Oil prices extend losses amid rising U.S. production

USA gasoline futures fell about 1.4 percent, leading the energy complex lower, as refiners ramp up production after seasonal maintenance and on demand worries, traders said.

Oil prices initially rebounded in the early trading Monday after the first round of the French presidential election eased fears that France might leave the European Union.

This week it led to a rough ride for prices, with headlines screaming 'Oil has had its worst day since March!' WTI closed on Wednesday at $50.26 per barrel, after the U.S. Energy Information Administration reported that stocks of crude oil had fallen by 1 m barrels - instead of the 1.5 m that had been anticipated.

Opec and its allies have failed after three months of cuts to meet their goal of reducing global supplies below the five-year historical average, Al-Falih said.

Leading Gulf oil exporters Saudi Arabia and Kuwait gave a clear signal on Thursday that OPEC is giving serious consideration to extending the production cuts.

In the week ahead, market participants will eye fresh weekly information on USA stockpiles of crude and refined products on Tuesday and Wednesday to gauge the strength of demand in the world's largest oil consumer.

West Texas Intermediate for June delivery rose as much as 46 cents to $50.08 a barrel on the New York Mercantile Exchange, and was at $50.01 at 9:35 a.m.in London. Futures have tumbled 7.4 percent in the last six days.

Crude palm oil prices were up by 0.35 per cent to Rs 493.50 per 10 kg in futures trade today as speculators enlarged positions, driven by rising demand at spot market and restricted supplies from producing regions. It was also the lowest close since March 28.

The Brent-WTI differential continues to trade in the range between $2 and $2.50.

"There's a lot of managed money in the market", Bob Yawger, director of the futures division at Mizuho Securities USA Inc.in NY, said by telephone.

"If OPEC and the Russians don't come to an agreement to prolong the cuts on May 25, they are going to flee and this market will be down the toilet".

US crude production is now stands at about 9.25 million bpd, which is an increase of nearly 10 percent since summer 2016.

  • Wendy Palmer