North Korean missile test failed. Oil falls after

Friday, as well as Monday are holidays for LME. Friday was holiday for all the stock exchanges, while LME is not open yet. Tomorrow is the first Post-holiday working day.

Post Easter Holiday News

Monday. After the three-day Easter break, crude oil felt in trading. The United States is continuing to add output. As well as that, they are undermining OPEC effort to support prices. Also, as the market digested North Korea’s failed missile launch on Sunday.

In the beginning, benchmark “Brent crude futures were down 49 cents at $55.40 at 0310 GMT. On Thursday, before the break closed most major markets, they settled up 3 cents at $55.89 a barrel.”

Reuters: “West Texas Intermediate crude futures were also down 47 cents at $52.71 a barrel. They rose 7 cents to $53.18 on Thursday. Both benchmarks last week rose for a third consecutive week. With Brent adding 1.2 percent over the four days before the Good Friday holiday and WTI up 1.8 percent.”

Markets

Markets were subdued to start this trading week. The major trading center in London is closed for holiday even on Monday (today). Following, markets feel pressure and more geopolitical tensions over North Korea. Sunday they launched a ballistic missile, which has failed because it blew up immediately.

“The United States is working with allies and China on responses to the failed test! ” (D.T.’s security adviser said on Sunday.)

As a sign that output gains, crammers in the U.S. added rigs last week for a 13^th consecutive week.

“They added 11 oil rigs in the week to April 13, bringing the total count up to 683.” (Baker Hughes, Energy services firm said.) That is the highest in about two years. <RIG/U>

US act

United States is constantly irritating OPEC with its increasing outputs. In the meantime, they are also irritating other major oil producers who made a deal to cut outputs. Curbing output sustains a rally in prices in a market that has been oversupplied since 2014.

“U.S. crude oil production has climbed to 9.24 million barrels per day. (EIA data). That makes the U.S. the world’s third-largest producer after Russia and Saudi Arabia.”

“Non-OPEC compliance will improve over the next two months with Russia driving the largest reductions in volume terms.”( BMI info)

“Kazakhstan is likely to continue to exceed its quota given strong output from the Kashagan field.”