Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Crude Oil Prices Settle Flat Ahead of Inventory Data

Published 10/17/2017, 02:44 PM
Updated 10/17/2017, 02:44 PM
© Reuters.

© Reuters.

Investing.com – Crude oil prices settled flat on Tuesday as expectations of a ramp up in U.S. production weighed on sentiment while easing conflict in Northern Iraq between Iraqi and Kurdish forces lessened concerns over potential supply disruptions in the region.

On the New York Mercantile Exchange crude futures for November delivery rose 1 cent to settle at $51.88 a barrel, while on London's Intercontinental Exchange, Brent added 20 cents to trade at $58.03 a barrel.

Crude oil prices came under pressure on renewed oversupply concerns following data indicating that U.S. producers will increase output.

A monthly report from the Energy Information Administration released Monday showed expectations for a rise of 81,000 barrels a day to 6.12 million barrels a day in shale oil production from seven key U.S. shale regions in November.

The recent uptick in crude prices above $50 a barrel is widely viewed as an incentive for shale producers as it’s the price level at which they can ramp up output.

“WTI prices have found some breathing room above the $50 [a barrel level] and the market is increasingly concerned that those levels will trigger rising rig counts and stronger production growth further down the line,” said Robbie Fraser, commodity analyst at Schneider Electric (PA:SCHN).

Also weighing on the crude prices was a fall in geopolitical tensions in Northern Iraq as the threat of ongoing fighting between Iraqi and Kurdish forces eased after Kurdish forces pulled out of disputed areas in region.

"The security premium built into prices from the (Iraqi-Kurdish) situation is in the process of vanishing," said John Kilduff, partner at Again Capital LLC in New York.

Crude prices staged a late-session rebound, however, as traders looked ahead to a fresh batch of crude inventory data expected to show a continued draw in crude oil stockpiles.

U.S. crude inventory data from the American Petroleum Institute on Tuesday as well as a further report from EIA on Wednesday are expected to show a decrease in U.S. crude inventories for the fourth-straight week.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.