Oil Price - October 30
Posted: Fri Oct 30, 2015 11:26 am
A Reuters survey showed October OPEC oil output falling from the previous month, as declines from Saudi Arabia and Iraq outweighed increases from African members.
Also, China's Ministry of Commerce announced a doubling in the country's crude oil import quota for 2016.
But OPEC production remained close to record highs as major producers focus on defending market share, and widespread concerns persisted over China's shaky economic growth.
Bearish data from the United States also tempered gains. U.S. economic growth braked sharply in the third quarter as businesses cut back on restocking warehouses to work off an inventory glut.
Analysts said prices were effectively flat.
"We are treading water," said Gareth Lewis-Davies, director of energy commodity strategy at BNP Paribas (PA:BNPP). "Prices are trading in a very narrow range."
China's closely watched Purchasing Manager Indexes (PMIs), which will be released next week, could give more direction.
Lewis-Davies also said the sharp cuts in oil company spending, and the pain of U.S. shale oil producers, could spark a more balanced market in 2016.
"These price levels are sufficiently low enough to cut into the cost curve of U.S. shale oil producers," he said.
Also, China's Ministry of Commerce announced a doubling in the country's crude oil import quota for 2016.
But OPEC production remained close to record highs as major producers focus on defending market share, and widespread concerns persisted over China's shaky economic growth.
Bearish data from the United States also tempered gains. U.S. economic growth braked sharply in the third quarter as businesses cut back on restocking warehouses to work off an inventory glut.
Analysts said prices were effectively flat.
"We are treading water," said Gareth Lewis-Davies, director of energy commodity strategy at BNP Paribas (PA:BNPP). "Prices are trading in a very narrow range."
China's closely watched Purchasing Manager Indexes (PMIs), which will be released next week, could give more direction.
Lewis-Davies also said the sharp cuts in oil company spending, and the pain of U.S. shale oil producers, could spark a more balanced market in 2016.
"These price levels are sufficiently low enough to cut into the cost curve of U.S. shale oil producers," he said.