Crude Oil Ends Below $60 Amid Oversupply as Volatility Sinks

(Bloomberg) by Moming Zhou – Crude oil ended below $60 a barrel as near-record U.S. production prolonged an oversupply amid the lowest trading volatility in eight months. U.S. crude stockpiles remain 84 million barrels above the five-year average for this time of the year. The nation pumped near the fastest pace in more than three decades even as the rig count dropped. A measure of future price fluctuations slipped to the lowest level since October. Oil’s rebound from a six-year low has faltered on signs a global glut will persist as rising prices spur output. The Organization of Petroleum Exporting Countries has pumped more than its quota of 30 million barrels a day for the past 12 months as the group seeks to defend market share against higher-cost producers.  “We are still pumping at a near-record level and production hasn’t been affected by the rig count yet,” said Gene McGillian, a senior analyst at Tradition Energy in Stamford, Connecticut. “The longs are waiting for something to drive prices higher but they don’t have the correct fundamental picture.” WTI for August delivery slipped 7 cents to settle at $59.63 a barrel on the New York Mercantile Exchange. Total volume was 53 … continue reading

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Source: CTRM Center

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