ALSO READOil drops on rising U.S. crude inventory, defies expected supply cut extension Oil jumps as Saudi, Russia take lead and extend supply cuts to March 2018 Oil dips on ample supply despite OPEC pledge to cut output Oil edges lower on high fuel inventories, industry efficiency Oil prices dip on bloated U.S. market, mixed Saudi signals
By Henning Gloystein
SINGAPORE (Reuters) - Oil prices dipped on Thursday after the United States reported record crude exports, although traders said that efforts led by OPEC and Russia to cut production meant markets remained well supported overall.
U.S. West Texas Intermediate (WTI) crude oil futures
Brent crude futures
The declines came after the Energy Information Administration (EIA) said late on Wednesday that U.S. crude oil exports jumped to 1.98 million barrels per day (bpd) last week, surpassing the 1.5 million bpd record set the previous week.
Some traders said this was also an indicator that markets remained amply supplied despite efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia to cut output to tighten the market and prop up prices.
Ole Hansen, head of commodity strategy at Denmark's Saxo Bank said it was "still too early" for oil markets to expect crude prices to see a sustained period above $60 per barrel.
But analysts said that oil prices were unlikely to fall much further.
"Oil prices remain supported by ongoing supply restrictions from the OPEC and Russia, with the agreement likely to be extended ... Any weakness in oil prices are thus likely to be short-lived," said Fawad Razaqzada, market analyst at futures brokerage Forex.com.
Russian President Vladimir Putin said on Wednesday during an industry event in Moscow that the pledge between OPEC and other producers including Russia to cut oil output could be extended to the end of 2018, instead of expiring in March 2018.
The pact between OPEC and other producers, which excludes the United States, on cutting output by about 1.8 million bpd took effect in January this year.
(Reporting by Henning Gloystein; Editing by Joseph Radford)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)