• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • Headlines
    • Latest Headlines
    • Columns
    • Discussions
  • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts
    • CAODC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
  • Industry Data
    • Canada Well Licences
    • USA Market Data
    • Data Subscription
  • Jobs

Oil prices fall as supply risk premium fades, demand outlook drags

September 26, 20197:44 PM Reuters0 Comments

Oil prices fell on Friday, erasing more of the gains realised after the Sept. 14 attacks on Saudi Arabian oil facilities, as the rapid return of production capacity from the world’s top exporter squashed risk premiums.

Prices were also pressured by worries of weak global economic growth and its effect on oil demand.

U.S. West Texas Intermediate (WTI) crude futures fell 67 cents, or 1.2%, to $55.84 a barrel.

CL1! chart by TradingView

Brent crude futures fell 32 cents, or 0.5%, from the previous session’s close to $62.42 a barrel by 0131 GMT.

“For most of the week … the market has been trading lower as oil bulls have been discouraged by the quicker-than-expected return of Saudi oil output,” said Stephen Innes, Asia Pacific market strategist at AxiTrader.

WTI futures were down 3% so far for the week, marking the largest weekly loss in 10 weeks, while Brent was down 2.9% on the week, its largest weekly loss in seven.

Saudi Arabia had brought its production capacity back to 11.3 million barrels per day (bpd) less than two weeks after the attacks on it oil facilities, sources briefed on the matter told Reuters this week.

The attacks, which knocked out 5.7 million bpd of production, initially sent oil prices up 20% although they dropped soon after as the kingdom pledged to bring back output by the end of September.

A surprise 2.4 million-barrel build in U.S. crude inventories last week also weighed on prices.

U.S. inventories may rise further over the near term, further pressuring prices, as American refiners curb runs for maintenance, analysts said.

“The expected lower demand for oil inputs into (U.S.) refineries typically sees U.S. crude inventories swell, all of which could pose a significant downside risk for prompt oil prices,” Innes said.

Follow the BOE Report
  • Facebook
  • Twitter
  • LinkedIn
Sign up for the BOE Report Daily Digest E-mail
Latest Headlines
  • Calima Energy Limited announces merger with Blackspur Oil Corp
  • Advantage Announces Revised 2021 Guidance, 2020 Year-End Results, and Reserves Highlights
  • Razor Energy Corp. Announces 2020 Year-End Reserves and Operational Outlook
  • Pembina Pipeline Corporation announces share repurchase program
  • Alberta sees budget deficit narrowing to C$18 bln as oil prices recover

Return to Home
Alberta Gas
CAD/GJ
Market Data by TradingView





    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    • Foxterra
    BOE Network
    © 2021 Grobes Media Inc.