Commodity News
HeadLine : Oil prices stay weak as U.S. drilling undermines drive to tighten markets
Date : May 29 2017
Oil prices remained weak on Monday as a relentless rise in U.S. drilling undermined an OPEC-led push to tighten supply.Traders said activity was likely to be subdued due to public holidays on Monday in China, the United States and Britain.Brent crude futures were trading down 4 cents or 0.1 percent at $52.11 per barrelU.S. West Texas Intermediate (WTI) crude futures were down 6 cents, or 0.1 percent, holding below $50 at $49.74 per barrel.

The Organization of the Petroleum Exporting Countries and some non-OPEC producers agreed last week to extend a pledge to cut production by around 1.8 million barrels per day (bpd) until the end of the first quarter of 2018. But the decision did not go as far as many investors had hoped and led to a heavy sell-off.An initial agreement, which has been in place since January, would have expired in June this year."The immediate market reaction to the May 25 OPEC decision is indicative of the weaker-than-expected impact production cuts had on bloated global crude stocks over H1 2017," BMI Research said in a note.

Source: Investing.com
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