Economy

April OPEC Oil Output Fell, But Saudi Arabia's Production Rose

April OPEC Oil Output Fell, But Saudi Arabia's Production Rose

Higher crude output from the United States should pressure global oil prices through the end of 2018, the USA government said on Tuesday, ahead of a meeting later this month at which OPEC and non-member producers will discuss extending supply cuts.

While decreased stocks and an improving global economy were supporting oil demand, "continued rebalancing in the oil market by year-end will require the collective efforts of all oil producers to increase market stability", Organization of the Petroleum Exporting Countries (OPEC) said.

Investors should note that on November 30, 2016, the OPEC cut a deal, per which, the bloc would have cut production by about 1.2 million barrels a day from January (read: How Effective is the OPEC Deal for an Oil ETF Rally?). Saudi Aramco will reduce supplies to Asian customers by about 7 million barrels in June.

But global inventories remain high, pulling crude oil prices back below US$50 per barrel and putting pressure on OPEC to extend the cuts to the rest of the year.

Oil prices rose on Thursday, and Brent was firmly back over $50 per barrel, as a fall in U.S. fuel inventories and a bigger-than-expected cut in Saudi supplies to Asia tightened the market.

Non-cartel producers led by Russian Federation partially matched the cuts.

Crude prices surged back above $47 to settle higher, as investors' jitters concerning rising levels of USA oil output eased, after the EIA revealed a bullish inventories report.

The report will add to a debate about the effectiveness of the cut, which is expected to be extended when producers meet later this month.

International Brent crude futures were at $50.46 per barrel at 0438 GMT on Thursday, up 24 cents, or 0.5 per cent, from their last close.

"We need to see the OPEC/non-OPEC deal extended to 2018, otherwise there's a risk oil prices will fall below US$40", Alexandre Andlauer, an analyst at AlphaValue SAS in Paris, said by email. Atkinson said such a move will see the supply deficit become even bigger in the second half of the year.

Further, the EIA upgraded its crude oil estimate to an average of 9.3 million barrels per day (bpd) in 2017 and 10 million bpd in 2018.

Oil is now changing hands near $50 again and it seemed that OPEC is likely losing its grip to influence prices as a new wave of new supply is striking the market from Texas to Libya.

Production rose, however, and gasoline demand over the last four weeks was 2.5 percent lower than at the same time period a year ago.


  • Kulbhushan Jadhav case: Arguments presented by India, Pakistan at ICJ

    While forcefully putting forth his argument, counsel for India Harish Salve said Pakistan denied 16 requests for counsel access. However, the ICJ denied permission to the Pakistani side to play the video at the hearing, Indian officials in New Delhi said.

    Pro-Ryan group launches ad thanking supporters of House healthcare bill

    Such a scenario would then force the House and Senate to work together to forge a compromise bill that both houses can support. The House of Representatives may have passed a bill to repeal and replace Obamacare, but it's far from being a done deal.

    Trump Gave Russians Secrets News Orgs Are Being Asked To Withhold

    Lavrov said: "So, if you're talking about that, I see no secret here". The Russian word "pravda" means truth, while "izvestia" means news.
  • NC jobless rate falls in April, 4.7 percent nears US average

    Despite the weakness in April, the labor market is showing more signs of life with 101,000 full-time jobs added so far this year. Even though our private sector job growth rate is exceeding the nation's, it is now lower than it has been over the past year.

    French constitutional council officially approves Macron as president-elect

    The FN holds just two parliamentary seats now , but is hoping to increase that number to 20 following the presidential election. Macron's party, En Marche , has promised to put up a candidate for all 577 seats in the Assembly.

    Trump's Rumored Pick For FBI Director Is A Former Democratic Senator

    Joe Lieberman leaves the West Wing of the White House after meeting with President Donald Trump on May 17, 2017 in Washington . Asked whether the 75-year-old was a frontrunner, Trump responded "yes" - confirming Lieberman's surprise candidacy.
  • James Comey Literally Tried to Hide Behind a Curtain to Avoid Trump

    He said he respected the special counsel appointment but also said it "hurts our country terribly". He added that he was thinking of the "Russia thing" when he did so.

    Bella Hadid suffers wardrobe malfunction at Cannes again

    The contouring trend is still going strong, as demonstrated by influential models of the moment Bella Hadid and Emily Ratajkowski. Evidently in high spirits, Elle beamed as she greeted fellow guests on the night, among them Hollywood veteran Susan Sarandon.

    Kimberly Guilfoyle reportedly in talks to replace Sean Spicer

    The President also dismissed reports that he demanded loyalty pledge from former FBI Director James Comey at a private dinner. Aides were also eager for Trump's first foreign trip, a high-stakes blitz through the Middle East and Europe.
  • Bad luck for the Suns or is the NBA Draft Lottery rigged?

    While Boston was going to get a top-four pick, the Los Angeles Lakers had to sweat out the lottery. The Philadelphia Sixers have had a pick in the top-three for four consecutive years.

    White House offers muted response on Comey memo

    Coast Guard Academy that "no politician in history, and I say this with great surety, has been treated worse or more unfairly". "Nobody knows where this really goes from here", one White House official told Politico , a Washington political news site.

    HTC & Lenovo VR Headsets To Launch With Possibly High Cost

    One of the key changes will be an updated interface: Google wants Daydream VR to become more of a full-featured operating system. For this new project, Google has teamed with HTC Vive and Lenovo to tackle one of VR adoption's largest issues.