Oil prices slide after US drillers add rigs

5 market moves to watch Tuesday

5 market moves to watch Tuesday

Brent futures fell 20 cents, or 0.3 percent, to settle at $63.49 a barrel, while U.S. West Texas Intermediate crude fell 39 cents, or 0.7 percent, to settle at $56.81 per barrel.

Last month, Saudi Aramco trimmed supplies to at least three Japanese buyers and one in South Korea by up to 10 percent across different Saudi crude grades for November loading as maintenance at oil fields reduced output.

Brent crude hit $64.65 earlier this week, its highest since mid-2015, as political tensions in the Middle East escalated after a sweeping anti-corruption purge in top crude exporter Saudi Arabia, which in turn has confronted Iran over the conflict in Yemen.

Another factor supporting prices was strong demand in southeast Asia, where the number of tankers holding oil in storage around Singapore and Malaysia has halved since June.

Oil prices continued to march higher on both sides of the Atlantic.

The response from the U.S. shale industry is of great importance at the current stage. If the crude oil December contract makes a new daily high of $57.70, I will consider a long position in the commodity.

"Demand considerations have attracted relatively little attention", Stephen Brennock at London-based broker PVM told the Financial Times at the end of October.

Amid the ongoing global, political issues, investors are also still awaiting the next OPEC meeting, later in November.

The voices that U.S. shale might underperform expectations could only be a bullish sign for oil prices.

The price of oil rose above $60 per barrel, following high compliance to the agreed output cap between OPEC and major non-OPEC producers. But higher prices are a double-edged sword for OPEC-not only due to a possible renewed resurgence of U.S. shale, but also because of its own far-from-perfect track record of sticking to pledges when oil prices rise.

IRAQ: Iraq will be the last Middle East producer to announce its monthly prices this month. An OPEC extension is likely, but the current uptick in oil prices, rising geopolitical risks, and a steady decline in global stockpiles could push the definitive decision into 2018.

Xiaoyi Mu, a senior lecturer in Energy Economics at the University of Dundee, suggested that oil prices might soar if there was further instability in Saudi Arabia, but the likelihood of that is low, and even if it does it would lead to a boost in US shale oil production.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.