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  Business   Market  23 Jun 2017  Oil edges up, set for worst H1 performance in 20 years

Oil edges up, set for worst H1 performance in 20 years

REUTERS
Published : Jun 23, 2017, 10:47 am IST
Updated : Jun 23, 2017, 10:47 am IST

Brent crude futures were at $45.31 per barrel up 9 cents or 0.2 per cent from their last close.

Oil recovered slightly from steep falls.
 Oil recovered slightly from steep falls.

Oil edged up on Friday, recovering slightly from steep falls earlier in the week, but is set for the worst performing first-half in two decades despite ongoing production cuts.

Brent crude futures were at $45.31 per barrel at 0222 GMT, up 9 cents, or 0.2 percent, from their last close.

 

U.S. West Texas Intermediate (WTI) crude futures were up 10 cents, or 0.2 percent, at $42.84 per barrel.

Oil prices have fallen about 20 percent this year despite an effort led by the Organization of the Petroleum Exporting Countries (OPEC) to cut production by 1.8 million barrels per day (bpd) that has been in place since January.

That's the worst first-half performance for crude oil since 1997, when rising output and the Asian financial crisis led to sharp price falls.

The weak markets are a result of doubts over OPEC's ability to rein in a fuel supply overhang that has dogged markets since 2014 as production has largely outpaced consumption.

 

"Markets remain sceptical of OPEC's ability to balance supplies," ANZ bank said on Friday.

At the heart of the glut is that rising production levels from the traditional suppliers of OPEC and Russia have been met by soaring output from the United States.

Thanks largely to shale drillers, U.S. oil production has risen by more than 10 percent over the last year to 9.35 million bpd, close to levels of top exporter Saudi Arabia.

Tags: oil, global oil prices, crude, crude prices, singapore, brent crude