Online Broadband Guide
Online Broadband Guide

Crude Oil On Long Win Streal, Near USD47

Crude Oil On Long Win Streal, Near USD47

New data showed the first decline in the number of active USA oil rigs in 24 weeks and fed expectations for further reductions in crude production. Light sweet crude oil (WTI) futures jumped 1.11 dollar or 2.47 percent to close at USD 46.04 a barrel at the New York-based commodity exchange NYMEX. The steady rise in the US rig count kind of bakes in further production increases this year, leaving little time left for inventories to normalize.

OPEC has exempted Nigeria and Libya from the curbs, leaving them free to ramp up output following local unrest, with Libyan oil production nearing 1 million bpd.

"While the trading range is probably lower than we initially thought, we are likely at the bottom end of that range now and at current price levels the asset class looks attractive", the bank's analysts said in their note Thursday.

Taking Dubai oil as a benchmark, prices so far in 2017 are 25 percent above last year's $41 average, while OPEC production in the same time is 2 percent, or 700,000 bpd, below 2016's average, he said.

Front-month NYMEX WTI futures averaged $48.18/barrel in the second quarter, versus $51.82 in Q1.

Omran al-Zwai, a spokesman for Arabian Gulf Oil Company (AGOCO), an NOC subsidiary, said output had been as high as 950,000 bpd in recent days, rising from about 885,000 bpd at the start of last week. At 756 rigs, USA oil rigs have more than doubled from the same time previous year and point to more increases in oil output.

"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.

Crude oil has touched its highest point since June 19th, marking its consistent rise over six straight sessions.

Opec and its allies, trying to reduce a crude glut, agreed in May to extend the supply cut through March 2018.

"To put that in context, that is almost a quarter of the 1.2 million barrels [per day] OPEC agreed to cut", said Greg McKenna, chief market strategist at AxiTrader, adding that the rise came from Nigeria and Libya, which are exempt from the cuts. Gartman said USA technology will expand to Russia, Mexico, China the Middle East and Africa.

Bank of America Merrill Lynch analysts cut their forecasts on Friday, saying the rise in output from Libya, Nigeria and US shale fields coupled with weaker demand growth, meant the market would be more oversupplied than previously expected.

Weekly data from EIA shows that total USA oil production is comfortably above 9.3 million bpd, the highest since August 2015.



editors' picks

July 02, 2017
World leaders pay tribute to German unifier Helmut Kohl
His successor, German Chancellor Angela Merkel, said Kohl's vision and persistence had paid a historic dividend. With Helmut Kohl , a postwar giant leaves us. "But all that paled in comparison to his life's achievements".

July 01, 2017
Active Stock: Marathon Oil Corporation (MRO) stock price is worth at $11.71
They use historic price data to observe stock price patterns to predict the direction of that price going forward. The firm had revenue of $16.39 billion during the quarter, compared to the consensus estimate of $19.03 billion.

July 01, 2017
Sony is to start making vinyl records again
According to CNN , the legendary record label will start pressing vinyl records again for the first time in almost three decades. The company is searching for retired record engineers to advise its new record-making venture, according to Nikkei .

June 30, 2017
Shropshire and Mid Wales politicians welcome Conservative-DUP pact
The Tory-DUP deal is "normal politics" and "good for everybody in Northern Ireland", according to a DUP MP. DUP leader Arlene Foster said the "wide-ranging" agreement was "good for Northern Ireland and for the UK".

June 27, 2017
Utah Jazz: Rudy Gobert makes all-NBA defensive first team
The Spurs now have eight players in its franchise history who have been named to All-Defensive teams. This season, Roberson was among the best defensive players in the National Basketball Association .

June 27, 2017
Cavs Shopping Kevin Love In Three-Team Trade For Paul George
According to ESPN , the Cavs are willing to part with Kevin Love in a three-team trade that would send Kevin Love to Denver.

June 27, 2017
JK Rowling marks 20 years since Harry Potter appeared
Many children and young adults who might not have been interested in picking up a book before learned to read through her vision. Today marks the 20th anniversary of the debut of the world's most compelling modern entertainment franchise.

June 27, 2017
Tate & Lyle (LON:TATE) Recent Analyst Updates
This translates into $206.57 million profit for CNA giving the stock a 15.59 P/E. (NASDAQ:KTEC) to report $0.00 EPS on July, 27. Canaccord Genuity maintained Liontrust Asset Management PLC (LON:LIO) on Wednesday, April 5 with "Buy" rating.

June 26, 2017
Qatar begins shipping cargo through Oman to bypass Gulf rift
He said Qatar, like Turkey, had been a staunch opponent of Islamic State terrorists, adding, "Let's stop fooling ourselves". What's behind Qatar-Gulf freeze? However, similar accusations have been levelled against Saudi Arabia.

June 25, 2017
SP North Srinagar shifted
Pandith was on frisking duty outside the Jamia Masjid and was reportedly clicking pictures of people coming out of the mosque. A Special Investigation Team has been formed for a fast track investigation in the case, NDTV quoted the DGP as saying.