Oil Prices Slip Further in Asia After Overnight Slump
By Biman Mukherji
--Oil futures slipped some more in Asian trading Tuesday, following an overnight pullback on dollar strength and concerns over rising global crude oil production.
--November Nymex light, sweet crude oil on the New York Mercantile Exchange was recently down 0.3% at $50.41 a barrel in the Globex trading session. December Brent fell 0.5% at $55.86.
--Oil prices surged in September amid optimism about a rebalancing in oversupplied markets led by production caps imposed by the Organization of Petroleum Exporting Countries and other major producers. But that took a hit Monday when a Reuters poll showed that output among OPEC countries rose by 50,000 barrels a day in September due to weaker compliance.
--Oil markets also continue to struggle as OPEC supply cuts have been met with increased U.S. production, notes Rob Haworth, senior investment strategist at U.S. Bank Wealth Management. "Declining rig counts in the United States, combined with new, increased demand forecasts from the International Energy Agency, could lead to balance sometime in 2018. However, until those higher-demand forecasts are realized, prices may be capped," he said.
Write to Biman Mukherji at firstname.lastname@example.org
Corrections & Amplifications
This item was corrected on Oct. 3, 2017 at 0457 GMT to reflect that the Organization of Petroleum Exporting Countries was misspelled in the original version.
(END) Dow Jones Newswires
October 03, 2017 00:23 ET (04:23 GMT)