OIL PRICES: ABOVE $55 NOW
REUTERS - Oil prices steadied on Tuesday as lower production by OPEC and other exporters balanced growing evidence of a revival in U.S. shale production and sluggish demand.
Benchmark Brent crude LCOc1 was down 10 cents at $55.62 a barrel by 1145 GMT (6.45 a.m. ET). On Monday, the Brent futures contract closed down $1.09 a barrel. U.S. crude CLc1 was 10 cents lower at $52.91 after closing down 82 cents on Monday.
Price support was coming from an effort by the Organization of the Petroleum Exporting Countries and other exporters to cut output by almost 1.8 million barrels per day (bpd) in the first half of 2017.
But while OPEC and Russia have together cut at least 1.1 million bpd so far, rising U.S. production, as well as signs of slowing demand growth, threaten to undermine these efforts.
"The general perception is that OPEC is cutting production, which is supporting prices, but high stock levels, rising rig counts and growing U.S. production are capping gains," said Tamas Varga, analyst at London brokerage PVM Oil Associates.
Societe Generale oil analyst Michael Wittner said U.S. shale oil output was recovering faster than expected as more oil rigs drilled better and more efficient wells more quickly.
"Rig counts are increasing at an accelerating pace, and given the technological advances of the past three years, this should translate into significant supply," Wittner said.
"U.S. shale is coming back, and it's coming back strong."
Since the beginning of the year both crude contracts have traded within a $5 per barrel price range, suggesting a lack of strong price momentum in either direction.
"$55 per barrel is quite obviously the pivot point in this market ... and it has been for some time," said Matt Stanley, a fuel broker with Freight Investor Services (FIS) in Dubai.
Chinese oil demand grew at the slowest pace in at least three years in 2016, Reuters' calculations based on official data showed, the latest indication that demand from the world's largest energy consumer has diminished.
And there are concerns U.S. gasoline demand is stalling.
Gasoline stockpiles rose by almost 21 million barrels in the first 27 days of 2017, compared with an average increase of less than 12 million barrels at the same time of year during the previous decade, according to official inventory data, implying either stalling demand or ongoing oversupply.
|January, 21, 11:55:00|
|January, 21, 11:50:00|
|January, 21, 11:45:00|
|January, 21, 11:40:00|
|January, 21, 11:35:00|
|January, 21, 11:30:00|
The 3rd Latin America Energy Forum will address the needs of Latin America's evolving energy sector, exploring the evolution of the region’s energy mix and the role of gas in supporting the increased use of nonconventional renewables.
U.S. EIA - EIA expects non-hydroelectric renewable energy resources such as solar and wind will be the fastest growing source of U.S. electricity generation for at least the next two years.
ENA - Mohammed Saif Al Suwaidi, Director-General of ADFD, said, "The Abu Dhabi Fund for Development believes in the vital role the renewable energy sector plays in attaining the sustainable development goals in developing countries. This important sector stimulates economic growth, creates employment opportunities, drives innovation, supports the advancement of other key sectors, and optimises the use of natural resources – all crucial factors in improving people’s lives."
WNN - Russia and Serbia have signed an intergovernmental agreement on cooperation in nuclear energy and a joint statement on strategic partnership for the construction of a centre of nuclear science, technology and innovation.