Oil falls after biggest loss in two weeks on rising USA supply

Workers tend to oil pump jacks behind a natural gas flare near Watford City North Dakota

Workers tend to oil pump jacks behind a natural gas flare near Watford City North Dakota

The price for Brent crude oil was 0.52 percent below the previous close about an hour before the start of trading in NY to $55.43 per barrel.

US crude futures fell 87 cents, or 1.64%, to $52.14 a barrel on the New York Mercantile Exchange. However, Societe Generale oil analyst Michael Wittner said US shale output was rebounding faster than expected as more rigs drilled better and more efficient wells more quickly. Overall, WTI dipped to 3-week lows below $52.00 p/b before finding some support into the USA close.

Gasoline inventories recorded a build of 2.9mn barrels for the second successive week while distillate recorded a build of 1.37mn barrels.

Oil prices fell because of growing concerns about rising USA crude oil production and an increase in stockpiles at Cushing, Oklahoma.

"The general perception is that OPEC is cutting production, which is supporting prices, but high stock levels, rising rig counts and growing USA production are capping gains", said Tamas Varga, analyst at London brokerage PVM Oil Associates.

Zarif: Trump's Muslim ban 'great gift to extremists'
Salehi said Tehran is not willing to take hasty steps and will wait and see how the new U.S. administration proceeds with the agreement.


Ritterbusch and others also said the crude decline was associated with weakness in gasoline futures.

Away from the oil market, gold futures remained above $1,230 an ounce as safe-haven seeking investors continued to bet on the physical market. Nationwide stockpiles are at 494.8 million barrels, the highest seasonal level in more than three decades, according to weekly data compiled by the EIA since 1982. The global benchmark traded at a premium of US$2.08 to April WTI. BP said today it made a "small" loss trading oil in the fourth quarter, while Shell last week said profits "flattened" in late 2016.

The price of oil changed in the world markets, Azertac reported.

Since the beginning of 2017, the prices of oil swayed in both directions within a $5 per barrel price range, implying not enough strong momentum in the global crude market. The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, rose 0.3 per cent.

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