Oil falls for second trading day as U.S. drills more
Oil fell in a row on Monday after speculators cut their bullish bets by the most in three months last week and U.S. crude drillers added more rigs for a tenth week running.
Brent crude oil futures LCOc1 fell 53 cents on the day to £47.48 a barrel while U.S. West Texas Intermediate futures CLc1 fell 66 cents to $45.22 a barrel.
Traders said the price falls on Monday and Friday were a result of increasing oil drilling activity in the United States which indicated that producers can operate profitably around current levels.
Oil’s near six-percent price decline since Sept. 8 partly reverses a 10-percent rally seen early in the month to around $50 per barrel.
The dollar rose against the Australian dollar and most emerging-market currencies as investors priced in a greater chance of U.S. interest rates rising next week, which forced up bond yields and dented the broader commodities complex.
Speculative oil traders also became less confident of higher oil prices, cutting their net long U.S. crude futures and options positions for a second consecutive week last week, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
Traders said they were still eyeing statements regarding a potential freezing of oil output closely, although a broad agreement to meaningfully rein in oversupply was not currently expected.
Even if exporters agree on freezing output around current levels analysts said that would do little to raise prices as most exporters are pumping out oil at or near record levels and have adapted to do so at lower
Source : Reuters