Oil in Global Economy Series: OPEC May deal compliance review

USA crude oil inventories fell last week, but an unexpected build in gasoline stocks and weak demand for the motor fuel offset market optimism over the crude drawdown, the Energy Information Administration said on Wednesday.

OPEC's oil production jumped in May, despite the exporter group agreeing last month to extend its six-month deal to cap output into 2018.

Crude prices drifted barely weaker oi Friday in Asia with investors eager to see if US shale drillers keep pouring on the heat for OPEC and allies or whether recent price falls bring a pause.

The watchdog said its first forecast for 2018 made "sobering reading for those producers looking to restrain supply".

The measures helped stabilise oil prices at the beginning of the year, with the Global benchmark Brent crude sticking above US$50 per barrel.

With supplies plentiful, strong demand is needed to drive the market, but there are signs of a slowdown.

The EIA expects United States oil production to continue towards 9.3 barrels per day in 2017 and almost 10.0 million barrels per day in 2018.

New No.6 Pakistan inch closer to 2019 World Cup direct entry
India captain Virat Kohli could do little more than praise an opponent who did everything right on the day, reported the ICC. To avoid unnecessary and unwelcomed tensions, security personnel were deployed outside cricketer M.

The U.S. Energy Information Administration report on oil inventories is due this week on Wednesday at 10:30 a.m. EDT. The West's energy watchdog expects growth in supply of 1.5 million bpd in 2018, driven by non-OPEC producers like Brazil, Canada and the United States; that level would exceed expected demand growth of 1.4 million bpd.

"The industry continues to turn a crude oil surplus into a gasoline and distillate product surplus", Andrew Lipow, president of Lipow Oil Associates in Houston said.

The American Petroleum Institute published industry reports on US energy levels, finding crude oil stockpiles increased by 2.8 million barrels and gasoline stockpiles increased by 1.8 million barrels last week. Crude output in the USA has shot up in the past year, rising more than 10 per cent to 9.3m bpd.

Libya and Nigeria, which are exempt from Opec's cuts, ramped up production in May, helping push the cartel's crude production to an average of 32.14m barrels per day (bpd), up from 31.8m bpd in April. That led to a downturn in crude oil prices as many market watchers were anticipating deeper cuts.

"Not only are [U.S.] producers increasing spending more sharply than initially thought, the pace and duration of new rig additions and drilling activity has exceeded all expectations", it added.

Canada's oil-sands will increase production rapidly in the next three years, ranking only behind US shale as the biggest contributor to global supply growth.

Related News:

  • Champions League: Real remain kings of Europe

    Champions League: Real remain kings of Europe

    In doing so, he reached 600 career goals with plenty more surely to come. It's always cagey in a final but we're happy with the win.

    Bristol-Myers Squibb Company (BMY) Position Reduced by Huntington National Bank

    Fiduciary Financial Services Of The Southwest Inc decreased Cvs Health Corp (CVS) stake by 69.19% reported in 2016Q4 SEC filing. In other news, Director Lamberto Andreotti sold 34,000 shares of the company's stock in a transaction on Friday , April 7th.
    Hlas: Zach Johnson frustrated, but plays on in US Open

    Hlas: Zach Johnson frustrated, but plays on in US Open

    Open: Of the top 18 players on the board, not a single one, including Fowler, has ever won a major. Chez Reavie matched Matsuyama's 65 in round two to lead a group at four under.
  • United Kingdom  sees 'happy' Brexit outcome for both sides

    United Kingdom sees 'happy' Brexit outcome for both sides

    He said those were the rights of expatriate citizens and problems of a new EU-UK border, notably cutting across Ireland. Other issues that have to be sorted include the status of the border between Northern Ireland and the Irish Republic.

    Bank of America Cuts Rating On The Travelers Companies, Inc. (TRV)

    This ratio also gives some idea of whether you're paying too much for what would be left if the company went bankrupt immediately. The stock of Travelers Companies Inc (NYSE:TRV) has "Outperform" rating given on Tuesday, January 17 by Macquarie Research.
    It's a massive boost for Pakistan cricket: Mickey Arthur

    It's a massive boost for Pakistan cricket: Mickey Arthur

    Pandya scored a breezing knock of 76, but he went run out due to a misunderstanding with Ravindra Jadeja . Chasing a challenging total of 339 runs, India was bowled out for 158 runs in 33.3 overs.
  • Redskins owner 'thrilled' with Supreme Court trademark ruling

    The 1946 Lanham Trademark Act prohibits the registration of a trademark that "may disparage" a person, community, or institution. The Washington Redskins got a big boon to its fight to keep its trademarks after a Supreme Court ruling for a rock band.
    US Rep Scalise's condition upgraded to 'serious'

    US Rep Scalise's condition upgraded to 'serious'

    The FBI said that the shooter's weapons found at the scene - a 9mm handgun and 7.62mm caliber rifle - had been legally purchased. Steve Scalise is improving but is still in critical condition , according to an update from his doctors.
    Jharkhand 12th Arts Result 2017

    Jharkhand 12th Arts Result 2017

    After this, JAC 12th Art Result is displayed on the screen; students can verify all the details and marks awarded to them. Other private results tracking websites such as jagranjosh.com and indiaresults.com can also be checked for the results.
  • Death toll for London fire rises to 79, may change

    Death toll for London fire rises to 79, may change

    Ms Cotton added that it might be "some days yet" before firefighters could say they have reached everyone in the building. She also said she will receive daily reports from the stricken neighborhood.

