Higher US crude output to cap oil prices through 2018

"As long as you've got those builds in gasoline, it is going to be hard for crude oil to rally", said Olivier Jakob, energy market strategist at Petromatrix in Zug, Switzerland.

"A bigger than expected drop in oil and fuel stocks received the initial bullish attention".

Bloomberg News reports that OPEC and other oil producers taking part in output cuts have reached a consensus to extend the limits until the end of the year, oil ministers for two of the group's members said.

The oil producers will meet on May 25 in Vienna to discuss the possibility of extension. The twelve member states will be joined by Russian Federation, but U.S. production remains a concern.

In its monthly oil market report (MOMR), OPEC said the United States oil and gas companies have already stepped up activities in 2017 as they start to increase their spending amid a recovery in oil prices.

Oil prices fell, rattled by concern over slowing demand, a rising U.S. dollar and increasing USA crude output that has shaken investors' faith in the ability of OPEC to rebalance the market.

Oil prices have plummeted from around $100 a barrel in 2014 to less than $50 now after a spike the USA shale oil production. WTI crude oil averaged $43.33 a barrel in 2016 and is forecast to rise to an average of $50.68 in 2017, down $1.56 a barrel compared with last month's estimate for 2017.

Danica Patrick takes wild ride in fiery wreck at Kansas
Patrick and Logano were running just outside the top 10 with 67 laps to go. "I hope Eric is OK. Every time I'm doing better, something stupid happens and I don't know what to say about it".

However, U.S. production rose, and refining runs declined, giving analysts pause about the market's sharp rise.

The energy component was already trading higher on Wednesday after data released by the American Petroleum Institute late Tuesday showed USA inventories fell by 5.79 million barrels.

Shipments data has shown signs of drawdown, with shipments from OPEC countries expected to fall about 50 million barrels in April, according to Thomson Reuters.

Saudi Arabia increased output by about 50,000 bpd, according to the secondary sources and Saudi figures, although Riyadh continues to produce less than agreed under the deal.

Rising pump prices have followed on higher prices for crude oil.

Saudi Arabia's energy minister, Khalid al-Falih, said on Monday he expected Opec to agree to extend an agreement to limit oil production to the end of the year or possibly longer. Production fell in the UAE, Libya, Iraq and Iran, but rose in Saudi Arabia and Angola, with Saudi Arabia's output up almost 50,000 barrels a day.

"U.S. crude oil production is now solidly above 9.3 million barrels per day with more to come, and refined product, especially for gasoline, is oddly weak", John Kilduff, the partner at hedge fund Again Capital in NY, told Reuters.

Related News:

  • China's leader offers billions for new Silk Road initiative

    Other leaders attending the summit include Russian President Vladimir Putin and Turkey's Recep Tayyip Erdogan. Although, it is hoped that India will send its junior diplomat pack to attend the summit proceedings.
    Incident, Leeds Bradford Airport

    Incident, Leeds Bradford Airport

    An airport spokesman said on Saturday: "Leeds Bradford Airport is now closed after a suspicious package was reported". Officers were called to the airport at around 8.10pm today (Saturday) to reports of the package.
    Eurovision Song Contest fans await grand final in Kiev

    Eurovision Song Contest fans await grand final in Kiev

    Italy has won twice in the 1950s and 1960s but shunned the contest for more than a decade from 1997 before rejoining it in 2011. Prime Minister Theresa May has vowed not to exit the contest, despite the nation winning derisory points in recent years.
  • Chelsea boss Conte delighted with Nathan Ake impact

    Chelsea boss Conte delighted with Nathan Ake impact

    I was extremely surprised when one pundit said on commentary that he only expected such brilliance in the Chelsea line-up from Eden Hazard.

    Pakistan signs almost $500 million in China deals at Silk Road summit

    Three agreements concerning economic and technical cooperation worth 3.4 billion yuan for the Gwadar port and East Bay expressway. The China-Pakistan Economic Corridor passes through Gilgit and Baltistan in Pakistan Kashmir, which is claimed by India.

    Abe urges Moon to implement accord

    Moon was an adviser to the liberal administrations that embraced the policy of engagement and cooperation with North Korea . Moon's win comes amid an ongoing war of words over a strategic US missile defense system being deployed in the South.
  • Australia has mooning moment at Eurovision

    The Echuca-Moama teen finished ninth in the six-decade-old singing contest, his country's third consecutive top-10 finish. The man circled last year's Eurovision victor , Jamala, jumping on stage as she sang during the half time show.
    Canada falls from Cup contention with two losses at Paris Sevens

    Canada falls from Cup contention with two losses at Paris Sevens

    Charlie Taylor ran in one for Australia and it was one converted try the difference at the break with the score at 14-7. South Africa have won 42 of 68 matches played between the two countries with an average 18-14 winning margin.

