(Bloomberg) -- Oil edged lower after a third weekly loss as swelling global stockpiles made it more difficult for leading producers to balance the market by curbing output.
Drilling in onshore American fields dropped the most in 14 years last week after New York futures plunged below zero for the first time in history. Saudi Arabia has started reducing production ahead of the May 1 start date for OPEC+ supply cuts, joining Kuwait, Algeria and Nigeria in kicking off curbs early. Oil has lost more than 70% this year as lockdowns worldwide sap consumption.
Read: The Next Chapter of the Oil Crisis: The Industry Shuts Down
There were tentative signs at the weekend that the coronavirus outbreak might be loosening its grip, with the death tolls slowing by the most in more than a month in Spain, Italy and France, while reported fatalities reported in the U.K. and New York were the lowest since the end of March.
The swelling glut is testing global storage limits and forcing traders, refiners and infrastructure providers to seek novel ways to hoard crude, including on tiny barges around Europe’s petroleum-trading hub and in pipelines. The hub of Cushing, Oklahoma, the delivery point for West Texas Intermediate futures, is filling fast and putting added pressure on the U.S. crude benchmark.
“Concerns surrounding rising global inventories, especially in the U.S. with the coronavirus pandemic weighing on gasoline consumption, are pressuring oil prices,” Kim Kwangrae, commodities analyst at Samsung Futures Inc., said by phone from Seoul. “While OPEC has started to curb output, demand is still not being supported and that’s going to be a down factor for prices.”
WTI for June delivery fell 93 cents to $16.01 a barrel on the New York Mercantile Exchange as of 8:35 a.m. Singapore time. The contract rose 2.7% on Friday, trimming the weekly decline to 32%. Brent for June settlement lost 32 cents to $21.12 after falling 24% last week.
See also: The 20 Minutes That Broke the U.S. Oil Market
U.S. drillers idled 60 rigs last week, shrinking the active nationwide fleet to 378, according to data from Baker Hughes Co. on Friday. On a percentage basis, the decline was the worst since February 2006. It was the sixth straight weekly drop, halting almost half of American exploration.
Saudi Aramco last week began curtailing daily output from about 12 million barrels to 8.5 million barrels a day, according to a Saudi industry official familiar with the matter. OPEC+ has agreed to reduce production by about 9.7 million barrels a day in an effort to stem oil-price losses.
For more articles like this, please visit us at bloomberg.com
Subscribe now to stay ahead with the most trusted business news source.
©2020 Bloomberg L.P.
"oil" - Google News
April 27, 2020 at 07:33AM
https://ift.tt/3aCd3QF
Oil Edges Lower on Swelling Glut While Producers Start Cuts - Yahoo Finance
"oil" - Google News
https://ift.tt/2PqPpxF
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "Oil Edges Lower on Swelling Glut While Producers Start Cuts - Yahoo Finance"
Post a Comment