Crude prices gain slightly in Asia, U.S. rig count eyed - Sean Seshadri

Crude prices rose slightly in early Asia on Friday with weekly rig countfigures expected to set the near-term tone ahead of next week's meeting of OPEC and allied producers on production cuts.

On the New York Mercantile Exchange crude futures for June delivery edged up 0.04% to $49.37 a barrel, while on London's Intercontinental Exchange, Brent was last quoted at $52.49 a barrel.

In figures reported last Friday, oilfield servcies firm Baker Hughes said U.S. drillers added 9 oil rigs to take the total to 712, rigs for the 17th weekly gain in a row and extending an 11-month drilling recovery to the highest level since August 2015, implying that further gains in domestic production are ahead.

Overnight, crude futures settled higher on Thursday, as investors remained optimistic that OPEC would reach an agreement to extend the current supply-cut deal beyond June at its meeting next week.

In what was a choppy day of trade, oil futures recovered from a more than 1% slump, as investors' optimism that OPEC would seek an extension of the current deal to cut global production offset concerns over the rising level of U.S. shale production.

The Energy Information Administration said Wednesday, crude oil inventories fell by 1.75 million barrels last week, which was the sixth-straight week of declining crude stockpiles but the dip in inventories fell short of expectations of a draw of around 2.4 million barrels.

Despite the high level of compliance from OPEC members with the deal to rein in supply, global production remains above the five-year average, as non-OPEC members, who are not part of the supply-cut agreement have ramped up production.

In its monthly report last Thursday, OPEC estimated that non-OPEC production this year would grow by 950,000 barrels per day (bpd).

OPEC and other producers are set to meet on May 25 to decide whether to extend the current supply-cut deal amid growing optimism for a prolonged period of cuts.

Saudi Arabia and Russia agreed earlier this week that production cuts needed to be extended for a period of nine months until March 2018.

The International Energy Agency (IEA) on Wednesday, however, warned that OPEC’s effort to rein in the glut in supply may fail even if the oil group agrees to extend its supply-cut agreement.

Gold moves higher on geopolitical tension, takes Yellen in stride - Sean Seshadri

Gold prices rose in European trade on Tuesday as rising political tension over North Korea and Syria supported demand for the safe-haven metal.

On the Comex division of the New York Mercantile Exchange, gold for June delivery gained 0.39% to $1.258.85 a troy ounce.

U.S. Secretary of State Rex Tillerson is currently at the G7 Foreign Affair Ministers meeting in Italy where political leaders are working to produce a cohesive message on Syria.

The U.S. had been working to rally international support for its revised stance on Syria ahead of the American Secretary of State's first diplomatic trip to Moscow.

However, the Kremlin announced Monday that Tillerson and Russian President Vladimir Putin will not meet in what could be a sign of increased tensions.

Markets also focused eyes on Asia as North Korea warned Tuesday of “catastrophic consequences” in response to any further provocations by the U.S., days after a U.S. Navy battle group was sent to waters off the Korean peninsula.

Stateside, remarks Monday from Federal Reserve (Fed) chair Janet Yellen provided little effect on the precious metal as she repeated her outlook that the central bank would raise U.S. interest rates gradually with an aim to sustaining full employment and near-2% inflation without letting the economy overheat.

"Whereas before we had our foot pressed down on the gas pedal trying to give the economy all the oomph we possibly could, now allowing the economy to kind of coast and remain on an even keel -- to give it some gas but not so much that we are pressing down hard on the accelerator -- that’s a better stance of monetary policy," she said.

"We want to be ahead of the curve and not behind it," Yellen explained.

Elsewhere in metals trading, silver was up 0.13% at $17.938 a troy ounce.

Platinum rose 0.70% at $946.60 a troy ounce, while palladium gained 0.30% to $792.35 a troy ounce. Copper inched up 0.08% to $2.606 a pound.

Oil struggles to continue rally ahead of inventories - Sean Seshadri

Oil prices underwent choppy trade on Tuesday as black gold struggled to maintain a nearly week-long rally that have pushed prices up around 5% as markets looked ahead to data on U.S. crude stockpiles.

The U.S. West Texas Intermediate crude May contract was last at $53.09 by 9:22AM ET (13:22GMT), up 0.02%, or $0.01, after rising to $53.23 earlier in the session. The NYMEX barrel has pocketed gains of 5.4% since its last down day on April 3 when it closed at $50.24.

Elsewhere, Brent oil for June delivery on the ICE Futures Exchange in London slipped on 5 cents to $55.93 a barrel after hitting an intraday high at $56.16. The global benchmark has risen nearly 6% so far in April.

Bullish investors have been betting that the production cuts that major oil producers have already agreed to are not only effective, but could be extended beyond the current June cutoff.

Russia oil minister Alexander Novak said that his country’s oil output would be cut by 250,000 barrels-per-day (bpd) by mid-April and that Moscow will begin talking to Russian oil producers about the possibility of extending the production cut in agreement with OPEC, according to the TASS news agency.

