Oil Slides on concerns over US Output

21 March, 2017, 07:53 | Author: Leticia Walters

Consumer countries have built up large stockpiles of crude during almost three years of low prices, and US shale production is rebounding as prices have recovered since OPEC reached the production deal November.

Brent Crude Futures were 20 cents down from their last close, as recorded at 0025 GMT, and stand at $51.56 per barrel. US West Texas Intermediate (WTI) crude futures were trading 73 cents lower at $48.05 a barrel. On Nov. 30, the cartel officially announced that its members would cut their production by 1.2 million barrels per day, while non-OPEC members would reduce production by an additional 600,000 barrels per day.

The OPEC headline about keeping production cuts in place with Non OPEC participation, sent the price of Crude oil back toward unchanged levels.

Also underpinning crude oil was data from the International Energy Agency (IEA) suggesting OPEC cuts should create a crude deficit in the first half of 2017.

Is It the Beginning of a Bear Market for Crude Oil? OPEC was also able to work out a deal with a consortium of non-OPEC producers such as Russian Federation and Venezuela to cut their production.

This extended a recovery that is expected to boost shale production by the most in six-months in April. Hence, oil prices can start climbing up if OPEC can pull off another deal in which members agree to deepen or extend the production cuts.

Traders said that US crude storage data, due to be published later on Tuesday by the American Petroleum Institute (API), would likely be the next significant price driver.

"It was obvious that with a reversal in prices, the U.S. shale production was going to pick up".

REYL Bank expects that crude oil prices could trade between $50 and $60 per barrel in 2017. Crude could remain in a narrow range, much like last week if investors continue to weigh the impact of the first oil cut from OPEC against the rising USA shale oil output and high inventories.

Data last week from oilfield services company Baker Hughes showed an increase in the number of rigs deployed in the United States for the ninth week in a row.

"We don't think a renewed crash in oil prices would have as large an effect on the world economy as it did in 2015-16", said Capital Economic's economist Simon MacAdam.

Recommended:

  • Donald Trump slides down Forbes list of world's billionaires

    Donald Trump slides down Forbes list of world's billionaires

    The 2017 net worth of all 2,043 billionaires also set a record - $7.7 trillion - an 18 percent jump from past year . This year marks the first time Forbes' billionaire club features more than 2,000 people.
    FBI Locates Tom Brady's Missing Super Bowl Jersey in Mexico

    FBI Locates Tom Brady's Missing Super Bowl Jersey in Mexico

    A helmet belonging to a Denver Broncos player was also discovered, National Football League spokesman Brian McCarthy said. Even the Houston police suddenly seem a tad defensive over how big this stolen Brady jersey thing became.

    Apple's own website hints new products might launch tomorrow morning

    There are no plans for a big keynote, but there's still a chance the Apple store will return with some sweet surprises. We've been expecting a 2017 March Apple Event for weeks and multiple sources pointed to new Apple products this month.
  • Australia makes top 10 but cold-winter countries are the world's happiest

    Australia makes top 10 but cold-winter countries are the world's happiest

    Interestingly, two of the other countries in top five-which include Iceland , Switzerland, and Finland-are also Nordic. The least happy countries included the African and Arab countries of Yemen , South Sudan, Syria, Tanzania and Burundi.

    Oil supply deficit in first half likely despite rising stocks

    The May contract of West Texas Intermediate crude oil futures, the U.S. benchmark of oil prices, fell 1.6% to $48.54 per barrel. The chart above shows how oil prices have fared since OPEC announced its supply cut a year ago until date.
    You'll never forget where you parked your auto  thanks to Google Maps

    You'll never forget where you parked your auto thanks to Google Maps

    In the case that your phone is not connected via CarPlay or Bluetooth, you could use Apple's Mark Location feature instead. It's only available in beta on Android right now but should soon become available and then expand to iOS devices.
  • Pakistanis are happier than Indians, reveals United Nations  report

    Pakistanis are happier than Indians, reveals United Nations report

    The five least happy countries were Rwanda, Syria, Tanzania, Burundi and the Central African Republic . In Africa, Ghana placed 25th happiest country on the continent out of the 44 countries looked at.
    Angelina Jolie meets with the Archbishop of Canterbury

    Angelina Jolie meets with the Archbishop of Canterbury

    One of the angry tweets branded her "shameless" while another furious tweet said: " Angelina Jolie is a trick ass ho in this pic". The sting of Angelina Jolie and Brad Pitt's divorce announcement has dulled slightly in the half a year since the news broke.

    Uber President Resigns Amid Troubles At Ride-Hailing Company

    The post prompted Uber's early investors to called on Kalanick to change what they said was the company's "destructive culture." . Google sister company Waymo is now suing Uber for allegedly stealing its self-driving auto technology and infringing its patents.
  • WhatsApp Set to Bring Back the Good Old Text Status

    WhatsApp Set to Bring Back the Good Old Text Status "WhatsApp…"

    After which, the user can simply click on the three dots icon situated at the top right corner of the WhatsApp interface. WhatsApp, which has 1.2 billion monthly users worldwide, frequently updates its app to introduce users to new features.
    Gates, Zuckerberg, Musk, Trump headline Forbes' record-setting billionaires list for '17

    Gates, Zuckerberg, Musk, Trump headline Forbes' record-setting billionaires list for '17

    The country with most of the billionaires, a record 565 (28 percent), is the United States, followed by a fast-rising China (319). Due to his taking a civil service job that pays about $500,000 per year - and distancing himself from his corporate empire - U.S.
    WWE superstar Charlotte Flair talks WrestleMania 33

    WWE superstar Charlotte Flair talks WrestleMania 33

    The title match was recently made official, only it was announced that it would be a triple threat match instead of a four way. Jax is exactly like Charlotte and Sasha at Mania in that she'll be looking to take the belt off of Bayley .


Popular

No Evidence Barack Obama Wiretapped Donald Trump, Says FBI Director Comey
Other congressional committees also are investigating the possible Russian connection, mostly behind closed doors. Neither Rogers nor Comey have spoken publicly about the president's allegation.

Jharkhand: Engineer was declined jobs 40 times because of his name
The 25-year-old marine engineer has knocked the court's door for new identity. Finally, last week, a hearing was set for 5 May.

German city keeps kids inside amid hunt for killing suspect
Hesse allegedly filmed and took pictures of himself stabbing Jaden 56 times, and then he posted the content to the "dark web". The nine-year-old boy died of multiple stab wounds, and the discovery of his body on Monday sparked a huge manhunt.

Antonio out of England squad with hamstring injury
The 28-year-old was left out of Gareth Southgate's most recent England squad, despite good form this season. Michail Antonio has been forced to withdraw from the England squad due to injury, West Ham have confirmed.

Street racing could be blame for deadly motorcycle crash in north Houston
Tucson Police Dept. has identified the driver of the motorcycle as 25 year old Roger Gonzalez-McDaniel. A motorcyclist is hurt after a pickup truck failed to yield, causing a crash.