Oil prices edged up as strong European economic data and optimism a deal will be struck between Greece and its creditors offset the impact of a supply glut.
Prices recovered after falling earlier in the session, moving into positive territory as European shares climbed to a three-week high on expectations of a Greek deal.
Brent crude was up 10 cents at $63.44 a barrel at 6.05 a.m. EDT, after closing the previous session up 32 cents.
U.S. crude for August delivery fell 14 cents to $60.24 a barrel. The July contract, which expired on Monday, closed up 7 cents at $59.68 a barrel.
US oil producers added a rig each in the key Permian and Bakken shale basins last week, fuelling worries over high domestic oil output, even as the total number of active U.S. rigs fell last week, data on Friday showed.
Although U.S. oil production was expected to decline slightly between the second and third quarters of 2015, output
Many crude-oil cargoes in the Atlantic Basin, which includes North Sea and West African oil, are searching for buyers, an indication of weak demand. Demand for crude oil is typically strong in the summer as refineries run at high rates to produce gasoline and other fuels, so the tepid demand is “a worrying sign for fall,” when refinery activity slows down, said Morgan Stanley in a note.
Oil prices have rebounded from the lows reached earlier this year, following the 50% crash that began about a year ago. The biggest drawback to the solid rally has been the oversupply in the market, implying that the upside could still be capped. On Monday morning, West Texas Intermediate crude oil prices were trading around $60; a year ago, prices were closer to $100.
Last month, OPEC maintained its oil output target at 30 million barrels a day, as expected. And US shale output has continued to surge, though the Energy Information Administration now expects output to slow down from June till early next year.
Crude Oil & Natural Gas
INDEX | UNITS | PRICE | CHANGE | %CHANGE | CONTRACT | TIME ET | 2 DAY |
CL1:COMWTICrudeOil(Nymex) | USD/bbl. | 60.19 | -0.19 | -0.31% | AUG 15 | 06:14:53 | |
CO1:COMBrentCrude(ICE) | USD/bbl. | 63.41 | +0.07 | +0.11% | AUG 15 | 06:14:17 | |
CP1:COMCrudeOil(Tokyo) | JPY/kl | 49,080.00 | +10.00 | +0.02% | NOV 15 | 06:14:35 | |
NG1:COMNaturalGas(Nymex) | USD/MMBtu | 2.73 | -0.01 | -0.29% | JUL 15 | 06:14:29 |
Refined Products
INDEX | UNITS | PRICE | CHANGE | %CHANGE | CONTRACT | TIME ET | 2 DAY |
XB1:COMRBOBGasoline(Nymex) | USd/gal. | 202.26 | -0.71 | -0.35% | JUL 15 | 06:13:20 | |
HO1:COMHeatingOil(Nymex) | USd/gal. | 187.86 | +0.92 | +0.49% | JUL 15 | 06:12:27 | |
QS1:COMGasoil(Nymex) | USD/MT | 577.25 | +7.00 | +1.23% | JUL 15 | 06:15:02 | |
JX1:COMKerosene(Tokyo) | JPY/kl | 63,210.00 | +10.00 | +0.02% | DEC 15 | 06:06:32 |
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