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NYMEX crude gains in Asia as fitful producer cut efforts continue

Published 02/07/2016, 07:26 PM
Updated 02/07/2016, 07:27 PM
© Reuters.  NYMEX crude up in Asia, China markets shut
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Investing.com - Crude oil prices gained in on Monday Asia as fitful moves among producers to find a way to cut output continue.

On the New York Mercantile Exchange, crude oil for delivery in March rose 0.19% to $30.95 a barrel.

In Asia, markets are think with China shut for the week-long Lunar New YEar holiday.

In the week ahead investors will be looking ahead to supply data from industry group the American Petroleum Institute on Tuesday ahead of Wednesday’s weekly government report on stockpiles.

Last week, oil prices were lower on Friday at the end of a volatile week as the stronger dollar and concerns that the oversupply of crude will persist weighed.

Global benchmark Brent settled down 0.96% at $34.13 a barrel. Brent was down 4.93% for the week.

The dollar was boosted after the latest U.S. jobs report showed that while the economy added fewer than expected jobs in January, wage growth accelerated and the unemployment rate fell to an eight-year low.

A stronger dollar can weigh on oil prices by making dollar-denominated oil more expensive for holders of other currencies.

Oil prices remained under pressure amid uncertainty over a possible deal between the Organization of the Petroleum Exporting Countries and other major producers to cut output in a bid to reduce one of the largest supply gluts in decades.

Venezuelan Oil Minister Eulogio Del Pino was to hold talks with his Saudi counterpart Ali al-Naimi on Sunday.
Saudi Arabia cut prices for its crude exports to Europe and Asia on Thursday, in a move designed to defend market share, lowering expectations among traders that the kingdom will be willing to participate in a production cut.

Data from the U.S. Energy Information Administration on Wednesday showed that inventories of crude oil in the U.S. stand near eight-decade highs.
In its weekly supply report the EIA said crude inventories increased by 7.8 million barrels last week, maintaining a total U.S. commercial crude inventory of 502.7 million barrels.

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