• 2 days Court rules DOE to implement Obama efficiency rules
  • 5 hours DOA to invest $6.5M in coal industry
  • 6 hours US to hold largest oil and gas lease sale in its history
  • 1 day Tillerson Seeks A Deal With Erdogan On Syria
  • 1 day White House considering steel and aluminum tariffs
  • 2 days Iraq Seeks $100 Bln to Rebuild Economy
  • 2 days Allegedly the Search For Aliens is Struggling Thanks to Cryptocurrency Mania
  • 4 hours New Rules to Phase Out Coal and Reduce Natural Gas in Canada
  • 2 days Amazon reaches $1.2 million settlement with EPA over illegal pesticide sales
  • 5 hours White House Not Even Close to Regulating Bitcoin Yet
  • 1 day U.S. Bancorp hit with $613M in penalties
  • 5 hours Experts said US losing ground to China on AI
  • 2 days Australia's solar power boom to double in a year
  • 2 days US intelligence warn against Chinese phones
  • 2 days Electric Buses to Reach Half of World Fleet by 2025
  • 2 days How Good Is Putin's Word?
Alt Text

Oil Prices: Collapse Now, Spike Later

Oil prices fell sharply this…

Alt Text

The World’s Biggest Oil Benchmark Could Change Forever

Falling production at the legacy…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

WTI-Brent Spread Narrows To Smallest In Five Months

oil barrels

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:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News