Saudi Arabia also decreased production to 9.9 million bdp in March from the 10 million reported the prior month, according to Bloomberg, adding that the direct reporting numbers also revealed that Nigeria had reduced production to 1.27 million bpd from 1.43 million and Venezuela had cut to 2.235 million from 2.248 million. However, Qatar had increased production to 621,000 bpd in March from the prior 545,000, according to the news agency.

Meanwhile, Libya’s output was reported to drop to 490,000 bpd as production at its biggest oil field was halted.

OPEC agreed in November last year to curb its output by about 1.2 million barrels per day between January and June. Russia and 10 other non-OPEC producers have agreed to jointly cut by an additional 600,000 barrels per day.

In total, they agreed to reduce output by 1.8 million barrels per day to 32.5 million for the first six months of the year.

A joint committee of ministers from OPEC and non-OPEC oil producers will meet in late April to present its recommendation on the fate of the pact. A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.

In the meantime, investors were keeping an eye on U.S. drilling activity that has been steadily increasing even as other major oil producers reduce production in an attempt to reduce the global supply glut and push prices higher.

Late Friday, data from oil services provider Baker Hughes showed that the number of active rigs drilling for oil in the U.S. rose by 10 to 672. That was the 12th straight weekly increase to the highest number since August 2015.

Meanwhile, market players looked ahead to the American Petroleum Institute’s weekly report on crude inventories at 4:30PM ET (20:30GMT) Tuesday.

Official government figures will be released on Wednesday amid expectations for a build of 0.316 million barrels.

Oil struggles to continue rally ahead of inventories - Sean Seshadri

Oil prices underwent choppy trade on Tuesday as black gold struggled to maintain a nearly week-long rally that have pushed prices up around 5% as markets looked ahead to data on U.S. crude stockpiles.

The U.S. West Texas Intermediate crude May contract was last at $53.09 by 9:22AM ET (13:22GMT), up 0.02%, or $0.01, after rising to $53.23 earlier in the session. The NYMEX barrel has pocketed gains of 5.4% since its last down day on April 3 when it closed at $50.24.

Elsewhere, Brent oil for June delivery on the ICE Futures Exchange in London slipped on 5 cents to $55.93 a barrel after hitting an intraday high at $56.16. The global benchmark has risen nearly 6% so far in April.

Bullish investors have been betting that the production cuts that major oil producers have already agreed to are not only effective, but could be extended beyond the current June cutoff.

Russia oil minister Alexander Novak said that his country’s oil output would be cut by 250,000 barrels-per-day (bpd) by mid-April and that Moscow will begin talking to Russian oil producers about the possibility of extending the production cut in agreement with OPEC, according to the TASS news agency.

Saudi Arabia also decreased production to 9.9 million bdp in March from the 10 million reported the prior month, according to Bloomberg, adding that the direct reporting numbers also revealed that Nigeria had reduced production to 1.27 million bpd from 1.43 million and Venezuela had cut to 2.235 million from 2.248 million. However, Qatar had increased production to 621,000 bpd in March from the prior 545,000, according to the news agency.

Meanwhile, Libya’s output was reported to drop to 490,000 bpd as production at its biggest oil field was halted.

OPEC agreed in November last year to curb its output by about 1.2 million barrels per day between January and June. Russia and 10 other non-OPEC producers have agreed to jointly cut by an additional 600,000 barrels per day.

In total, they agreed to reduce output by 1.8 million barrels per day to 32.5 million for the first six months of the year.

A joint committee of ministers from OPEC and non-OPEC oil producers will meet in late April to present its recommendation on the fate of the pact. A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.

In the meantime, investors were keeping an eye on U.S. drilling activity that has been steadily increasing even as other major oil producers reduce production in an attempt to reduce the global supply glut and push prices higher.

Late Friday, data from oil services provider Baker Hughes showed that the number of active rigs drilling for oil in the U.S. rose by 10 to 672. That was the 12th straight weekly increase to the highest number since August 2015.

Meanwhile, market players looked ahead to the American Petroleum Institute’s weekly report on crude inventories at 4:30PM ET (20:30GMT) Tuesday.

Official government figures will be released on Wednesday amid expectations for a build of 0.316 million barrels.

Oil prices rise but increasing U.S. output tempers gains - Sean Seshadri

Oil prices rose on Monday, approaching the prior sessions’ one-month highs amid concerns over mounting geopolitical risk, but industry data pointing to another increase in U.S. output capped gains.

Global benchmark Brent futures rose 39 cents or 0.69% to $55.61 a barrel on the ICE Futures Exchange in London.

U.S. crude oil was trading at $52.55 a barrel at 07.53 GMT, up 32 cents or 0.63% from its last close.

Oil prices hit one-month highs Friday as U.S. cruise missile strikes on a Syrian air base raised concerns that conflict in the oil-producing region could spread.

Both U.S. crude and Brent rose more than 3% last week, notching up a second straight weekly increase.

But gains were held in check as oil traders continued to focus on the ongoing rebound in U.S. shale production, which could derail efforts by other major producers to reduce a global supply glut.

Oilfield services provider Baker Hughes said late Friday that the number of active U.S. rigs drilling for oil rose again last week to the highest since September 2015.

