Hedge funds and money managers upped their bullish wagers on USA crude oil for the first time in four weeks, data showed on Friday.
The Louisiana Offshore Oil Port is starting up, increasing expectations of a flood of U.S. oil hitting the market.
Strength in the dollar also weighed on crude prices as a rising greenback diminished the appeal of commodities priced in the USA currency.
Still, hedge funds and money managers lifted their bullish wagers on United States crude oil for the first time in four weeks, data showed on Friday.
But while the Brent-WTI spread jumped over $7 per barrel between September and December, it has sharply narrowed more recently. While Canadian production has continued to rise, reflecting past investments, pipeline capacity constraints have limited producers' options for moving their products to US markets.
"There could not be a better time to offer this service as domestic production surpasses 10 million barrels per day in the ever-dynamic global crude oil market", said LOOP LLC President Tom Shaw, according to Bloomberg.
Oil fell more than 1 percent on Thursday, hitting two-week lows on pressure from a strong dollar and worries that surging US crude output might thwart OPEC's efforts to drain global supply.
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He also condemned what he said were the false accusations of a systematic campaign of abuse against churches and Christians. The committee is also slated to look at the issue of Jerusalem land sales by the Greek Orthodox Church.
That fits with the current policy of the Organization of Petroleum Exporting Countries and Russian Federation: their agreement to reduce supply is set to expire at the end of this year, with a gradual return of production after that.
For the record, al-Falih foresees a monitoring mechanism not too far removed from the one that now governs the OPEC cuts: "What we want is an evergreen framework that brings producers from OPEC and non-OPEC (countries) together in a market monitoring fashion that allows us to take quick decisions".
"It's a mixed market with both bearish and bullish signals", said Hong Sung Ki, a commodity trader at NH Investment & Securities Co.in Seoul.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ GRAPHIC: Russia vs Saudi vs US oil production http://reut.rs/2EIuTWS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^.
Analysts also said prices were following through a more than 1.5 percent rise on Thursday. Analysts had expected an increase of 2.1 million barrels.
Dear reader, I have mentioned this before, and I will say it again: there's too much oil and not enough matches. "S. production breaking through the 10 million barrel per day level", said McCarthy.