Oil prices fall after US inventory rise to a new record level

February 19, 2016 17:24
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Friday February 19, 2016 - 13:29 SINGAPORE (Reuters) - Oil prices fell futures in Asian trade on Friday after the effects of rising crude inventories in the United States to a new record level of more concerns about the glut of global supply, which is covered on the movements of producers crude, including Saudi Arabia and Russia to freeze production.
Data from the US Energy Information Administration on Thursday that commercial crude oil inventories in the United States increased by 2.1 million barrels last week to reach a peak of 504.1 million barrels in the third week of record highs over the past month.
It came as Iraqi Oil Minister Adel Abdul-Mahdi said that talks would continue between OPEC members and producers outside the organization to find ways to restore oil prices to levels "natural" in the wake of Wednesday's meeting.
He said Tony Nanan oil risk manager at Mitsubishi Corp in Tokyo, Japan, "the market expects continuing increases in stocks."
He added, "The main factor of any agreement (to restrict output) is Iran. But Iran is clear and says she wants to return to the levels of (production) before the sanctions."
"Everything points to the end of this year (before there is an agreement) when Iran up to four million barrels per day. By that time, the pain will be severe, including everyone pays to come to the table (to agree on restricting output)."
Nanan said that the increase in global demand, ranging from one million to two million barrels per day and cuts in production from non-OPEC producers and an agreement producers to restrict production in oil prices may push to climb to around $ 40 a barrel by the end of the year.
And decreased international London Brent crude contracts for the nearest maturity of 34 cents to $ 33.94 a barrel at 0435 GMT, after it ended the previous session low 22 cents.
The US crude futures fell 29 cents to $ 30.48 a barrel, after having been closed for Thursday's high of 11 cents.
Oil prices have jumped more than 14 percent in three days, until the Thursday after that moved in Saudi Arabia and Russia, backed by other producers, including Venezuela and Iraq to freeze the production of crude at January levels. Iran supported the plan on Wednesday without having to undertake to abide by them.