Oil flat lined in Asia on US supply concerns

Oil trades flat lined this Friday morning on concerns that the increasing US Shale output will offset the effect of the OPEC-led efforts to re-balance the markets.

At the time of writing, WTI and Brent traded around $47.88/barrel and $50.82/barrel.

OPEC raises non-OPEC supply forecast

In a monthly report released yesterday, the OPEC said the non-OPEC producers would boost supply by 950,000 barrels per day (bpd) this year, up from 580,000 bpd expected previously.

Still, the oil prices strengthened on Thursday on signs the OPEC is reaching consensus on the extension of the output cut deal. Iraqi oil minister Jabbar Al-Luaibi and Algeria’s Noureddine Boutarfa told a joint press conference in Baghdad that all members of the Organisation of Petroleum Exporting Countries support an extension of the cuts for a second six-month period.

The sentiment turned positive on Wednesday after the US EIA reported a big draw in the inventories. The focus today is on the US Baker Hughes oil rig count data.