Oil prices retreat from $50 on oversupply concerns | Reuters

SINGAPORE Oil futures dipped further in early Asian trade on Friday, finding resistance at the $50 a barrel mark as investors worried higher prices could reactivate shuttered crude output, adding to global oversupply. Oil pushed through $50 for the first time in around seven months on Thursday as supply disruptions from Canadian wildfires and attacks in Libya and West Africa have helped cut daily output by 4 million barrels. Increased demand and a weaker dollar helped support prices.

Reuters May 27, 2016 07:00:08 IST
Oil prices retreat from $50 on oversupply concerns
| Reuters

Oil prices retreat from 50 on oversupply concerns
 Reuters

SINGAPORE Oil futures dipped further in early Asian trade on Friday, finding resistance at the $50 a barrel mark as investors worried higher prices could reactivate shuttered crude output, adding to global oversupply.

Oil pushed through $50 for the first time in around seven months on Thursday as supply disruptions from Canadian wildfires and attacks in Libya and West Africa have helped cut daily output by 4 million barrels. Increased demand and a weaker dollar helped support prices.

U.S. crude CLc1 fell 7 cents to $49.41 a barrel as of 0033 GMT after settling down 8 cents in the previous session. It touched $50.21 earlier on Thursday, its highest since early October.

Brent LCOc1 fell 9 cents to $49.50. Brent closed down 15 cents, retreating from $50.51, its highest since early November.

"WTI and Brent futures went through $50 a barrel on tightening supply, but unsurprisingly hit stubborn resistance at that key level and then eased back," ANZ said in a note on Friday.

Oil prices, which have risen nearly 90 percent from 12-year lows hit earlier this year, face pricing barriers to moving higher in the next three to five weeks, technical analysts said on Thursday, with Brent facing a significant hurdle at around $52 a barrel.

Donald Trump, the presumptive Republican presidential nominee, promised to revive the ailing U.S. oil and coal industries on Thursday, by scrapping key environmental policies including a U.S. withdrawal from the U.N. global climate accord.

Nigeria's government needs to address grievances in the oil-producing Niger Delta, Oil Minister Emmanuel Ibe Kachikwu said on Thursday, hours after a Chevron source (CVX.N) said a militant attack had forced it to shut its onshore operations in the restive region.

Investors were also awaiting the appearance of U.S. Federal Reserve Chair Janet Yellen at an event later on Friday for further indications on when the Fed could raise interest rates.

A raft of Fed officials have called for a normalisation of interest rates as the U.S. economy and inflation rise, with odds of a June hike now sitting around 34 percent, compared with 4 percent last week, ANZ analysts said.

"Markets have moved a lot recently and whilst activity data has improved and interest rate expectations have risen, more news is now needed to help shape the markets' expectations over a possible June/July Fed rate hike," the ANZ note on Friday said.

(Reporting by Keith Wallis; Editing by Richard Pullin)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Happy birthday Mammootty: Kerala CM Pinarayi Vijayan, actors Mohanlal, Nivin Pauly wish veteran star
Entertainment

Happy birthday Mammootty: Kerala CM Pinarayi Vijayan, actors Mohanlal, Nivin Pauly wish veteran star

Muhammad Kutty Panaparambil Ismail, better known by his stage name Mammootty, turns 69 today.

As US polls draw near, Joe Biden, in a rarity, attacks Donald Trump from battleground Pennsylvania
World

As US polls draw near, Joe Biden, in a rarity, attacks Donald Trump from battleground Pennsylvania

Playing up his local, middle-class roots, Biden focussed on Trump’s stewardship of the coronavirus, casting the president as a callous leader who cannot empathise with the concerns of most Americans

Facebook is failing in global disinformation battle, claims former employee
World

Facebook is failing in global disinformation battle, claims former employee

Facebook was “largely motivated by PR,” wrote Sophie Zhang, who added that “the civic aspect was discounted because of its small volume, its disproportionate impact ignored.”