Nigeria continues to maintain top spot as Africa's largest oil producer

Oil slides back towards 2-week lows as focus turns to US stockpile data

The U.S. Energy Information Administration said late on Tuesday that it expected 2018 crude oil output to rise to 9.9 million barrels per day (bpd) from 9.3 million bpd this year, a 570,000 bpd increase.

The Organization of the Petroleum Exporting Countries (OPEC) pumped 32,611 million barrels per day in June, 393,500 barrels more than in May.

Some preliminary reports show OPEC production inching higher in June, mostly led by Nigeria and Libya, the two member nations exempt from the OPEC production cut deal. OPEC cuts are expected to be extended and reports that both Libya and Nigeria will agree to a production quota puts the fate of global oil prices in the hands of us producers. Officials from Libya and Nigeria may attend the meeting, according to a Reuters report.

Despite a large weekly drop in crude inventories, banks continue to mark down oil prices.

US production is expected to increase in 2018, albeit at a lower rate than previously estimated. US crude gained 93 cents to $45.97.

A Saudi industry source said that Riyadh planned to reduce shipments in August by more than 600,000 bpd, taking exports for that month to their lowest this year.

West Texas Intermediate for August delivery rose 8 cents to $44.48 a barrel at 9.58am on the New York Mercantile Exchange. It further added that the catalyst could be further intervention by OPEC or a steady drop in US crude stockpiles and the nation's rig count. In addition, market patience is wearing thin, with global inventories still higher than the five-year average, pointing to the fact that OPEC cuts have not effectively erased the glut as the cartel had expected. "Algeria's current crude production is 1.7 million barrels per day".

OPEC agreed to cut oil production at the end of a year ago to prop up oil prices.

The EIA does forecast production to average 9.9 million b/d in 2018, which would mark the highest annual average production in US history, surpassing the previous record of 9.6 million b/d set in 1970.

A separate report from the Energy Information Administration (EIA) highlighted the mounting challenges to the U.S. energy sector, which are poised to produce significant consequences for the oil market next year.

U.S. production rose to 9.338 mbpd in the week ended June 30, 2017, up from a week ago level of 9.25, near its 22-month high of 9.35 mbd. United States crude inventories remain more than 100 million barrels above the five-year average and the oil rig count is at the highest level since April 2015.

Against these doldrums, news of diminished US output led to an oil rally in late June.

Related:

  • Andy Murray out of Wimbledon after shock defeat to Sam Querrey

    Andy Murray out of Wimbledon after shock defeat to Sam Querrey

    Per the ATP , Querrey becomes the first man to win three consecutive five-setters at Wimbledon since Janko Tipsarevic in 2007. Murray struggled with a hip injury after the third set and Querrey took full advantage to book his spot in the last-four.
    Donald Trump is expected to visit the United Kingdom  in 2018

    Donald Trump is expected to visit the United Kingdom in 2018

    There were also earlier reports that Trump may secretly drop in the United Kingdom during his Europe visit for the G20 Summit. A spokesman at Downing Street, which would be in charge of the plans for the visit, would not confirm the plans.
    Air Canada Jet Nearly Lands On Taxiway At San Francisco International Airport

    Air Canada Jet Nearly Lands On Taxiway At San Francisco International Airport

    He said he's been contacted by pilots from across the country about the incident. "We are still investigating the circumstances". At the same time, four planes loaded with passengers were awaiting confirmation to depart from Air Traffic Control.
  • Microsoft Launches 'Seeing AI' Talking Camera App for the Blind

    Microsoft Launches 'Seeing AI' Talking Camera App for the Blind

    For example, Microsoft brought its SQL Server database software to Linux, and it has ported Office apps to the iPad. Microsoft has a short introductory video that gives a great taste of all that the app can do, embedded below.
    Honda links 11th United States  death to faulty Takata airbags

    Honda links 11th United States death to faulty Takata airbags

    The individual working on the vehicle in Florida died a day after sustaining injuries when the air bag deployed. According to Honda, Alpha inflators can have as high as a 50-50 chance of exploding and injuring an occupant.
    Death toll in Marawi tops 500 — Philippines military

    Death toll in Marawi tops 500 — Philippines military

    Military officials have yet to submit the recommendation on whether to extend or lift martial law in Mindanao. Alvarez, who drew criticism with his proposal, was merely "telegraphing" his "personal position".
  • Google readies its UPI payment before Whatsapp

    Google readies its UPI payment before Whatsapp

    According to a PTI report , Google is awaiting Reserve Bank of India's approval to launch its service in the country. The same month, Facebook announced that the company will enable peer-to-peer payments through Facebook Messenger.
    Border row won't affect economic, cultural ties: Chinese

    Border row won't affect economic, cultural ties: Chinese

    The standoff at Doklam is likely to be repeated "many times over in more places in the months ahead", Tellis warns. During the question and answer session, he said that "no part of the border has been agreed on the ground".
    Umbrella-sharing start-up takes a rain check after losing 300000 brollies

    Umbrella-sharing start-up takes a rain check after losing 300000 brollies

    More to the point, the platform doesn't charge users an unreturned umbrella fee, meaning most people simply ended up keeping them. However, just weeks after making 300,000 brollies available to the public the company announced that majority had gone missing.
  • ACLU sues over Trump's secretive election commission

    ACLU sues over Trump's secretive election commission

    Missouri Secretary of State Delbert Hosemann, a Republican , suggested that the commission, "go jump in the Gulf of Mexico". Vice Chairman Kris Kobach said, "Whatever a person on the street can walk in and get, that's what we would like".

    Konta, Williams the elder, of NY and Rybarikova - polufinalistov Wimbledon

    However, the 20-year-old Latvian won the girls' title at the All England Club in 2014. "Honestly, they were just cheering for me". Johanna Konta gave Great Britain a first women's singles semi-finalist at Wimbledon since the 1970s on a damp Tuesday.
    Valve's banhammer hits 40000 accounts after Steam Summer Sale

    Valve's banhammer hits 40000 accounts after Steam Summer Sale

    The solution would be to wait for a big Steam sale and grab the lost games at a much cheaper price, saving a hell lot of money. However, they do not seem to take into account that the system simply calculates and slapped a new ban.

Comments

Other news