Oil rescued from price lows by Libyan supply disruption

Oil rescued from price lows by Libyan supply disruption

"We are now only two to four weeks away from when weekly oil inventory data will start to draw again which should be supportive for oil prices", SEB commodities strategist Bjarne Schieldrop said.

Brent crude futures LCOc1 were at $64.47 per barrel, down 17 cents, or 0.26 percent.

And even with the OPEC report showing a 12 percent increase in oil production in the U.S., the U.S. Energy Information Administration said in its monthly drilling report on Tuesday that total American output has passed 10 million bpd, beating a record set in 1970.

West Texas Intermediate for April delivery was 32 cents lower at $60.39/bbl at 11:31 a.m. on the New York Mercantile Exchange.

Oil prices have firmed since OPEC's November 2016 agreement to cut oil production by 1.2 million barrels per day (bpd), while non-OPEC members, led by Russian Federation, agreed to cut production by 558,000 bpd.

Last week Midwest stocks fell 817,000 barrels to reach 60.07 million barrels.




According to The Wall Street Journal, Iran insists that $60 a barrel is the optimal price to keep USA shale from flooding the market more, while Saudi Arabia is reportedly targeting $70 per barrel oil to balance the budget and boost the valuation of Saudi Aramco ahead of its IPO.

USA crude production, pushed up largely by shale oil drilling, is expected to rise above 11 million bpd by late 2018, taking the top spot from Russian Federation, according to the International Energy Agency (IEA).

USA production is expected to rise above 11 million bpd by late 2018, taking the top spot from Russian Federation, according to the International Energy Agency (IEA).

That "caught the market by surprise", said Phil Flynn, senior market analyst at Price Futures Group. Prices have not returned to their January highs of over $70 per barrel for Brent and nearly $67 for WTI.

OPEC also said oil inventories across the most industrialized countries rose in January for the first time in eight months, a sign the impact of its output cuts may be waning.

Estimates by the EIA show global supplies will exceed 100 million bpd for the first time in the second quarter of 2018, while demand will only break through that level in the third quarter, implying a slightly oversupplied market. As the IEA noted in February, "In just three months to November, (U.S.) crude output increased by a colossal 846,000 bpd and will soon overtake that of Saudi Arabia".

Related Articles

  • UConn Trick Shot Quarterback John McEntee Loses White House Job

    UConn Trick Shot Quarterback John McEntee Loses White House Job

    Senior administration officals told the Wall Street Journal on Tuesday that McEntee was escorted out of the White House on Monday. But the faithful Trump aide didn't go far as he was immediately hired by the President's reelection campaign team.
    Nintendo Switch Adds Friendly Firmware Update

    Nintendo Switch Adds Friendly Firmware Update

    Instead of the on-screen number pad, users will now enter their PIN using the Control Stick and buttons, by default. The Nintendo Switch Pro Controller grip colors will now display in the Controllers menu.
    Fiji defeats Kenya to claim Canada Sevens

    Fiji defeats Kenya to claim Canada Sevens

    Fiji had edged South Africa 15-12 in the semi-finals courtesy of second-half tries from Kalione Nasoko and Amenoni Nasilasila. The series now heads to Hong Kong for the seventh round April 6-8.
  • Colts' chances for Saquon Barkley improve after Browns sign Carlos Hyde

    Colts' chances for Saquon Barkley improve after Browns sign Carlos Hyde

    The Indians won 102 games in 2017, lost in the World Series in 2016 and have put together five straight winning seasons. Hyde figures to be the early-down back with Duke Johnson serving as the third-down and passing-down specialist.
    Kirk Cousins to make decision on new team this week

    Kirk Cousins to make decision on new team this week

    Cousins initially tagged the Vikings and the Jets at the bottom of the letter, but swiftly removed any reference to his suitors. By the time Brees new contract expires, he could very well be the NFL's all-time leader in yards and touchdowns passing.
    Trump privately slamming GOP candidate in Pa. House race as 'weak'

    Trump privately slamming GOP candidate in Pa. House race as 'weak'

    Last May, Trump congratulated Filipino President Rodrigo Duterte for a "great job" in his crackdown on drugs. "You ever see her?". Trump said he recently asked the president of Singapore if that country has a drug problem.
  • Pep Guardiola can be a better coach for Manchester United- Arsenal Legend

    Pep Guardiola can be a better coach for Manchester United- Arsenal Legend

    United's performance was widely criticised in the aftermath with many calling Mourinho's tactics and selection into question. The Independent claim that two positions in particular are of importance to Mourinho: centre-back and central midfield.
    Two with Texas ties among the dead in NYC helicopter crash

    Two with Texas ties among the dead in NYC helicopter crash

    Chuck Schumer said federal regulators should suspend flights by the helicopter's owner until the facts of the crash are known. When he was over the water, he looked down to shut off the fuel lever, but saw that it had already been depressed.
    Parties announce candidates: RS polls on Mar.23

    Parties announce candidates: RS polls on Mar.23

    Three nominated members - actor Rekha, cricketer Sachin Tendulkar and social worker Anu Aga - will also retire then. The party is well on course in its number game, while BJP is set to see its candidate score easy victory.
  • Turkish army announces encirclement of Syria's Afrin city

    Turkish army announces encirclement of Syria's Afrin city

    Turkey regards YPG as a terror group and a branch of militants in Turkey who have waged an insurgency for decades. Medical evacuations of sick and wounded patients from Eastern Ghouta began on Tuesday, according to Reuters .
    Man's severed leg used as pillow, probe ordered

    Man's severed leg used as pillow, probe ordered

    The 25-year-old works as an employee on a school bus that overturned while trying to avoid colliding with a tractor Saturday. The Uttar Pradesh government is now investigating the hospital and action will be taken against those found responsible.
    Ken Dodd's passing prompts fresh sense of bereavement for Armagh woman

    Ken Dodd's passing prompts fresh sense of bereavement for Armagh woman

    Publicist Robert Holmes says Dodd died Sunday, March 11, 2018 at his Liverpool home, the same house where he was born in 1927. Irish comedian Dara Ó Briain was among those to pay tribute, saying he was "so happy" he had the chance to meet Mr Dodd.