OPEC PRODUCTION UP TO 33.7 MBD
BOE wrote, OPEC's crude production climbed to a record last month as increased output from Gulf members made up for persisting losses in Nigeria and Libya, according to a Bloomberg survey.
Supplies from the Organization of Petroleum Exporting Countries rose by 120,000 barrels a day to average 33.69 million a day in August amid increases by Iran, Iraq and Kuwait, the survey of analysts, oil companies and ship-tracking data showed. The group is due to hold informal talks in three weeks in Algiers, where Russian President Vladimir Putin says an agreement can be reached to limit output.
Iraq led the increases, boosting supplies by 70,000 barrels a day to 4.48 million a day, after the government resumed flows from Kirkuk through a northern export pipeline controlled by the nation's Kurds, signaling progress in a long-standing dispute over payments. Iran raised production by 60,000 barrels a day to 3.62 million as it continues its return to global markets after the end of international sanctions in January.
Saudi Arabia, the group's biggest and most powerful member, raised output by 30,000 barrels a day to an all-time high of 10.69 million a day. The kingdom increased production to meet both domestic consumption — which peaks in the summer with surging air conditioning use — and demand from customers overseas, Energy Minister Khalid Al-Falih said in an interview with the Saudi Press Agency last month.
OPEC nations will meet Russian Energy Minister Alexander Novak for informal talks on the sidelines of an industry conference in Algiers scheduled for Sept. 26 to Sept. 28. Putin would like Russia and OPEC to reach a deal on freezing supply, he said in an interview on Thursday. Any dispute over Iran's participation which thwarted a previous effort can be resolved, he said.
Still, with OPEC members already producing at, or close to, their maximum capacity, any accord they reach on a freeze will have little relevance for actual supplies, according to Mike Coleman, founder of Singapore-based hedge fund, RCMA Asset Management Pte Ltd.
"It's more symbolic," Coleman said. "The production freeze doesn't do anything. To have a meaningful impact on prices, you need a production cut."
Nigeria suffered the biggest production decline among OPEC's 14 members last month, sliding by 130,000 barrels a day to 1.44 million a day. Companies are struggling to repair pipelines in the oil-rich Niger Delta following attacks claimed by militant groups.
Libya experienced the next-biggest losses, sliding 40,000 barrels a day to 260,000 a day as the country's political factions continued to feud over the control of oil export terminals. Output restarted at the Sarir oil field, Arabian Gulf Oil Co. said Thursday, following the receipt of payment from the state-run oil company.
Last month's production figure exceeds last year's level even when adjusted to exclude Gabon and Indonesia, which joined the group this year. Estimates for most members' production in July were revised from the previous survey.
|September, 20, 09:05:00|
|September, 20, 09:00:00|
|September, 20, 08:55:00|
|September, 20, 08:50:00|
|September, 20, 08:45:00|
|September, 20, 08:40:00|
BP and its partners in Azerbaijan's giant ACG oil production complex agreed Thursday to extend the production sharing contract by 25 years to 2049 and to increase the stake of state-owned SOCAR, reducing the size of their own shares.
The U.S. current-account deficit increased to $123.1 billion (preliminary) in the second quarter of 2017 from $113.5 billion (revised) in the first quarter of 2017, according to statistics released by the Bureau of Economic Analysis (BEA). The deficit increased to 2.6 percent of current-dollar gross domestic product (GDP) from 2.4 percent in the first quarter.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading up 41 cents, or 0.8 percent, at $50.30 by 0852 GMT, near the three-month high of $50.50 it reached last Thursday. Brent crude futures LCOc1, the benchmark for oil prices outside the United States, were at $55.91 a barrel, up 29 cents, and also not far from the near five-month high of $55.99 touched on Thursday.
“The principal risk regarding Russian and Chinese activities in Venezuela in the near term is that they will exploit the unfolding crisis, including the effect of US sanctions, to deepen their control over Venezuela’s resources, and their [financial] leverage over the country as an anti-US political and military partner,” observed R. Evan Ellis, a senior associate in the Center for Strategic and International Studies’ Americas Program.