Is the Oil Rally on the Rise?

Is the Oil Rally on the Rise?

Some is related to position-squaring ahead of today's USA consumer inflation report, which could also impact the dollar and future demand for crude oil.

Crude oil prices reached $65 on Monday after a drop in prices earlier in the year.

U.S. crude production from major shale formations is expected to rise by 131,000 bpd in April from the previous month to a record 6.95 million bpd, the U.S. Energy Information Administration (EIA) said in a monthly report on Monday.

The split is driven by differing views over whether $70 a barrel would send US shale companies into a production frenzy that could cause prices to crash. The Organization of Petroleum Exporting Countries and its allies pledge to curb output may be undermined as the US ships more oil to Asia, according to ING Groep NV.

"Oil prices fell on the back of concerns that surging USA production. could push inventories in the US higher", ANZ bank said on Tuesday. S. crude fell as much as 2.21 percent.

"It just looked like some profit taking", said Jim Ritterbusch, president of energy advisory firm Ritterbusch & Associates.

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Crude oil prices slipped into negative territory early Monday, following big gains last week, as broader worldwide trade concerns spill into commodities. ICE gasoil, a benchmark for diesel fuel, changed hands at $571.75 a metric ton, up 0.6% from the previous settlement.

On Monday, benchmark 10-year notes last rose 8/32 in price to yield 2.8663 percent, hovering near multi-year highs.

The increase in rig count in the USA also points to more output to come in the future.

Last week's data, as well as an easing of fears of a global trade war, boosted stocks across many parts of the world. The Dow Jones Industrial Average . fell 157.13 points, or 0.62 percent, to 25,178.61, the S&P 500 . lost 3.55 points, or 0.13 percent, to 2,783.02 and the Nasdaq Composite . added 27.52 points, or 0.36 percent, to 7,588.33.

MSCI's world equity index hit a two-week high, while Hong Kong's Hang Seng Index closed up 1.93 percent.

Wall Street's main indexes had closed up almost 2 percent on Friday on the strength of the jobs report, and have almost reclaimed losses sustained in recent weeks when investors feared that higher wages might lead to price pressures. S. dollar. The dollar index .

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