USA supply growth to dominate 2018 oil markets, outstrip Saudi Arabia - IEA

Oil prices finished lower Friday night on worries over growing rising U.S. oil production. Rival suppliers would be handed the entire 1.3 million barrel-a-day expansion in the global oil market this year, and USA crude output could overtake that of Saudi Arabia and even get close to Russia, IEA data show. Despite the cuts, the rig count in 2017 and early this year remains much higher than in 2016, resulting in a 16-percent rise in USA crude oil production since mid-2016, to 9.75 million barrels per day (bpd).

Despite a plunge in US commercial crude inventories, oil prices slipped to settle at $63.95 a barrel in NY, down 2 cents, as traders resurrected an old, but persistent concern that increasingly efficient shale drillers will ramp up output and overwhelm OPEC's efforts to curb production.

On 30 November past year it was announced that the oil price cut agreement would be extended until the end of 2018 in an effort to support oil prices.

Today's falls could lead to the biggest weekly price decline since October, according to Reuters. Some did fold or put production on hold but recent highs mean that shale companies are going back online.

"What we are trying to understand is the responsiveness of the United States shale producers".

The upshot? Unless there is a serious supply disruption, $65 a barrel is a "natural ceiling" for the oil price, he reckons.

But the forecast was balanced by figures in the report showing OPEC's compliance with the supply cuts remained high in December and a further sharp slide in Venezuelan oil output.

"Very soon USA crude production may overtake that of Saudi Arabia and also rival Russia's", it said.

Читайте также: Everton vs West Brom 20 January 2018: EPL Preview and Predictions

However, as OPEC continues with its targeted production agreement, the oil has slowly turned from bearish to bullish on Middle East tension and as the market nears rebalancing.

Having said that, however, "some digestion of the recent gains should not be alarming, as the rally did overheat slightly at the turn of the year", they said.

The United States is expected to take over Saudi Arabia and even rival Russian Federation as the world's leading energy producer, the International Energy Agency said on Friday.

U.S. West Texas Intermediate and international-benchmark Brent crude oil funds are trading lower early Friday amid concerns over rising U.S. production.

But lurking in the background is rising non-OPEC production - which was acknowledged last week by the producer group.

USA crude inventories were estimated to have fallen 3.5 million barrels in the week ended January 12, according to a Reuters poll. However, Total products supplied over the last four-week period averaged 20.5 million barrels per day, up by 5.6 percent from the same period of past year.

OPEC's compliance with the cuts averaged 95% throughout 2017, according to the IEA report.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2018 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

(Copyright © 2015. All Rights Reserved.)
 
You Might Also Like
Recommended

Police seize £33m stash of cocaine hidden in pineapples
Police in Portugal and Spain recently seized over 1,600 pounds of cocaine hidden inside of fresh pineapples at the port of Lisbon. Apparently, the gang had the cocaine stored in Terrassa, Barcelona and transported it to Madrid laboratories every 15-20 days.

Rajon Rondo questions why Celtics would honor IT
An Eastern Conference finals rematch on the court, interspersed with tributes to a Celtics legend. I remember losing 19 straight with that man. "(Thomas) had a shot to be honored", Pierce said.

Kanye West and Kim Kardashian Welcome Surrogate Baby Girl (Week in Review)
She added that her daughter North and son Saint , who she carried herself, are "especially thrilled to welcome their baby sister". Kim Kardashian announced on Friday that her third child with Kanye West is named after West's hometown.

Kazakhstan: 52 killed after bus catches fire in Aktau region
Of the survivors, two are citizens of Kazakhstan who were taking turns to drive the bus, and three others are from Uzbekistan. The dead are believed to have been immigrant workers from neighbouring Uzbekistan , the ministry said.

Australian Open: Hsieh Su-wei proves too hot for Garbine Muguruza
I was ready to leave on Monday and then they told me I'm in, so I was obviously excited", Pera said. "I'm happy I didn't buy one". The Spaniard responded by winning four of the next five games, but crumbled in the tie-break as Hsieh took it 7-1.

A government shutdown probably won't have a big effect on internet security
Workers began finding out on Friday whether they would be furloughed , but official notices would come as early as Saturday. They eventually received their back pay , and Congress would have to do so in the event of a new shutdown this time around.

Blowfish alert: Japan officials seek possible poison package
Regional health officials said Tuesday a supermarket in Gamagori sold five packages of assorted blowfish meat on Monday. The market sold five packages of fish without removing their livers, which can contain a potent neurotoxin.

Kim Kardashian Reveals That New Baby Is Biologically Hers And Kanye's
We like it or not, Kim Kardashian's booty helped her become as famous as she is today. The family is expected to break their silence about Jenner's rumored pregnancy soon.

Browns to interview Ben McAdoo
Dorsey and McAdoo spent seven years together in Green Bay when McAdoo was the tight ends coach and quarterbacks coach. McAdoo went 11-5 in 2016, but things unraveled for him after he demoted Manning, a two-time Super Bowl champion.

Zinedine Zidane Encouraged by Clinical Real Madrid
He might have been injured for the majority of the campaign, but Bale is now Real Madrid's top scorer in La Liga this season. Los Blancos extended their lead when Bale added his second from a Toni Kroos corner on the hour mark 3-1 the home side led.

Media cold to Facebook changes
In an extraordinary blog post , the company acknowledged that passively consuming the News Feed could make people feel less happy. According to Michael Stelzner of Social Media Examiner , the changes will be "end of times for pages with organic traffic".

Australia Day poll shocking — SOAP BOX
Do you think the date should be changed? "I think it is inevitable that we will become a republic", Wyatt said. We've achieved all of that, living together in remarkable harmony.

Autoblog's 2018 Detroit Auto Show roundup
But some automakers are already taking pre-emptive steps to show the administration they're willing to boost US production. Ford also updated its electric vehicle timeline, noting that the F150 hybrid will be built in the Dearborn plant in 2020.

Walmart is hoping a simple packet could help curb opioid misuse
The DisposeRx launch comes in addition to Walmart's other efforts to curb opioid misuse. Opioid overdose deaths rose 28% in 2016, to 42,000 men, women and children.

David Harbour Agrees to Officiate Fan's Wedding for Retweets and Cake
On the same day, Harbour posted a photo to his own Instagram , assuring Damaris that they'd make the senior photo deadline.



News
More News