💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Crude prices edge down to fresh 5-week lows

Published 11/04/2016, 06:08 AM
© Reuters.  Crude oil remains under pressure after U.S. supply data
LCO
-
CL
-

Investing.com - U.S. oil prices edged down to fresh five-week lows on Friday, as record high U.S. supply data continued to weigh, as well as doubts over the possibility of a production freeze deal by major oil producers.

U.S. crude futures for December delivery were down 0.11% at $44.61 a barrel, just off a fresh five-week low of $44.30 a barrel hit overnight.

On the ICE Futures Exchange in London, the December Brent contract slipped 0.28% to trade at $46.20 a barrel, close to the five-week trough of $45.97 a barrel hit earlier in the session.

Crude prices were hit after the U.S. Energy Information Administration said that crude oil inventories rose by 14.4 million barrels last week, much more than the expected crude-stock gain of 1.0 million barrels.

The commodity also remained under pressure amid growing skepticism over the implementation of a planned deal by OPEC to limit production.

OPEC reached an agreement to cap output to a range of 32.5 million to 33.0 million barrels per day in talks held in Algeria in late September. However, the 14-member oil group said it won’t finalize details on individual output quotas until its next official meeting in Vienna on November 30.

The possibility that producers could walk away empty-handed from the November meeting looms large after Iraq, Iran, Nigeria and Libya all signaled they might not take part in the proposed production cut deal. Russia’s unclear stance is also fueling uncertainty.

Latest comments

Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.