Tuesday started with slip in oil prices right after a report showed that the Organization of the Petroleum Exporting Countries (OPEC) production has reached a 2018 top in July, however, losses are controlled owing to the concern regarding the oil supply.
A Reuter survey showed that the OPEC production is increased in July. In fact, OPEC increased the production by 70 thousand barrels per day (bpd) to 32.6 bpd, which is the new high of 2018. September Brent crude futures fell to $74.9 per barrel after rising by 0.9 percent on Tuesday. Moreover, the U.S. West Texas Intermediate crude (WTI) futures fell 6 cents to $70.8 after a rise of 2 percent in its previous session. WTI rise triggered the expectations that the U.S. inventories fell last week and the temporary shutdown at the Canadian Syncrude facility did not recover as soon as expected.
Shutdown Of Oil Facilities Responsible
The oil inventories at Oklahoma–which is a delivery point for WTI–have been shrinking owing to the recent shutdown of Syncrude facility. This reduced the flow of oil into the hub. Moreover, the shares at the Cushing storage hub dropped to about 23 million barrels, which is recorded as the lowest since July, November 2014. Reuters reported that the energy company Genscape made clear, inventories at Cushing has risen to almost 200,000 barrels–in other terms by 1 percent–from last Tuesday to Friday. The oil prices have been fluctuating over the last two weeks, all thanks to the trade war started by the U.S. President Donald Trump. However, to rectify the high oil prices he had decided to meet Iran’s President, Hassan Rouhani. The reposing of sanctions to various countries including India to ban oil import from Iran has increased the oil prices. Thus, experts believe that for the next few weeks, the oil prices will continue to show fluctuations.
The post Oil Prices Reduce After OPEC Report Published appeared first on OWLT Market.
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