Oil is undergoing downward and US supply raised as 2 rigs added


Crudeoil

29-10-2018 05:00 PM

Oil prices traded lower on Monday morning in Asia, regardless of a rebound in the region’s stock markets. Investors were watchful after a sell-off last week that could specify a global economic hold back.

According to Sunil Kumar, Market analyst and Director at Enrich Commodities - Oil is undergoing downward pressure from lower expansion outlook around the globe.

According to energy services firm Baker Hughes’ report - U.S. Supply is also likely to rise as drillers added two oil rigs last week bringing the number to 875, touching the highest level since March 2015. Canada also lifted up one extra oil rig to 124 last Friday, up 28 from a year ago.

Saudi Arabia assured to raise oil production to pay compensation for the downfall from U.S. crude sanctions on Iran starting next month, easing market concerns and likely pushing down prices.

The Kingdom’s energy minister Khalid al-Falih said that the country has “no intention” of imposing an oil embargo but will raise oil output to 11 billion bpd.

“So we want to be watchful not to over-correct and cause a substantial inventory build,”

Asia’s supply on crude is rigid, as only 4 crude oil tankers around Singapore and southern Malaysia are at present filled, down from about 15 in the earlier year and from 40 in mid-2016.

   
 
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