    Kelly Oubre suspended for Game 4 after charging at Kelly Olynyk

    Game 3 was his best performance of the series , however, and the most indicative of the skill set he brings to the table. Oubre said Friday that he retaliated against Olynyk because he had been hit repeatedly by the Celtics center.
  • Europe not seeking to influence UK election, says Brussels parliament chief

    Europe not seeking to influence UK election, says Brussels parliament chief

    Meanwhile, the Spanish press said May had " decided to throw down the glove ", accusing Brussels of interference in the general election.
    US Treasury chief: trade partners like Trump policies

    US Treasury chief: trade partners like Trump policies

    Treasury Secretary Steven Mnuchin. "We will strive to reduce excessive global imbalances and in a way that supports global growth".

    Always Dreaming third Florida Derby victor in five years to win Derby

    Though Always Dreaming pressed longshot State of Honor through a very fast half mile of 46.53 seconds, he was moving easily. Irish War Cry threatened on the far turn and to the top of the stretch, but the victor put him away handily.


Most liked

Trump trolls old rival Rosie O'Donnell on Twitter again
The White House said Mr Comey was sacked over the FBI's mishandling of the investigation into Hillary Clinton's email practices. In the NBC interview on Thursday, Trump said he would have fired Comey regardless of any such recommendations.

Pakistan signs nearly $500 million in China deals at Silk Road summit
Federal Ministers, Advisor on Foreign Affairs and Chief Ministers of all four provinces were also present on the occasion. After their meeting, Li and Sharif witnessed the signing of documents related to cooperation on economy and technology.

Answers from Yates, more questions for White House
In another Twitter post, Trump noted that Flynn had been granted top security clearance while working in the Obama administration. When Flynn's clearance was renewed by the DIA, it didn't know of Russian payments he received, NBC News reported .

Chinese President Xi congratulates President Moon, discusses Pyongyang
The CIA and the White House declined to comment on the statement from North Korea's ministry of state security last week. Mr Moon, of the liberal Democratic Party, is widely expected to improve long-strained ties with the North.

James Comey Leaks Donald Trump Dinner Details to the New York Times
For example, White House press secretary Sean Spicer has said the president fired Comey because he was advised to do so. A New York Times report - one that may have inspired Friday's tweet - said Comey declined to make such a pledge.

Suspect in Kirkersville shooting has a record
Of note, Hartless had also been implicated in a case of domestic violence and had been granted early recently release from jail. Responding officers found Disario on the street and then investigated a report of a gunman at the nursing home, Thorp said.

Duke's Jackson to sign with agent, remain in National Basketball Association draft
The Utah native saw immediate playing time for the Blue Devils and averaged 24.9 minutes per game through the season. Jackson started his freshman season at Duke strong, scoring in double digits in each of Duke's first eight games.

Jammu and Kashmir: Two killed in Pakistan shelling in Rajouri
According to sources, mortar shells were falling in Baba Khori, Kalsiyan, Jhanghar, Makri and Tarya areas. Besides, one mobile medical unit was stationed at Nowshera and another deputed to forward areas, he said.

Moon to send lawmaker as special envoy to China
Iranian President Hassan Rouhani has extended his congratulations to Moon Jae-in for winning South Korea's presidential election. In his inaugural address, he promised to "negotiate sincerely" with the USA and China to resolve the issue.

Hospitals Throughout UK Hit By Ransomware — NHS England Cyberattack
The ransomware appeared to exploit a vulnerability in Microsoft Windows that was purportedly identified by the U.S. The NHS said in a statement on Saturday that there was no evidence that patient information had been compromised.

Trump Would Have Fired Comey 'Regardless of Recommendation'
Unlike Liddy and Hunt, Trump's former national security adviser, Michael Flynn, hasn't been indicted, but he has been subpoenaed . The White House's explanations continued to crumble throughout the day Thursday. "That is not accurate", McCabe said.

CBI to vet AAP's sacked minister's graft charges against Kejri
Annapurna also said that she was proud of her son who was on a hunger strike and hadn't eaten for the last three days. A person from among the crowd at his house slapped Mishra repeatedly, shouting "He (Mishra) has betrayed the party".

Conservatives win Lancashire County Council elections
In the county council elections this time round, the party recorded its best local performance since it entered the coalition. Most dramatically, it lost ground in Scotland, where the Conservatives — long all-but-extinct there — made gains.

Italy, Portugal lead the pack as Kiev hosts Eurovision final
But the Ukrainian authorities banned Samoylova because she also performed in areas of Ukraine now under Russian military control. Russian Federation responded by refusing to air the contest and viewers in separatist eastern Ukraine were also unable to watch.

No Way Is Bindi Irwin's Mom Dating Russell Crowe!
I still feel huge love and loyalty to Steve. "And I've got handsome kids and a lot of wonderful conservation work". You know we do love Russell, but mum and Russell aren't actually in love", she told the show.