Oil Prices Top $57

Oil Prices Top $57
il prices rose more than $1 a barrel on Tuesday after OPEC said it was sticking to its agreement to cut production and hoped compliance with the deal would be even higher.

Benchmark Brent crude oil jumped $1.13 a barrel to a high of $57.31 before easing to trade around $57.15. US light crude was up $1.00 at $54.40, having risen by about 0.5% in a shortened session on Monday because of a US national holiday.

The cuts have spurred a speculative move into crude oil that has pushed prices toward the top of their recent ranges.

Money managers now hold the highest volume of net long Brent futures and options on record, InterContinental Exchange data showed on Monday, betting on higher prices to come as OPEC and other key exporters reduce production. 

Net long US crude futures and options positions are also at a record high, US data showed on Friday.

"This prolonged and increasing overcrowding of speculative net longs should be a cause for concern," said Jonathan Chan, an investment analyst at Phillip Futures. "Should there come a time when these speculative positions decide to unwind, oil prices will be in for a significant correction."

Despite signs that OPEC's agreement is holding, inventory levels are still very high in many parts of the world.

US crude oil and gasoline inventories soared to record highs last week, as refineries cut output and gasoline demand softened.

More evidence of the state of the US oil market will come on Thursday when the US Department of Energy publishes stocks figures. 


Feb 22, 2017 13:17

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The section of oil, gas and petro-chemistry is the up-most and first industrial vantage of the country and the pivot of the Economy of Iran. Regarding the importance of this section and the need for coordinating and organizing the most active people in the field of production and exporting oil ,gas, and petrochemical products ,some forethoughtful and job- makers in the private section of the country decided to come together to fight against the threats by using the opportunity of mass intelligence and potentials.