Oil prices fell Tuesday on rising USA output and a stronger US dollar.
In this series, we'll take a look at the correlations between crude oil-weighted stocks and crude oil. That was the lowest close for both contracts since January 31.
Away from the oil market, gold futures remained above $1,230 an ounce as safe-haven seeking investors continued to bet on the physical market.
Despite production cuts out of the Organization of Petroleum Exporting Countries and other major crude exporters, oil and energy-related exchange traded funds continue to weaken as USA shale oil producers pick up the slack.
Ten OPEC members obligated to reduce oil output under the agreement signed in 2016, achieved 91 percent of their required cuts in January, according to the S&P Global Platts survey.
"There are a lot of longs in the market, and if we don't see prices rise those longs will get discouraged and exit the market as fast as they entered over the past few weeks", said Tariq Zahir, trader at Tyche Capital Advisors in NY.
"Rig counts are increasing at an accelerating pace, and given the technological advances of the past three years, this should translate into significant supply", Wittner said.
Oil prices fell because of growing concerns about rising USA crude oil production and an increase in stockpiles at Cushing, Oklahoma.
US West Texas Intermediate (WTI) futures were up 18 cents at US$54,01 a barrel.
The trading boom that cushioned the profits of Royal Dutch Shell Plc and BP through the price slump appears to be over.
The price for Brent crude oil was 0.52 percent below the previous close about an hour before the start of trading in NY to $55.43 per barrel.
The British oil and gas company, whose fourth quarter profits fell short of street expectations, had previously targeted a breakeven oil price of $50-55 a barrel.
The price of oil changed in the world markets, Azertac reported. The global benchmark traded at a premium of US$2.08 to April WTI.
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