Oil’s bull market rally stumbled into some bad news.
Futures fell the most in more than three weeks after Saudi Arabia and at least three other OPEC nations pumped more crude last month. Meanwhile, escalating prices spurred additional U.S. exploration, a bearish signal from a production point of view. The dollar also strengthened, diminishing the appeal of commodities.
“It’s coming out that OPEC’s oil output rose last month, another rise in the rig count. That’s all feeding in here to generating some downward pressure,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund, said by telephone. Oil’s loss also comes as “we’ve seen some decent dollar strength.”
Oil entered a bull market last week on signs that rising demand and production cuts by the Organization of Petroleum Exporting Countries and allies such as Russia were reducing a global surplus. Turkey’s threat to halt exports of Kurdish crude also put traders on edge.Click here to continue reading.
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