• News
  • Finance

Crude Oil Prices Fall Sharply, Very Negative Reaction To Inventories Data

Crude Oil Prices Fall Sharply, Very Negative Reaction To Inventories Data

At 511.5 million barrels, US inventories remain in the upper half of the average range for this time of year. IEA said its provisional monthly data for May indicates that OECD stocks may be little changed. BP PLC (BP.LN) (BP.LN) said its latest research report that global crude-oil production in 2016 (http://www.marketwatch.com/story/global-oil-output-in-2016-logged-slowest-growth-in-7-years-2017-06-13) saw its slowest percentage growth in seven years, as output from producers outside of OPEC marked its biggest drop in almost 25 years. The majority of non-OPEC countries registered substantial declines in their 2016 average crude production, as compared to 2015.

"For total non-OPEC production, we expect production to growby 700,000 bpd this year, but our first outlook for 2018 makessobering reading for those producers looking to restrainsupply", the IEA said.

While this would not affect global inventories, restricting the amount of oil coming into the U.S. should theoretically bring down inventories in the much-watched market, if it weren't for Iraq's increased oil exports to the US. Iraq also passed Saudi Arabia as the number one supplier to India, the fastest growing oil consumer.

The currency used to express re-balancing is the five-year average level of oil stocks.

In addition, USA crude stockpiles fell by 1.7 million barrels, less than the expected decline of 2.7 million barrels.

This is partly because Saudi Arabia usually burns more crude in power stations at home in the summer months to meet extra demand for power as people rely on air conditioners to deal with temperatures that can reach 50 degrees Celsius.




"Crude oil is still struggling to rebound", said Olivier Jakob, strategist at Petromatrix, adding that OPEC's gradual approach to rebalancing was giving US producers time to drill new wells that were undermining the impact of the group's cuts.

OPEC is working to ease supply strains with managed production declines, though strong USA production and output from parties within the OPEC framework are creating obstacles to the goal of a balanced market. Up next will be the EIA inventory report at 10:30 a.m. ET.

Benchmark Brent crude LCOc1 was 17 cents lower at $48.12 per barrel by 1236 GMT, reversing gains made earlier in the session when it edged up to $48.67.

The boost was prompted by the restoration of oil output in Libya and Nigeria, which are exempt from the OPEC agreement to cap production to stabilize prices.

OPEC added that crude oil inventories in industrialised countries dropped in April and would fall further in the rest of the year, but a recovery in United States production was slowing efforts to get rid of excess supply.

The cartel reduced its estimate of oil supply growth from producers outside the group this year to 840,000 bpd from 950,000 bpd, following the decision to extend the cut by nine months.

Leave Your Comment

Leave Your Comment


Latest News

  • Morata's agent: Manchester United move rests with Real Madrid

    Morata's agent: Manchester United move rests with Real Madrid

    Starsport understands they're set to lose Alvaro Morata , with the Manchester United target keen to get game time elsewhere. Quite simply, Real Madrid considered Milan's offer to be unsatisfactory".
    Hyundai Motor plays catch up with new subcompact SUV

    Hyundai Motor plays catch up with new subcompact SUV

    On the infotainment side, the Kona will come wired for Apple CarPlay and Android Auto, displayed onto a 5-, 7-, or 8-inch screen. When the Kona goes on sale in the USA next year it will join one of the fastest-growing and crucial segments in the industry.
    U.S.  to host PM Modi later this month: State Department

    U.S. to host PM Modi later this month: State Department

    Apart from ways to enhance trade and business cooperation, the two leaders are also expected to discuss defence ties. It is likely that he would meet the United States President Donald Trump on the sidelines of the mega event.
  • Interior head suggests reducing Bears Ears monument

    A final review is planned for later this year, and the public comment period for Bears Ears has been extended through July 10th. He also is calling on Congress to give Native American tribes more say in how the new monument is managed.
    Haley: Trump believes 'climate is changing'

    Haley: Trump believes 'climate is changing'

    And that's even after Trump decided the US should no longer participate in an worldwide agreement seeking to curb global warming. In addition, the EPA director said the president is still committed to work internationally on combating climate change.

    New smart speaker expected as Apple kicks off conference

    Apple's Siri agent on the iPhone is available in 21 languages , although the HomePod will initially ship only for English. When the HomePod users is not at home, he/she can use the Home app on an iPhone or iPad and access its features remotely.
  • Top Intelligence Officials Mum on Interactions With President

    The deputy attorney general then held a two closed-door briefings about his actions for lawmakers - some of whom were impressed and others who wanted to know much more .
    Moderate drinking can harm brain, study says

    Moderate drinking can harm brain, study says

    Rimm wondered whether there were so few abstainers in the study because, after 30 years, they hadn't lived as long as the others. Compared with people who did not drink, people who drank moderately showed a three times higher risk of hippocampal atrophy .
    Packers fans drive Davon House from Minneapolis to Green Bay for OTAs

    Packers fans drive Davon House from Minneapolis to Green Bay for OTAs

    House took him up on his offer, and Chad and his brother, Mike, picked House up in Minneapolis and hit the road. House signed shoes and gloves, and had the brothers take pictures with the team's Super Bowl trophies.
  • Scottish Episcopal Church votes to allow equal marriage

    Scottish Episcopal Church votes to allow equal marriage

    The vote means that the Church's canon law will be changed - to remove the definition that marriage is between a man and a woman. Speaking about the vote, a spokesperson for the Church of England said it was "a matter for the Scottish Episcopal Church".
    Live charts show awesome power of Cape storm

    Live charts show awesome power of Cape storm

    Due to severe weather , the Western Cape Education Department has taken a decision to close all schools in the province.
    PlayStation Plus Free Games For June 2017 Presented

    PlayStation Plus Free Games For June 2017 Presented

    It's a co-op zombie horde mode shooter filled with tons of upgradeable weapons and tools to take down waves and waves of zombies. Of course, if you change the past, there will be some pretty serious repercussions that will change the present and future.
  • Trial of Minnesota police officer heads to jury

    Castile told the officer he had a gun but failed to tell him that he had a permit to carry it, Gray explained to jurors. After the shooting, the Facebook Live video showed Yanez keeping his gun aimed at Castile while he waited for backup.

    Sailing-Oracle Team USA get America's Cup headstart with New Zealand win

    Flying into the top mark on port at speed, Burling managed to cross the Americans who were on starboard and briefly took the lead. The New Zealand team will be looking to bounce back quickly from yesterday's demoralising loss to Team USA.
    U2 Bringing

    U2 Bringing "The Joshua Tree" Anniversary Tour to Indy

    First announced in January, the tour launched on May 12 in Vancouver, Canada, kicking off a series of North American dates. There will be a four-ticket limit for subscriber purchases and a six-ticket limit with public sales.
  • Attorney General Session next up for Capitol Hill scrutiny

    Attorney General Session next up for Capitol Hill scrutiny

    Sessions said his decision to accept the intelligence committee's invitation to appear was due in part to Comey's testimony. His testimony referred to Sessions' role in those interactions and differed to previous claims made by Trump.
    Justin Trudeau dines with Barack Obama in Montreal

    Justin Trudeau dines with Barack Obama in Montreal

    President and current Canadian Prime Minister dined at Liverpool House following Obama's speech to the Montreal Board of Trade .

    British police name third London Bridge attacker as Youssef Zaghba

    Scotland Yard has named the other two terrorists involved in the London Bridge attack as Khuram Shazad Butt and Rachid Redouane . The fact that Butt was known to authorities before to the attacks has called into question Prime Minister Theresa May's record.

Breaking News



Recommended

Jury re-watches 2 key videos in police shooting of motorist

The police video begins in silence as Yanez followed a white Oldsmobile auto driven by Castile on a wide, lightly-traveled road. The jury is expected to begin considering the case later Monday after just five days of testimony, evidence and arguments.

Stunning report: Massive US disease outbreak in dogs

The Texas A&M lab confirmed the strain of influenza as H3N2, the same one identified in a recent outbreak in Florida and Georgia . Dog flu has surfaced in SC , and the Charleston Animal Society is urging dog owners to watch for any signs of flu in their pets.

Stormont at risk from DUP pact, says Kenny

She also apologised to colleagues who had "contributed so much to our country" and "didn't deserve to lose their seats". Instead, she has left Britain's position in disarray, days before the divorce negotiations are due to start on June 19.

Donald Trump Finally Supports NATO Defense Agreement With US Allies

Mark Warner, the top Democrat on the committee, both said Thursday they believed Comey's account of the events. He added: "Oh you're going to be very disappointed when you hear the answer, don't worry".

Cosby accuser to resume testimony in sex assault trial

Pulliam has defended him in the past and in an interview with Access Hollywood , she told the public to hold their judgment. Los Angeles lawyer Angela Agrusa has spent a painstaking hour going over Andrea Constand's old phone records.

NSCN (K) chief SS Khaplang passes away at 77 in Myanmar

The minister said about Khaplang death that, he was the heart and soul of the rebel group and the organisation will be suffered without him.

Lawmakers strike deal to address medical marijuana in Florida

One of those was among Senate President Joe Negron's session priorities, SB 436 on religious expression in public schools. Scott and the House, however, have not gone along with increasing hospital funding during the special session.

Testimony resumes in Ohio police shooting retrial

Mathews said DuBose "wouldn't have ended up shot" if he had complied with Tensing's orders and hadn't attempted to flee. Mathews used about 30 minutes to deliver his opening statements during Tensing's first trial and again on Thursday.

French Open results Day 9: Simona Halep charges into quarter-finals

Halep has beaten Pliskova four times in six outings, most recently in the last 16 of last year's Canadian Masters. Svitolina said she had panicked after experiencing shooting pain in her back 30 minutes before the match.

USA urged to act upon its own human rights

I think they know they can't keep responding in the way they've been responding. "They sense that the tone has changed", she said. Later Wednesday, Haley met with Palestinian Prime Minister Rami Hamdallah in Ramallah, her office said in a statement .