Iraq, Algeria support extension of oil production cuts

Iraq, Algeria support extension of oil production cuts

OPEC on Thursday sharply raised its forecast for oil supply from non-member countries in 2017 as higher prices encourage USA shale drillers to pump more, hampering the producer group's efforts to clear a glut and support prices by cutting output.

Brent crude jumped back above US$50 on the news and stayed there, buoyed by the ministers' comments, while WTI, which last Friday slipped below US$45 a barrel, regained some ground, settling yesterday at US$47.91 a barrel.

WTI also fell 1.2 percent in the previous session, and the closing price for both contracts on Tuesday was the second lowest since November 29, the day before the Organization of the Petroleum Exporting Countries (OPEC) agreed to cut production during the first half of 2017.

In the United States, crude stockpiles posted their biggest weekly drawdown since December last week as imports dropped sharply, while inventories of refined products also fell.

The Energy Information Administration reported that USA commercial crude inventories fell by 5.2 million barrels to a total of 522.5 in the week through May 5. "This means OPEC must do more than just rolling over the production cut deals in order to maintain this price floor", said Mr. Gao.

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

Trump asked Comey to shut down Flynn investigation
Comey or anyone else to end any investigation, including any investigation involving General Flynn", a White House statement said. But Mr Comey did not say anything to Mr Trump about limiting the investigation, replying, I agree he is a good guy.

"Crude prices could be poised for recovery", US investment bank Jefferies said in a note.

"The reason why the bears have been able to control this market is we haven't seen the hard evidence; there are a lot of doubting Thomases that say there's been no drawdown", said Phil Flynn, analyst at Price Futures Group in Chicago. "U.S. tight crude output is expected to rise rapidly and increase by 600,000 bpd in 2017", OPEC said, using anther term for shale. The 5.25mn barrel decline in stocks was the largest since December and brought inventories down to the lowest level for 10 weeks.

Prices surged after that deal, but have come under pressure in recent weeks as US production has climbed, undermining OPEC-led efforts to reduce a global crude glut.

Meanwhile, the benefits of OPEC's agreement to cut output have proved elusive.

Presently, the trading of oil is close to $50, and OPEC seems to lose its capability to control prices.

Related Articles

  • Mike Golic's Son Jake Goes on Tweet Spree About

    Mike Golic's Son Jake Goes on Tweet Spree About "Idiot" ESPN Execs

    It will be hosted Mondays-Thursdays by Sage Steele and by various other recognizable ESPN faces on the other days of the week. ET featuring Greenberg and several fulltime co-hosts, plus guests, followed by First Take at 10 a.m.
    IT raids at 22 locations linked to Lalu Prasad's benami property case

    IT raids at 22 locations linked to Lalu Prasad's benami property case

    It is said that team consisting 100 tax department officials and police officers who are leading the searches. They attack all those considered a threat for them, but such actions can not deter Lalu Prasad.
    EC all-party meet on EVMs begins

    EC all-party meet on EVMs begins

    Opposition parties including the Congress and the TMC were present during the demonstration in the gallery of the assembly. The Election Commission, through media, has learnt about a so called demonstration of tampering of "look-alike" EVM.
  • Popovich pokes fun at Warriors coach Brown for getting stopped by cops

    Popovich pokes fun at Warriors coach Brown for getting stopped by cops

    Pachulia ironically suffered a third quarter heel injury from landing awkwardly on a dunk and had to leave the game. As long as Popovich is coaching in Texas, San Antonio still has a chance to win. "It's not what I expected".
    Pat Cummins makes incredible run for Delhi Daredevils in IPL

    Pat Cummins makes incredible run for Delhi Daredevils in IPL

    "They are still match winners, those people will still win you games", Gayle told India Today. Chasing 162, Delhi were off to a poor start, losing Sanju Samson for a duck to Avesh Khan .

    Microsoft Blames NSA For WCry Ransomware

    The virus encrypts certain files on the computer and then blackmails the user for money in exchange for the access to the files. The ransomware, called "WannaCry" has hit more than 200,000 computers in 150 countries since Friday, Europol says.
  • HTC U 11 leaks in video ahead of official launch

    HTC U 11 leaks in video ahead of official launch

    Under the hood, it will be powered by the latest Qualcomm Snapdragon 835 processor clocked at 2.4GHz along with Adreno 540 GPU. According to the new report, this tech will not feature the touch sensor, which previously rumored in the device.
    Thailand backs off threat to block Facebook over content

    Thailand backs off threat to block Facebook over content

    The Thai government closed almost 7,000 web pages since 2015 and ordered internet service providers to close 600 Facebook pages. Vajiralongkorn does not enjoy his father's level of popularity and has spent much of his life overseas, particularly in Germany.

    Lenovo unveils ultra-affordable Moto C, Moto C Plus smartphones

    The good news is that the phone comes with a huge 4,000mAh battery , and there's a microSD card slot for expanding storage . It's all in the rumor state at this point however, so it's best to take all leaks and rumors with a grain of salt for now.
  • Grab some sunscreen, metro-east will see sunny, summer weather this week

    Grab some sunscreen, metro-east will see sunny, summer weather this week

    South, southwest wind 15 to 21 miles per hour with gusts as high as 29 miles per hour . Sunday: A 50 percent chance of showers and thunderstorms.
    Trump, Turkey's Erdogan tout cooperation against terrorism

    Trump, Turkey's Erdogan tout cooperation against terrorism

    In this sense, the White House's decision to support the PYD ultimately contradicts its own goal of defeating Deash and al-Qaeda. A senior Turkish government official said, however, that Trump not focusing on human rights in Turkey was "not an issue for us".
    Surprise! Simone Biles voted off 'Dancing with the Stars'

    Surprise! Simone Biles voted off 'Dancing with the Stars'

    David and Lindsay landed in fourth - and last - place on the night's leaderboard with a total of 70 points. The others - more specifically Sasha and Simone and Emma and Rashad - aren't to be counted out though.