May 23, 2018

Oil trades at three-week low amid rising shale output

16 August 2017, 03:23 | Lorenzo Hawkins

Libyan oil production down by 30%

US Crude Oil Futures Are near 3 Week Low What’s

- Market participants keenly awaited the latest weekly data from the Energy Information Administration on US stocks and production, due later on Wednesday. "If not, prices are likely to drop below $51 and test $50 again".

Analysts polled by Reuters forecast that data would show USA crude stockpiles fell for a seventh consecutive week, along with a probable drop in distillate and gasoline inventories.

Brent and US crude reached two-month highs in early August but have slid over the last few days, dropping more than 2.5 percent on Monday.

USA crude inventories fell by 9.2-million barrels in the week to August 11 to 469.2-million, industry group the American Petroleum Institute said on Tuesday.

A total of 1.9 million barrels of both U.S. crude grades will be shipped by the end of October.

US West Texas Intermediate (WTI) crude futures were at $47.71 a barrel, up 16 cents, or 0.3 per cent. While that narrowed the surplus, stockpiles were still 219 million barrels above the five-year average at the end of June, the agency said.

More broadly, analysts said ample supplies were preventing prices from moving much higher. Worse still, this momentum is not expected to change into the first quarter of 2018 when the current OPEC deal where oil output will be cut by 1.8m bpd will have run out.

Crude production at Libya's biggest oil field has plunged more than 30 per cent in recent days after two company vehicles were stolen at gunpoint, raising new security concerns at the Opec country's operations, a person familiar with the matter said.

The International Energy Association (IEA), a Paris-based energy think tank based in Paris in its oil market report released last Friday said that global demand is expected to reach 1.5m bpd this year, up from 1.4 m forecast last month. The American Petroleum Institute is out with industry report this afternoon.

"OPEC and Russian Federation still face an uphill battle in reducing the global supply surplus in the face of growth in output elsewhere and less than compliant behavior in their midst (Iraq, UAE)", said French bank BNP Paribas. Crude supplies at Cushing, Okla., the delivery point for WTI and the biggest USA oil-storage hub, rose 700,000 bbl last week, according to a Bloomberg-compiled forecast.

On the demand side, analysts see a gradual slowdown in fuel consumption growth.

Other News

Trending Now

Fox News Host Threatens HuffPost Journalist With $50M Lawsuit Over Sexting Scandal
The Weiss firm was also brought in to investigate Bill O'Reilly and Roger Ailes before they were ousted from the network. Fox News suspended Bolling the day after the allegations were made public and launched an investigation into the claims.

Trump hails $1.6bn United States investment by Toyota and Mazda
The factory will be used to build Toyota Corollas , and as yet un-named Mazda SUV crossover vehicle. The companies said their collaboration will respect their mutual independence and equality.

Powerball results for 08/05/17; did anyone win the $287M jackpot?
Tickets sold in California, Florida and Tennessee each won a share of that world-record setting jackpot on January 13, 2016. Powerball tickets cost $2 and can be played in 44 states, Washington DC, the US Virgin Islands, and Puerto Rico.

Gaza Rocket Explodes in Southern Israel
Israel says attacks carried out after rockets were fired out of Gaza, a claim that Hamas denies . Two people were seriously wounded and another sustained light injuries, local media reported .

Bank of England cuts its growth forecasts for the UK
Policymakers agreed however to increase cheap lending for retail banks before the expiry of the Term Funding Scheme next February. It blamed the downgrade on Britain's stubbornly weak productivity and in part on the Brexit uncertainty.

Perseid meteor shower peaks this weekend, seek clear skies and dark area
From lunar eclipse in India on August 7 and 8, to a total solar eclipse in the USA on August 21, this is an astronomer's month. He said that at the peak of the meteor shower at 1.30am on Sunday, one would be able to see between 80 and 100 meteors an hour.

Maduro snubs Vatican's call for suspension of Venezuela's Constituent Assembly
Britain's foreign secretary has also criticized Venezuela's President Nicholas Maduro for his arrest of two opposition leaders. But another opposition leader, Leopoldo Lopez, remained in the Ramo Verde prison southwest of the capital.

Tesla Inc. (NASDAQ:TSLA) Posts Earnings Results, Beats Estimates By $0.36 EPS
Tesla on Wednesday said production was on track to hit its targets, and that over 1,800 vehicles were being ordered daily on net. Analysts surveyed by FactSet had expected an adjusted loss of $1.88 a share on sales of $2.52 billion.

Thomas Berger to lead legal challenge against Trans Mountain
The NDP said without the certificates, the Trans Mountain expansion can not move forward on public land. Attorney General David Eby says they plan to use every tool to defend B.C.'s coast from tanker traffic.

Liverpool transfer rumours and gossip: Barcelona's final Philippe Coutinho bid
The 25-year-old has been heavily linked with a move to Barcelona this summer. I am here, but I work with the players I have.