• 5 minutes Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 7 minutes China Faces Economic Collapse
  • 11 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 13 minutes Iran in the world market
  • 15 minutes Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 17 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 3 hours Saudis Confirm a Cruise Missile from Iranian Origin
  • 2 hours Let's shut down dissent like The Conversation in Australia
  • 8 hours Trump new National Security Advisor. Trump easily manipulated.
  • 6 hours Is It Time To Invest In Offshore Drillers?
  • 13 hours Aramco Production
  • 4 hours Trump Will Win In 2020 And Beyond..?
  • 9 hours The Spy Money: U.S. Wants To Seize All Money Edward Snowden Makes From New Book
  • 2 hours Democrats and Gun Views
  • 1 day USA Wants Iran War -- Shooty Shooty More
  • 1 day The Belt & Road Initiative: A Wolf in Sheep's Clothing?
  • 6 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
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