Market participants, however, remained optimistic that the Organization of the Petroleum Exporting Countries would extend its current deal with non-OPEC producers to cut output beyond June in an effort to rebalance the market.

A joint committee of ministers from OPEC and non-OPEC producers will meet in late April to present its recommendation on the fate of the pact. A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.

Oil prices fall on bloated U.S. market, but other regions tighten - Sean Seshadri

Oil prices fell on Thursday as record U.S. crude inventories underscored that markets remain bloated, although traders said there were signs that other regions were gradually tightening.

Brent crude futures were at $54.09 per barrel at 0530 GMT, down 27 cents, or 0.5 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were down 26 cents, or 0.5 percent, at $50.89 a barrel.

Traders said the declines were due to rising U.S. crude production that bolstered inventories to record levels.

U.S. fuel inventories and oil production levels are key to whether the United States remains the world's biggest oil importer, helping to support prices, or if soaring output and large stocks cut imports, which would weigh on oil markets.

The U.S. Energy Information Administration (EIA) reported an increase of 1.57 million barrels in crude inventories late on Wednesday, bringing total U.S. stocks to a record of 535.5 million barrels.

"Overnight crude inventory numbers pulled the rug out from under the feet of the oil rally," said Jeffrey Halley, senior analyst at futures brokerage OANDA.

The record crude inventories came as U.S. oil production rose 52,000 barrels per day (bpd) to 9.2 million bpd, a more than 9 percent increase since mid-2016 to levels last seen at the start of the market slump in late 2014 and early 2015.

Within the U.S. crude inventories, stocks at Cushing, the delivery hub for WTI, rose 1.4 million barrels to a record 69.1 million barrels. Rising stocks at Cushing, in Oklahoma, typically tend to depress the price of the U.S. benchmark.

Cushing crude tank farms have a total storage capacity of 77 million barrels, said Ole Hansen, head of commodity strategy at Saxo Bank.

Because of the glut, U.S. crude exports have soared to a record 1.1 million bpd, with most cargoes going to Asia, where traders say there are early signs of a tightening market due to efforts led by the Organization of the Petroleum Exporting Countries (OPEC) to cut output in an effort to prop up prices.

"The global picture is more important (than just the U.S.) and stocks are being drawn," said Oystein Berentsen, managing director at oil trading company Strong Petroleum in Singapore.

In the short-term, he said, a lot of oil was being sold out of storage around the world, adding to the imminent glut.

But Berentsen warned that once a significant amount of crude had been sold out of inventories, "then you get the full effect (of tighter supplies)."

Gold prices fall in Asia on strong dollar, political risks eyed - Sean Seshadri

Gold prices dipped in Asia on Friday with a stronger dollar weighing on demand, but support coming on political risks, including a meeting next week in Florida between President Donald Trump and China's President Xi Jinping as well as elections in France and chances of a far-right government.

Gold for April delivery on the Comex division of the New York Mercantile Exchange fell 0.40% to 1,240.00 a troy ounce. Copper futures fell 0.30% to $2.668 a pound.

China's semi-official manufacturing PMI rose to 51.8, the China Federation of Logistics & Purchasing (CFLP) said Friday, beating the expected 51.6 level and releasing the figures one day ahead of the normal first of the month release and ahead of the Caixin PMI figures.

Earlier in Japan, household spending for February slumped 3.8% year-on-year, compared to a 1.7% decline seen. On a monthly basis however it rose 2.5%, beating the expected 0.4% rise.

Separately, national core CPI fell 0.2% for February year-on-year as expected, while unemployment dipped to 2.8% from 3.0%. Provisional industrial production for February rose 2.0% month-on-month, beating the expected 1.2% increase.

The dollar rose to a nine-day high against a basket of currencies on Thursday, easing slightly to around 100.40 on Friday in Asia. Gold is priced in greenbacks, making it potentially more expensive for holders of other currencies.

Overnight, gold prices traded lower on Thursday, as a push in the dollar weighed on the yellow metal, after the release of upbeat economic data and continued rate hike chatter from several Fed officials.

Gold prices fell to session lows, and on track to end the week in negative, after the dollar swooped to a nine-day high, buoyed by an upward revision in GDP data and hawkish comments from several Fed officials.

The Commerce Department earlier reported that U.S. gross domestic product grew faster than previously reported in the fourth quarter.

Cleveland Federal Reserve reiterated her hawkish view concerning interest rate hikes Thursday, as she said that “further removal of accommodation via increases in the fed funds rate will be needed” should economic conditions “evolve as anticipated”.

Fed President John Williams, tapered some of his bullish rhetoric on the U.S. economy, after he said even though the economy shows “consistent” and “encouraging” signs, “housing still isn’t quite back”.

Economic uncertainty in Europe, as the date of the French presidential election draws closer and the start of Britain’s departure from the European Union, have largely offset the negative impact a stronger greenback has on dollar denominated assets such as gold.

Meanwhile, cash crunches in India due to the government’s recent demonetization will likely act as a temporary headwind for gold prices in the coming months, according to a report from FocusEconomics Consensus Forecast – Commodities.