Investing.com | Jun 19, 2017 08:22
Investing.com - Oil prices pushed higher in North American trading on Monday, bouncing back from the prior week's losses, but gains were limited as the market weighed ongoing efforts by major producers to cut output and reduce a global glut against a relentless increase in U.S. drilling activity.
The U.S. West Texas Intermediate crude July contract was at $45.09 a barrel by 8:10AM ET (1210GMT), up 12 cents, or around 0.3%. Elsewhere, Brent oil for August delivery on the ICE Futures Exchange in London tacked on 21 cents to $47.58 a barrel.
WTI lost $1.13, or about 2.4%, last week, while Brent fell 78 cents, or roughly 1.6%. Both have now posted losses four weeks in a row, which marks the longest weekly losing streak since August 2015 for WTI.
Concern that the ongoing rebound in U.S. shale production is derailing efforts by other major producers to rebalance the market remained in focus.
U.S. drillers last week added rigs for the 22nd week in a row, according to data from energy services company Baker Hughes, implying that further gains in domestic production are ahead.
The increase in U.S. drilling activity and shale production has mostly offset efforts by OPEC and other producers to cut output in a move to prop up the market.
Last month, OPEC and some non-OPEC producers extended a deal to cut 1.8 million barrels per day in supply until March 2018.
In the week ahead, market participants will eye fresh weekly information on U.S. stockpiles of crude and refined products on Tuesday and Wednesday to gauge the strength of demand in the world’s largest oil consumer.
Meanwhile, traders will also continue to pay close attention to comments from global oil producers for evidence that they are complying with their agreement to reduce output this year.
Natural gas futures for July delivery sank 14.0 cents, or almost 5%, to $2.895 per million British thermal units, a level not seen since mid-March.
Written By: Investing.com
Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading in financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indices, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn't bear any responsibility for any trading losses you might incur as a result of using this data.