teknolojiarsivi.com
teknolojiarsivi.com June 22, 2017


Climate withdrawal compounds glut concerns

06 June 2017, 06:37 | Vickie Mathis

Increased U.S. drilling would put a strain on OPEC and other major producers' efforts to curb production in an effort to trim the global supply glut and stabilize prices. "A scenario that would not be favourable to oil prices".

November's deal between OPEC and non-OPEC members like Russian Federation has been slow to take hold, as many nations sold inventory out of storage before truly cutting exports.

On oil price decline, the OPEC scribe said that the cartel has no issues with people taking position, adding that the producers' group has made a decision to focus on the fundamentals. "We want to institutionalise cooperation between OPEC and non-OPEC producers", Saudi Energy Minister Khalid al-Falih said.

U.S. President Donald Trump's withdrawal from the Paris agreement, the landmark 2015 global pact to fight climate change, drew condemnation from Washington's allies and many in the energy industry - and sparked fears that U.S. oil production could expand more rapidly than it is now.

"Doubts remain as to the likelihood that inventories will fall as Opec continues to constrain output", ANZ said in a research note.

But U.S. production is not growing as fast as the government earlier predicted.

Crude stockpiles were down to 6.4 million barrels in the week to May 26, beating analyst expectations for a decrease of 2.5 million barrels.

However, US crude production rose to 9.34 million bpd last week, up almost 500,000 bpd from a year ago.


Growing worry over crude oversupply after Libya increased output has sent global oil prices lower, which is likely to result in a price cut of NT$0.5 (US$0.017) per liter for gasoline and diesel at CPC Corp.

Members of the Organization of the Petroleum Exporting Countries (OPEC) May 25 renewed an agreement with 10 other crude-oil producers to limit output through March 2018.

The US oil rig count climbed by 11 to 733 rigs, the highest level since April 2015, according to data published on Friday by Baker Hughes Inc.

That was the 20th straight weekly rise, a stretch spanning roughly five months, pointing to further gains in oil production later in the year.

On Wednesday, they fell $1.53, or 3%, to settle at $50.31 a barrel on their last day as the front-month contract.

That has the market really concerned and each weekly rise in the number of active rigs in use in the U.S. adds to the concern and pressures on prices.

He questioned the efficiency of the output cuts, saying oil producers were losing market share to US firms, which are not part of the deal.

With Libya's increased output, OPEC's production reached the highest level since October 2014, giving energy traders jitters over the oil production agreement, analysts said.



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