Oil Runs Above $46 As US Rig Count Dips

Opec left itself vulnerable to the quick return of US shale oil and the recovery of production in exempt members. Ramzi Boudina  Reuters

Oil fell 14 percent in the first half of 2017 due to a global supply glut that OPEC's historic deal with Russian Federation failed to alleviate.

USA crude futures climbed Monday, on track for their longest stretch of daily gains in almost eight years amid indications that US oil output may not be as resilient as many anticipated in the face of lower prices.

West Texas Intermediate crude's August delivery was up by 0.4%, to 19 cents and settling at $44.93 a barrel on the New York Mercantile Exchange; according to FactSet, this is the highest WTI saw since June 13.

The trend in oil prices in recent weeks has been to the downside, but Jason Schenker, president of Prestige Economics says the market needs to be patient.

"This leaves us cyclically bullish within a structurally bearish framework: then near-term price risks are now increasingly skewed to the upside while the low velocity de?ationary forces of the New Oil Order are still at play", Goldman analysts wrote. OPEC and non-OPEC members cut production by 1.8 million barrels per day to stabilize prices in their November 2016 meeting in the OPEC headquarters Vienna.




OPEC's share of USA oil imports has been declining and has dropped sharply over the last few years. Analysts doubt whether the nine-month extension till March 2018 would shore up prices or reduce oversupply.

At 8:52am EDT on Thursday, WTI Crude was up 1.16 percent at US$45.26, while Brent Crude was trading up 1.18 percent at US$47.87.

"I think the extent to which Saudi Arabia bled revenue during 2014-2016 forced them back to the OPEC table before the job of really turning the screw on US shale and other non-OPEC supply was completed", said David Fyfe, chief economist at trading firm Gunvor.

Rising U.S. production has undermined some of the impact of the OPEC-led cuts.

Weekly data from EIA shows that total U.S. oil production is comfortably above 9.3 million bpd, the highest since August 2015. The production has increased by 822,000 barrels per day since bottoming around last July. Libya, like Nigeria, is exempted from the cuts deal, though its oil production and exports remain vulnerable to disruptions by armed factions and restive workers. Just 7 percent see demand as the biggest issue. "We could see more gains if there is a further drop in oil output, and the other factor is a weaker U.S. dollar". Oil with an API gravity lower than 25 is often defined as "heavy oil", while oil between 25 and 35 is "medium" and oil with an API gravity above 35 it typically called "light oil".

Related news:

Hot News

isis-killer-beheading-video-story-top West Indies Women slump to third loss, all out for 48
Jul 03, 2017 - 01:07
In reply, South Africa's openers ensured that the chase was finished in a canter, chasing down the target in just 6.2 overs. Overall, 48 by West Indies is the sixth-lowest in Women's World Cup.

isis-killer-beheading-video-story-top China's launch of second heavy-lift carrier rocket fails
Jul 03, 2017 - 01:00
Xinhua reported last week the Long March-5 Y2 would be fuelled by liquid hydrogen, kerosene and liquid oxygen. A Long March 3B rocket launched the Chinasat-9A satellite into geostationary transfer orbit June 19.

isis-killer-beheading-video-story-top Arkansas: 28 Injured In Little Rock Nightclub Shooting
Jul 03, 2017 - 00:57
Rapper Finese 2Tymes was set to perform at the nightclub on Friday night, according to Power Ultra Lounge's Facebook page. "They need to speak to him" about the Little Rock shooting , Moore told the Arkansas Democrat-Gazette .

isis-killer-beheading-video-story-top Christie's family can go to NJ state beach, but you can't
Jul 03, 2017 - 00:54
Prieto said he is willing to pass the budget if the Horizon bill can be dealt with in summer sessions after the budget passes. If the deadline passes without a budget in place, the state will have its first shutdown since 2006 under Democratic Gov.

isis-killer-beheading-video-story-top Donald Trump rages on Twitter defending recent tweets, gives CNN new nickname
Jul 03, 2017 - 00:38
We have our doubts, but we are both certain that the man is not mentally equipped to continue watching our show, 'Morning Joe '". President Trump has defended his use of social media after being criticised over comments he made about a pair of TV hosts .

isis-killer-beheading-video-story-top GST launch highlights: PM Modi calls it 'Good and Simple Tax'
Jul 02, 2017 - 00:59
Government and business leaders attended a midnight ceremony to launch the tax at the Indian parliament's Central Hall. Government has dismissed these apprehensions saying there would be some teething problems for every new reform.

isis-killer-beheading-video-story-top Jazz believe re-signing George Hill will convince Gordan Hayward to stay
Jul 02, 2017 - 00:51
Now that the 2017 NBA Draft has concluded, the focus has shifted to free agency which will begin July 1st. He wouldn't have done so without some expectation that a better offer would exist for him on the market.

How Does Paul George Trade Impact Russell Westbrook's Thunder Future?
Jul 02, 2017 - 00:48
Average per game in the main basketball League in the world George gaining 18.1 points and 6.3 rebounds and 3.2 assists. They tried very hard last February to trade for George prior to the trade deadline only to see those efforts fail.

Wimbledon 2017: Hip injury forces Murray out of final warm-up match
Jul 02, 2017 - 00:47
Andy Murray begins the defence of his Wimbledon title against lucky loser Alexander Bublik on Monday amid injury concerns. In his build-up to the grass-court major, Murray lost in the first round at Queen's last week.

isis-killer-beheading-video-story-top Wolves trade Ricky Rubio to Utah Jazz
Jul 02, 2017 - 00:47
Although Rubio is a solid guard, he's limited offensively, and he only contributed to Minnesota's spacing problems. Currently, without G-Time and Ingles on the roster, Utah is on the books for roughly $78 million next season.

isis-killer-beheading-video-story-top Chance of some rain for your Friday
Jul 02, 2017 - 00:46
Some of the storms could be severe. "Scattered thunderstorms are expected midday through early evening", the weather service said. A southwest wind is the popular direction of choice this time of year, which brings in cooler and more stable air off the ocean.

isis-killer-beheading-video-story-top JJ Redick agrees to 1-year, $23M contract with Sixers
Jul 02, 2017 - 00:45
The Wolves, Nets and 76ers were known to be interested in Redick, who spent the past four seasons with the Los Angeles Clippers . KCP averaged 14 points, three rebounds, and three assists in 33 minutes per game for Detroit in 2016-17.

isis-killer-beheading-video-story-top Trump's Travel Ban Is Legal but Dumb
Jul 01, 2017 - 00:26
It's also possible the travel ban case could be moot by the time the Supreme Court is ready to hear it. Trump has said that the travel order would go into effect 72 hours after the high court ruling.

isis-killer-beheading-video-story-top Trump's Commerce Chief Silenced as German Patience Runs Out
Jul 01, 2017 - 00:22
German investments in the USA provide jobs for Americans, Chancellor Angela Merkel said Tuesday in a push for a free trade agreement.

isis-killer-beheading-video-story-top UK Parents Say Life Support to End for Terminally Ill Son
Jul 01, 2017 - 00:21
The court decision means he can't go to the US for experimental treatment called nucleoside therapy, which his parents wanted. The hospital, in turn, said they would not release the boy because the treatment might not be the best course of action.