Friday, March 29, 2024 | Ramadan 18, 1445 H
clear sky
weather
OMAN
25°C / 25°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Oil eases as rising output weighs, but still near nine-week highs

1077736
1077736
minus
plus

SEOUL: Oil prices edged down on Monday but still held near nine-week highs, supported by robust US jobs data last week and a slight fall in the US drill rig count, even as rising output from Opec reined in crude markets.


Global benchmark Brent crude futures were down 17 cents, or 0.32 per cent, at $52.25 a barrel at 0540 GMT. US crude futures were down 15 cents, or 0.30 per cent, at $49.43 per barrel.


Prices for both benchmarks have been holding near their highest since late May, when oil producers led by the Organization of the Petroleum Exporting Countries (Opec) extended a deal to reduce output by 1.8 million barrels per day (bpd) until the end of next March.


“Crude oil prices rose strongly (at the end of last week) as investors viewed (US jobs) data as a positive sign for oil demand in the United States... A small fall in the number of drill rigs operating in the US also supported prices,” ANZ bank said in a note.


US employers added an above-forecast 209,000 workers in July and raised wages, the US Labor Department said on Friday in its monthly jobs report.


US drillers cut one oil rig in the week to August 4, bringing the total count down to 765, energy services firm Baker Hughes also said on Friday.


Despite developments in the United States that have supported prices, global oil markets remain under pressure from high and rising production, analysts said.


“Sector production is up 2 per cent YTD (year-to-date)...Volumes should increase by another 200,000 barrels per day over 2H17 if 2017-guidance is to be achieved,” US investment bank Jefferies said in a note to clients on Monday.


Michael McCarthy, chief market strategist at CMC Markets, said supportive news such as big drawdowns in US supplies would be needed to push US WTI prices above $50 a barrel. — Reuters


SHARE ARTICLE
arrow up
home icon