Oil ticks up on weaker dollar, stalled Russian output cuts-SapForex24

Oil markets rose on Friday as the dollar edged away from a multi-week high, but prices are being held in check by unchanged Russian output for February, a sign of its weak compliance on a global deal to cut supplies.

The dollar slipped on Friday from its highest in seven weeks against a basket of currencies, although still holding close to a level that anchors Brent crude near $55 a barrel and West Texas Intermediate (WTI) just under $53.

Benchmark Brent Crude futures were up 21 cents, or 0.4 percent, at $55.29 a barrel, as of 0755 GMT. It closed down $1.28, or 2.3 percent, in the previous session, and dropped almost 3 percent on the week.


WTI futures gained 16 cents, or 0.3 percent, to $52.77 a barrel after dropping on Thursday to its lowest since Feb. 9. The U.S. benchmark finished in negative territory the past three sessions.

The dollar had climbed on Thursday after hawkish comments by a U.S. Federal Reserve official encouraged investors to expect a near-term interest rate hike.
“Last night’s dollar moves really shook up the markets – we’re seeing it across all markets, not just oil,” said Michael McCarthy, chief market strategist at Sydney’s CMC Markets.

Russia’s February oil output was unchanged from January at 11.11 million barrels per day (bpd), energy ministry data showed, with its cuts from October 2016 levels remaining at 100,000 bpd or a third of what was pledged by Moscow under its agreement with the Organization of the Petroleum Exporting Countries (OPEC).

Official U.S. data also showed that crude inventories in the world’s biggest oil consumer rose for an eighth straight week to a record 520.2 million barrels last week.

Crude oil fell to a three-week low as the stronger U.S. dollar combined with concerns about rising U.S. crude oil inventories to reduce investor appetite,” ANZ said in a note.

But even as U.S. oil production rose and Russian output held steady, OPEC boosted already strong compliance with the group’s six-month deal to 94 percent, cutting output for a second month in February, a Reuters survey found.

Russian Energy Minister Alexander Novak said it was too early to say if the deal to reduce oil production would be extended beyond the end of June. OPEC, Russia and others are due to agree on output policy in the next three months.

Short-term technical support could push Brent toward $60 a barrel, which will “establish an adequate price level for OPEC to reduce, but not abolish, its market intervention at the May 25th meeting,” BMI Research said in a note on Friday.


Oil drops for second day; market awaits U.S. stocks data-SapForex24

Crude oil lost more ground on Wednesday with rising U.S. oil output adding pressure on the market, although OPEC production cuts continued to offer support.
Investors in the oil market are awaiting weekly inventories data from the U.S. Energy Information Administration due at 1530 GMT on Wednesday.

West Texas Intermediate crude futures lost 15 cents, or 0.3 percent, to $53.86 a barrel by 0723 GMT, and Brent crude gave up 13 cents, or 0.2 percent, to $56.38.
“Signs that the U.S. shale industry is recovering weighed on the market,” ANZ said in a report.

U.S. Crude stockpiles have risen for seven straight weeks. Forecasts for another build last week, this time of 3.1 million barrels, have fueled worries that demand growth may not be sufficient to soak up the global crude oil glut.

Forex and Comex Market News Update-SapForex24
   Forex and Comex Market News Update-SapForex24

U.S. stockpiles rose 2.5 million barrels in the week ended Feb. 24, according to a report from trade group the American Petroleum Institute. Gasoline stockpiles rose unexpectedly and distillate stockpiles fell more than expected, the API said. Crude declined slightly on the report.

The market rose earlier in the session as a speech by U.S. President Donald Trump offered little on plans by his administration to boost U.S. oil production.

Market participants had been expecting President Trump to include details on energy policy in a speech to the U.S. Congress but his remarks lacked any specifics.
“If Trump had announced de-regulations of some of the environment protections to make it easier to pump more oil, that might have put pressure on WTI,” said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.

“Now all the attention is around to EIA’s crude inventories data tonight.”
The Organization of the Petroleum Exporting Countries (OPEC) has cut its oil output for a second month in February, a Reuters survey found on Tuesday, showing the exporter group has boosted already strong compliance with its supply curbs on the back of a steep reduction by Saudi Arabia.

Brent Oil looks neutral in a range of $55.93 to $57.26 per barrel, and an escape could suggest a direction, said Wang Tao, a Reuters market analyst for commodities and energy technicals.

U.S. oil may edge up to a resistance at $54.28 per barrel, a break above which could lead to a further gain to $54.62.


Oil holds steady as traders weigh OPEC cuts, U.S. drilling-SapForex24

Oil prices were little changed during European morning hours on Tuesday, as market players continued to weigh the prospect of production cuts by major crude-producing nations against a rise in U.S. drilling.

The U.S. West Texas Intermediate crude April contract shed 5 cents, or around 0.1%, to $54.00 a barrel by 4:20AM ET (09:20GMT).

Elsewhere, Brent oil for May delivery on the ICE Futures Exchange in London dipped 2 cents to $56.40 a barrel.

Comex Market Update-SapForex24
          Comex Market Update-SapForex24

Oil prices have been trading in a narrow $5 range around the mid-$50s over the past two months as sentiment in oil markets has been torn between hopes that oversupply may be curbed by output cuts announced by major global producers and expectations of a rebound in U.S. shale production.

Data from oilfield services provider Baker Hughes revealed that the number of active U.S. rigs drilling for oil rose by five last week, the sixth weekly increase in a row.

That brought the total count to 602, the most since October 2015, raising concerns that the ongoing rebound in U.S. shale production could derail efforts by other major producers to rebalance global oil supply and demand.

Hedge funds extended their bullish bets on oil to an all-time high last week as OPEC and non-OPEC countries made a strong start to lowering their oil output by almost 1.8 million barrels per day by the end of June, with compliance currently at around 90%.

OPEC could extend its oil supply-reduction pact with non-members or even apply deeper cuts from July if global crude inventories fail to drop to a targeted level, OPEC sources said earlier this month.

Elsewhere on Nymex, gasoline futures for April shed 0.2 cents, or around 0.2%, to $1.738 a gallon, while March heating oil dipped 0.2 cents to $1.645 a gallon.
Natural gas futures for April delivery slumped 1.9 cents, or almost 0.7%, to $2.674 per million British thermal units.