Crude Oil Settlements Skid on Monday as Traders Await Government Reports

Oilprices3

Oil futures slipped for a sixth session on Monday as traders anticipated the release of weekly and monthly reports that will provide further clues to OPEC’s crude production and global supply, according to Bloomberg MarketWatch.

On the New York Mercantile Exchange, April West Texas Intermediate crude fell 9 cents, or 0.2%, to settle at $48.40 a barrel.

On the London ICE Futures Exchange, May Brent crude, the global benchmark, dropped 2 cents to end trading at $51.35 a barrel.

“U.S. oil production growth shows little sign of slowing,” said Robbie Fraser, commodity analyst at Schneider Electric.

Prior to Monday’s settlement, the Energy Information Administration issued a modified forecast report increasing domestic oil production by 109,00 barrels a day in April.

OPEC members are disappointed with the current growth in U.S. production, especially since they have steadfastly attempted to rebalance the market by cutting their own productions.

The landmark agreement, signed late last year, requires participants to slash their collective production by roughly 1.8 million barrels a day in the first half of this year.

Meanwhile, April natural gas finished at $3.043 per million British thermal units on the New York Mercantile Exchange, up 3.5 cents, or 1.2%, with a winter storm forecast in the Northeast expected to boost demand for the heating fuel.

 

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