Oil Slips As Ample Supply Counters Yemen, Drilling Slump

Reuters

NEW YORK, April 27 (Reuters) - Crude settled lower on Monday as ample global supply blunted support from the conflict in Yemen and the falling number of U.S. rigs drilling for oil and kept traders cautious after prices reached 2015 peaks last week.

U.S. commercial crude inventories have risen for 15 straight weeks to a record 489 million barrels even with the recent fall in drilling activity.

"While the situation in Yemen and the falling U.S. rig count have supported, some caution remains because we have not seen evidence the cuts in drilling have translated into lower inventories," said Gene McGillian, senior analyst at Tradition Energy in Stamford, Connecticut.

Brent June crude futures fell 45 cents to settle at $64.83 a barrel, having swung from $64.40 to $65.61. Friday's $65.80 intraday high was a 2015 peak.

U.S. June crude slipped 16 cents to settle at $56.99, having traded from $56.52 to $57.89. It hit a 2015 peak of $58.41 last Thursday.

Brent's premium to U.S. crude <CL-LCO1=R> reached $8.33 a barrel on Monday, but ended at $7.84 based on settlements falling short of Friday's $8.43 peak.

Another sign of plentiful supply was news that Saudi Arabia's Oil Minister Ali al-Naimi told officials in Beijing that the kingdom is ready to supply China with additional oil.


123

View Full Article

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Project Engineer/Project Manager
Expertise: Project Management
Location: Baton Rouge, 
 
Sales Manager ADI
Expertise: Sales
Location: Pittsburgh, 
 
Community Relations Manager Job
Expertise: Legal|PR / Corporate Communications|Project Management
Location: Red Wing, MN
 
search for more jobs

Brent Crude Oil : $55.49/BBL 2.45%
Light Crude Oil : $52.42/BBL 2.04%
Natural Gas : $3.2/MMBtu 5.04%
Updated in last 24 hours