Barkindo says OPEC, non-OPEC committed to restore market stability

The bank expects US liquids output to grow year-over-year at 1 million barrels per day or more by December. This however is not likely to happen with the EIA now projecting that end of year production will each 9.64 million b/d end 2017, still an 860,000 b/d increase over the year. OPEC exempted Nigeria and Libya from cutting production, due to their internal conflicts.

OECD inventories began falling in July 2016, four months before the OPEC production cuts were finalized. Stock levels have declined approximately 107 mmb according to recently revised EIA STEO data. Also, his recent remarks have caused some concerns in Canada's oil sector as the President once again said that they would get rid of NAFTA once and for all.

US supplies of crude are still near records and more than 100 million barrels higher than the five-year average for this time of the year, data compiled from the EIA show.

Both benchmarks had traded more than 50 cents higher earlier in the day, but gains eased at the start of USA trading hours. In EnerCom's model, the majority of USA basins remain economic even if the three OPEC members increase production to their intended targets. Here are five stocks to avoid or sell. Based on the mix of their respective crude oil production streams, the distribution by API gravity of crude oils produced in Texas, North Dakota, and California differs significantly. Citibank economists observed that OPEC is capable of implementing further cuts in order to prevent any possible declines in oil prices. The contract, which finished at its lowest level since April 7 on Tuesday, is set to expire at Thursday's settlement. That favors selling rather than storing crude oil and contributes to decreasing inventory levels.

The downfall in the oil market has adversely affected the commodity market as well. What does that mean?

Market balance must be expanded to be useful: production is not the same as supply, and consumption is not the same as demand.

The petrostates behind this cut are stuck behind a rock and a hard place-the hard place being the fiscal squeeze bargain oil is placing on their governments, and the rock being US shale production.

Oil edged lower on Wednesday, after USA data showed a smaller-than-expected decline in overall crude inventories coupled with another rise in production, hindering OPEC's efforts to reduce a global surplus of crude. Product prices have shown some volatility, but they have trended down. The real factors in Citi's outlook are the familiar ones: OPEC cuts and USA shale production.

The acceleration of mainland China's economy is another sign of optimism for the global energy market, as the Chinese economy is one of the world's largest crude consumers and heavily reliant of oil imports. Crude production rose to the highest since August 2015. In either case, it will take 6 months to a year to approach the 5-year average.

Looking ahead for oil, "the next big market mover looks to be when OPEC meets regarding an extension in production cuts on May 25", said Macaluso. Demand lags price and demand growth reflects the full spectrum of economic headwinds. Further outages in Libya may keep national output down, buoying prices.

Crude futures were trading more than 30 cents higher in Asia early Thursday, but the recovery, against a rout of almost $2/barrel at the previous day's close, was more likely bargain-hunting than the start of a full correction, as the weekly counter-seasonal build in United States gasoline inventories continued to weigh on market sentiment.

Recommended News

  • Sarin or similar used in Idlib attack: chemical weapons watchdog

    Sarin or similar used in Idlib attack: chemical weapons watchdog

    He said in a statement that further results would follow, but that "the analytical results already obtained are incontrovertible". The entire stockpile was said to have been dismantled and shipped out under worldwide supervision in 2014 and destroyed.
    White House sidewalk to be closed to public permanently

    White House sidewalk to be closed to public permanently

    Secret Service has begun restricting public access to the sidewalk along the south fence line of the White House complex. Weeks after the March 10 incident, a woman jumped over a temporary barrier outside the White House fence.
    Aaron Hernandez found with a Bible verse written on his forehead

    Aaron Hernandez found with a Bible verse written on his forehead

    According to a report in the Boston Globe , Hernandez's death may impact his conviction in the 2013 shooting death of Odin Lloyd. He caught 79 passes for 910 yards and seven touchdowns in his second year to help the team reach the Super Bowl.
  • Leicester's Champions League campaign in numbers

    Antoine Griezmann gave them a scare with an early dart into the box, but Atletico soon found themselves on the back foot. To get all the way through to the quarter-finals in our Champions League debut season is a massive achievement.

    James Harden, Russell Westbrook done talking about who's MVP

    Aside from their struggles against the Golden State Warriors, the Thunder have played competitively against the NBA's top teams. It'll allow Harden to get his but it'll also allow the Thunder to do an adequate job of shutting down Harden's supporting cast.

    Iran foreign minister says U.S. must meet own obligations for nuclear deal

    But he also signaled that the USA would not immediately tear up the deal as Donald Trump repeatedly pledged on the campaign trail. The administration said it has extended the sanctions relief to Iran in exchange for curbs on its nuclear programme.
  • Chasing pair Fillon, Melenchon level as French election nears

    Chasing pair Fillon, Melenchon level as French election nears

    Sunday, with initial TV projections of the outcome expected some 12 hours later, followed by official results. Fillon and Macron's ambitions have also come at a broader political cost.
    Arron Banks on MP bid: 'I know nothing about Clacton at all'

    Arron Banks on MP bid: 'I know nothing about Clacton at all'

    The party's sole MP, Douglas Carswell, quit the party last month, meaning Ukip will head into the election without an incumbent. He added: "I know absolutely nothing about Clacton apart from it's one of the most Euro-sceptic places in the country.

    USS Carl Vinson Not In North Korea, So Where Is It?

    But some questioned why the timeline was not corrected earlier given the tensions involving nuclear-armed North Korea. Some Chinese have taken to social media to tease the US. "The aircraft carrier was sleep-walking", joked another.
  • TMZ: McDonald's employees who helped capture Facebook killer in line for reward

    TMZ: McDonald's employees who helped capture Facebook killer in line for reward

    The Godwin sisters told Lane that none of this was her fault and that they don't hold any animosity for her. Facebook took down Stephens' videos and disabled his account two hours after he first started uploading.

    McCain says administration rhetoric "partially to blame" for chemical attack in Syria

    Sadr is the only Iraqi Shiite leader to keep some distance from Iran, a main backer of Assad along with Russian Federation . Iran and Russian Federation have been the key backers of Assad and refer to all Syrian opposition groups as "terrorists".
    Fresno police seek man with shooting spree murder weapon

    Fresno police seek man with shooting spree murder weapon

    On what appeared to be his Facebook page, he repeatedly posted '#LetBlackPeopleGo" and encouraged "black warriors" to "mount up'. After killing Jackson, Dyer said Muhammad kept going south until encountering a Hispanic man near Voorman Avenue. "I did it.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.