Oil Flat On Strong Dollar, Abundant Supplies
NEW YORK, Sept 25 (Reuters) - Brent crude oil prices held steady while U.S. crude dipped slightly in choppy trading on Thursday as abundant supply and a strong U.S. dollar largely outweighed worries that conflict in the Middle East would disrupt output.
Libya's oil output has climbed to 925,000 barrels per day (bpd), with the major El Sharara oilfield at 200,000 bpd, an official with the National Oil Corp said on Thursday, despite fighting between the factions that divide the country and a government driven from the capital.
The dollar hit a four-year high as the yield difference between U.S. and German bonds widened to the highest in nearly 15 years on Thursday, while global equity markets fell sharply as the stronger dollar pointed to potential earnings losses.
"The weakening euro and yen is keeping the lid on crude oil prices for sure, as is the global picture in terms of production levels," said John Kilduff, a partner at Again Capital LLC in New York.
Brent rose by 5 cents to settle at $97.00 a barrel after swinging by more than $1 between $96.22 and $97.56 throughout the session. It had hit its lowest since July 2012 at $95.60 on Wednesday.
U.S. crude, also known as West Texas Intermediate (WTI) settled 27 cents lower at $92.53.
Front-month U.S. RBOB gasoline futures rose by nearly 5 cents as refinery glitches in the U.S. pushed its premium to the second-month contract as high as 20 cents on Thursday.
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