58252
Brent Slips on Rising US Inventories, Shale Output
Energy

Brent Slips on Rising US Inventories, Shale Output

Oil prices fell on Wednesday after builds in US inventories reinforced expectations that increasing shale output this year would reduce the impact of production cuts by OPEC and other major exporters.
Benchmark Brent crude was down 1% or 54 cents a barrel at $54.90. US light crude was down 52 cents at $52.66, Reuters reported.
Weekly inventory data from the American Petroleum Institute late on Tuesday showed US crude, gasoline and diesel stocks rose more than expected last week. The US government’s Energy Information Administration reports its own data and traders will look to see whether the official figures confirm the industry’s numbers. 
“The API report was bearish,” said Tamas Varga, senior analyst at London brokerage PVM Oil Associates. “Expect more pressure on prices if the EIA shows similar numbers.”
Oil prices have found support in recent weeks from plans by the Organization of Petroleum Exporting Countries and other producers to reduce output.
Around 1.5 million barrels per day has already been taken out of the market from about 1.8 million bpd agreed by oil majors starting on Jan. 1, energy ministers said on Sunday, as producers look to reduce oversupply.
Bernstein Energy said global oil inventories declined by 24 million barrels to 5.7 billion barrels in the fourth quarter of last year from the previous quarter. The amount remaining equates to about 60 days of world oil consumption. But as OPEC is cutting, US shale output is rising. US oil production has increased by more than 6% since mid-2016, although it remains 7% below its 2015 peak. Output is back to levels reached in late 2014, when strong US crude output contributed to a crash in oil prices.
US President Donald Trump’s promise to support the US oil industry has encouraged analysts to revise up their forecasts of growth in US oil production, which is already benefiting from higher prices.

Short URL : https://goo.gl/heHbCt
  1. https://goo.gl/bQdTu6
  • https://goo.gl/JInvzQ
  • https://goo.gl/RZphbq
  • https://goo.gl/yWrSMg
  • https://goo.gl/EsUGfx

You can also read ...

Zanganeh to Attend OPEC, Non-OPEC Committee Meeting
Iran's Oil Minister Bijan Namdar Zanganeh will attend a...
China Rejects US Sanctions, Vows to Continue Iran Crude Purchase
As the US and Iran continue to trade barbs over the...
S. Korea Iran Crude Imports Up 15%
South Korea’s imports of Iranian crude rose around 15% in July...
Venezuela Braces for Pricey Gasoline
Gasoline prices in Venezuela will soon catch up with world...
UK's Quercus Halts Iran Renewable Project
British renewable energy investor Quercus said it will halt...
Indonesia Cuts Oil Imports
Indonesia’s PT Pertamina will get an extra 225,000 barrels per...
India Vying for US Waiver
India, the second biggest crude customer of Iran, may cut its...
NPC Not Worried About Exports
The National Petrochemical Company is not concerned about...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus