Sections
Log in
Top News
U.S. News World News Featured Voices
Odd News
Entertainment
Movies Music TV
Sports
Soccer NFL NBA MLB NHL Golf Horse Racing Tennis Col. Football Col. Basketball
Photos
News Entertainment Sports Features Archives
More...
Defense Featured Science Health Archive Almanac
About Feedback
About Feedback
Search
Trending
9/11 fund
Payless
Theodore McCarrick
Jussie Smollett
Illinois shooting
Iran attack
Laurie Hernandez
'Alexa & Katie'
Nigeria election
Colin Kaepernick
Stephen Curry
YNW Melly
U.S. News
Feb. 11, 2019 / 10:21 AM

Oil prices lower amid reports of rising production rigs

By
Renzo Pipoli
Crude oil prices were lower early Monday, extending last week's losses, possibly due to the lingering impact of a rising production rigs. File Photo by Brian Kersey/UPI | License Photo

Feb. 11 (UPI) -- Oil prices appeared to be feeling the impact of reports of rising production rigs as they started lower in the morning, extending a decline that started last week.

West Texas Intermediate crude future prices fell 0.8 percent to $52.28 as of 9:00 a.m. EST, while Brent crude oil fell 0.3 percent to $61.90 per barrel at the same time.

"This comes on the back of a 4.6 percent decline last week, the steepest fall since Dec. 21, 2018," independent analyst Lakshan de Silva told UPI. The drop for Brent last week was 1 percent.

"WTI prices faced more headwinds in term of rising active drilling rigs, Baker Hughes data showed a rise by 7 to 845 last week. This reversed the trend set a week earlier where active oil rigs fell by 15. Ideally the current macro noise should provide tailwinds to crude prices, given the political instability in Venezuela, and production cuts announced by OPEC," de Silva added.

RELATED NOC, Repsol keeps Libya's al-Sharara field shuttered over violence

OPEC will on Tuesday issue a report with monthly output data.

OPEC agreed at a Dec. 7 meeting to cut output by 800,000 barrels per day, with non-OPEC countries led by Russia cutting another 400,000 barrels per day. The cuts were to go into effect in January, so Tuesday's report would be the first after the cuts.

A "current tepid global economic sentiment, and dovish tones conveyed by global central banks appear to have hampered any upward price potential for crude prices," de Silva said.

RELATED Concerns about U.S., Chinese trade war dampen crude oil prices

Separately, Tyler Yell, DailyFX analyst, wrote in a report that "the falling global supply or access of Venezuelan oil from PDVSA may further support price increases in the near future."

"Crude and the commodities sector as a whole remains one of 2019's hottest investments. Iron Ore is up 30 percent, while Brent & WTI are higher by 18.4 percent & 15.8 percent respectively. Equities are only up a measly 8 percent in the US' Standard & Poor 500," Yell added.

The world's biggest iron ore miner, Brazil's has announced plans to reduce output after the tragic collapse of a tailings dam as it makes efforts to retire all similar dams. The collapse of a dam in January caused at least 165 deaths, with 160 still missing

RELATED Oil prices lower as inventory build only modest

WTI was $55.26 per barrel on Feb. 1, its highest level for the year and at $46.54 on January 2. Its highest level for all of 2018 was over $76 per barrel on October 3.

  • Topics
  • Brent Crude
Follow us on Facebook, Twitter and Instagram for more UPI news and photos.

Trending Stories

Pentagon chief to review funds to shift for building border wall
Anthony Weiner released from prison to federal re-entry program
Four hostages, gunman dead after 12-hour hostage standoff in Mississippi
Teen who joined IS in Syria gives birth, seeks return to Britain
Jussie Smollett's lawyers deny he orchestrated attack

Photo Gallery

 
King wins Best in Show at the Westminster dog show

Latest News

UPI Almanac for Monday, Feb. 18, 2019
Famous birthdays for Feb. 18: Dr. Dre, Toni Morrison
On This Day: Dozens die in Kiev, Ukraine, protests
Fashion icon Lee Radziwill dies at 85
Stephen Curry ends All-Star Game with reverse slam off bounce alley-oop
 
Back to Article
/
Back to top
About UPI Contact Feedback Advertisements Submit News Tips
Copyright © 2019 United Press International, Inc. All Rights Reserved.
Terms of UsePrivacy Policy