Oil tumbles as OPEC output hike, Shale revival taint bull market

Oil tumbles as OPEC output hike, Shale revival taint bull market

Oil tumbles as OPEC output hike, Shale revival taint bull market

Rigs targeting crude in the USA climbed by six last week, bringing the total to 750, according to Baker Hughes data reported Friday.

Energy markets are going to be "in the driver's seat" for the rest of the year after metals and other commodities led the rally in the first two months of the third quarter, Morse said.

Harvey knocked out almost a quarter of the nation's oil refining capacity along the Texas Gulf Coast, creating multiple weeks of crude inventory increases as refineries processed less oil.

Crude oil prices fell Monday after September market gains finally caught up with USA producers, while concerns surfaced over supply-side strains next year. Prices followed suit in the physical market, which uses Brent as a benchmark.

However, a recent Reuters poll suggests OPEC oil output rose some 50,000 per day during September.

Oil prices dipped on Thursday after the United States reported record crude exports, although traders said that efforts led by OPEC and Russian Federation to cut production meant markets remained well supported overall.

Drillers added six oil rigs looking for new production in the week to September 29, bringing the total count up to 750, according to energy services firm Baker Hughes. Total non-OPEC growth could reach as much as 1.4 million barrels a day, he said.

Brent crude futures decreased by 0.37 percent and stood at $55.91, U.S. West Texas Intermediate (WTI) futures dropped by 0.24 percent was at $50.46, RIA Novosti reported.

December Brent crude futures were virtually unchanged at $56.13 a barrel at 0851 GMT, having lost nearly 2.5 percent on Monday. According to the median estimate in a Bloomberg survey, USA oil inventories probably fell by 500,000 barrels last week.

The second reason behind the decline in the price of oil, was the value of the United States dollar. U.S. crude oil inventories have fallen by 1.1 MMbbls or 0.2% year-over-year. Additionally it materialized on visibly lower volume than earlier decline, which increases doubts about oil bulls strength and further rally.

Oil-market news. Libya is slowly restarting Sharara, its biggest oil field, after it was halted by an armed group, the latest disruption in the OPEC member's efforts to revive its energy industry.

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