EIA lowers forecasts for OPEC oil production

Oil jumps on Mideast tensions, London attacks hurt sterling; stocks subdued

Oil prices dipped on Wednesday on renewed concerns about the efficacy of OPEC-led production cuts due to rising tensions within the export group over Qatar and growing US output.

U.S. West Texas Intermediate (WTI) crude futures were at $48.14 per barrel, down 5 cents from the previous close, and 6 percent below their May 25 open.

United States crude production has jumped over 10 percent since mid-2016 to 9.34 million barrels per day (bpd), levels close to top producers Russian Federation and Saudi Arabia.

1990-After Iraq invaded Kuwait on August 2, the combined production of both countries-4.3 million barrels a day-was halted, according to the Energy Information Administration. Currently, OPEC has unitedly cut production with an aim to support oil prices.

Traders, however, have focused on petroleum products like gasoline, rather than crude oil, to gauge market conditions - and API reported gasoline stocks increased by 4.1 million barrels.

Brent crude oil, the worldwide benchmark, rose more than 1 percent at one point, recouping some of last week's 4 percent losses, but turned tail in the European morning and dipped back below $50 a barrel. Oil prices since the implementation of the OPEC agreement have traded in a band between $45 per barrel and $55 per barrel for most of the year.

"In terms of oil flows it doesn't change very much but there is a wider geopolitical impact one needs to consider", he said, adding that a breakdown in relations between Qatar and Saudi Arabia could hamper an OPEC-led deal on production cuts. Leading Arab powers including Saudi Arabia, Egypt, and the United Arab Emirates cut ties with Qatar yesterday, accusing it of support for Islamist militants and Iran.

During the reporting period, the Organization of Petroleum Exporting Countries and its partners extended their existing cuts by nine months. In fact, China has become a major buyer of USA crude.

Distillate inventories also rose this week by 1.75 million barrels, while inventories at the Cushing, Oklahoma, site fell by 1.56 million barrels. In fact, the two big producers declared the cuts way before the aggregate decision was announced at the OPEC meeting on May 25.

US oil is becoming competitive in the Asian market in part because of the discount for West Texas Intermediate, the USA benchmark for the price of oil, against the Persian Gulf benchmark, Dubai.

The split between Qatar and four other Gulf countries could make OPEC's goal of rebalancing the crude market even more hard.

"If global stocks do not start to show demonstrative signs of steady draws, OPEC may have to be more creative with its strategy", said the firm.

Related News:

  • 'Cowboy Bebop' Live-Action Series In The Works

    'Cowboy Bebop' Live-Action Series In The Works

    TV adaptation of a popular Asian genre title, South Korean movie Snowpiercer , which has a pilot order at TNT. Along for the ride are the brilliant, but weird, hacker Ed and a super-genius Welsh Corgi named Ein.
    A dad casually mowed the lawn with a tornado in the background

    A dad casually mowed the lawn with a tornado in the background

    According to the Canadian Press , the tornado was about 1.25 miles from their house, though the photo made it appear closer. Theunis Wessels tells the BBC he "wasn't anxious at all" by the tornado, which was a little over a mile from his house.
    Ummm, Congrats?! Is Halle Berry Really Pregnant?

    Ummm, Congrats?! Is Halle Berry Really Pregnant?

    Her gestures did not go unnoticed and led to social media chatter about who the father of the child may be. The Extant actress shocked the world back in 2014 when she announced she was pregnant at the age of 47.
  • Rite Aid Corporation (RAD): What's the Story?

    Ibm Retirement Fund invested 0.04% in Rite Aid Corporation (NYSE:RAD). 69,469 are owned by Principal Financial Gru Incorporated. This company shares are -27.14% up from its target price of $8.75 and the current market capitalization stands at $716.16M.
    Amazon, now Alphabet with shares at $1000

    Amazon, now Alphabet with shares at $1000

    On average, equities research analysts anticipate that Alphabet will post $33.95 earnings per share for the current fiscal year. The information services provider reported $7.73 EPS for the quarter, beating analysts' consensus estimates of $7.24 by $0.49.

    British PM, rival face angry voters as election nears

    She warned of the risk of voters backing Labour and allowing Mr Corbyn to form a minority government with the support of the SNP. And she denied she had called the election out of political calculation.
  • Critics say Trump tweets may undercut legal case

    Critics say Trump tweets may undercut legal case

    The President's tweets are powerful, and in the political arena he can probably use 140 characters to bolster his case. OSG refers to the Office of the Solicitor General, which is who will have to argue the case before the Supreme Court .
    London attack: What we know so far

    London attack: What we know so far

    Network Rail said London Bridge rail and London Underground stations reopened at 5am but the rail station will be exit only. ET) local time Monday in the capital's Potters Field Park, as the city continues to digest its second attack in two months.
    Justices affirm ruling striking NC legislative districts

    Justices affirm ruling striking NC legislative districts

    Cooper, which challenges the validity of the new lines drawn before the 2016 elections. Justices have asked for additional input from lawyers in another case, Harris v.
  • Robert Kubica admits to 'mixed feelings' after F1 test

    Robert Kubica admits to 'mixed feelings' after F1 test

    It is a tricky thing to jump into an F1 vehicle after six years and it was a great performance from him. Renault F1 team sporting director Alan Permane praised Kubica's efforts after such a long time away.

