer Beater vs. Kansas State

    Zhaire Smith has been reliable for the Red Raiders but is far from being a 2nd option on a contending team in my eyes. He scored a career-high 22 points at Kansas State and averaged 27.2 minutes per game over nine games that month.
    Fire Authorities Urge Smoke Alarm Checks at Daylight Savings

    Fire Authorities Urge Smoke Alarm Checks at Daylight Savings

    Olszewski recommends replacing smoke alarms more than 10 years old with new 10-year lithium battery-powered smoke alarms . Smoke alarms with non-replaceable, long-life batteries are created to remain effective for up to 10 years.
  • Another Sanctuary Mayor Willing to Go to Jail over Immigration Law

    Another Sanctuary Mayor Willing to Go to Jail over Immigration Law

    He argued the federal government sued California to invalidate and immediately freeze what he called unjust laws. The mayor did not immediately respond to Trump's attack, but has repeatedly defended her actions in the past.
    Slideshow: Cyclones churn over Jupiter's poles

    Slideshow: Cyclones churn over Jupiter's poles

    Nearly all the polar cyclones, at both poles, are so densely packed that their spiral arms come in contact with adjacent cyclones. The images Juno captured of these cyclones can help scientists understand the gas giant's interior structure, core, and origins.
    DeLuca's workout a mixed bag at National Football League  scouting combine

    DeLuca's workout a mixed bag at National Football League scouting combine

    Why he's a good fit for the Falcons: Bryan's athleticism on the interior of the defensive line makes him an intriguing prospect. This year's combine was filled with some tremendous performances by players who are clearly ready to excel at the next level.
  • India's Modi warns against statue vandalism after crowds topple Lenin figures

    India's Modi warns against statue vandalism after crowds topple Lenin figures

    A petrol bomb was thrown at the BJP office in Coimbatore city late last night, but no one was injured. But will the central Government set the example and take actions? DMK working president M.K.
    NY  passes common sense gun legislation

    NY passes common sense gun legislation

    For his part, Cuomo has been on a campaign pressing for federal action, saying gun violence can not be controlled by states alone. Under current law, buyers can obtain a gun they have purchased in three days if a federal background check is not completed.
    Brad's forecast | Snow & wind promise an very bad  morning commute

    Brad's forecast | Snow & wind promise an very bad morning commute

    Skies will be sunny Thursday in Oklahoma City with a high temperature in the mid-60s, the National Weather Service reports. During lighter intensity late this morning, the snow will mix with rain in some areas closer to Interstate 95.