Oil prices slide amid glut concerns, U.S. withdrawal from climate deal

Oil prices slide amid glut concerns, U.S. withdrawal from climate deal

Oil prices slide amid glut concerns, U.S. withdrawal from climate deal

Although a sharp fall of US crude inventories could be seen as a supportive factor to oil prices, USA crude production rose to 9.35 million bpd last week, up almost 500,000 bpd from a year ago.

US crude prices were flat at $48.88 on Friday, after losing 4.8 percent overnight, and were set to end the week 2.8 percent lower.

US West Texas Intermediate (WTI) crude futures traded at $48.70, down 96 cents, or two per cent.

The U.S. Energy Information Administration (EIA) was due to report its official figures for U.S. stockpiles at 1500 GMT on Thursday and investors were waiting to see if the API figures were confirmed. That compared with analyst expectations for a decrease of 2.5 million barrels.

Commercial US crude inventories had fallen for seven straight weeks to May 19 amid strong refinery utilisation rates, while gasoline stocks had declined for three weeks, according to the IEA, suggesting consumption of the transportation fuel, typically higher during the summer driving season, was rising faster than supply.

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The data added to concerns over a global supply glut as USA shale oil drilling continues to climb.

Nasdaq в статье Oil prices at 3-week low as rising output risks OPEC-led deal that Benchmark Brent oil was down $1.63, or 3.1 percent, at $50.21 a barrel by 1341 GMT, after earlier touching $50.12 a barrel, the weakest since May 10.

So far, the production-cut agreement has had little impact on global inventory levels due to rising supply from producers not participating in the accord, such as Libya and Nigeria, and a relentless increase in USA shale oil output.

"Trump seems to be removing any barriers he can find that would obstruct growth of crude oil or natural gas", said Stewart Glickman, energy equity analyst at CFRA in NY.

Libya's biggest oil field boosted production, allowing the OPEC nation to pump crude at the highest level since October 2014.

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Dubai crude is now trading around $51.37 a barrel and has held below $60 a barrel since mid-2015.

Rising output from OPEC members Nigeria and Libya, which are exempt from the output reduction deal, is also undercutting attempts to limit production. Oil markets, on the contrary, don't want to hear about the situation in six months.

Output from the Organization of the Petroleum Exporting Countries (OPEC) rose in May, the first monthly increase this year, a Reuters survey found.

Kazakhstan joined the current OPEC and non-OPEC pact last November, pledging to keep its output at around 1.7 barrels per day (bpd).

US production hit 9.34 million bpd last week, highest since August 2015.

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