emfizz.com March 23, 2017

Oil supply deficit in first half likely despite rising stocks

21 March 2017, 12:57 | Jan Cross

Oil supply deficit in first half likely despite rising stocks

Opec and its allies are almost three months into a deal to reduce production in a bid to eliminate a global oil-inventory surplus after three years of glut

Producers added more oil rigs to US fields, extending a drilling surge into a 10th month, Baker Hughes Inc. said on Friday.

The number of active US rigs drilling for oil rose for a ninth straight week-up 14 to 631 last week, according to data from Baker Hughes BHI, +1.39% released Friday. The agency is projected to report that crude stockpiles rose 3 million barrels last week, according to the median response in a Bloomberg survey.

"This unwinding of position is both a cause and reflection of the big fall in crude oil prices when the cracks in the OPEC / non-OPEC deal emerged".

Canada's benchmark stock index retreated on Monday as oil prices fell and heavyweight energy and financial shares lost ground, while the prospect of higher USA interest rates pressured defensive sectors, such as telecoms.

Germany rejects President Trump's claim it owes North Atlantic Treaty Organisation 'vast sums'
German defense spending is set to increase by 1.4 billion euros to 38.5 billion euros in 2018, Reuters reported . The instruction was non-binding, and some members - including Germany - ignored it.

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In response, Swamy said it is hard to make both communities sit together and only judicial intervention is needed. To this, the court said that all parties should choose mediators to make a fresh attempt to settle the issue.

Trump golfing at faster rate than Obama, but Spicer says it's different
Spicer said he could not confirm reports of an upcoming Mar-a-Lago summit in April with Trump and Chinese President Xi Jinping . Britain is said to be ready to forget the spat after the United States agreed not to repeat claims GCHQ wiretapped Mr Trump.

Shale oil seems to be picking up production, taking its cue from the more bearish crude oil prices despite short-term bounces, supply cuts and improved demand estimates. Growing U.S. production is playing into concerns about the effectiveness of the deal to cut production by the Organization of the Petroleum Exporting Countries and non-OPEC members.

At 10.30am GMT on Monday (20 March), prices for West Texas Intermediate crude fell 1.56% to $48.03 a barrel, while the cost of a barrel of Brent crude slipped 1.21% to $51.14. Declining production in the Midwest, expansions in pipeline capacity, and more attractive imports due to narrowing crude oil price spreads all contributed to reducing movements of crude by rail. Gazprom Neft increased oil production by 43% to 163,400 tonnes [1.2 mln barrels per day]. They have added 106 oil-rig count this year. After forecasting production declines for 2017, USA federal data instead show steady gains and production so far in March has been at around 9 million barrels per day. The $6-a-barrel increase in spot oil prices that followed the hints last September of an OPEC production agreement is expected to stimulate investment in oil production in 2017, after significant declines in the previous two years. Future OPEC production cuts would likely be hinged upon non-OPEC producers such as Russian Federation to increase their efforts as well.

Dominion Diamond Corp. surged 23.2 per cent to $16.27 after Washington Companies said on Sunday it had previously made a proposal to acquire the mining company for $13.50 USA ($18.03) a share. But shale oil companies' cost-cutting efforts of the past few years virtually ensure that we won't see a return to $100-per-barrel oil in the next few years.

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