Global oil mar­ket slides be­fore week­end

The China Post - - MARKETS -

World oil prices dropped Fri­day as in­vestors locked in prof­its fol­low­ing a six-day rally, with a rise in OPEC’s out­put in March also adding to down­ward pres­sure, an­a­lysts said.

Brent North Sea crude for June de­liv­ery fell 38 cents to US$63.60 per bar­rel in mid­day Lon­don deals.

U.S. bench­mark West Texas In­ter­me­di­ate for de­liv­ery in May sank 42 cents to US$56.68 a bar­rel.

“Af­ter a sus­tained in­crease in both the WTI and Brent over the past week, traders are sell­ing ... and this has led to the down­ward pres­sure in prices we see to­day,” said an­a­lyst Daniel Ang at Phillip Fu­tures in Sin­ga­pore.

Prices rose for the sixth day run­ning on Thurs­day — with WTI hit­ting its high­est level since De­cem­ber — on news that U.S. shale out­put, which has con­trib­uted to a global sup­ply glut, may be on the cusp of eas­ing.

But Ang said the over­sup­ply was un­likely to end soon due to strong pro­duc­tion lev­els by the Or­ga­ni­za­tion of the Petroleum Ex­port­ing Coun­tries (OPEC).

The 12-mem­ber OPEC, which pumps around a third of the world’s oil, saw its pro­duc­tion in March rise by 810,000 bar­rels per day to av­er­age 30.79 mbpd, Ang said.

“OPEC’s high pro­duc­tion num­bers for March high­lights that the global crude over­sup­ply prob­lem is still there,” he told AFP.

Crude prices col­lapsed more than 50 per­cent be­tween June and Jan­uary ow­ing to the over­sup­ply and weak de­mand.

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