Oil slips as Venezuela says market is 10 percent oversupplied By Reuters

Oil prices fell on Tuesday after Venezuela said that global supplies needed to fall by 10 percent in order to bring production down to consumption levels, and technical indicators also pointed to cheaper crude futures.  Global oil supply of 94 million barrels per day needs to fall by about a tenth if it is to match consumption, Venezuela’s Oil Minister Eulogio Del Pino said on Monday.International benchmark Brent crude oil futures (LCOc1) were trading at $45.81 per barrel at 0139 GMT (09:39 p.m. EDT), down 17 cents from their last close.U.S. West Texas Intermediate (WTI) crude futures (CLc1) were down 22 cents at $43.08 a barrel.”Global production is at 94 million barrels per day, of which we need to go down 9 million barrels per day to sustain the level of consumption,” Del Pino said in an interview with state oil company PDVSA’s internal TV station.Del Pino is also president of PDVSA.The statements came the same day as credit ratings agency Standard & Poor’s said that a proposed bond swap by PDVSA was a “distressed exchange” that would be “tantamount to default” if completed, a blow to the cash-strapped firm’s effort to seek a financial lifeline.Technical market indicators were also weak, with WTI likely to test support at $42.78 per barrel soon, after which a fall toward $42 would be likely, according to Reuters analyst Wang Tao.

Source: Oil slips as Venezuela says market is 10 percent oversupplied By Reuters

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s