• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 39 mins Shale Oil will it self destruct?
  • 2 days NYT: Mass Immigration Roundups in U.S. to Start Sunday
  • 13 hours White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
  • 7 hours Migration From Eastern Europe Raises German Population To Record High
  • 8 hours Excellent Choice: Germany's Von der Leyen Secures Powerful EU Executive Top Job
  • 19 hours Germany exits coal: A model for Asia?
  • 1 day Carrot And Stick: North Korea Suggests It Might Lift Weapons Test moratorium
  • 1 min Washington Post hit piece attacking oil, Christians and Trump
  • 1 day South Korea imports No Oil From Iran in June - First-Half Imports Fall 37%
  • 15 hours Starlink Internet Courtesy of Tesla
  • 19 hours A Silence is heard
  • 2 days U.S.- Taiwan: China Says Will Freeze Out U.S. Companies That Sell Arms To Taiwan
  • 1 day Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
Alt Text

Oil Prices Set For Worst Weekly Drop In Five Weeks

Concerns about weakening global economy…

Alt Text

Trade Truce Sends Oil Prices Higher

The intention of Presidents Trump…

Alt Text

Trade Deal Could Send Oil To $75

One of the decisive factors…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

WTI-Brent Spread Narrows To Smallest In Five Months

Rising U.S. rig count and oil production—along with a firmer U.S. dollar—sent oil prices down by 1 percent early on Monday, but the spread between the U.S. benchmark WTI and the international Brent benchmark dropped to below $4.00 a barrel—the tightest since August amid dropping U.S. inventories.

At 10:01 a.m. EST, WTI Crude was down 0.83 percent at $65.59, while Brent Crude was down 1.10 percent at $69.38.

Last week, the number of active oil and gas rigs in the United States rose by 11 total rigs, according to Baker Hughes data. The number of oil rigs jumped by 12 after falling the previous week, and U.S. crude oil production rose again, to 9.878 million bpd, from 9.750 million bpd the week before, setting another new high.

“The news overall so far today has been bearish -- the rig count was up and Iran’s oil minister warned about too high prices,” Giovanni Staunovo, commodity analyst at UBS Group AG, told Bloomberg on Monday.

Iran’s Oil Minister Bijan Zanganeh has said that oil prices at $60 a barrel is “good,” but warned that prices higher than that would encourage more production from more expensive sources of oil supply such as U.S. shale, which would lead to a drop in oil prices.

Despite the Monday drop, oil prices are still set to post their best January in five years. According to Reuters estimates, Brent has gained 6.3 percent this month, which, so far, is the strongest January increase since 2013. Related: Self-Driving Cars Gain Acceptance

Over the past few weeks, strong global oil demand with robust economic growth worldwide has supported oil prices, but a major driver of the rally has been the weakening of the U.S. dollar that has had six weeks of declines in a row.

Analyst say that money managers continue to bet on rising oil prices, but this also increases the potential for price corrections.

“We believe that today’s oil prices project a too rosy picture, stick to our cautious view, and view the market as being at risk from profit-taking,” Julius Baer’s head of macro and commodity research Norbert Ruecker told Reuters.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play