Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 

MarketScreener Homepage  >  Commodities  >  WTI       


Delayed Quote. Delayed  - 07/07 12:41:13 pm
40.695 USD   +0.12%
12:25pClash With China Presents Political Challenge to India's Leader
11:47aOil Prices Swing Ahead of Stockpile Data
11:31aGlobal stocks, oil slip but Chinese stocks rumble on
News SummaryAll newsMarketScreener Strategies

Brent Prices Slip Below $50 a Barrel for First Time in a Week

share with twitter share with LinkedIn share with facebook
06/12/2016 | 10:37pm EDT
   By Jenny W. Hsu 

Brent, the international oil benchmark, fell below $50 a barrel for the first time in a week as U.S. drilling data showed another uptick, reinforcing views that the recent rally may restrain the rebalancing in oil markets.

Oil prices have surged nearly 90% since dropping to 10-year lows in February, thanks to unplanned production outages world-wide and falling output in the U.S.

However, some market participants say the rally could encourage producers to ramp up production, keeping well-supplied markets awash in surplus.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in July traded at $48.41 a barrel at 0205 GMT, down $0.66 in the Globex electronic session. August Brent crude on London's ICE Futures exchange fell $0.58 to $49.96 a barrel.

On Friday, Baker Hughes Inc. said the number of rigs drilling for oil in the U.S. rose by three in the week ended June 10, the second straight weekly increase.

Some analysts say although the latest uptick doesn't indicate a material change in U.S. production, it does suggest the $50 a barrel price was "enough to prompt at least some shift at the margin of the market from taking rigs offline to standing them back up," said Timothy Evans, a Citi Futures analyst.

However, he said that despite the increase, the number of U.S. oil rigs is still 48% lower than a year earlier. "We don't see the increase off the bottom as doing much more than slightly slowing the rate of production decline."

Still, other analysts say given the lack of positive catalysts in the market, even a marginal increase in shale production will prompt investors to take profits.

In addition, demand growth--particularly in China--could ease in the second half of the year as crude prices edge up, said Gao Jian, an energy analyst at the Shandong-based SCI International.

China has been a crucial driver of global crude demand as the government has granted more small private refiners, known as teapots, unprecedented access to buy foreign crude. In May, China crude imports jumped 39% from a year earlier to 7.6 million barrels a day. However, it fell 4.3% from the month before, mainly due to port congestion.

"As crude oil prices are rising, many of the teapots are trying to capture the still-low prices by maxing their import quotas now. This is why the port is so congested and why China crude imports might slow down later in the year," he said.

For this week, market participants will be looking at a monthly report from the Organization of the Petroleum Exporting Countries, to be released later today. Some energy research firms expect that OPEC production dropped slightly in May due to outages in Nigeria and Libya. The International Energy Agency will also release its monthly outlook report on Tuesday.

Many will also be watching the Federal Open Market Committee meeting on Tuesday and Wednesday where the direction of U.S. interest rates will be deliberated. Analysts say given the lackluster U.S. jobs report last month, central bankers will likely keep interest rates where they are.

Nymex reformulated gasoline blendstock for July--the benchmark gasoline contract--fell 134 points to $1.5462 a gallon, while July diesel traded at $1.5058, 102 points lower.

ICE gasoil for July changed hands at $446.50 a metric ton, down $5.00 from Friday's settlement.

Write to Jenny W. Hsu at jenny.hsu@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
ACCESS CO., LTD. -1.25% 949 End-of-day quote.-0.63%
CHANGE INC. 3.61% 8030 End-of-day quote.176.13%
GENERAL ELECTRIC COMPANY -3.04% 6.785 Delayed Quote.-38.89%
LONDON BRENT OIL 0.42% 43.28 Delayed Quote.-34.97%
SHIFT, INC. 1.49% 10910 End-of-day quote.36.72%
WORLD CO., LTD. -1.00% 1580 End-of-day quote.-41.29%
WTI 0.12% 40.695 Delayed Quote.-34.21%
share with twitter share with LinkedIn share with facebook
Latest news on WTI
12:25pClash With China Presents Political Challenge to India's Leader
11:47aOil Prices Swing Ahead of Stockpile Data
11:31aGlobal stocks, oil slip but Chinese stocks rumble on
11:19aBP to Invest $70 Million in Indian Green Energy Fund
11:16aNEWS HIGHLIGHTS : Top Company News of the Day
11:16aNEWS HIGHLIGHTS : Top Energy News of the Day
10:52aTSX slips as virus surge weighs on energy stocks
10:45aTRACKINSIGHT : Market Rebound despite Rising Concerns over Rapid Escalation in C..
10:43aDuke Energy Bring Texas Solar Project Online
10:14aCoronavirus pain drives Big Oil's dash for record debt
More news
Chart WTI
Duration : Period :
WTI Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends WTI
Short TermMid-TermLong Term