What's Driving Oil Prices Back Up?

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The EIA also boosted its USA crude output forecasts for 2018 and 2019, and said that production would top 11 million barrels a day in October - a month ahead of prior estimates.

West Texas Intermediate (WTI) crude CLc1 futures rose 3 cents to settle at $62.60 a barrel. This was a bounce up from Friday's two-and-a-half-week lows of $61.13.

Brent for May settlement added 25 cents to end the session at $65.79/bbl on the London-based ICE Futures Europe Exchange.

The global energy watchdog's latest annual report was unveiled in Houston by IEA Executive Director Fatih Birol on the opening day of CERAWeek by IHS Markit. It is set to begin on Monday.

The boom in U.S. shale oil has dramatically expanded the availability of ethane, and a string of new projects on the U.S. Gulf Coast are underway to process it. There have also been worries that it could undermine the global efforts to rid the market of excess supplies. However, the ensuing price recovery has 'unleashed a new wave of growth from the U.S., said the Paris-based IEA, which advises most of the world's major economies. The total count now is 800, the highest level since April in 2015.

Mohammed Barkindo, OPEC Secretary-General suggested Monday that the oil group may continue its alliance with Russian Federation and other non-OPEC producers, but stopped short of saying their production cuts should be extended beyond this year's planned expiration. Other OPEC producers want in on the action too.

A voice for Wall Street in the White House, Cohn's move to resign came after he lost a fight over Trump's plans for hefty steel and aluminum import tariffs.

"The U.S. shale industry has turned out to be amazingly innovative and it's like open-source software, with everyone experimenting and learning from one another", said Yergin. It would potentially send back the dollar steeply lower.

The dynamics between these two benchmarks track the fortunes of oil supplied from the United States fields compared with the European fields. A weaker dollar makes oil and other dollar-denominated commodities cheaper for holders of other currencies. Production from the prolific Permian Basin will double over the period and the country's total liquid hydrocarbon output will rise to 17mn bpd from 13.2mn a year ago. This would steal market share from OPEC producers and would move the country closer to self-sufficiently. With oil prices up about 15 percent since oil ministers and top executives convened here previous year, fears have receded for a slugfest of OPEC vs. USA shale.

That means demand growth of around 1.1 percent per year on average.

USA crude will find new markets as refiners seek light, low-sulphur crude to meet petrochemical demand and International Maritime Organization specifications.

Iran produced 3.83 million barrels a day in February, 30,000 barrels above its allocation, and Iraq produced 4.43 million barrels a day, 80,000 barrels more than its allocation.

It is unclear what role the US oil executives would play at the OPEC summit, and it's also unclear the level of enthusiasm they have for the proposition; the only thing that seems certain is that Barkindo's offer amounts to one more sign of American production supremacy on the world stage.

But Al-Sada said Tuesday that this supply growth will not deter future investment in conventional production.

However, according to the International Energy Agency (IEA), more investment will be needed to boost output after this time.

The Agency forecast (https://www.iea.org/newsroom/news/2018/march/record-oil-output-from-us-brazil-canada-and-norway-to-keep-global-markets-well-.html) that United States producers would steal market share from OPEC in a market where demand will grow at 1% a year or more, while pushing America closer to self sufficiency.