USA crude exports average record high 2.566 million b/d in past week

Oil's Rough Ride Back to $80/b

Oil's Rough Ride Back to $80/b

Oil prices fell on Wednesday, weighed down by ample supplies despite ongoing output cuts by producer cartel OPEC and looming USA sanctions against major crude exporter Iran.

U.S. West Texas Intermediate (WTI) crude futures were up 41 cents at $71.90 after also hitting their highest since November 2014, at $72.30 a barrel.

It remains to be seen whether major oil producers like Saudi Arabia and Russian Federation will step into the breach to stop prices soaring after an expected dip in Iranian supply, a top analyst told CNBC on Tuesday.

Physical crude markets are sagging under the weight of unsold barrels of oil, while the 50 percent rise in oil prices in the past year is encouraging major companies such as ExxonMobil, Royal Dutch Shell, Chevron, BP and Total to increase output.

"Germany has said it will protect its companies from USA sanctions, Iran has said French oil giant Total has yet to pull out of its fields and all the while it seems the Chinese are ready to fill the void created by the U.S", said Greg McKenna, chief market strategist at AxiTrader.

More news: Steven Gerrard Has His Eyes Set On Two Premier League Forwards

Renewed U.S. sanctions on Iran that could seriously hamper the country's oil exports, along with involuntary output declines in big producers such as Venezuela, Mexico and Angola have contributed to the bounce in the price.

Global inventories of crude oil and refined products dropped sharply in recent months owing to robust demand and OPEC-led production cuts.

As a supply loss in collapsing Venezuela and a potential decline in Iranian oil exports push oil prices up, the pace of demand growth in China could drive global demand growth higher.

In addition, crude exports from the USA have the capacity to increase as higher prices provide incentives to Shale producers to drill more wells.

The Organization of the Petroleum Exporting Countries reduced its forecast for global oil production in its most recent report.

More news: Can Kroger help Ocado crack America?

The IEA, which advises Western governments on energy policy, expects non-Opec supply to rise by 1.87 million bpd in 2018, up from a previous forecast of 1.8 million bpd. WTI's discount to Brent was as much as $7.28, its widest since December 12 on surging US output. "It would be extraordinary if such a large jump did not affect demand growth". As a result, oil prices have gradually risen during the period.

While it's "too soon to say what will happen this time", the agency said, Iran's fellow OPEC members could fill the gap because their pact to restrain supply leaves them with spare production capacity.

Despite these downward forces, the market retains support from OPEC and other producers' production cuts and USA sanctions on Iran. China's crude oil imports in the first quarter increased by 7 percent on the year to around 9.09 million bpd-a rise of nearly 595,000 bpd on average compared to Q1 2017, according to Reuters calculations.

USA crude stockpiles slipped for a second week as the summer driving season approaches, government data showed yesterday.

More news: Woman throws poop at employee who denied her restroom access

Recommended News

  • Bookies brace for big hit as Government caps FOBT stakes at £2

    Bookies brace for big hit as Government caps FOBT stakes at £2

    The move by Westminster follows a lengthy consultation about the machines - branded the "crack cocaine of gambling " by critics. Bookmaker William Hill said it will see a reduction in total gaming net revenue of 35%-45% following the move.
    Alexa gains eight new voices - but they're for developers for now

    Alexa gains eight new voices - but they're for developers for now

    We'll select a subset of the skills that apply, and will provide more information to those selected. For example, you can give a different voice to each character in adventure stories and games.
    TOTAL May Leave South Pars 11 if No Waiver

    TOTAL May Leave South Pars 11 if No Waiver

    The Chinese major is reportedly ready to take operatorship off Total's hands if the French company formalizes its withdrawal. Iran has said it may start enriching uranium again if it can no longer see any economic benefit to the deal.
  • US Supreme Court Gambling Decision Works In Favor Of Marijuana Reform

    US Supreme Court Gambling Decision Works In Favor Of Marijuana Reform

    Any other event for which the sports pool requests and receives approval by the Nevada Gaming Commission and Gaming Control Board. Scoreboards could post live odds next to runs, hits and errors.
    Marseille Started The Europa League Final By Taking The Worst Kick-Off Ever

    Marseille Started The Europa League Final By Taking The Worst Kick-Off Ever

    Click through the gallery above to see pictures of Atletico Madrid celebrating after beating Marseille in the Europa League final. Marseille wasted some opportunities to get back in the game, with Atletico controlling the pace.
    Ford Restarts F-150 Production

    Ford Restarts F-150 Production

    A May 2 fire severely damaged the main plant at the Meridian Magnesium Products of America factory in Eaton Rapids. Production of the Expedition and Navigator SUVs continues without interruption at Louisville, Ford said.
  • Captain Gianluigi Buffon leaving Juventus but not retiring

    Captain Gianluigi Buffon leaving Juventus but not retiring

    Until about two weeks ago, I was certain I would stop playing. "I don't need other shows of affection", Buffon added. Buffon was also an integral member of the Italy squad that won the 2006 World Cup.
    OnePlus 6 India launch in Mumbai at 3 PM today

    OnePlus 6 India launch in Mumbai at 3 PM today

    Sensors on board include an accelerometer, ambient light sensor, digital compass, gyroscope, and proximity sensor. There are two other configurations that come with 8GB of RAM with 128GB and 8GB of RAM with 256GB of storage .
    Buttler back for England service as Bess gets debut call

    Buttler back for England service as Bess gets debut call

    Smith said: 'With Jack Leach missing out through injury, the selection panel wanted to invest opportunity in a young spin bowler. Buttler has not been part of a Test match squad since playing in the fifth Test against India in Chennai back in December 2016.
  • Senate votes to restore net neutrality

    Senate votes to restore net neutrality

    All the polls show that the majority of voters, Democrats and Republicans alike, are in favor of net neutrality. The Senate has taken action to protect net neutrality rules set to end next month.
    Four Year Decline In Beach Awards For The Isle Of Wight

    Four Year Decline In Beach Awards For The Isle Of Wight

    Seaside Awards are handed out by Keep Britain Tidy , to beaches that "meet the highest standards for cleanliness and facilities". The award looks at the water quality, facilities, beach safety, environmental education and management of the beaches.
    VK Singh holds talks in North Korea, first trip in 20 years

    VK Singh holds talks in North Korea, first trip in 20 years

    The two leaders also agreed on enhancing people-to-people relations in the field of education and culture. Singh already began a crucial two-day visit to North Korea on Tuesday.

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.