Oil falls on U.S. drilling, shrugs off upbeat China data

Oil falls on U.S. drilling, shrugs off upbeat China data

Published: Tuesday September 13, 2016

By: MyownDubai

Oil falls on U.S. drilling, shrugs off upbeat China data

Hikes Oil

Oil prices fell on Tuesday on concerns over increased drilling in the United States and as investors took profits after oil prices rose close to 1 percent in the previous session.

Brent crude futures were trading at $47.67 per barrel at 0639 GMT (02:39 a.m. EDT), down 65 cents, or 1.4 percent, from their last settlement.

Upbeat August Chinese industrial output growth did little to lift oil prices as the crude market remained in a profit-taking mode, traders said.

China’s industrial output grew the fastest in five months in August as demand for products from coal to cars rebounded thanks to higher government spending and a year-long credit and property boom.

Traders said the price falls on Tuesday were an indication that increasing oil drilling activity in the United States was still a concern even as crude closed higher on Monday because of a weaker dollar.

U.S. West Texas Intermediate futures were down 73 cents, or 1.6 percent, at $45.56 a barrel.

“People are seeing that rally we had on a very big decline in (U.S.) inventories last week is a bit of a selling opportunity,” said CMC Market chief market analyst Ric Spooner.

Oil’s 4 percent price decline since Sept. 8 partly reverses a 10 percent rally early in the month, which was fueled by speculation that oil exporters could cap production.

“Investor appetite (for commodities) remains subdued,” Australian bank ANZ said in a note.

China’s state oil refiners are readying to export more diesel and gasoline in coming months as a bleak outlook for what is typically the nation’s period of greatest consumption sends shivers through an already saturated global market.

source: reuters.com

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