Published: Tue, March 13, 2018
Finance | By Claude Patterson

US Oil Export Surge Threatens OPEC Strategy

US Oil Export Surge Threatens OPEC Strategy

LONDON, March 13 (Reuters) - Oil rose on Tuesday, after Libya said loadings of crude at a key port had been suspended, offseting an earlier dent to the price caused by evidence of the inexorable growth in US oil output. S. data showed the economy in February added the most jobs in more than 1-1/2 years.

Crude prices had risen on Friday and earlier on Monday after the USA economy added the biggest number of jobs in more than 1-1/2 years in February.

USA stocks, though, were mixed on Monday, with the S&P 500 down 2.08 points, or 0.07 percent, at 2,784.49 and the Dow Jones Industrial Average lower by 127.52 points, or 0.5 percent, at 25,208.22.

Brent crude futures were at $65.11 per barrel, down 38 cents from their previous close.

During the said week, Organization of Petroleum Exporting Countries (OPEC)'s basket price stood at $63.58 per barrel with $49 cents increase compared to the preceding week.

US oil production gains nevertheless are offsetting an effort led by the Organization of Petroleum Exporting Countries to cut into the surplus on five-year oil inventories through output curtailments.

Benchmark 10-year notes last rose 2/32 in price to yield 2.8865 percent, from 2.894 percent on Friday.

While the producer group complied with a pledge to curb output and ease a glut in 2017, USA flows that are gaining a bigger slice of the prized Asian market may prompt some nations to boost supplies, said Warren Patterson, a commodities strategist at the Dutch bank.

"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". "They continue to give market share away to the U.S".

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.

MSCI's world equity index . Some of the pressure is coming from a recovery in the U.S. Dollar, which could affect foreign demand.

The Japanese yen strengthened 0.37 percent versus the greenback to 106.39 per dollar, while sterling was last trading at $1.3906, up 0.40 percent on the day.

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