Oil is being held back after its worst week in two years as fears over rising U.S. crude oil supplies curb investor optimism. American crude inventories compound concern U.S. shale ‘s resurgence is the latest US – led crude oil. More causes for worry. Oil has erased this year’s gains after the decade, putting it in jeopardy of the Organization of Petroleum Exporting Countries and allies’ strategy as well as prices. While the International Energy Agency Said crude inventories in developing nations are growing and rising, they are stimulating more supply from American shale drillers.
“The supplies in the US are in focus once again,” said Will Yun, a commodities analyst at Hyundai Futures Corp., said by phone from Seoul. “Until we see more positive signs that can impact the fundamentals of the market, it can be difficult to even maintain current prices.” Inventory Concerns West Texas Intermediate for March delivery was little changed at $ 59.17 a barrel at 12:53 pm in Singapore after falling as much as 36 cents on the New York Mercantile Exchange earlier. The contract fell 10 cents to settle at $ 59.19 on Tuesday. Total volume traded was about 6.9 percent below the 100-day average. Brent for April settlement rose 7 cents to trade at $ 62.79 on the London-based ICE Futures Europe exchange. The global benchmark was at $ 3.78 premium to April WTI. In the U.S., the American Petroleum Institute was reported to have broken down by 3.95 million barrels last week, while gasoline supplies expanded by 4.63 million barrels. Meanwhile, a Bloomberg survey ahead of the government Wednesday, May 30, 2009 – A third-weekly earnings after a record run of declines. “Crude oil prices will rise U.S. rig count OPEC’s collective efforts, “Avtar Sandu, a senior commodities manager at brokerage Phillip Futures Pte said in an emailed note Wednesday.
Other oil-market news: Oil’s big price rally has not translated into huge bonanza for independent U.S. explorers just yet. Occidental Petroleum Corp. Permian Basin is the largest oil producer in the world. Exxon Mobil Corp. and Chevron Corp. threaten its dominance. U.S. tight oil production is set to grow by 2 million barrels a day by 2019, according to Wood Mackenzie Ltd. – With assistance by Stephen Stapczynski