Home Investing News Oil prices settle slightly down after US boosts crude output forecast

Oil prices settle slightly down after US boosts crude output forecast


Oil prices settle slightly down after US boosts crude output forecast By Reuters

Breaking News



Published Mar 11, 2024 10:34PM ET
Updated Mar 12, 2024 05:31PM ET

© Reuters. FILE PHOTO: Oil rig pumpjacks, also known as thirsty birds, extract crude from the Wilmington Field oil deposits area near Long Beach, California July 30, 2013. REUTERS/David McNew//File Photo

By Nicole Jao

NEW YORK (Reuters) -Oil prices dipped on Tuesday, settling slightly lower after a higher-than-expected forecast for U.S. crude oil production and bearish economic data, but persistent geopolitical tensions limited declines.

Brent futures for May delivery settled 29 cents lower at $81.92 a barrel. The April U.S. West Texas Intermediate (WTI) crude contract ended 37 cents lower at $77.56.

U.S. consumer prices increased solidly in February, the U.S. Bureau of Labor Statistics said, pinning nagging inflation largely on higher costs for gasoline and shelter.

“This does show a second month of an increase,” said Tim Snyder, an economist at Matador Economics, noting the numbers were still within expectations. “Consensus in the markets says the Fed will not move to lower rates until June,” he added.

On Tuesday, OPEC stuck to its forecast for relatively strong growth in global oil demand in 2024 and 2025, and further raised its economic growth forecast for this year saying there was more room for improvement.

On the supply side, U.S. Energy Information Administration (EIA) raised its 2024 outlook for domestic oil output growth by 260,000 barrels per day to 13.19 million barrels, versus a previously forecast rise of 170,000 bpd.

The boosted forecast could be due to higher assumed oil prices, said UBS analyst Giovanni Staunovo.

U.S. crude stocks fell 5.521 million barrels in the week ended Mar. 8, according to market sources citing American Petroleum Institute figures on Tuesday.[API/S]

Official U.S. government data is due on Wednesday.

Last week, economic data from China, the world’s biggest oil buyer, suggested softening demand even as crude imports increased in the first two months of the year from a year earlier.

“Bearish demand sentiment and growing non-OPEC supply leave little room for the market to be bullish on oil prices at this time,” said Serena Huang, head of APAC analysis at Vortexa.


Hopes of a ceasefire in Israel’s war against Hamas have faded, with negotiations deadlocked in Cairo while Israel and Lebanon’s Hezbollah continue to exchange fire.

Though the Gaza conflict has not led to significant oil supply disruptions, Yemen’s Iran-aligned Houthis have been attacking ships in the Red Sea and Gulf of Aden since November in solidarity with Palestinians.

Airstrikes attributed to a U.S.-British coalition hit port cities and small towns in western Yemen on Monday and the Houthis said on Tuesday that they had fired missiles at what they described as a U.S. ship in the Red Sea.

Traders are becoming inured to such attacks, said John Evans at oil broker PVM.

“The inventory of oil that might be affected is not lost, it is just delayed – and with the new shipping times being part of the new norm, ‘delayed’ will eventually not be applicable,” he said.

In Russia, the world’s second-largest oil exporter, a Ukrainian attack on energy facilities set ablaze Lukoil’s NORSI refinery.

Oil prices settle slightly down after US boosts crude output forecast

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

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.

Related News