Oil Rises Over 2%, But Shows First Weekly Fall In Six
NEW YORK, Nov 17 (Reuters) - Oil rebounded more than 2 percent on Friday after falling for five straight session as a major U.S. crude pipeline was shut and traders anticipated an OPEC deal to extend curbs on production.
Prices, however, fell for the first week in six, pressured by rising U.S. output data and doubts that Russia would support an extension of the OPEC output cut deal. Prices rebounded after Thursday's comments by Saudi Arabia's energy minister signaled a willingness to extend output cuts when OPEC meets on Nov. 30.
"Obviously, the comments gave us guarantee that the extension is going to happen and was a driving story overnight," said Phil Flynn, an analyst at Price Futures Group in Chicago.
"Globally, we're coming against the backdrop of tightness in distillate inventories and strong global refinery demand. Those catalysts will continue to drive us higher."
Brent crude oil rose $1.36, or 2.2 percent, to settle at $62.72 a barrel while U.S. West Texas Intermediate crude (WTI) ended $1.41, or 2.6 percent, at $56.55 a barrel.
For the week, Brent was down 1.3 percent and WTI fell 0.3 percent.
TransCanada Corp's 590,000 barrel-per-day (bpd) Keystone pipeline remained shut after a leak in South Dakota on Thursday.
Traders said the shut-in would add to bullish sentiment due to fewer barrels going into Cushing, Oklahoma, the delivery point of the WTI contract. The WTI prompt spread <CLc1-CLc2> narrowed by as much as 7 cents in the day.
Meanwhile, money managers raised their net long U.S. crude futures and options positions this week, with short positions at their lowest level since March.
Prices fell this week as fears of oversupply remained after U.S. government data showed oil output <C-OUT-T-EIA> touching a record 9.65 million bpd last week. The International Energy Agency also said that the United States would account for 80 percent of the global increase in oil production over the next decade.
"Market participants are closely watching the rising oil-production profile in the U.S., which will remain the predominant bearish factor," said Abhishek Kumar, senior energy analyst at Interfax Energy’s Global Gas Analytics in London.
U.S. energy companies kept the oil rig count unchanged this week, General Electric Co's Baker Hughes energy services firm said on Friday. Some analysts expect a gradual decline in the fourth quarter.
Signs of rising U.S. output have dampened the impact of output cuts by the Organization of the Petroleum Exporting Countries (OPEC), Russia and several other producers.
Earlier this week, Russia's Rosneft said an exit from the supply curb deal was a serious challenge, though added that it was committed to a deal.
12
View Full Article
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