Printed out high and low stock data
Markets

Oil erases gains to hit 4-week low as focus shifts to API supply report

Investing.com -

Investing.com - Oil prices erased overnight gains in North American trading on Tuesday, falling to a fresh four-week low as investors looked ahead to weekly data from the U.S. on stockpiles of crude and refined products.

Industry group the American Petroleum Institute is due to release its weekly report at 4:30PM ET (20:30GMT) later on Tuesday. Official data from the Energy Information Administration will be released Wednesday, amid forecasts for an oil-stock drop of 1.3 million barrels.

The U.S. West Texas Intermediate crude June contract fell 10 cents, or around 0.2%, to $49.13 a barrel by 9:05AM ET (13:05GMT). It touched its lowest since March 29 at $48.95 earlier.

The U.S. benchmark settled lower for the sixth session in a row on Monday, amid signs of further gains in U.S. crude output.

Elsewhere, Brent oil for June delivery on the ICE Futures Exchange in London shed 5 cents to $52.08 a barrel after sliding to $51.42 in the prior session, its deepest trough since March 29.

Crude has been under heavy selling pressure in recent days amid fears that an ongoing rebound in U.S. shale production could derail efforts by other major producers to rebalance global oil supply and demand.

U.S. drillers last week added rigs for the 14th week in a row, data from energy services company Baker Hughes showed on Friday, extending a 10-month drilling recovery. That brought the total count to 688, the most since September 2015.

Meanwhile, U.S. President Donald Trump will sign several executive orders on energy and the environment this week, which would make it easier for the U.S. to develop energy on and offshore, a White House official said on Sunday.

The increase in U.S. output has overshadowed pledged output cuts by major producers. In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8 million barrels per day between January and June, but so far the move has had little impact on inventory levels.

A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.

Russia said on Monday that its oil output could climb to the highest rate in 30 years if OPEC and non-OPEC producers do not extend a supply reduction deal beyond June 30.

Elsewhere on Nymex, gasoline futures for June inched down 1.3 cents, or about 0.8%, to $1.613 a gallon, while June heating oil dipped 0.5 cents to $1.542 a gallon.

Natural gas futures for June delivery was little changed at $3.159 per million British thermal units.

Investing.com offers an extensive set of professional tools for the financial markets.

Read more News on Investing.com and download the new Investing.com apps for Android and iOS! https://i-invdn-com.akamaized.net/news/LYNXMPEB2M052_M.jpg © Reuters.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx