Home Foreign Oil slips further below $57

Oil slips further below $57


London – Oil edged further below 57 dollars a barrel on Friday, pressured by evidence of ample supplies, including the biggest jump in U.S. inventories since 2001 and Saudi Arabian output reaching a record high.

Brent crude LCOc1 slipped 13 cents to close at $56.44 a barrel while U.S. crude CLc1 was down 43 cents at $50.36.

“Most of the fundamental factors are still pointing to lower prices,” said Eugen Weinberg, analyst at Commerzbank.

“At the moment, we have an oversupply of more than 1 million barrels per day.”

The price of Brent has halved from $115 a barrel in June last year, a drop that deepened after OPEC refused to cut output, choosing to defend market share instead.[pro_ad_display_adzone id=”10″]

Top exporter Saudi Arabia was the driving force behind the policy shift.

While some OPEC members are urging output cuts to boost prices, Saudi Arabia has shown no sign of a rethink.

Oil Minister Ali al-Naimi told reporters on Tuesday that Riyadh has boosted its crude production to 10.3 million bpd, the highest rate on record.

Further pressuring prices, a U.S. government report on Wednesday said domestic crude stocks surged nearly 11 million barrels last week, the biggest gain in 14 years.

A glut of unsold Nigerian crude is building up too, traders say.

This is particularly bearish for Brent, because Nigerian crude is priced against it. (Reuters/NAN)

Previous articleExpert says stress, depression common causes of insomnia
Next articlePolice arraign 2 men for stealing sheep

Leave a Reply