Whatâ€™s next? â€“ OIL 07.08.17
Crude oil prices edged lower in Asian trade on Monday, returning some previous losses as concerns arise ahead of a widely monitored OPEC meeting. The US West Texas Intermediate crude futures traded 0.56 percent lower at $49.30 per barrel as of 07:30 GMT, while the London based Brent contracts on the ICE Futures Exchange in London were down 0.59 percent to $52.11 a barrel. Oil benchmarks settled in green territory on Friday, supported by signs of a possible downscaling of US shale production, although in weekly terms they ended with a tiny loss over renewed concerns that OPEC led efforts won’t be able to rebalance the market. Oilfield service provider Baker Hughes reported a drop of one platform to leave the total oil rig count at 765 units last week, marking the second decrease in almost a month. For the week, WTI contracts were down 0.3 percent or 13 cents, while the Brent eased 0.2 percent or 10 cents as investors eyed an OPEC meeting in the present week. The Organization of the Petroleum Exporting Countries will gather on Monday and Tuesday in Abu Dhabi to discuss a possible increase of output cut volumes until March 2018. OPEC and non OPEC members agreed back in May to extend their joint output cut agreement for a nine month period, but left unchanged the reduction volume at 1.8 million barrels per day. So far this year, the deal hasn’t shown a relevant impact on crude benchmarks, which elevates near term risks for investors as the oil overhang seems to continue active. Apart from the typical inventories data from the American Petroleum Institute on Tuesday and the US Energy Information Administration on Wednesday, traders will be paying attention to monthly reports from OPEC and the Paris based International Energy Agency on global demand levels.