Crude oil futures climb Rs 50 per barrel on firm global cues

Crude oil futures climb Rs 50 per barrel on firm global cues

Crude oil futures climb Rs 50 per barrel on firm global cues

Crude oil prices shot back toward the $70 mark early Thursday after reports of a drain in gasoline inventories as traders shrugged off big US oil gains.

While there are fears that US production is growing too quickly and could undermine oil prices by creating a new glut, global oil inventories are still down.

Brent for April settlement was at $69.38 a barrel as of 12:27 p.m. on the London-based ICE Futures Europe exchange, down 27 cents.

West Texas Intermediate for March delivery fell 0.2 percent to $65.70 a barrel on the New York Mercantile Exchange, and is down about 0.7 percent this week.

USA oil production surged above 10mn bpd for the first time in more than four decades, another marker of a profound shift in global crude markets.

Crude oil price extended gains yesterday as Organization of Petroleum Exporting Countries (OPEC's) strong compliance with a supply reduction pact o set news that USA production topped 10 million barrels per day for the rst time in almost half a century. Increased adherence to the OPEC production cut program is now underpinning the market. The country exported nearly 3.5 million bpd from the south, the outlet for most of its crude, in a slight decline from December's record high.

CME has said there is a "clear trend" that the U.S. benchmark is being used more globally, in part because of growing production there and relatively stagnant output of the North Sea crude grades that underpin Brent trading.

Record bullish bets in the oil market are "actually not that elevated when viewed in the context of broader portfolio allocation", according to the Goldman report. Then two years ago, the United States ended its 40-year ban on crude exports, making WTI more useful to global traders and shippers. Russian data showed strong compliance with output cuts in January, even as production hit 10.95 million bpd.

The most recent surge in output confounded some observers, who had forecast production was about to level off, though the EIA had predicted it for some time.

As a result, USA consumers should expect higher gasoline prices.

Compared to a loss of US$35 million in 2016, the company reported net income of US$1.58 billion for the fourth quarter 2017.

Iranian officials said the Iranian nuclear deal signed in 2015 and that led to the lifting of restrictions on Iran's crude oil exports is absolutely not renegotiable.

A few major investment banks went back to the drawing board and revised all price targets for the oil price. It forecast that oil will return 24 percent to investors over the next six months.

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