Oil price rises towards $70 on reduced United States drilling activity

Source Commonwealth Bank

Source Commonwealth Bank

"Oil prices moved lower. after the EIA published a report that crude production from seven major U.S. shale plays is expected to see a climb", said Stephen Innes, head of trading for Asia/Pacific at futures brokerage Oanda in Singapore.

US West Texas Intermediate (WTI) crude futures CLc1 were at $61.20 a barrel at 0122 GMT, down 16 cents, or 0.2 per cent, from their previous close.

Oil prices settled with a loss on Monday (http://www.marketwatch.com/story/oil-prices-pull-back-from-strong-finish-last-week-as-market-renews-us-supply-watch-2018-03-12), giving back part of the sharp gains seen in the previous session as recent data showed a rise in weekly USA output, as well as expectations for a further increase in domestic production next month.

Iran's light crude oil price rose 79 cents in the week ended on March 2 to settle at $63.18 per barrel, Shana news agency reported on Sunday. The Organization of Petroleum Exporting Countries and its allies pledge to curb output may be undermined as the USA ships more oil to Asia, according to ING Groep NV.

"It just looked like some profit taking", said Jim Ritterbusch, president of energy advisory firm Ritterbusch & Associates.

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Friday's strong US payroll data, which showed a hefty 313,000 rise in jobs but tempered growth in hourly earnings, supported Treasuries in early trade.

The crude oil prices are moving down, as quotes are under pressure from a steady increase in United States production.

"Oil prices moved lower. after (the) Energy Information Administration published a report that crude production from seven major USA shale plays is expected to see a climb", said Stephen Innes who is head of trading for Asia/Pacific at futures brokerage OANDA in Singapore. Cocoa, however, rises by 3.29% to 2,546 Dollars per metric ton.

"Nothing really stood out", said Goncalves, head of USA rates strategy at Nomura Securities International in New York."You can consider that a good thing, given this year will see more and more Treasuries issued".

Last week's U.S.jobs data, as well as an easing of fears over a global trade war, boosted stocks across the world.

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MSCI's world equity index .

The increase in rig count in the USA also points to more output to come in the future.

Emerging market stocks rose 1.21 percent.

The Nasdaq Composite was up 33.19 points, or 0.44 percent, at 7,594.00.

The broader trend remained positive for Wall Street's main indexes, which had closed up almost 2 percent on Friday on the strength of the jobs report.

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