Oil gains after Opec says glut nearly gone

15 May, 2018, 22:42 | Author: Corey Lynch
  • Oil steady near multi-year highs as US drilling rises

Oil prices steadied below 3-1/2 year highs on Monday as resistance emerged in Europe and Asia to US sanctions against major crude exporter Iran, while rising USA drilling pointed to higher North American production.

Much of the Iran's oil exports head to Asia now, with over than 1.5 million barrels per day sent to the likes of China, Japan, South Korea, and India. "Plus we see a high likelihood of OPEC working with Russian Federation in 2019 to set a floor on oil prices".

OPEC is to focus on oil inventory, rather than price.

Essentially, there is the Oil Price Fundamental Daily Forecast - OPEC Says Global Supply Glut Virtually Eliminatedthreat of increased US production.

After the plans for the United States to pull out of the Iran nuclear deal became known, oil prices surged over the uncertainty of what would happen to Iran's oil industry if the USA reimposed sanctions, limiting Iran's production. Investors are watching whether OPEC and its allies such as Russian Federation intend to end output cuts and increase production if renewed American measures restrict the Persian Gulf state's exports.

Michael Wittner, analyst at Societe Generale, forecasts US sanctions will remove 400,000-500,000 bpd of Iranian crude from the global oil market.




But so much is unknown about how the Trump administration will review those requests, especially at a time of rising oil prices going into the peak summer driving season in the US.

The report is the last one before the oil ministers' meeting in Vienna to discuss the oil production ceiling two weeks later.

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.

- Strong domestic gasoline demand has caused reduced supply levels.

However, Iran's overall exports of oil and condensate are no lower than the average of 6 million barrels per day (m/bpd), with 60 percent of exports designated for Asia and another 40 to Europe, said Pirooz Mousavi, who heads the National Iranian Oil Terminals Company (NIOTC), as cited by PressTV news outlet.

The tightening market has all but eliminated a global supply overhang which depressed crude prices between late 2014 and early 2017. On the supply side are expectations that as prices continue to rise so will production, including USA oil and shale production. "Saudi Arabia appears to be focusing more on pushing up crude higher rather than restoring the balance in oil's supply and demand, and that is underpinning prices".

Recommended:



Popular

Christie lauds Supreme Court decision on sports betting
There were four exemptions: Nevada , Delaware, Oregon and Montana, all of which had already established gambling laws at the time. There are already ample preparations being made for the Supreme Court ruling that could overrule PASPA as unconstitutional.

OnePlus 6: Key specifications, design and more revealed ahead May 16 launch
OnePlus 6 customers will also receive an extended manufacturer warranty of 3 months over and above the existing 1-year warranty. Despite being available nearly exclusively online, demand for OnePlus smartphones is strong with each new release.

Lyoto Machida scores 2nd-round KO of Vitor Belfort, who then retires
Belfort was knocked out in the exact same way and fashion against The Spider. Bisping is also contemplating retirement at the moment.

Rand Paul says Haspel's lack of candor is disqualifying
Haspel - a 33-year veteran of the agency - faces what will likely be a close confirmation vote in the full Senate. John McCain , who was tortured during almost six years of captivity during Vietnam, opposes Haspel's nomination .

Hurricane forecasters still watching disturbance in Gulf
At this time, the heaviest rainfall of three to five inches or more is expected to remain well to our east over Florida. Rain and storm coverage daily will be around 60% and temperatures will be held to the lower 80s and even upper 70s.

Why the USA embassy move to Jerusalem is so controversial
Palestinians seek East Jerusalem as the capital of a state they want to establish in the occupied West Bank and the Gaza Strip. More than 50 US diplomats will staff the Jerusalem embassy and the operation is expected to grow in coming months.

NHL: "Washington" has opened the account in a series with "Tampa"
After all, they were in this same boat last series against Boston, before rattling off four straight wins to get here. With ten seconds remaining in the first period, Ryan McDonagh sprang Nikita Kucherov with a breakaway pass.

Suspect in custody after shots fired at California school
The suspect, a male, was apprehended near a Vons grocery store in Palmdale, a Los Angeles County fire official said. One person has been injured in a shooting at a California high school amid multiple reports of a gunman on campus.

Pakistan 268-6 against Ireland at 2nd day close
When Stirling did come on, a well-set Faheem launched the part-time spinner over long-on for six. First, it was Shadab who played the aggressor and then Faheem to help Pakistan revive.

RIP Himanshu Roy, condolence messages pour in
In Dey's case, the then chief minister had issued instructions that he wanted an update on the investigations every six hours. The primary investigations revealed that Roy was in his bedroom and his wife in another room when he shot himself.