Egypt joins Geneva negotiations on Global Plastics Treaty, calls for urgent agreement    Egypt delivers over 30 million health services through public hospitals in H1 2025    Madinet Masr in talks for three land plots in Riyadh as part of Saudi expansion    Egypt's PM tells Palestinian PM that Rafah crossing is working 24/7 for aid    Egypt, Japan discuss economic ties, preparations for TICAD conference    Real Estate Developers urge flexible land pricing, streamlined licensing, and dollar-based transactions    Egypt's Sisi pledges full state support for telecoms, tech investment    EGP inches down vs. USD at Sunday's trading close    EGX launches 1st phone app    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    After Putin summit, Trump says peace deal is best way to end Ukraine war    Egypt, Namibia explore closer pharmaceutical cooperation    Jordan condemns Israeli PM remarks on 'Greater Israel'    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Oil Steadies below $73 After Hitting Five-Year Lows
Published in Amwal Al Ghad on 02 - 12 - 2014

Brent crude oil steadied below $73 a barrel on Tuesday, holding onto a rally from five-year lows after oil producers failed to curb production despite a supply glut.
"The market is trying to find some equilibrium," said Olivier Jakob, oil analyst at Petromatrix in Zug, Switzerland.
"There was a sharp drop last week and a rebound yesterday. Brent is trying to find out if it is going to be trading at the $60 to $70 range or $70 to $80."
Brent was unchanged at $72.54 by 0935 GMT (4.35 a.m. EST), after jumping 3.4 percent on Monday. U.S. crude was down 40 cents at $68.60 a barrel.
Oil has fallen by more than a third since June and on Monday reached it lowest since October 2009 as huge new supplies of high quality, light oil from North America overwhelmed demand.
The Organization of the Petroleum Exporting Countries had been expected at a meeting last week to trim output to try to rebalance the market, but could only agree to maintain existing production targets.
Analysts said the market was going through a volatile adjustment phase that would lead to more erratic price movements before a more stable pricing environment was found.
"Saudi Arabia and OPEC no longer have the mechanism to balance markets from the supply side," said Mark Keenan, head of commodities research Asia at Societe Generale.
The bank cut its U.S. crude and Brent forecasts to an average of $65 and $70, respectively, for 2015 and 2016.
Both Brent and U.S. crude touched five-year lows on Monday, with Brent dipping to $67.53 a barrel and WTI touching $63.72, before recovering to settle up on the day.
"Yesterday, much of the move higher right across the entire commodity complex ... suggests that there was a strong element of people increasing their allocation to commodities, taking advantage of these low prices," Keenan said.
Analysts say much lower oil prices may force some producers out of the market.
As crude prices tumble, offshore drillers are increasingly considering "warm stacking" their rigs to take them temporarily off the market, and they also threaten unconventional producers that have recently come to the market when prices were still higher.
New data suggests that a much-anticipated slowdown in the U.S. shale rig count has started arriving.
Source: Reuters


Clic here to read the story from its source.