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

  • Britain's May wins parliament's backing for June 8 snap election

    Some opinion polls have the Conservative Party a whopping 20 percentage points ahead of the main opposition Labour Party. The region's MPs unanimously backed the Prime Minister in her successful bid to force an early general election .

    New dossier to be shared with United Nations , world community

    Options on the table could include leaning on Pakistan's patrons and India's friends in the Arab world. The FGCM earlier this week found Yadav guilty on two counts of espionage and sentenced him to death.
    Theo Walcott looking after himself after Crystal Palace loss, says Jamie Carragher

    Theo Walcott looking after himself after Crystal Palace loss, says Jamie Carragher

    We had comments as well and we did get it independently looked at by a company who identified respect for Arsene Wenger . He then added:"But I can not go on forever after a game like that, I'm disappointed and determined to put things right".
  • 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.

    Bristol-Myers Squibb Co (BMY) Short Interest Down 26.0% in March

    The quarterly performance stats for Bristol-Myers Squibb Company stands at -5.27% and the half-yearly performance is at 7.83%. Bristol-Myers Squibb Co (NYSE:BMY) was the recipient of a significant decrease in short interest during the month of March.
    General Motors stops business in Venezuela

    General Motors stops business in Venezuela

    The vehicle giant has said it will "take all legal actions" needed to help defend its interests. A growing number are taking their Venezuelan operations out off their consolidated accounts.
  • Sarah Palin, Kid Rock, Ted Nugent Visit Trump; Troll Hillary

    Sarah Palin, Kid Rock, Ted Nugent Visit Trump; Troll Hillary

    So today is the 242nd anniversary of The Shot Heard Round The World is it! Sarah Palin, Kid Rock and Ted Nugent walk into a bar. Nugent's wife, Shemane Deziel and Audrey Berry, Kid Rock's fiancee, were also at the White House and are in one of the photos.

    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.
    Microsoft rolls the Deis for container wrangling

    Microsoft rolls the Deis for container wrangling

    Originally developed at Google, Kubernetes enables users to automate deployment, scaling and management of billions of containers. San Francisco startup Deis uses open-source technology to help companies manage their information stored in the cloud.
  • Katy Perry criticised for Hindu goddess post on Instagram

    Katy Perry criticised for Hindu goddess post on Instagram

    Katy Perry is feeling the heat after sharing a picture of the Hindu goddess Kali Ma to her Instagram account on Wednesday. In 2010, she married comedian Russell Brand in a private Hindu ceremony in an Indian national park in Rajasthan.
    Australia: Rapper eats $465 seafood meal, runs away into sea

    Australia: Rapper eats $465 seafood meal, runs away into sea

    An aspiring rapper in Australia has been accused of attempting to skip on a restaurant bill by fleeing into the sea. It was Halley Robertson who handled Peck's case who later on said that her client has an alcohol problem.
    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.

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.