Crude oil futures started the day slightly improved Tuesday after falling for seven of the last 10 sessions.
Prices remained below the $50 per barrel mark, an improvement on January 2016's fall to below $30 per barrel, but well below the $100 per barrel seen 2014. Oil is regarded as a barometer of the global economy, and while stocks have traded up since the start of President Donald Trump's administration, the bump seen in stock prices in other sectors of the economy may not be showing up for the oil industry soon.
Producers in the United States are partially responsible for the current oversupply in oil. Global supply increased by 260,000 barrels per day in February, to 96.52 million barrels per day, and U.S. production is the highest it has been in a year, at 9.1 million barrels per day, roughly the amount Saudi Arabia produced in February.
The United States also has 528.4 million barrels in storage, seven percent more than it stored a year ago. The U.S. effort largely nullified a 2016 agreement by OPEC, Russia and 10 non-OPEC oil producing nations to limit production, which sent oil prices to about $55 per barrel but encouraged U.S. producers to pump more oil.
Globex Brent crude oil futures quotes Tuesday were $51.77 for May, up 0.015 percent, $51.88 for June, up 0.09 percent, and $52.04 for July, up 0.06 percent.
The Trump administration postponed some Obama-era energy standards Tuesday. Among the rules postponed are testing procedures for walk-in coolers and freezers, and efficiency rules covering central air conditioners, heat pumps and compressors. Energy standards for ceiling fans will be delayed until Sept. 30.
Iran pulls first oil out of South Pars field
The production of oil from the South Pars field complex in the Persian Gulf has started for the first time, the Iranian Oil Ministry declared.
Shana, the Oil Ministry's news website, reported production from seven oil wells in the South Pars complex began and should reach a net peak capacity of 35,000 per day in about a week. The oil ministry estimates the field, which Iran shares with … read more
