Oil Prices Slip Despite Rebound in Asian Equities Market By Investing.com

© Reuters. Oil prices inched down on Monday morning in Asia

Investing.com – Oil prices inched down on Monday morning in Asia, despite a bounce in the region’s stock markets. Investors remained cautious after a sell-off last week that could indicate a global economic slowdown.

for December delivery edged down 0.01% to $67.59 a barrel at 11:59 PM ET (03:59 GMT) on New York’s Mercantile Exchange, while for January 2019 delivery dropped 0.17% to $77.63 per barrel on London’s Intercontinental Exchange.

Hong Kong’s was up 0.24%, while Japan’s edged up 0.29%. Despite the uptick, the market is still rattled by global losses last week.

Oil is facing “downward pressure from lower growth forecasts around the globe,” Alfonso Esparza, senior market analyst with futures brokerage Oanda, told Reuters.

On the supply side, U.S. production is also expected to rise as drillers added two oil rigs last week bringing the number to 875, hitting the highest level since March 2015. Canada also raised one extra oil rig to 124 last Friday, up 28 from a year ago, according to energy services firm Baker Hughes’ report.

Saudi Arabia pledged to increase oil production to compensate for the downfall from U.S. crude sanctions on Iran starting next month, easing market concerns and likely pushing down prices.

The Kingdom’s energy minister Khalid al-Falih said that the country has “no intention” of imposing an oil embargo but will raise oil output to 11 billion bpd.

OPEC governor Adeeb Al-Aama also told Reuters last Thursday that the oil market might be shifting towards oversupply in the fourth quarter of 2018 as oil stocks build and demand slows.

“So we want to be watchful not to over-correct and cause a substantial inventory build,” said Al-Aama.

Elsewhere, Asia’s supply on crude is tight, as only 4 crude oil tankers around Singapore and southern Malaysia are currently filled, down from about 15 in the previous year and from 40 in mid-2016, according to Refinitiv Eikon ship tracking data.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.




Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

*