UPDATE 10-Oil flat as tropical storm limits output, glut forecasts weigh

UPDATE 10-Oil flat as tropical storm limits output, glut forecasts weigh

Reuters  | Jul 13, 2019 00:30

UPDATE 10-Oil flat as tropical storm limits output, glut forecasts weigh

* U.S. Gulf of Mexico crude output cut by 59% -U.S. government

* IEA forecasts global oil surplus

* Iran calls on Britain to release seized tanker

* U.S. oil drillers cut rigs for second week -Baker Hughes (Updates prices and market activity to settlement)

By Laila Kearney

NEW YORK, July 12 (Reuters) - Oil prices were little changed on Friday as U.S. Gulf of Mexico crude output dropped by more than half from disruptions caused by a tropical storm, but concerns over a global crude surplus in the months ahead limited gains.

Brent crude LCOc1 futures settled at $66.72 a barrel, climbing 20 cents. U.S. West Texas Intermediate (WTI) crude CLc1 futures settled at $60.21 a barrel, up 1 cent.

Brent has gained 4% this week while WTI posted a 4.7% rise. Both benchmarks fell last week.

Tropical Storm Barry, which is expected to become a hurricane just before making landfall this weekend, boosted crude futures as oil companies in the Gulf of Mexico sliced production. 59%, or 1.1 million barrels per day, of crude oil production in the U.S.-regulated areas of the Gulf of Mexico has been cut because of the storm, the U.S. Bureau of Safety and Environmental Enforcement (BSEE) said.

"The crude oil market is being supported by the Gulf of Mexico production shut-in. ... It is going to look to see if Tropical Storm Barry becomes a major flooding event that impacts the refining sector in Louisiana and impacts gas and diesel," said Andy Lipow, president of Lipow Oil Associates in Houston.

The International Energy Agency (IEA) forecast surging U.S. oil output will outpace sluggish global demand and lead to a large inventory build around the world in the next nine months. IEA report is tempering any price rise that we might see from Tropical Storm Barry because the market continues to stumble under the weight of slowing economic growth," Lipow said.

The world energy watchdog's report came a day after the Organization of the Petroleum Exporting Countries predicted a crude glut next year despite an OPEC-led pact to restrain supplies. weekly U.S. oil rig count, an indicator of future production, fell for the second straight week, General Electric (NYSE:GE) Co's GE.N Baker Hughes energy services firm said. RIG/U Drillers cut four oil rigs in the week to July 12, reducing the total to 784, the lowest since February 2018.

The market remained on edge as tensions intensified between Iran and the West. Tehran on Friday said Britain was playing a "dangerous game" after last week's seizure of an Iranian tanker on suspicion it was breaking European sanctions by taking oil to Syria. time will tell whether this turns out to be a case of wishful thinking, but one thing is clear: geopolitical risks are here to stay," said Stephen Brennock, analyst at PVM Oil Associates.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ TECHNICALS-Brent oil may retest support at $66.40

L4N24D09P TECHNICALS-U.S. oil may retrace to $59.74

L4N24D0NB

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
gaurav singh
gaurav singh

so can we seen Brent Crude above 62$...!!!  ... (Read More)

Jul 12, 2019 12:27 GMT· Reply
gaurav singh
gaurav singh

so can we seen Brent Crude above 62$...!!!  ... (Read More)

Jul 12, 2019 12:27 GMT· Reply
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+