Oil ETFs Continue to Fall Off on Rising Supply Concerns

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"US equity futures are trading a bit firmer this morning triggering some little buying interest in the oil markets", said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

While economic worries have weighed, the outlook is not as weak as in 2016 when a supply glut built up, because Opec this time is trying to prop up the market, Mr Jakob said.

The West Texas Intermediate for February delivery rose 3.69 USA dollars to settle at 46.22 dollars a barrel on the New York Mercantile Exchange, while Brent crude for February delivery increased 4 dollars to close at 54.47 dollars a barrel on the London ICE Futures Exchange.

Officials from Iraq, Kuwait and the United Arab Emirates agreed with Saudi Arabia's expectation that the group, along with Russian Federation and other oil producers, will extend the agreement for another six months. The chance of an extraordinary meeting by OPEC and its allies is "sending a signal to the market that they will do whatever it takes". The U.A.E.'s energy minister, while stressing that the 1.2-million barrel-a-day cut will clear an inventory buildup in the first half, hinted additional curbs could be discussed.

The trade dispute between the United States and China and the prospect of a rapid rise in USA interest rates have brought global stocks down from this year's record highs and ignited concern that oil demand will be insufficient to soak up any excess supply.

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In wider financial markets, investors were still anxious as the S&P 500 Index of equities stands just 7 points away from completing a full-blown bear market drop.

Brent crude futures were up 12 cents at $53.94 a barrel by 0858 GMT, while USA crude futures lost 3 cents to $45.56. "For now, those statements are ignored by the market because we are in this bearish cycle".

February West Texas Intermediate CLG9, +0.58% gained $4.69, or 8.6%, to $46.22 a barrel on the New York Mercantile Exchange. The U.S. benchmark on Monday finished at the lowest for a front-month contract since July 21, 2017, and remains down roughly 9.25% so far this month, according to Dow Jones Market Data.

Brent for February settlement declined as much as 54 cents to $49.93 a barrel on the London-based ICE Futures Europe exchange, before paring losses to trade at $51.05 at 11:15 a.m.in London.

During Wednesday's trading sessions on the exchanges of London and NY, the crude oil prices went up greatly, Kazinform correspondent reports.