News / Business

Global oil prices fall after gaining for six straight days

Friday, 17 April 2015 6:29 AM [ Last Update: Friday, 17 April 2015 6:29 AM ]

A man looks at an electronic stock indicator of a securities firm in Tokyo Thursday, April 9, 2015 as Japan's Nikkei 225 stock index, top center, rose 117.63 points with gains supported by lower oil prices. ©AP

Oil prices fell in Asia Friday after gaining for six days running as investors locked in profits, with an expected rise in Organization of the Petroleum Exporting Countries (OPEC)'s output in March adding to downward pressure.

US benchmark West Texas Intermediate (WTI) for May delivery dipped 43 cents to USD 56.28 and Brent crude for June eased 48 cents to USD 63.50 in late-morning trade, AFP reported.

"After a sustained increase in both the WTI and Brent over the past week, traders are selling ... and this has led to the downward pressure in prices we see today," said Daniel Ang, an investment analyst at Phillip Futures in Singapore.

Prices rose for the sixth day running on Thursday -- with WTI hitting its highest level since December -- on news that US shale output, which has contributed to a global supply glut, may be on the cusp of easing.

Ang, however, said the oversupply was unlikely to end soon due to strong production levels by OPEC. The 12-member OPEC, which pumps around a third of the world's oil, saw its production in March rise by 810,000 barrels per day to average 30.79 million barrels per day (mbpd), Ang said.

"OPEC's high production numbers for March highlights that the global crude oversupply problem is still there," he told AFP.

Crude prices collapsed more than 50 percent between June and January owing to the oversupply and weak demand.

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