Hong Kong - Oil held losses below $49 a barrel before US government data forecast to show record crude inventories expanded further.
little changed in New York after losing 9.2% the previous six
stockpiles probably increased by 3 million barrels for a 10th week of
gains, according to a Bloomberg survey before data from the Energy
Information Administration on Wednesday.
OPEC is due to release its
monthly report on Tuesday that will show production figures for February,
Kuwait wants to extend the six-month OPEC-led deal to cut output beyond
Oil last week broke below $50 a barrel for the first time since
December as rising US supply has swamped the impact of supply
reductions from members of the Organisation of Petroleum Exporting
Countries and 11 other nations that started January 1.
Mohammad Barkindo said that February compliance to the deal will be
higher than January, Russia’s Rosneft PJSC said higher US output is
main threat” to the agreement.
“The market will continue to watch for OPEC compliance as US
production surges,” said
David Lennox, a resources analyst at Fat Prophets in Sydney. “The price
is unlikely to collapse below $40. If US output continues to climb,
there is no way OPEC will extend the cuts into the second half to
increase the price for American companies to get the advantage.”
West Texas Intermediate for
April delivery was at $48.38 a barrel on the New York Mercantile
Exchange, down 2 cents, at 07:02. Total volume traded
was about 38% below the
100-day average. The contract fell 9c to $48.40 on Monday, the
lowest close since November 29.
Brent for May settlement was 2c higher at $51.37 a barrel on the
London-based ICE Futures Europe exchange. The global benchmark traded
premium of $2.43 to May WTI.
See also: OPEC’s best signal of success no longer looks so promising
crude inventories have climbed to 528.4 million barrels, the highest
level in weekly EIA data compiled since 1982. The nation is pumping 9.09
million barrels a day, the most in more than a year. The
industry-funded American Petroleum Institute is scheduled to release its
own weekly figures on Tuesday.
Extending OPEC’s cuts will accelerate the rebalancing of the market and
help prices to return to “acceptable” levels, Kuwait’s Oil Minister
Issam Almarzooq said, according to the official news agency Kuna.
OPEC producer Iraq will seek to boost output to 5 million barrels a day
by the end of the year, Iraq Oil Report
said, citing an interview with Oil Minister
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