Tags
Crude futures fell on Wednesday after Kuwaiti oil workers ended a three-day strike that had cut the nation's crude output by around half, with worries about an oversupplied market returning to the fore.
Concerns about an oil surplus were also reinforced by industry data that showed US stockpiles rose last week.
Brent crude futures were down $1.08 at $42.95 a barrel at 0602 GMT. On Tuesday, they settled up $1.12, or 2.6 percent, at $44.03 a barrel.
US crude was down $1.10, or nearly 3 percent, at $39.98. The contract rose $1.30, or 3.3 percent, to $41.08 in the previous session.
A trade union said in a statement posted on its Twitter account on Tuesday that Kuwaiti oil and gas workers had ended the strike that had temporarily cut the OPEC member's crude production to as little as 1.1 million barrels per day (bpd) from about 3 million bpd.
By Tuesday, though, output had recovered to around 1.5 million bpd.
The end of the strike revived the bearish mood brought on by the failure of major producers on Sunday to agree to freeze output to help overcome a market imbalance that has caused a slump in prices since mid-2014.
"We were bearish before Doha. Prices had risen too far on false hopes of a deal. Now that this has been corrected, we're more neutral in our price outlook," said Georgi Slavov, head of research at commodities brokerage Marex Spectron.
"Generally, we think that oil prices have passed their bottom this year, and we expect a Brent price range of $45-$55 per barrel for the mid-term," Slavov said.
Adding to the bearish tone, data from industry group American Petroleum Institute (API) also showed U.S. crude stocks rose more than anticipated last week.
Crude inventories rose by 3.1 million barrels in the week to April 15 to 539.5 million, compared with analysts' expectations for a rise of 2.4 million barrels. Crude stocks at the Cushing, Oklahoma, delivery hub fell by 235,000 barrels, API said.
"In the near term we are going to see more downward pressure than upward," said IHS analyst Victor Shum.
There are no comments.
SPORT Saying goodbye is never easy, especially when you are saying farewell to those that have left a positive impression. That was the case earlier this month when Canada hosted Mexico in a friendly at BC Place stadium in Vancouver.
TECHNOLOGY Some 60mn primary-school-age children have no access to formal education
CULTURE Lekhwiya’s El Arabi scores the equaliser after Tresor is sent off; Tabata, al-Harazi score for QSL champions
ARABIA The Yemeni Minister of Tourism, Dr Mohamed Abdul Majid Qubati, yesterday expressed hope that the 48-hour ceasefire in Yemen declared by the Command of Coalition Forces on Saturday will be maintained in order to lift the siege imposed on Taz City and ease the entry of humanitarian aid to the besieged
ARABIA Some 200 teachers from schools across the country attended Qatar Museum’s (QM) first ever Teachers Council at the Museum of Islamic Art (MIA) yesterday.
ARABIA The Supreme Judiciary Council (SJC) of Qatar and the Indonesian Supreme Court (SCI) have signed a Memorandum of Understanding (MoU) on judicial co-operation, it was announced yesterday.
ECONOMY Sri Lanka is keen on importing liquefied natural gas (LNG) from Qatar as part of government policy to shift to clean energy, Minister of City Planning and Water Supply Rauff Hakeem has said.
