Oil prices steady after sharp falls
World oil prices aimed higher today after shedding around three dollars the previous day on profit-taking as traders bet on rising energy reserves in the United States.
By Agencies |
LONDON: World oil prices aimed higher today after shedding around three dollars the previous day on profit-taking as traders bet on rising energy reserves in the United States.
Later today, the US Department of Energy (DoE) publishes its weekly snapshot of American crude oil inventories at 2000 IST.
In early afternoon deals, New York's main futures contract, light sweet crude for delivery in December, added 13 cents to reach 90.51 dollars per barrel, after striking a record high 93.80 dollars on Monday.
Brent North Sea crude for December delivery meanwhile regained 30 cents to 87.74 dollars per barrel today. On Monday it had surged to an historic 90.49 dollars.
New York crude slumped by 3.15 dollars yesterday and London Brent dived by 2.88 dollars as traders took profits from recent record-breaking trade.
"Yesterday's price action well reflects current trading conditions characterised by market participants prone to test new highs, but still uneasy over the sustainability of the progress made," said Barclays Capital analyst Kevin Norrish.
"In this context volatility is set to stay high and prices will likely react sharply on the back of little fresh news."
Prices also fell heavily yesterday as Mexico's state oil company Pemex said it would resume 600,000 barrels per day of shut-in production. At the start of this week, Pemex was forced to suspend about a fifth of its production because of tropical storm fears.
Later today, the US Department of Energy (DoE) publishes its weekly snapshot of American crude oil inventories at 2000 IST.
In early afternoon deals, New York's main futures contract, light sweet crude for delivery in December, added 13 cents to reach 90.51 dollars per barrel, after striking a record high 93.80 dollars on Monday.
Brent North Sea crude for December delivery meanwhile regained 30 cents to 87.74 dollars per barrel today. On Monday it had surged to an historic 90.49 dollars.
New York crude slumped by 3.15 dollars yesterday and London Brent dived by 2.88 dollars as traders took profits from recent record-breaking trade.
"Yesterday's price action well reflects current trading conditions characterised by market participants prone to test new highs, but still uneasy over the sustainability of the progress made," said Barclays Capital analyst Kevin Norrish.
ADVERTISEMENT
"In this context volatility is set to stay high and prices will likely react sharply on the back of little fresh news."
Prices also fell heavily yesterday as Mexico's state oil company Pemex said it would resume 600,000 barrels per day of shut-in production. At the start of this week, Pemex was forced to suspend about a fifth of its production because of tropical storm fears.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
