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Crude oil down in Asia with supply, monthly reports ahead this week

Published 08/06/2017, 11:30 PM
© Reuters. Crude down in Asia
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Investing.com - Crude oil prices eased in Asia on Monday with a supply meeting in Abu Dhabi and monthly reports later in the week expected to set the tone.

The U.S. West Texas Intermediate crude September contract fell 0.12% to $49.522 a barrel. Elsewhere, on the ICE Futures Exchange in London, Brent oil for October delivery dipped 0.10% to $52.37 a barrel.

Later on Monday, a meeting kicks off oil ministers from some OPEC and non-OPEC countries set for Monday and Tuesday in Abu Dhabi to discuss compliance to agreed upon global production limits that run through March 2018.

In the week ahead, market participants will focus on monthly reports from the Organization of Petroleum Exporting Counties and the International Energy Agency to assess global oil supply and demand levels. The data will give traders a better picture of whether a global rebalancing is taking place in the oil market.


Last week, oil prices settled higher on Friday, aided by signs of a possible slowdown in U.S. shale production, but they still ended the week with a small loss amid renewed concerns over OPEC’s compliance with the deal to curb production.

Friday's gains came after weekly figures from energy services company Baker Hughes showed that the number of active rigs drilling for oil fell by one to 765 last week. It was the second decline in the past three weeks, suggesting early signs of moderating domestic production growth.

Despite Friday's upbeat performance, WTI lost 13 cents, or about 0.3%, for the week, while Brent dipped 10 cents, or roughly 0.2%, amid indications that OPEC exports rose to their highest level of the year, despite the current pact to reduce output.

OPEC and some non-OPEC producers have agreed since the start of the year to slash 1.8 million barrels per day in supply until March 2018. So far, the deal has had little impact on global inventory levels due to rising supply from producers not participating in the accord, such as Libya and Nigeria, as well as a relentless increase in U.S. shale output.

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