Oil-focused funds lose big on falling crude prices

Ruptured Pipeline Spills Oil Along Santa Barbara Coast

Crude-oil prices advanced Tuesday, putting the commodity on track for its fourth gain in a row, as traders braced for a possible decline in US supplies.

West Texas Intermediate for August delivery settled at $43.01 a barrel, up 27 cents, on the New York Mercantile Exchange.

Oil in NY and London tumbled into a bear market last week on concerns that expanding global supply will counter the impact of output cuts from the Organisation of Petroleum Exporting Countries and its partners including Russian Federation.

OEPC and its 11 partners agreed in May to extend the cuts of 1.8 million barrels per day (bpd) until March next year. However, the latest oil market report from OPEC showed that production increased by 336,000 barrels in May, thanks largely to two exempted countries, Libya and Nigeria. While U.S. stockpiles have fallen by 26 MMbbl since March, they remain 100 million above the five-year average and drillers have added rigs for the longest stretch in at least three decades.

A fuel glut in China, a hangover from demonetisation in India, and an ageing, declining population in Japan are holding back crude oil demand growth in three of the world's top four oil buyers.

Oil edged up for a third straight session on Monday, climbing off last week's seven-month lows but with gains capped by the relentless rise in USA supply and bloated global inventories. "It will depend on the weekly USA inventory data". "It has moved a long way in response to that news, maybe we are getting to a point that there is upside risk to any good news". Speculators cut their net-long position in U.S. benchmark futures to the lowest in 10 months last week, and in North Sea Brent to the lowest since January 2016, exchange data showed. Shale producers in the U.S. Permian basin will be able to make money even if the price falls to the mid-$20s, according to Scott Sheffield, chairman of Pioneer Natural Resources Co.

OPEC delegates said the cartel will not rush into making a further cut in output or end some countries' exemptions from output limits, although a meeting in Russian Federation next month is likely to consider further steps. We do not have to look too far for likely culprits on the supply side.

Related news:

Hot News

isis-killer-beheading-video-story-top Authorities kill shark scaring tourists in Mallorca of Spain
Jun 27, 2017 - 01:51
Last month a blue shark was believed to be responsible for an attack that left a bather wounded on the Spanish island of Ibiza. It is thought that the injury had disoriented the fish, causing it to swim much closer to shore than normal for a blue shark.

Brisbane Broncos coach Wayne Bennett sprays Blues for Origin collapse
Jun 27, 2017 - 01:45
ANDREW FIFITA: Tipped to be the match victor again, but found it impossible to back up his game-one heroics in a quiet game. 5.5. They're a stronger side and we know what they're capable of doing", Daley said on Fox Sports' NRL 360 .

isis-killer-beheading-video-story-top Maverick 'Sun City' prison officials may be stripped of duties
Jun 27, 2017 - 01:45
The Department of Correctional Services will hold an urgent media briefing about the explicit photos making rounds on social media platforms.

Another leadership test for Pelosi, who's weathered many
Jun 26, 2017 - 00:42
He returned to Washington late Wednesday. "The president's numbers are in the thirties and our base is energized", she wrote. More than $50 million was spent on the race in Atlanta's wealthy suburbs, making it the costliest House race in history.

How to Watch the 2017 BET Awards
Jun 26, 2017 - 00:32
Chance the Rapper and Migos are up for four nominations as wel, and a full list of the 2017 BET Awards nominees is available here. Other strong competition Sunday include best female hip hop artist , where rivals Nicki Minaj and Remy Ma will go head-to-head.

Fabulous Federer Trounces Zverev to Claim Ninth Halle Title
Jun 26, 2017 - 00:29
In the semi-final, he eased past his Russian opponent Karen Khachanov 6-4 7-6 (5), to reach his 11th final in Halle . Federer has won seven titles, Novak Djokovic three, Andy Murray and Rafael Nadal two each.

Camden evacuates tower block after Grenfell fire
Jun 24, 2017 - 00:13
Detective Superintendent Fiona McCormack told reporters that "we are looking at every criminal offense from manslaughter onwards". A London council is evacuating 161 households from tower blocks clad in the same combustible material as Grefell Tower.

Deal Close - Manchester United have Agreed $45million Fee to Sign Versatile Star
Jun 24, 2017 - 00:11
Fabinho could be set for a major move to Manchester United from Monaco , with the versatile star keen on a switch to Old Trafford.

isis-killer-beheading-video-story-top Accident reported involving military plane at Ohio air show
Jun 24, 2017 - 00:11
A Thunderbird F-16 was involved in an incident Friday while practicing for an OH air show, according to multiple reports. The United States Air Force Thunderbirds were conducting a single-ship familiarization flight on Friday June 23, 2017 .

isis-killer-beheading-video-story-top Trump Tweetstorm Disputes Russian Interference in 2016 Election
Jun 23, 2017 - 01:12
And state officials must apply tougher cybersecurity safeguards to voting equipment and elections management. Nevertheless, Russia denied accusations of interference in the elections in the United States.

Democrats Search For Silver Lining After Narrowly Losing Georgia Election
Jun 23, 2017 - 00:54
I think our leadership owes us an explanation for what's going on in these four elections but also a plan moving forward. Despite the backlash from some Democrats, Pelosi still has a strong base of support within the party.

isis-killer-beheading-video-story-top Floyd Mayweather trash talks Conor McGregor during workout
Jun 23, 2017 - 00:51
There have been many rumored or suggested boxer versus MMA fighter bouts over the years, including Anderson Silva vs. Had he lost to Manny Pacquiao or Andre Berto in one of his last two fights, he'd be most remembered for that.

Spanish state prosecutor accuses Jose Mourinho of tax fraud
Jun 22, 2017 - 06:07
And Perez , on the subject of De Gea, claimed that the club would not approach Man United for the shot-stopper this summer. According to the BBC , José Mourinho is accused of not paying €3.3m between 2011 and 2012 when in charge of Real Madrid .

Edmonton Oilers: Mixed Opinions on New Adidas Jerseys
Jun 22, 2017 - 06:04
The new National Hockey League jerseys are here, and they're... not all that different than they were before. According to the press release, the jerseys are 19 percent lighter in weight and 27 percent stronger.

Former First-Round Pick CB Justin Gilbert Receives One-Year Suspension
Jun 22, 2017 - 06:03
The Cleveland Browns will open the 2017 National Football League season on September 10 when they host the Pittsburgh Steelers . Cleveland traded him to the Steelers before the 2016 regular season and played sparingly before being released in February.