Published: Wed, February 21, 2018
Finance | By Gustavo Carr

Crude oil futures slip 0.42 pc on profit-booking

Crude oil futures slip 0.42 pc on profit-booking

OPEC and its partners made a decision to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.

Meanwhile, West Texas Intermediate (WTI) crude was up 69 cents, or 1.12 per cent, to Dollars 62.37, while Brent crude, used to price global oils, lost 21 cents, or 0.32 per cent, to USD 65.46 a barrel on the New York Mercantile Exchange.

However, "short term crude demand aspects and other fundamental indicators [are] still rather bearish-looking", analysts at consultancy JBC Energy wrote in a daily note Monday.

"Oil got mild support from gains in Asian equity markets, but has been getting pressure from the rise in US rig count and a slight recovery in the dollar", he said. U.S. WTI futures were at $61.99 per barrel as of 1:39 p.m. GMT, and Brent crude futures were at $65.14 per barrel, a 0.81 percent decline. The group is seeking to " institutionalise" their cooperation beyond the end of a supply cut deal later this year, according to the United Arab Emirates, while Barkindo said compliance to the deal stood at 133 per cent in January.

"WTI oil prices are gaining on Brent as strong US demand and Canadian pipeline issues tighten USA oil supply even further", Phil Flynn, the senior market analyst for the PRICE Futures Group in Chicago, said in market commentary emailed to UPI.

Oil prices traded mixed on Tuesday, as last week's gains bolstered the USA crude, while Brent prices declined through lower Asian stocks and a stronger dollar, although markets still remained supported by the supply curb.

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In any case the growing USA production threatens to undermine OPEC's efforts.

Traders are also paying close attention to another increase in the US oil rig count.

Elsewhere, there are more indications of inflationary pressures building in the USA economy.

The US dollar dropped back on Wednesday and is now down 12pc over the past year against the country's major trading partners.

The most active gold futures contract on the Comex market in NY touched a high of $1,358.60 an ounce in midday trade, up more than 2pc or almost $30 an ounce compared to Tuesday's settlement after inflation data in the USA came in higher than expectations.

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