Published: Wed, March 14, 2018
Markets | By Rosalie Gross

Oil slides on speculation United States surge will undermine OPEC cuts

Oil slides on speculation United States surge will undermine OPEC cuts

However, if predictions from Warren Patterson, a commodities strategist at ING Groep NV, prove accurate, Iran has nothing to worry about: because US activity is angering OPEC allies to the degree they will soon abandon the cartel's production cutback deal, pump all out, and drive prices back down again.

Friday's strong US payroll data, which showed a hefty 313,000 rise in jobs but tempered growth in hourly earnings, supported Treasuries in Monday trade.

As the rig count fell, "the market is starting to think that US shale oil production may not steadily grow, which is supporting oil prices", Takayuki Nogami, chief economist at state-backed Japan Oil, Gas & Metals National Corp., said by phone from Tokyo.

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading mixed early Monday.

Brent for May settlement added 14 cents to $65.63 a barrel on the London-based ICE Futures Europe exchange.

"Venezuela is obliged to supply barrels to China and Russian Federation to pay back debts, so not too much is left for others, mainly India", Ehsan Ul-Haq, director of crude oil and refined products at consultancy Resource Economist, told Reuters. The same glut terrorized the oil prices at the same time previous year.

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The reduction came as gross short positions on the New York Mercantile Exchange climbed to their highest level in almost a month.

Increased supply did not quell demand for the notes, a positive sign for the heavy issuance expected in the year ahead. Contributions of 200 words or more will be considered for publication.

On the other commodity markets, the gold lost 0.08% of its value to 1,319.80 USD per ounce due to the slight strengthening of the U.S. dollar on Tuesday.

The Nasdaq Composite was up 33.19 points, or 0.44 percent, at 7,594.00. The contract climbed 3 percent to $65.49 on Friday.

"We're seeing some positive follow-through, but it would not surprise me to see some profit-taking coming off a very powerful performance on Friday", said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville, New Jersey. The silver and copper fell by 0.19% and 0.42% respectively.

The Japanese yen strengthened 0.41 percent versus the greenback to 106.35 per dollar, while sterling was last trading at $1.3908, up 0.42 percent on the day.

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