Oil is steady as market seen in balance
On Monday, crude futures remained steady following official comments from the Saudi energy minister that the market was making its way towards balance, though obvious signs of decreasing demand in Asia weighed.
LCOc1 Brent crude futures were worth $50.31 a barrel, almost intact from their last reading. As for CLc1 US crude futures, they dropped 5 cents, hitting $48.94.
On Monday, there won’t be West Texas Intermediate crude settlement, because US financial as well as commodity markets are unavailable for the US Independence Day holiday.
Fundamentals provide quite limited scope for further price revenues and financial analysts expect Brent to trade broadly sideways over within the nearer months.
Crude futures are gaining some support from worries over output in Nigeria. In this African country a militant group has been executing attacks on crude facilities for the last months.
Attacks in the Niger Delta have brought Nigerian crude output to 30-year minimums, though last week the Nigerian National Petroleum Corporation informed that crude production was soaring following repairs.