OIL PRICE: ABOVE $55 YET
OGJ, BLOOMBERG - The light, sweet crude oil prices for both May and June fell on the New York market Apr. 12 but held above $53/bbl. Prices fell after the US Energy Information Administration reported US oil production increased 36,000 b/d for the week ended Apr. 7.
US production has increased every week for 2 months. If US production continues to rise at the current pace, it could "at least offset" cutbacks by the Organization of Petroleum Exporting Countries, Tariq Zahir, managing member of Tyche Capital Advisors, told the Wall Street Journal.
"All the rigs that have come online are starting to actually produce oil," Zahir said.
The Petroleum Status Report showed US oil production of 9.235 million b/d as of Apr. 7. The Lower 48 accounted for 35,000 b/d of the weekly gain. Total Lower 48 production was estimated at 8.7 million b/d as of Apr. 7, EIA said.
Alaska production rose 1,000 b/d for the week ended Apr. 7 to a total of 534,000 b/d.
EIA said US commercial crude oil inventories, excluding the Strategic Petroleum Reserve, declined 2.2 million bbl to 533.4 million bbl total for the week ended Apr. 7 compared with Mar. 31.
Separately, the American Petroleum Institute estimated crude inventories lost 1.3 million bbl for the week ended Apr. 7.
The crude oil contract for May delivery on the New York Mercantile Exchange dropped 29¢ on Apr. 12 to close at $53.11/bbl. The June contract fell 27¢ to $53.52/bbl.
The natural gas price for May rose nearly 4¢ to a rounded $3.19/MMbtu. The Henry Hub cash gas price closed Apr. 12 at $2.99/MMbtu, down 9¢.
Heating oil for May was up less than 1¢ to remain at a rounded $1.65/gal. Reformulated gasoline stock for oxygenate blending for May fell 1.6¢ to a rounded $1.74/gal.
The Brent crude contract for June on London's ICE declined 37¢ to $55.86/bbl. The July contract was down 30¢ to $56.30/bbl. The gas oil contract for May settled at $498.50/tonne, up $4.
The average price for OPEC's basket of benchmark crudes on Apr. 12 was $53.67/bbl, up 31¢.
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AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.