    Barnier and Davis agree on Brexit talks' priorities and timetable

    Both sides acknowledged the clock was ticking, with the date for the UK's departure from the European Union fixed for March 2019. There's a long way to go but we're off to a promising start.
    Details of payments to Grenfell Tower families revealed

    Details of payments to Grenfell Tower families revealed

    The latest figure included the previously released number of 30 deaths in the catastrophe in North Kensington early Wednesday. She told the newspaper they were now getting help from the community whow ere being "very nice".


Most liked

US student freed by North Korea dies in hospital aged 22
North Korea claimed the now 22-year-old had contracted botulism and was in a coma after taking a sleeping pill, Mic reported. He died Monday at 2:20 p.m. (1820 GMT), surrounded by relatives in his hometown of Cincinnati, Ohio.

Eagle Global Advisors LLC Reduces Position in Spectra Energy Partners, LP (SEP)
It is negative, as 24 investors sold SEP shares while 62 reduced holdings. 18 funds opened positions while 36 raised stakes. Green Square Capital LLC increased its position in shares of Spectra Energy Partners, by 11.5% in the third quarter.

Fakhar, Amir star as Pakistan rout India
But, one can not underestimate Pakistan, looking at their performance in the last few matches, especially against England. This was Pakistan's third victory in final of an ICC tournament, having won the 1992 World Cup & 2009 World Twenty20.

Woman allegedly abducted from Gurgaon, gangraped in vehicle , dumped in Greater Noida
According to news agency ANI , no First Information Report had been registered as of today early morning. The men took turns to rape the women before dumping her near Kasna police station at Greater Noida .

U.S. working to relaunch military hotline with Russian Federation
Moscow also called on the USA military to provide a full accounting of why it made a decision to shoot down the Syrian Su-22. Earlier this month, a USA fighter jet shot down an Iranian-made drone that dropped a bomb near forces patrolling the base.

'Baadshaho': Teaser of Milan Luthria's action thriller out now, watch it now
We have to wait till 1st September when the film finally hits the silver screen and see how it is received by the audience. Amid this, a bunch of six "badasses" (men and women) have chose to pull off a heist that could bring them untold wealth.

Britain says will be "positive and constructive" in Brexit talks
To kick the Brexit negotiations off, David Davis and Michel Barnier exchanged mountain-themed gifts, of a hiking book and walking stick.

Jared Kushner speaks in public. And Washington takes notice
In May, Trump created an American Technology Council , his latest effort since taking office to modernize the US government. Tech leaders are shown seated around the table with Donald Trump and Mike Pence at a meeting in December.

Sensex up 81 pts on overseas cues
Meanwhile, the broad based NSE Nifty climbed by 69.50 or 0.72% at 9,657.55 with 31 components registering rise. Risk-on improved after GST Council yesterday relaxed return filing rules for businesses for first two months.

Ireland - Theresa May's latest Brexit blunder
SDLP leader Colum Eastwood said two weeks is more than enough time to do a deal. She said: "We continue our discussions with the DUP ".

Trump speaks to Qatar emir, offers help in resolving crisis - White House
Urging all sides to avoid further escalation of the conflict, Tillerson said the elements were available to resolve it. He said families were being separated, children removed from school and Qataris forced to deal with food shortages.

Are you ready? Hank Williams Jr. returning to 'MNF'
ESPN has announced that musician Hank Williams Jr . and his rowdy friends are returning to the NFL's Monday Night Football . The original version of " All My Rowdy Friends " had been featured as part of Monday night broadcasts since 1989.

London fire: Images show charred horror of aftermath of Grenfell Tower inferno
Cundy said he would be "looking at all criminal offenses that might have been committed by any individual or any organization". Mr Hammond said the public inquiry set up by the Government following the tragedy would also examine if rules had been broken.

White House remembers U.S. sailors killed
Japanese Prime Minister Shinzo Abe has sent a sympathy message to President Donald Trump over the fatal collision involving a U.S. The Navy says in a statement that searchers had gained access to the spaces that were damaged during the collision.

Fowler eyes US Open lead as McIlroy, Day head for exit
He still went out in even-par 36 and was one shot behind Rickie Fowler , who plays in the afternoon. On top of that, he faced a 8:37 a.m. start time for Saturday's third round in the U.S.