nsucurrent.com May 23, 2018

Increases in World Oil Supplies Overwhelming Its Cuts

15 June 2017, 01:31 | Ruby West

Oil prices edge up as Saudis limit exports to Asia, US

Oil surges

Global oil output will expand faster than worldwide demand for oil next year, primarily as U.S. producers rack up production, and that could hamper exporters' efforts to prop up prices, the IEA said on Wednesday (Jun 14).

OPEC and 11 rival exporters including Russian Federation have agreed toextend an existing deal to limit supply by 1.8 million bpd toMarch 2018, in order to cut global inventory levels.

The report put the country's oil output growth at 700,000 barrels per day (bpd) in 2016 and said that production in the Middle East rose by 1.7 million bpd, driven by growth in Iran, Iraq (400,000 bpd) and Saudi Arabia (400,000 bpd).

Earlier in the session, the US Energy Information Administration (EIA) said the country's crude oil inventories fell by 1.7m barrels in the week through 9 June, well shy of analysts' expectations for a decline in the 2.7m to 3.0m-barrel range.

Sign up now and get breaking news alerts delivered to your inbox.

"The high-price numbers prompted USA refiners to lower nominations", one industry source said. USA light crude CLc1 was at $45.86 per barrel, down 22 cents.

Producers inflated oil stockpiles at the end of last year by ramping up exports just before their agreement started, and demand growth has disappointed so far this year.

USA crude-oil refinery inputs averaged about 17.3 million barrels a day last week, up 29,000 barrels a day than the week before, the EIA reported.

Crude stocks at the Cushing, Okla., delivery hub fell by 1.2 million bbl, EIA said.

The International Energy Agency (IEA) said on Wednesday it expected growth in non-Opec supply to be higher next year than growth in overall global demand. "But we'll see lower pump prices in the last 100 days of 2017 thanks [in part] to the post Labor Day demand slump". "There is too much oil from the USA, too much oil from Libya, too much oil from Nigeria", said Fereidun Fesharaki, founder and chairman of consulting group FGE, which focuses on oil and gas markets east of the Suez and in Europe and the U.S, reports CNBC. For one, higher-than-expected shale oil production in the United States partly offset Opec and non-Opec production cuts at the beginning of this year.

If OPEC stands pat, putting hope over past experience, then the price of crude (which is down 13 percent since late May) could drop further, perhaps much further.

"Oil has been weighed down by the market's impatience with the generally slow pace of the global inventory drawdown amid a significant recovery in global oil supplies, particularly from the US", OPEC said in its June report today.

Meanwhile, US drilling activity has continued apace, driving up US output by more than 10 per cent since mid-2016 to above 9.3 million bpd.

Other News

Trending Now

Formula One 2017: Sebastian Vettel wins Monaco Grand Prix
He dropped to the second place after changing of tires, but as we said some saw a conspiracy in this situation. Victory for Vettel marks the Ferrari driver's third win in the six races held so far.

315000-Year-Old Fossils From Morocco Could Be Earliest Recorded Homo Sapiens
The next-oldest fossils of Homo sapiens , the scientific name for humans , are about 200,000 years old. They used fire and their tools were made of flint from about 25 miles (40 kilometers) away.

LeBron James nearly didn't return to Cavs because of Dan Gilbert's letter
However, instead of going that route, he said he saw the "bigger picture" of what it meant to the city of Cleveland . Dan Gilbert , who's a MI guy, would get to then own the Pistons.

North Korea awaits ex-NBAer Rodman visit
The colourful sportsman sang Happy Birthday to the leader, but his side were defeated by the North Koreans. The match was held to celebrate the despotic crackpot's birthday, who Rodman calls a friend.

Apple Introduces New "Do Not Disturb while Driving" Feature for iPhone
The all-new feature is called " Do Not Disturb While Driving ", and is part of the latest iPhone iOS 11 software upgrade. Geskin also posted schematic images that purport to show the design of the new iPhone.

SteamVR is now on Apple Mac, here's how you can use it
With the revamped Metal 2 graphics technology , Macs can support external GPUs through the Thunderbolt 3 port. While macOS Sierra has plenty of new features, there are also numerous refinements to the operating system.

If Celtics pass on Fultz, will they go Fox-hunting?
Ball makes everyone around him better not only because of his passing but the way he spreads the court open. This is a really good draft class and probably one of the best I've seen in the last couple of years".

UK premier strikes tentative deal with N Ireland party
Labour leader Jeremy Corbyn, riding a wave of acclaim for his party's unexpectedly strong showing, called on May to resign. Former Conservative cabinet minister Owen Paterson, asked about her future, said: "Let's see how it pans out".

MP farmers protest : Shivraj Chouhan goes on fast for peace
The Chief Minister is sitting at Bhopal's Dussehra Maidan, where people can discuss their problems with him. The farmers have been demanding better prices for their produce, debt relief, among other things.

Fans in focus at major E3 video game trade show
Battlefield 1 , which was released past year , also received a trailer that showed off its newest DLC, In The Name Of The Tsar . There will also be a Switch version, though it will be slightly downgraded compared to those available on other consoles.