Oil prices suffered their biggest selloff in five months on Monday, falling as much as 8 percent as Greece's rejection of debt bailout terms and China's stock market woes set off a deepening spiral of losses.
Tags: Oil Prices
Decline in drilling, oil prices up
Oil prices rose following the indications that stockpiles are declining and drop in drilling activity. The global oil benchmark Brent was up three percent as expectations that less drilling may reduce future oil production and inventories as well. Gasoline futures also surged on renewed demand. US crude's front-month rose 4.5 percent or $2 to end at $46.68 a barrel. Brent rose 3.1 percent and closed at $48.92/barrel. It's learnt that US drillers have called off drilling activity for the past three weeks. It's estimated that the US crude production may drop by 250,000 barrels per day (bpd) the second and fourth quarters this year.
Oil price further skids on renewed global concerns
Oil prices dropped further on Friday trading following the alert from the US Central Bank that global economy is weakening. Adding to this, indications that Organization of Oil Exporting Countries (OPEC) would keep up oil production, in order to maintain its market share, also further dampened the market confidence. Equities on the US and European stock markets opened lower. The fundamentals seem to have turned bearish, fell the analysts. Oil price is expected to be $80 per barrel by 2020.
Oils Prices Rallied, But Recovery Still To Take Longer
Oil Prices increased Wednesday, but Shell is not expecting a recovery anytime soon. Lower inventories and oil production in US petroleum supply caused a spike on oil prices Wednesday, but giant oil company Shell admitted it will still take longer before any recovery.
The reason Saudi Arabia won't hold off oil production
It has been nine months since OPEC made a choice to abandon its production target unalterable and pursue market share rather than trying to prop up prices, the group is now faced with a set of complicated issues and decisions going forward.
Latest News
Oil prices dropped on Friday as a rising U.S. rig count stoked more concerns about global oversupply while an investigation by Chinese regulators into suspected stock market manipulation further unsettled the market.
Oil prices recovered on Thursday after a two-day slide as the dollar weakened, making fuel less expensive for holders of other currencies.
Oil prices slipped on Friday as worries over the impact of war in the Middle East on crude supplies were outweighed by reports of profit-taking ahead of a long weekend.
Oil prices rebounded on Wednesday, with U.S. crude snapping a five-day decline, after another weekly inventory draw but gains were still limited by a huge supply overhang and concerns about a stronger dollar.
Oil prices rose on Monday after Islamic State militants said they had seized control of the key city of Ramadi in western Iraq, raising fears of deeper turmoil in the oil-producing country.
Oil prices eased off 2015 highs on Friday after Iraq said its crude oil exports hit a record in April, and on pressure from a stronger dollar.
Oil prices extended declines from the previous session on Wednesday as tensions in the Middle East eased after Saudi Arabia ended an air strike campaign in Yemen, but industry leaders said the market could rebound as attention turned to rising demand.
Oil prices ended in positive territory on Monday after a drop in stockpiles at the delivery point for U.S. crude in the second half of last week outweighed pressure from near record high production in Saudi Arabia.
Oil rose more than 3 percent on Thursday, pushing Brent crude to a 2015 high above $63 per barrel on increasing evidence that U.S. production is peaking, balancing a market that has been in heavy oversupply for more than a year.