    Theresa May struggles during TV interview

    She said the government had to ensure Britain was "living within our means" given "the economic situation we had inherited". Mr Corbyn, a committed republican, was asked by Jeremy Paxman on why abolishing the Monarchy was not in Labour's manifesto.
    Trump delays decision on Paris climate accord

    Trump delays decision on Paris climate accord

    The White House is also assembling a team of lawyers to protect the president from potential legal troubles. Prescott was particularly critical of Trump's refusal to raise human rights issues in the Middle East.


Most liked

Mystery opioid linked to dozens of overdoses, 4 deaths in Georgia
These symptoms led doctors to suspect opioid overdose, but toxicology results won't be back for at least a couple of days. And he warned residents not to take any medications other than those prescribed by a physician or obtained at a pharmacy.

Turkey PM says battle to retake IS capital in Syria has begun
Last month, the SDF seized Syria's largest dam from ISIS militants, after weeks of fighting in the Tabqa area, west of Raqqa city. A statement said the pro-Assad forces ignored several coalition warnings.

US Supreme Court rules adviser won't have to repay $35m
Writing for the Supreme Court , Justice Sonia Sotomayor said disgorgement "bears all the hallmarks of a penalty". A payment made to the government as a effect of violating a law is non-compensatory and operates as a penalty.

Canada FM says Canada must do more as US leadership wanes
And third, Freeland underscored the importance of global trade pacts that "benefit all parties". She also made clear those bonds might loosen.

Girlfriend of black man killed by officer testifies in trial
Defense attorneys argued in pretrial hearings that Castile was stoned and that it affected his behavior during the traffic stop. In response to questions by Yanez's attorney, Reynolds said she and Castile smoked marijuana a lot, but not every day.

Flynn agrees to provide some requested documents
This file handout photo taken on May 10, 2017 made available by the Russian Foreign Ministry shows US President Donald J. Flynn had previously invoked his Fifth Amendment rights and had been hit with a subpoena.

Tom Cruise Goes Undercover in the American Made Trailer
Universal Pictures has released the first trailer for their upcoming film American Made starring Tom Cruise . Doug Liman directed the movie based on a script by Gary Spinelli.

Anil and Aishwarya reunite after 17 years!
And now, reportedly Aishwarya Rai Bachchan is joining the star cast but no details of her character have been revealed. I'm glad I did. "I started last week and I have liked two subjects already", she was quoted as saying.

Katie McHugh, Breitbart News Reporter, Tweets Racist Remarks After London Terror Attack
Meanwhile, McHugh responded to her removal with a crowdfunding campaign to pay for her "essential medical bills". Speaking about McHugh, another said: 'It's a bad comment , I would never write what she said'.

Halep and Svitolina advance to French Open quarterfinals
Her compatriot made the Australian Open semi-finals in January, 18 years after she was in the last four at Wimbledon. In between, Lucic-Baroni had spent years away from the sport, rebuilding her life away from her abusive father.

What we gathered from Vanity Fair's 'Star Wars
A third cover celebrates the rebels, showing Isaac as Poe Dameron, Boyega as Finn and newcomer Tran as Rose Tico with droid BB-8. And hey, because we live in a world with annual Star Wars movies, the next chapter in the saga is coming out in December.

Al Pacino to play Penn State's Joe Paterno in new HBO movie
However, a year later, HBO announced that it had "suspended pre-production for a moment to deal with budget issues". According to Variety , the film with be directed and executively produced by Barry Levinson .

Former FBI Director James Comey agrees to testify before Senate Intel Committee
Comey is known to produce memos documenting especially sensitive or unsettling encounters, such as after the February meeting. President Donald Trump waits to speak during the 2017 National Peace Officers Memorial Service in Washington , D.C.

WRAPUP 1-Soccer-Two-goal Ronaldo fires Real to 12th European title
This season has been fantastic again - we've won the league and the Champions League . Cristiano Ronaldo just seems to get better and better.

IndyCar Drivers Robbed At Taco Bell Hours After Indy 500 Qualifying
Dixon, who is from New Zealand, is the 2008 Indy 500 victor and a long-time Chip Ganassi Racing team-mate of Franchitti. Kannan said the Kiwi driver was pretty calm when he got back to his teammates following the incident.