Crude futures settled higher on Friday, but posted a fifth-weekly loss as investors continued to fret about the glut in supply while the number of active U.S. drilling rigs rose for a 23rd straight week.

CRUDE FUTURES POST FIFTH WEEKLY LOSS AS OVERSUPPLY JITTERS PERSIST

CRUDE FUTURES POST FIFTH WEEKLY LOSS AS OVERSUPPLY JITTERS PERSIST

Crude futures settled higher on Friday, but posted a fifth-weekly loss as investors continued to fret about the glut in supply while the number of active U.S. drilling rigs rose for a 23rd straight week.

BUZ INVESTORS  Crude futures settled higher on Friday, but posted a fifth-weekly loss as investors continued to fret about the glut in supply while the number of active U.S. drilling rigs rose for a 23rd straight week.

On the New York Mercantile Exchange crude futures for August delivery rose 27 cents to settle at $43.01 a barrel, while on London’s Intercontinental Exchange, Brent added 30 cents to trade at $45.52 a barrel.

Drillers added 11 oil rigs in the week to June 23, bringing the total count up to 758, the most since April 2015, energy services firm Baker Hughes Inc said in a report on Friday.




 Crude futures

The report from Baker Hughes comes in the wake of growing fears that the oversupply problem in the market will continue despite Opec and its allies’ high compliance with the global deal to curb production.

In May, Opec and non-Opec members agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.8 million bpd agreed in November last year.

A monitoring committee made up of OPEC members and producers outside the group on Thursday said compliance to the deal reached 106% in May, the highest since the deal was first clinched late last year.

Sentiment on oil turned soured this week amid significant selling pressure, as prices entered bear market territory, falling 20% since the turn of the year.

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COMMODITIES: (CRUDE OIL) (SILVER) (GOLD)




Oil prices give up early gains as oversupply weighs

Oil prices give up early gains as oversupply weighs

Oil prices give up early gains as oversupply weighs

Oil prices give up early gains as oversupply weighs

Oil prices slipped after gains made earlier on Thursday and the previous day as overproduction and large volumes of unsold crude and ample refined products around the world weighed on markets.

Brent crude futures were trading at $42.72 a barrel at 1203 GMT, down 38 cents from their last close and down from an intra-day high of $43.65 a barrel.

U.S. West Texas Intermediate (WTI) crude futures were trading at $40.62 per barrel, down 21 cents, and after hitting an intra-day high of $41.41 per barrel and rising 3.3 per cent in the previous session.

“Prices began to recover following the publication of the U.S. inventory data [on Wednesday], and continued to do so into the morning,” Commerzbank said in a note.



“Maybe the surprise drawdown in gasoline inventories helped future prices remain stable but that does not change the fact: the U.S. is flooded with oil,” said Tamas Varga, lead oil analyst at London brokerage PVM Oil Associates.

Elsewhere, Iraq’s crude oil production in July rose to the highest level since January, to 4.632 million barrels-per-day compared with 4.559 million bpd in June, state-run oil marketer SOMO said on Thursday.

U.S.-based Schork Report said that the earlier price gains were a result of profit-taking from previous short positions that benefited from falling prices along with a fall in the U.S.-dollar since July.

Oil prices fell to three-month lows on Thursday as producers continued to pump more than needed, filling inventories, and economic growth prospects darkened. Brent crude oil was down 50 cents at $42.97 a barrel by 1010 GMT, after touching $42.88, its lowest since April 20. U.S. light crude was down 20 cents at $41.72. U.S. government data on Wednesday revealed a surprise rise in crude and gasoline inventories. The build added to an already huge global refined product glut just as slowing economic growth dents the demand outlook. "U.S. commercial stocks are a good reflection of the oversupplied nature of the global oil market," said Tamas Varga, lead oil analyst at London brokerage PVM Oil Associates. Oil markets have been dogged by oversupply for the last two years and fell by as much as 70 percent between 2014 and early 2016, when Brent hit the lowest in more than a decade at around $27 per barrel. Markets have since recovered some ground but oil remains very weak and low refining margins are hurting energy companies. Energy major Royal Dutch Shell reported a more than 70 percent fall in quarterly profit on Thursday, well below analysts' estimates, as weak oil and gas prices further ate into revenue. Shell's net income came in at $1 billion in the second quarter, compared with expectations of $2.2 billion and $3.8 billion achieved in the same period last year.

Oil hits 3-month lows below $43 as oversupply weighs

Oil hits 3-month lows below $43 as oversupply weighs

 Oil prices fell to three-month lows on Thursday as producers continued to pump more than needed, filling inventories, and economic growth prospects darkened. Brent crude oil was down 50 cents at $42.97 a barrel by 1010 GMT, after touching $42.88, its lowest since April 20. U.S. light crude was down 20 cents at $41.72. U.S. government data on Wednesday revealed a surprise rise in crude and gasoline inventories. The build added to an already huge global refined product glut just as slowing economic growth dents the demand outlook. "U.S. commercial stocks are a good reflection of the oversupplied nature of the global oil market," said Tamas Varga, lead oil analyst at London brokerage PVM Oil Associates. Oil markets have been dogged by oversupply for the last two years and fell by as much as 70 percent between 2014 and early 2016, when Brent hit the lowest in more than a decade at around $27 per barrel. Markets have since recovered some ground but oil remains very weak and low refining margins are hurting energy companies. Energy major Royal Dutch Shell reported a more than 70 percent fall in quarterly profit on Thursday, well below analysts' estimates, as weak oil and gas prices further ate into revenue. Shell's net income came in at $1 billion in the second quarter, compared with expectations of $2.2 billion and $3.8 billion achieved in the same period last year.

oversupply weighs Oil prices fell to three-month lows on Thursday as producers continued to pump more than needed, filling inventories, and economic growth prospects darkened.

Brent crude oil was down 50 cents at $42.97 a barrel by 1010 GMT, after touching $42.88, its lowest since April 20. U.S. light crude was down 20 cents at $41.72.

U.S. government data on Wednesday revealed a surprise rise in crude and gasoline inventories. The build added to an already huge global refined product glut just as slowing economic growth dents the demand outlook.

“U.S. commercial stocks are a good reflection of the oversupplied nature of the global oil market,” said Tamas Varga, lead oil analyst at London brokerage PVM Oil Associates.

Oil markets have been dogged by oversupply for the last two years and fell by as much as 70 percent between 2014 and early 2016, when Brent hit the lowest in more than a decade at around $27 per barrel.

Markets have since recovered some ground but oil remains very weak and low refining margins are hurting energy companies.

Energy major Royal Dutch Shell reported a more than 70 percent fall in quarterly profit on Thursday, well below analysts’ estimates, as weak oil and gas prices further ate into revenue.

Shell’s net income came in at $1 billion in the second quarter, compared with expectations of $2.2 billion and $3.8 billion achieved in the same period last year.