Oil dips as concerns linger over USA production

Goldman On Commodities: Upside & Downside For Oil
Energy minister in Saudi Arabia made concerning prognosis
Author

13 May, 2017

Mr Bake said prices were still languishing near $50 a barrel as a warm winter had weakened demand for heating fuels in the first quarter while global inventories of oil had not drawn significantly.

OPEC members and other producers including Russian Federation pledged to reduce their output by nearly 1.8 million barrels per day (bpd) in the first half of the year, but the impact of the initiative has been slow to show up in global inventory data.

OPEC and the other participating producers will meet on May 25 in Vienna to decide whether to extend the cuts and, potentially, agree a deeper reduction.

"Owing to the rapid recovery in US oil production, OPEC obviously only has limited influence on prices via supply curbs", it said.

OPEC said on Thursday that oil producers needed to make more joint efforts to match supply and demand in the oil market in the face of rising output in the United States.

"Global markets continued to support the value of multiple-region destination grades, such as Arab Light, Basrah Light, Iran Heavy and Kuwait Export", OPEC said in the report.

EU hails growth but warns of uncertainty in UK over Brexit
The Commission said that improving labour market conditions are expected to support domestic demand over the next two years.

John Wall Confident Wizards Can Win Series, Isaiah Thomas Talks Refs Postgame
He has averaged 6.3 points and 2.6 rebounds off the bench for Wizards this playoffs while completing 40 percent of his 3-pointers. The Wizards got into the paint with nearly no resistance and despite starting Amir Johnson, there was zero presence on the glass.

Boxing in fantastic shape after Joshua triumph - Hopkins
And Klitschko, you've got to give credit to him. "I like that he's patient, too, he's like Frank Bruno but on steroids (sic)". Boxing has been struggling to find a new heavyweight champion who can captivate a worldwide audience for years.

OPEC de-facto leader, Saudi Arabia, is increasingly unable to control the global oil supply because of rising energy production in the U.S., Russian Federation and Iran.

OPEC issued its monthly reports this week, clearly indicating a drop in OPEC production but still holding concerns of an uncertain future.

Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, said the market is not just looking at U.S. production figures and U.S. inventory data. USA light crude CLc1 was up 1 cent at $47.84. Apache Corp. and Anadarko Petroleum Corp., two of the most active hedgers a year ago, hadn't added significant new contracts as of the end of the quarter, for example. The most prominent is that extending cuts lifts the oil price high enough for shale to hedge again, as it did earlier this year.

"Risks are emerging to 2018 balances", said Martijn Rats, oil analyst at Morgan Stanley in London. The fiscal outlook for the country looks so dire when compared to 2013's surplus of $48 billion, that the International Monetary Fund warned it could go through its fiscal reserves within five years.

According to the report, this was the biggest among oil producers as Nigeria makes move to over-take Angola and retain its position as biggest oil producer in Africa. By cutting costs and boosting efficiencies, USA shale has made itself capable of profitably producing $50 per barrel oil.


More news


  • New 'Blade Runner 2049' Teaser Trailer is Bleak AF

    If this tiny footage is any indication, this Blade Runner might be a way grittier than the original and a lot more aggressive. In the trailer tease, we see Robin Wright's character saying that there is an order to things.
    Juventus 1 Torino 1: Last-gasp Higuain strike cancels out Ljajic stunner

    Juventus 1 Torino 1: Last-gasp Higuain strike cancels out Ljajic stunner

    Cue "expensive donkey" Gonzalo Higuain popping up and beating Joe Hart right at the death. We have to win against a Monaco team with great talent and quality".
    Why Nigerien President Issoufou's visit to Buhari was postponed - Adesina

    Why Nigerien President Issoufou's visit to Buhari was postponed - Adesina

    Earlier this week, a group of prominent Nigerians has called on Mr Buhari to take medical leave as concerns about his health grow. We always said Mr President will stick to his doctors' advice so that he can recover much more quickly.
  • Kelly Clarkson joining 'The Voice' as coach for 14th season

    Kelly Clarkson joining 'The Voice' as coach for 14th season

    A fourth judge for Season 14 of The Voice is yet to be announced. Back in 2002, she won the first season of American Idol . Hudson will team with Levine, Shelton and Miley Cyrus.

    Trump signs executive order to promote religious liberty

    The group wants the court to declare that it gives preferential treatment to churches and halt the IRS from implementing it. The American Civil Liberties Union is not that anxious about President Trump's new "religious liberty" executive order.
    McDonnell: Labour Will

    McDonnell: Labour Will "Come Out Fighting" From Historic Council Election Loss

    Former UKIP leadership candidate Lisa Duffy admitted that the elections had been "very challenging" for her party. Liberal Democrats had a poor election, failing to break through against the Tories in south-west England.
  • British PM May vows energy price cap if re-elected

    British PM May vows energy price cap if re-elected

    The Conservative leader vowed to place a cap on standard variable tariffs to remove the "injustice" of soaring energy costs. The proposed Tory cap would be introduced on standard variable tariffs, which around 70% of households are on.
    India's cricket team to participate in Champions Trophy

    India's cricket team to participate in Champions Trophy

    With the new revenue model getting the nod, BCCI will now have to do with what they have in the eight-year cycle. India has been at loggerheads with the ICC in recent weeks over the revenue and governance models.
    Motorola might be working on a new tablet

    Motorola might be working on a new tablet

    It's been long we have seen a decent tablet and that is mainly because of how tablet market has been deteriorating with time. The Productivity Mode also moves all of the Android navigation buttons to one side of the screen, for easier thumb access.
  • Watch Stephen Colbert host a 'Daily Show' reunion on his 'Late Show'

    Watch Stephen Colbert host a 'Daily Show' reunion on his 'Late Show'

    He added that he is enjoying retirement, but some political moments have made him miss addressing the world. Watch the rest of the clips (below) to get a big hit of comedic nostalgia!

    Trump makes puzzling claim about Andrew Jackson, Civil War

    And frankly it should be discussed. "So we're looking at that, and we're also looking at the potential of going to Saudi Arabia". In a separate interview Monday night, Meacham, who wrote a biography on Jackson, called Trump's comments "disturbing".
    Now Barcelona's Neymar has to stand trial for fraud

    Now Barcelona's Neymar has to stand trial for fraud

    The club also admitted that it paid nearly 100 million euros for Neymar , not the 57.1 million euros it originally claimed. His arrival from Santos has been a huge success for the Spanish champions on the pitch but a judicial nightmare off it.