Oil futures decline on profit-taking
2017-10-11 17:05:33 GMT (Economies.com)
Oil futures decline on profit-taking

Crude futures fell in American trade even as the dollar index continued moving away from the highest since July 26 for the fourth session in a row, following an array of data and developments from the US, the world's largest economy. 


As of 04:41 GMT, US crude futures due on November 15 dropped 0.41% to $50.71 a barrel from the opening of $50.92, while Brent crude futures due on December 15 gave up 0.60% to $56.27 a barrel from the opening of $56.61, as the dollar index declined 0.26% to 93.05 from the opening of 93.29. 


On Tuesday, Federal Reserve Bank of Dallas President Robert Kaplan spoke about economic outlook at the Stanford Institute for Economic Policy Research, where he noted that the option of raising interest rates in the next meetings is still on the table, adding that waiting too long before hiking overnight rates could raise the chances of economic recession.  


Earlier US data showed the JOLTS job openings down to 6.08 million jobs from 6.14M in July, missing expectations of 6.13M, as markets look forward to the FOMC's minutes for the September meeting, at which policymakers voted to hold interest rates unchanged at between one percent and 1.2% for the second session, while paving the way for normalizing the balance sheet by October. 


Oil futures are weakening on profit taking after surging on Tuesday, after Saudi Arabia's energy ministry announced that Aramco will cut 560 thousand bpd in exports in November, as the world's largest crude exporter plans to export 7.15 million bpd despite the upward demand of 7.7 million bpd. 


OPEC Secretary General Muhammad Barkindo said on Tuesday that more oil exporting countries are welcome to join the global deal to cut output by 1.8 million bpd until next March in cooperation with independent producers such as Russia. 


Barkindo said Sunday in New Delhi said there's increasingly shared understanding by OPEC members and independent producers led by Saudi Arabia and Russia of the importance of maintaining balancing efforts in the oil market. 


Otherwise, oil companies are working to bring back their operations in the Mexico Gulf, accounting for 17% of US shale production, after Storm Nate hit the south coast on Sunday, bringing 90% of the production effort to an abrupt stop. 

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