emfizz.com
emfizz.com August 20, 2017


Why oil prices will remain weak

20 June 2017, 10:57 | Jan Cross

On Wednesday, crude prices fell almost 4 percent after US gasoline inventories rose unexpectedly and the International Energy Agency said growth in oil supply next year is expected to outpace demand even as global consumption exceeds 100 million barrels per day (bpd) for the first time.

OPEC's oil production jumped in May, despite the exporter group agreeing last month to extend its six-month deal to cap output into 2018.

Oil prices were down more than half a percent after hitting a six-month low on Thursday, remaining under pressure from high global inventories and fears that OPEC's agreed production cuts can not offset rising production elsewhere.

OPEC and other exporters such as Russian Federation have agreed to keep production nearly 1.8 million barrels per day below the levels pumped at the end of previous year and not to increase output until the end of the first quarter of 2018.

"Indeed, based on our current outlook for 2017 and 2018, incorporating the scenario that OPEC countries continue to comply with their output agreement, stocks might not fall to the desired level until close to the expiry of the agreement in March 2018", the IEA's report read.

Sponsored Content - Download our Executive Briefing to learn how agency and industry experts are hoping to reduce insider threats.

The measures helped stabilise oil prices at the beginning of the year, with the global benchmark Brent crude sticking above $50 per barrel.

Britain begins Brexit talks with the EU in Brussels
The British government wants the negotiations to include the future relationship with Europe and an all-important trade deal with the bloc.


Active Stock on Watch: Cellnet Group Ltd
State Board Of Administration Of Florida Retirement Sys has invested 0% of its portfolio in Spectranetics Corp (NASDAQ:SPNC). The stock decreased 0.52% or $0.06 on June 16, reaching $11.52. (ED) has risen 11.89% since June 19, 2016 and is uptrending.


This Bollywood actor turns Katappa, 'kills' Baahubali Prabhas
Prabhas , Anushka Shetty, Rana Daggubati , Tamannaah, Ramya Krishna and Sathyaraj play the major roles in the film. Alongside the young brigade of Bollywood, Prabhas also attended the bash.


However, the inventory increases reported last week by the API were confirmed by the EIA a day later, sending oil prices slumping 5% last Wednesday.

Recent U.S. economic figures, including retail sales, core inflation and industrial production have all been weak, raising concerns about the trajectory of the economy.

The International Energy Agency (IEA) said this week that oil supplies next year would still outpace demand despite consumption hitting 100 million bpd for the first time. That is $0.05 per gallon cheaper compared to a year ago.

United States inventories fell less than forecast last week, keeping supplies more than 100 million barrels above the five-year average, according to data from the Energy Information Administration on Wednesday.

As per the expert, there is too much oil on the market and the USA pumps more oil than before.

Rising U.S. oil output, particularly from shale drillers, is contributing to the ineffectiveness of the OPEC-led cuts, according to Reuters.

Energy services company Baker Hughes said last Friday that US drillers last week added rigs for the 21st week in a row, the longest such streak on record.



Other News

Trending Now

London Terror Attack Suspect Named By Media
Osborne was taken into custody shortly after the attack when bystanders in the crowd restrained him until police arrived. Witness Khalid Amin told BBC television that the driver of the van was shouting: "I want to kill all Muslims".

Jab Harry Met Sejal trailer released
Shah Rukh Khan and Anushka Sharma's new film, directed by Imtiaz Ali , has been making news right from the time it was announced. The 36 seconds teaser sees Anushka and Shah Rukh Khan indulged in a amusing yet serious banter that is truly adorable.

Fourth Australian victim of London Bridge terror attack named as Kirsty Boden
Both were au pairs at Herne Hill in south London and struck up a bond immediately. "But horror, absolute horror, " she said. Sara's stepfather, Mark Wallace, shared a video of Sara online, writing: "I really miss that amusing little laugh".

Barclays and four bank chiefs face fraud charges over 2008 crisis fundraising
All of the defendants will appear before Westminster Magistrates' Court on July 3, the SFO said. Varley and Jenkins also face a charge of unlawful financial assistance, the SFO said.

Family Says Otto Warmbier, American Released By North Korea, Has Died
He confessed to stealing the poster during his trial in March 2016 and was sentenced to 15 years of hard labor, BBC reported . Later, shortly after his return to OH , "the countenance of his face changed - he was at peace", the statement added.

Kane Williamson named 12th man as Pakistan dominate Champions Trophy team
When asked a year ago about not being picked for Pakistan despite scoring runs, he told Espncricinfo: "My number will come". Shahid Afridi said that the current team can develop into one of the top three teams in the world by the 2019 World Cup .

US Student Released From Detention In North Korea, Otto Warmbier Has Died
U.S. media, including the Washington Post , have called for stronger sanctions on Pyongyang after Warmbier's comatose release. His death is expected to further exacerbate the already tense relations between the U.S. and the North.

Grand Island man competing in next season of Big Brother
Megan Lowder , a dog walker who is originally from California, is one of 16 contestants on the show. Elena Davies , 26, who is a radio personality, is also among the new faces to watch out for.

Decision on supporting Kovind on Tuesday: Uddhav Thackeray
Why should we be interested if you want a person who will work only for Dalits? Sena has never engaged in caste-based politics . Thackeray, however, said that they would extend their support only if the decision was taken for the development of the nation.

Golfers seem to give good reviews to US Open at Erin Hills
Koepka broke away from Matsuyama and the pack with three straight birdies on the back nine and closed with a 5-under 67. During a tournament on the Challenger Tour, he had come close to quitting, telling his manager he wanted to go home.