Crude futures slipped on Tuesday on a persistent global glut and the failure of a producer meeting at the weekend to rein in the ballooning oversupply, although a sharp drop in output in Kuwait due to an oil worker strike underpinned prices briefly.
Kuwait's output has dropped to 1.1 million barrels per day (bpd) from 2.8 million bpd due to the worker strike. However, analysts expect the disruption to be brief and markets to soon refocus on the global glut given the failure of major exporters to agree on an output freeze at their Sunday meet.
Brent crude was at USD 42.78 a barrel at 0317 GMT, 13 cents below their previous close. US West Texas Intermediate (WTI) futures were down 5 cents at USD 39.73 a barrel.
Once Kuwait's exports fully resume, traders said the market would again focus on a global glut that sees 1 to 2 million barrels of crude pumped every day in excess of demand.
A deal to freeze oil output by OPEC and non-OPEC producers fell apart on Sunday after Saudi Arabia demanded that Iran join in despite calls on Riyadh to save the agreement and help prop up crude prices.
But analysts have been sceptical of how successful an output freeze would be in the long term with producers such as Saudi Arabia and Russia pumping near record levels.
Our Some Best Services Read it Here…
Click here for comments 0 comments: