Oil edges above 2016 lows but remains under threat from US supply surge
London — Oil rose for a third straight session on Monday, as speculators took advantage of last week’s drop to seven-month lows, although a relentless increase in US supply and little evidence of a widespread drop in global inventories capped gains. Investors in US crude futures and options have increased their bets against a further rise in prices, just as the number of US oil rigs in operation hit its highest in over three years. US shale oil output is up about 10% since 2016, and, together with increases from the likes of Brazil, threatens to scupper the efforts of oil cartel Opec and its partners to force a drawdown in global oil inventories via production cuts. Brent crude futures were up 48 US cents at $46.02 per barrel by 8.36am GMT. The price was still on track for a near 20% drop in the first half of 2017, having hit a trough of $44.35 on June 21, its lowest since November 2016. US West Texas Intermediate crude futures were up 47c at $43.48 per barrel. "We saw this continue...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.