Oil prices on Monday moved higher in thin trade. Brent crude futures settled at $ 49.76 up 44 cents and there was no settlement in US West Texas Intermediate crude futures due to US Memorial Day holiday.
US Crude Oil on Tuesday closed at $ 49.10 down 0.47 percent. Investors traded cautiously ahead of the OPE C meeting. Prices during the day moved up briefly after market intelligence firm Genscape reported that inventories fell by 686,600 at the Cushing, Oklahoma delivery hub.
According to a Reuters survey OPEC output in May fell to 32.52 million barrels per day from 32.64 million barrels per day in April. The survey is based on shipping data and information from sources at oil companies and other consultants. Production losses due to outages in Nigeria and other parts were partly offset by increase of production by Iran and Gulf members. Iran’s production is estimated to be around 3.55 million bpd which is now coming closer to the output Iran enjoyed before sanctions were tightened. Saudi Arabia’s output was estimated at 10.25 million bpd.
US Crude Oil on Wednesday closed at $ 49.01 down 0.18 percent. Oil prices were down more than 2 percent during the day but regained ground in anticipation that a output agreement might be reached during the Thursday’s OPEC meeting. According to the cartel’s monthly report production rose 188,000 barrels to average 32.44 million. The next report is expected to be released on June 13.
The data released by American Petroleum Institute (API) showed a crude inventory build of 2.35 million barrels. The official data this week will be released on Thursday due to Monday’s national holiday.
US Crude Oil on Thursday closed at $ 49.17 up 0.3 percent. Oil started the day positive with the Brent crude oil touching $ 50 mark before the start of the meeting and dropped later during the day as OPEC countries failed to reach a production freeze agreement. Saudi Arabia’s new oil minister Khalid al-Falih first OPEC meeting was seen in support of a joint agreement in addition with few other countries but Iran minister was firm that they would continue with more production until they reach production at pre-sanction levels which is about 4 million barrels per day. Countries like Venezuela, Libya , Nigeria which depend on oil revenues are hurt very badly due to falling oil prices
In other decisions the members unanimously elected Nigeria’s Dr. Mohammed Barkindo as its secretary-general. The outgoing Secretary-General Abdalla El-Badri said that the group needs more time to come up with a new output ceiling.
Oil was back in green after the data released by US Energy Information Administration (EIA) showed a drawdown of crude oil inventories by 1.4 million barrels to close at 535.7 million barrels for the week ending May 27, 2016.
US Crude Oil on Friday closed at $ 48.62 down 1.1 percent. As per the data released by Baker Hughes International survey US oil rigs rose by 9 to 325. The total US rig count increased by 4 to 408.