TapForMobile

OPEC says oil deal bearing fruit, but US pumping more


Oil prices rose to five-week highs after Friday's reports of US -ordered airstrikes against Syrian infrastructure, followed by production outages from Libya's largest oilfield, and late-breaking news on Tuesday that suggested Saudi Arabia would support OPEC production cuts.

Gross U.S. crude oil imports in 2016 rose to an average of 7.9 million barrels per day (b/d), 514,000 b/d more than the 2015 average.

"New data shows weaker-than-expected growth in a number of countries including Russia, India, several Middle Eastern countries, Korea and the US, where demand has stalled in recent months", the agency said.

The EIA also lowered its crude-price forecast, with West Texas Intermediate crude seen at an average $52.24 a barrel, and Brent crude at $54.23 in 2017, down 2.3% and 0.7% from last month's forecast, respectively.

Benchmark Brent crude futures were down 1 cent at $55.85 a barrel at 0907 GMT.

OPEC members have previously said they lean toward oil cut extensions, as long as non-members are also involved.

OPEC reduced its output to around 1.2 million barrels per day from the beginning of January and for six months - the first curb in eight years - to get rid of excess supply.

Oil prices shed earlier losses and moved slightly higher on Thursday after an energy watchdog said the market is "very close" to a balance after years of oversupply.

The IEA trimmed its oil demand growth forecast for 2017 by 40,000 barrels per day and warned that its revised level of 1.3 million barrels per day "could prove optimistic".


Demand for oil from OPEC is seen growing by 600,000 bpd from 2016, to 32.2 million barrels daily.

After dropping to $47 a barrel about 10 days ago, WTI oil prices closed above $53 a barrel Monday night.

"The weakness in the market is concerning, seeing that USA production alone can offset a number of encouraging news", said Michael McCarthy, a chief strategist at CMC Markets.

But OPEC revised up its estimate of oil supply growth from producers outside the group this year to 580,000 bpd, as higher oil prices following the supply cut help spur a revival in US shale drilling.

With demand expected to rise by 340,000 bpd in 2018, that would leave increasing amounts of US oil for export or storage.

"Upward revisions were seen in Russia's production due to the approval of production ramp ups from the three new projects started up a year ago including Filanovsky in the Caspian", the OPEC said.

In last month's OPEC report Saudi Arabia had posted numbers showing it raised output above 10m bpd in a move that briefly unnerved markets, before the kingdom issued a rare statement to explain the output increase was aimed at replenishing domestic inventories, rather than an attempt to increase exports.

However, prices are dragged down by information from the United States, where both production and inventories are rapidly growing.

Related Articles

  • Michigan State player charged with criminal sexual conduct

    Michigan State player charged with criminal sexual conduct

    Be proactive - Use the "Flag as Inappropriate" link at the upper right corner of each comment to let us know of abusive posts. The student who said she was sexually assaulted reported what happened, and the university has two investigations ongoing.
    IPhone 8: Talk of delays and redesign over security issue

    IPhone 8: Talk of delays and redesign over security issue

    On some iPhone 8 models in testing, the cover glass curves into a steel frame, but the curve is not expected to be dramatic. The other two models, however, will not have an OLED screen and likely be iterations to the current iPhone 7 models.
    Easter egg hunt a hit in Dobson

    Easter egg hunt a hit in Dobson

    Typically their Easter falls later than the mainstream Easter due to a different calendar, but for this year the dates line up. The event was inspired to "give back to the community during the 150th year anniversary celebration of Canada", he said.
  • North Korea Threatens US with Pre-Emptive Missile Strike

    North Korea Threatens US with Pre-Emptive Missile Strike

    According to South Korean military sources, the move is aimed at subduing North Korea's intent to provoke the South into warfare. The council also warned the North of "further significant measures, including sanctions".

    Celtics' Isaiah Thomas: Days since sister died hardest of my life

    They have to know that their season and the hard-earned No. 1 seed in the Eastern Conference are about to go up in flames. The Bulls are +22 in terms of rebounding this series , a vulnerability of the Celtics and a strength of Chicago.

    USA 'not looking for fight' with North Korea

    Additionally, an operational Thaad installation is unlikely before 9 May, when South Koreans vote for a new president. Given North Korea's recalcitrance and intransigence, that is understandable - and arguably necessary.
  • VP Pence meets Indonesian president on Asia tour

    VP Pence meets Indonesian president on Asia tour

    China claims most of the South China Sea , but has overlapping claims with a number of Southeast Asian countries. Paynor said that with "Multilateral meetings of this sort, you usually expect 100% attendance".
    Korea calls on UN Secretariat to hold forum on Security Council resolutions

    Korea calls on UN Secretariat to hold forum on Security Council resolutions

    On Monday, Hwang and Pence reaffirmed their plans to go ahead with the THAAD, but the decision will be up to the next South Korean president.
    Sean Payton testifies at Cardell Hayes' sentencing

    Sean Payton testifies at Cardell Hayes' sentencing

    Evidence presented during Hayes' trial showed that Smith's 9 mm semi-automatic handgun was found loaded but unused inside his SUV. Prosecutors were calling for a maximum sentence of 60 years with consecutive terms of manslaughter and attempted manslaughter.
  • Newly released Egyptian-American charity worker visits Trump

    In 2015, Hijazi's mother told NPR that after her daughter was arrested, the children she used to help are "back on the streets". At that meeting, Trump described the el-Sisi's leadership as "fantastic" and offered the USA government's "strong backing".
    Trudeau-Italian PM show bond in wake of Trump protectionism, closed borders

    Trudeau-Italian PM show bond in wake of Trump protectionism, closed borders

    Trump is slated to travel to Brussels for a summit of leaders of North Atlantic Treaty Organisation nations on May 25. Gentiloni pointed out that Italy has been a staunch ally in fighting Islamic extremism in Iraq and Afghanistan.

    Trump admin. declines to brand China a currency manipulator

    The U.S. may try to limit the dollar's rise against the yen in its first economic dialogue with Japan , scheduled for Tuesday. He also said: "I think our dollar is getting too strong, and partially that's my fault because people have confidence in me".

Comments