Oil Prices Rise Toward $56 As Demand Outlook Brightens

Oil Prices Rise Toward $56 As Demand Outlook Brightens

However, it supported crude (USO)(UCO)(USL) oil prices on September 13. In November, just before the production cut was finally agreed and publically announced, Saudi ramped up output to its highest level ever, 10.72 million bpd, compared with an average from 1973 to that point of 8.04 million bpd.

OPEC and other producers, including Russian Federation, have agreed to reduce output by about 1.8 million barrels per day until next March in a bid to reduce global oil inventories and support oil prices.

Stockpiles of refined fuels in developed nations were close to their five-year average in July, and could fall to or below this level "very soon", IEA says. Nevertheless, American crude stockpiles remain nearly 90 MMbbl above the five-year average for this time of the year, and that has kept a barrel of the US grade about $5 cheaper than Brent crude.

However, gains have been limited as storms have disrupted crude imports by the world's largest oil consumer, adding more barrels to bloated inventories that otherwise would have been shipped into the United States.

Crude rose for a fifth straight day after the number of oil rigs operating in the USA declined for the second week and the International Energy Agency (IEA) raised its growth forecast for global demand this year. The bullish outlook on oil demand, lifted expectations that the demand and the supply imbalance in oil markets would continue to narrow in the coming months.

Oil Prices Rise Toward $56 As Demand Outlook Brightens
Oil Prices Rise Toward $56 As Demand Outlook Brightens

"Six months is a very long time in the oil world". The stock market is still producing plenty of green arrows, and investors need to be able to capitalize.

Most recently, Russian Federation and Saudi Arabia discussed the possibility of extending for a second time the oil output-cut deal between OPEC and non-OPEC producers negotiated in November 2016. Many investors may feel like they have missed out on the markets getting to where they are today. Meanwhile, EOG Resources' premium-return wells are producing twice as much oil in their first year as non-premium ones while Devon has delivered a 450% improvement in the initial 90-day production rates of its wells since 2012. The reason there's still so much oil sitting in storage is that production remains robust.

Commodity price movements depend on inventories (cyclical component linked to short-term supply and demand shocks) and marginal costs (structural component linked to the long-term impact of technology, geology, and politics), according to the expert. "And the persistent strength in the global economy is finally registering". This would imply that the current expansion is already due for a correction.

BP's share price rose on oil's strong start to the week, now trading up 0.80 percent at 451.90p. "Trying to talk up the price won't cut it anymore and nor will simply extending the current cuts, as these have been shown to be ineffective".

"We monitor this on a monthly basis and in the period from January to August as a whole which is period during which the deal has operated they have achieved something like 86 per cent compliance, which is, by Opec's historical terms, pretty good". This NewsBase commentary is from our MEOG publication.

Related News:

  • Australia go 2-1 up against Belgium in Davis Cup semi-final

    Australia go 2-1 up against Belgium in Davis Cup semi-final

    The weekend's winners will face the victors of the other semi-final between France and Serbia who are playing in nearby Lille. However, the duo eased through in the tiebreak and are now closing in on an 18th Davis Cup final for France.
    74-yard TD wiped out when Malik Davis fumbles at goal line

    74-yard TD wiped out when Malik Davis fumbles at goal line

    With two winnable games coming up against Kentucky and Vanderbilt , Florida could go into their contest with LSU 3-0 in the SEC . Then he was caught from behind and fumbled the ball through the end zone, but officials ruled it a touchdown.
    UN Security Council condemns N.Korea over missile launch

    UN Security Council condemns N.Korea over missile launch

    The Philippines has urged North Korea to stop its missile tests and head to the negotiation table instead, hours after Pyongyang launched another missile over Japan.
  • Cowboys' value climbs to $4.8bn atop Forbes' NFL list

    Cowboys' value climbs to $4.8bn atop Forbes' NFL list

    However, the 19-percent increase from 2015 to 2016 suggests that financial growth over the past year has relatively slowed. The Cowboys were the only National Football League club worth $2 billion five years ago, per Forbes .
    USC dramatically avoids upset in another classic against Texas

    USC dramatically avoids upset in another classic against Texas

    The game lived up to the hype in many ways and we learned more about the Longhorns on a ideal night in Southern California. Following a 6-yard run by Ronald Jones, USC called time out to set up, well, let's call it not a Hail Mary but a Half Mary.
    Tactical masterclass from Conte helps 10-man Chelsea shut out Arsenal

    Tactical masterclass from Conte helps 10-man Chelsea shut out Arsenal

    "I didn't see the red card properly but David Luiz thought he was fouled beforehand", Cahill said on the incident. Chelsea head coach Antonio Conte is adamant Arsenal are a Premier League title contender.
  • Hurricane Maria headed towards the Caribbean

    Hurricane Maria headed towards the Caribbean

    Tropical Storm Lee formed early Saturday in the eastern Atlantic Ocean, packing maximum sustained winds of 40 miles per hour . More than 1,700 residents of Barbuda were evacuated to neighboring Antigua after Irma damaged almost every building there.

