ibusinesslines.com
ibusinesslines.com October 23, 2017


Oil dips as U.S. stocks increase, defying Opec-led reduction efforts

20 May 2017, 01:58 | Kelvin Horton

Oil dips as U.S. stocks increase, defying Opec-led reduction efforts

Oil dips as U.S. stocks increase, defying Opec-led reduction efforts

But by May 17, July contracts for Brent crude were trading at $51.55. In line with "stronger recent performance from the USA shale sector, we have revised upwards our expectation throughout 2017, and we now expect total USA crude production to exit the year 790,000 b/d higher than at the end of 2016, which is an upward revision of 100,000 b/d since last month's report".

United States crude inventories rose by 882,000 barrels in the week ending May 12 to 523-million barrels, according to the American Petroleum Institute (API), defying expectations of a drop. Both benchmarks slipped back from session highs after a report that USA energy companies added oil rigs again in the latest week.

Analysts say Saudi Arabia wants to extend the plan by up to 9 months through next winter.

Both benchmarks rose on Wednesday after news of a drawdown in USA crude inventories and a dip in US output.

USA crude stocks fell by 5.2 mb w/w, the largest decline since the year-end dip in stocks.


In addition to USA crude stocks drawing down for the sixth consecutive week, the EIA showed an increase in refining rates.

Many investors remain concerned about growing US crude production, which has climbed 10 percent since mid-2016 to 9.3 million barrels per day. That could slow the supply drawdown.

Crude stocks at the Cushing, Oklahoma, delivery hub USOICC=ECI rose by 35,000 barrels, EIA said. We continue to expect OPEC production cuts to have their intended consequences, and we expect a favorable outcome to the May 25 OPEC meeting.

We assume that OPEC rolls over the November agreement in late May for a further six months at the current level of production restraint. Crude oil might close the day with profits. Off-topic, inappropriate or insulting comments will be removed.



Other News

Trending Now

What is a special counsel?
The deputy attorney general's hotly-anticipated meeting with senators came less than 24 hours after he appointed Mueller. Associates of Mr Comey has also claimed that the president asked him to pledge his loyalty shortly after taking office.

Comey Agrees To Testify Before Senate Intel Committee
Comey is known to produce memos documenting especially sensitive or unsettling encounters, such as after the February meeting. Elijah Cummings called Trump's reported comment "astonishing and extremely troubling".

China Threatened War If Philippines Drills for Oil -Duterte
President Duterte bares details of a meeting with Xi Jinping to prove to critics he isn't scared of China . India and Singapore held their first naval exercise in the South China Sea in 2005.

Celtics' Thomas leaves with hip strain
Before they knew it, the Cavaliers found themselves in the NBA Finals against the Golden State Warriors last season. The Celtics know there were a lot of problems in game one that need to be fixed just to keep in close in game two.

Yemen's Houthis say fire ballistic missile towards Saudi capital
The Coalition Air Forces retaliated immediately, hitting the sites of the missile's launching pads, the news agency added. Thousands of Yemenis have been injured and martyred in Saudi-led strikes, with the vast majority of them are civilians.

Thomas injured, Celtics find new low in Game 2 loss to Cavs
Cleveland is just playing too well right now and an NBA Finals matchup with the Warriors is inevitable. "The game's over. Thomas will have additional tests Saturday and will be re-evaluated before the team determines his status for Game 3.

All developers can now work on Android Instant Apps
The Webview renderer, which apps use to put webpages in a readable format, is now isolated from other parts of the app. If you like one of the options, just tap, and it's pasted into the body of your email to tweak or add to right away.