Oil Down; US Crude Settles Below $50 On Stockpile Concerns
NEW YORK, Oct 25 (Reuters) - Oil prices fell more than 1 percent on Tuesday, with U.S. crude settling below $50 per barrel for the first time in a week ahead of data likely to show a build in domestic inventories.
Producers' verbal jockeying about the Organization of the Petroleum Exporting Countries' (OPEC) planned output cut weighed further on the market, analysts said, noting Iraq's resistance to the plan and its rising output for October.
Trade group American Petroleum Institute will issue at 4:30 p.m. EDT (2030 GMT) its weekly report of crude stockpiles and other oil supply-demand data. The U.S. Energy Information Administration reports official numbers on Wednesday.
Analysts polled by Reuters said crude stocks probably rose 1.7 million barrels last week, lifting their earlier assessment of 800,000 barrels. The previous week, crude inventories fell more than 5 million barrels.
"The sentiment is it's a bit more negative," said Scott Shelton, energy futures broker with ICAP in Durham, North Carolina. "There are some expectations that we can see a crude build."
Brent crude futures settled down 67 cents, or 1.3 percent, at $50.79 a barrel. In post-settlement trade, it got down to as low as $50.56.
U.S. West Texas Intermediate (WTI) crude futures fell 56 cents, or 1.1 percent, to settle at $49.96. It was the first close below $50 since Oct 18. WTI fell to $49.72 in post-settlement trade.
Some technical analysts pegged WTI's next support at $49.15, its bottom on Oct. 10 before it rallied to a 15-month high of $51.93 on Oct. 19.
"If we snap that, in very short order we could be back down to $47," said David Thompson, technical analyst and executive vice-president at commodities-focused broker Powerhouse in Washington.
The market was also "a bit rubbery in the knees" due to uncertainty around OPEC's planned production cut, said Donald Morton, who runs an energy-trading desk at Herbert J. Sims & Co in Fairfield, Connecticut.
Before this week, oil prices had surged about 13 percent in three weeks since OPEC announced on Sept. 27 its first planned output cut in eight years to combat the steep slump in crude prices, which are far below 2014 highs above $100 a barrel.
The production curbs are expected be finalized at OPEC's policy meeting in Vienna on Nov. 30. The group has been holding a flurry talks with members and outside producers led by Russia for weeks now to try and sustain the market's interest in its plan.
(Additional reporting by Barani Krishnan in New York and Sabina Zawadzki in London; Editing by David Goodman and David Gregorio)
WHAT DO YOU THINK?
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.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension