MTECHTIPS:-Crude futures settle higher ahead of key updates

MTECHTIPS:-Crude futures settle higher ahead of key updates

MTECHTIPS-Crude futures settled higher on Monday, after Saudi Arabia and Russia attempted to quell investor fears concerning the glut in supply, insisting that declines in inventories will accelerate over the near term. On the New York Mercantile Exchange crude futures for June delivery rose 25 cents to settle at $46.08 a barrel, while on London’s Intercontinental Exchange, Brent added 34 cents to trade at $48.49 a barrel.Sentiment on oil prices turned positive, after Saudi Energy Minister Khalid Al-Falih said inventories are declining and reductions will accelerate in the next three to four months. Crude futures, however, pared gains in the mid-afternoon U.S. session, after the U.S. Energy Information Administration (EIA) released its monthly report on drilling activity. The EIA revealed that oil production from seven major U.S. shale plays is projected to rise by 127,000 barrels a day to 5.475 million barrels a day in July from June. Rising shale output has been one the catalysts contributing to the recent slump in oil prices as investors fear that a ramp up in U.S. production could derail the Organization of petroleum exporting countries (Opec) and its allies’ efforts to restore balance in crude markets. UBS last week cut its 2017 price forecast by more than 6% for WTI oil to $53 a barrel. “U.S. shale players are clearly focused on delivering production growth, and plentiful capital is available to fund it,” said Jon Rigby, the bank’s head of oil research.
MTECHTIPS-Apply For 2 Days Free Trails Equity & Commodity Tips

WWW.MTECHTIPS.COM

07489294118-119