NEW YORK, Mar 13 (Reuters): Investor concerns about rising U.S. oil output sent crude prices down on Monday, but investors stayed bullish on U.S. Treasuries despite an increased supply of three- and 10-year notes.
Energy investors weighed increased U.S. supply against the likelihood that the Organisation of the Petroleum Exporting Countries (OPEC) will maintain supply cuts that have been in effect more than a year.
US crude was last at $61.37, down 1.08 per cent. Brent was last at $64.96, down 0.81 per cent on the day.
During the session, U.S. crude fell as much as 2.21 per cent. Some of that early slide was probably profit-taking after a rise on Friday, said Jim Ritterbusch, president of energy advisory firm Ritterbusch & Associates.
On Friday, crude prices rose after U.S. data showed the economy in February added the most jobs in more than 1-1/2 years. The payroll data also supported Treasuries.
On Monday, benchmark 10-year notes last rose 8/32 in price to yield 2.8663 per cent, hovering near multi-year highs.
The Treasury on Monday sold $28 billion of three-year notes and $21 billion of the 10-year notes, in what analyst George Goncalves called an "on-the-screws type auction."
Increased supply did not quell demand for the U.S. government debt, a positive sign for the heavy issuance expected in the year ahead.
Oil prices decline on profit-taking
FE Team | Published: March 13, 2018 21:42:51
Oil prices decline on profit-taking
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