    Pelosi speech on DREAM Act interrupted by protesters

    Barbara Lee and Jared Huffman (D-Calif.), started her press conference by saying that "DREAMers are an inspiration to all of us". They embody the promise of America... of the American Dream... "We want that to be the basis of how we go forward", she said.
    Game Preview: Seahawks look to continue recent success against 49ers

    Game Preview: Seahawks look to continue recent success against 49ers

    In the Seahawks' 17-9 loss to Green Bay last week, he managed a paltry three yards on five carries against his former team. In 2015, he rushed for just 758 yards and reached the end zone three times while dealing with ankle and groin injuries.
  • Texas judge denies National Football League  bid to reinstate Elliott suspension

    Texas judge denies National Football League bid to reinstate Elliott suspension

    Noted sports law attorney Daniel Wallach said, "I've never seen that done before and it's very, very unlikely". The NFLPA made its argument through a legal filing Saturday with the 5th U.S.
    Call of Duty: WWII's story seems to be shaping up well

    Call of Duty: WWII's story seems to be shaping up well

    Day two will bring us details about the squad you'll be part of in the campaign, which Sledgehammer teased at the game's reveal. That's what the campaign of the game is about and the trailer tries to deliver the feeling of was as emotional as it can.
    Celebrate National Cheeseburger Day with a 'free' cheeseburger from McDonald's

    Celebrate National Cheeseburger Day with a 'free' cheeseburger from McDonald's

    Monday is National Cheeseburger Day , and Shake Shack isn't the only chain with burger deals . Fuddrucker's: Are you up to the 3-Pound Burger Challenge? "Promo is still running till 2 p.m".


Most liked

Interior chief urges shrinking 4 national monuments in West
The restrictions aren't as stringent as for national parks, but include limits on mining, timber cutting and recreational activities such as riding off-road vehicles.

21-year-old Syrian refugee identified as suspect to London Tube attack
The witness added: "A forensic team wrapped his arms in plastic up to his biceps and his legs up to his thighs". We were going to help him but they shouted "undercover police" so we stepped back. "The guy was screaming".

White House special counsel caught blabbing about Russian Federation probe in public
The report also notes that a Times reporter eavesdropped on a conversation Cobb had with a colleague during a dinner. White House Chief of Staff John Kelly erupted at Cobb after he learned about the lunchtime conversation.

Sindhu clinches Korea Open Super Series
After Sindhu's victory, PM Modi in his congratulatory tweet appreciated her efforts to make India pride by winning the title. Though the Japanese lost to Sindhu in the quarter-finals in Seoul last week, she can not be taken lightly at any cost.

Barcelona's Dembele tears tendon, out 3-4 months
This means the 20-year-old is unlikely to play for the Catalonia based club again until the New Year. The player will be operated on by Dr.

Sean Spicer makes Emmys cameo in politically-loaded opening
Colbert joked with previous Emmys host Seth Myers about the tweet Trump sent that accused Myers of having "marbles in his mouth". He then made a quip about the crowd size at the award show, which may have looked like an innocent joke at Trump's expense.

Toys R Us could be headed towards bankruptcy
The deal saddled the company with debt, limiting its ability to revamp its stores and make online shopping easier. Toys "R" Us is reportedly set to file for bankruptcy just ahead of the busy holiday shopping season.

Senate GOP musters final push to erase Obama health care law
Bill Cassidy (R., La.) and would replace Obamacare's top-down federal structure and replace it with block grants to states. That includes states like NY and California, which stand to lose federal funds under Graham-Cassidy.

European Union warns Ryanair on cancellation reimbursement, compensation
So far, no flights to and from Cyprus have been axed, but that might change when a "new list" is published midweek. Ryanair is changing its holiday year, which now runs from April to March, to run from January to December instead.

India Prime Minister Modi inaugurates controversial dam project
But the government data says that only 18,386 families would be affected in the state. We brought Narmada waters to the border areas for the jawans, he said.

Anna Nordqvist defeats Brittany Altomare on first playoff hole in Evian Championship
The event was reduced to 54 holes after Thursday's opening round was abandoned because of high winds and heavy rain. The 23-year-old added: "It was good for me playing in the last group in a major at Kingsbarns".

Canadians touch down in Antigua and Barbuda to help rebuild after Irma
Browne went on to say that they hope worldwide partners and friendly governments will come forward to assist the island . The Prime Minister Gaston Browne and other officials have attributed this to poor building standards in Barbuda .

Major League Baseball announces suspension for Willson Contreras
Cubs manager Joe Maddon told reporters Sunday that he was pleased the situation was resolved. "It's good news", he said Sunday. The backstop appealed the ruling and will now only be forced to sit out one game. "Get it off his mind and play it forward".

Hurts, No. 1 Alabama overwhelm Colorado State, 41-23
The Rams got on the board early in the second quarter after kicker Wyatt Bryan connected on a 27-yard field goal to make it 17-3. Give some credit to the Rams' offense moving the ball deep and their defense being able to stop some of Alabama's drives.

Tom Brady on Colin Kaepernick: 'I hope he gets a shot'
Kaepernick has struggled in recent years with poor play and injuries, which many point to as the reason he isn't playing today. He's accomplished a lot in the pros as a player and he's certainly qualified.