Oil price rises towards $70 on reduced U.S. drilling activity

Oil price rises towards $70 on reduced U.S. drilling activity

Futures in NY were little changed after surging 3.2% on Friday, the most since July 25.

U.S. crude production from major shale formations is expected to rise by 131,000 bpd in April from the previous month to a record 6.95 million bpd, the U.S. Energy Information Administration (EIA) said in a monthly report on Monday. Some is related to position-squaring ahead of today's US consumer inflation report, which could also impact the dollar and future demand for crude oil.

"Oil prices fell on the back of concerns that surging US production. could push inventories in the USA higher", ANZ bank said on Tuesday. The dollar tends to have an inverse relationship with oil prices, as a weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies. The US benchmark gained $1.92 to $62.04 on Friday.

WTI settled down 68 cents to $61.36 per barrel while Brent fell 50 cents to $64.99 per barrel. Total volume traded was about 23 percent below the 100-day average.

Brent crude futures LCOc1 were at $65.58 per barrel, up 9 cents, or 0.1 percent, from their previous close. The global benchmark traded at a $3.47 premium to May WTI.

More news: Hit-and-Run Driver Flees Scene While Dude Bashes His Car With a Sledgehammer
More news: Ex-guard dubbed 'Accountant of Auschwitz' reportedly dies before serving prison sentence
More news: Pennsylvania's Closely Watched Special Election Is Tuesday

Crude prices had risen on Friday and earlier on Monday after the US economy added the biggest number of jobs in more than 1-1/2 years in February.

American explorers cut the number of rigs drilling for oil by four, the first decline since mid-January, Baker Hughes data showed Friday. "They continue to give market share away to the U.S". Iran wants OPEC to work to keep oil prices at about $60 a barrel as an increase toward $70 will encourage shale oil output, the country's Oil Minister Bijan Zanganeh said, the Wall Street Journal reported.

"The longer the deal goes on, it's going to start falling apart", ING commodities strategist Warren Patterson tells Bloomberg.

Some of the market's fears were echoed in money managers' short-selling position.

This week's Consumer Price Index (CPI) release, given its potential impact on the dollar, could be critical, said Bill Baruch, president of Blue Line Futures in Chicago. Contributions of 200 words or more will be considered for publication.

Related Articles

  • Despite late season push Baylor misses out on the NCAA tournament

    Despite late season push Baylor misses out on the NCAA tournament

    This is the first time since the 1999-2000 season that BYU has missed the NCAA Tournament for three straight seasons. The Washington-Boise State victor will play the victor of the game between Saint Mary's and Southeastern Louisiana.
    President Trump signs executive order blocking Broadcom's acquisition of Qualcomm

    President Trump signs executive order blocking Broadcom's acquisition of Qualcomm

    Qualcomm shares were down 4.5% in after-hours trading to $59.98, while Broadcom shares were relatively flat at $265. While Broadcom's bid was active, its attempt to buy Qualcomm became the biggest soap opera on Wall Street.
    Five players Jets could make run at during National Football League  free agency period

    Five players Jets could make run at during National Football League free agency period

    Those have been two of the teams most connected to Cousins for his next landing spot, along with the Denver Broncos. Cousins wrote about his roots in the D.C. area and what leaving will mean to him.
  • Singer Aditya Narayan gets arrested for rash driving

    Singer Aditya Narayan gets arrested for rash driving

    Udit Narayan's son Aditya Narayan has landed himself in trouble yet again, this time for reckless driving and injuring two people. The accident took place between 1 and 2 pm in front of Indralok Building, Lokhandwala Back Road in Andheri West.
    Trump's steel and aluminum tariffs to cost USA  jobs: Research

    Trump's steel and aluminum tariffs to cost USA jobs: Research

    Let's remain calm while we await details on President Donald Trump's threat to impose tariffs on imported steel and aluminum. Last week, Trump announced plans to impose a 25% and 10% tariff on imports of steel and aluminum, respectively.
    Ryan Coogler Pens Heartfelt Letter to Ava DuVernay

    Ryan Coogler Pens Heartfelt Letter to Ava DuVernay

    The director recalled how DuVernay, a publicist-turned-director, was "already one of (his) heroes" before he met her. The two directors are actually friends, and Coogler penned a letter to DuVernay to commemorate her latest film.
  • Parliament proceedings disrupted for sixth day

    Parliament proceedings disrupted for sixth day

    Trinamool Congress (TMC) member Sukhendu Sekhar Roy stood up seeking the Chair's permission to raise a point of order. Chairman Venkaiah Naidu tried to pacify members and conduct the Zero Hour, but protesting members stormed the well.
    Calm before the storm? North Korea still mum on Trump summit

    Calm before the storm? North Korea still mum on Trump summit

    South Korea and North Korea also agreed to hold what would be their third summit in history in late April. As Baik suggested, sometimes it takes a while to figure out what that message should be.

    WWE Fastlane 2018: What Fans Are Marking out for After PPV

    The next month, the road to WrestleMania remained toasty hot with the first-ever women's Elimination Chamber match . This tag match is the biggest selling point of Fastlane aside from the potential of simply seeing The Undertaker .
  • Barcelona star wants Neymar back

    Barcelona star wants Neymar back

    At the moment, Neymar is arguably the world's third-most recognizable player, behind veterans Lionel Messi and Cristiano Ronaldo. He was talked about as part of that three up front, so the reasons for him leaving were odd and surprising when it happened.
    Mizzou suspends Barnett for NCAA opener

    Mizzou suspends Barnett for NCAA opener

    They've already made good on what Martin told them before the season: "You'll be the team that said they turned it around". Barnett is second on the team in scoring this year and averages 13.7 points per game along with 5.9 rebounds per game.
    Victor  of $560M Powerball jackpot can stay anonymous, U.S.  state judge rules

    Victor of $560M Powerball jackpot can stay anonymous, U.S. state judge rules

    They said she would give $150,000 to Girls Inc. and $33,000 apiece to three chapters of End 68 Hours of Hunger in the state. She had already received her after-tax winnings of US$264 million while the judge mulled her claim to privacy.