News Worms
News Worms

Oil recoups losses, but U.S. oil output growth weighs

Oil recoups losses, but U.S. oil output growth weighs

Futures fell as much as 1 per cent in NY, paring last week's 1.8 per cent advance.

The price for June futures of Brent crude oil has decreased by 0.88 percent to $55.40 per barrel as of 06:09 (GMT +4).

But Spencer Cutter, U.S. Credit Bloomberg Intelligence Analyst, sounded a mild note of caution: "Big banks will be more selective when choosing who to extend loans and will increase lending to better producers".

US crude oil inventories remain near record-levels, but trended lower for the third-consecutive week; declining 2.2 million barrels from the week before.

Continuing disruptions in the Libyan production output are likely to support and push oil prices up further to trade between US$50 to US$56 (S$70 to S$78) a barrel for WTI Crude and US$55 to US$60 for Brent Crude. Even after taking into account production cut pledges from the eleven non-Opec countries, unplanned outages in Canada as well as in the North Sea, we expect production will grow again on a year-on-year basis by May.

"All the signs of an ever-growing bull market are starting to fade away, (with) Libya and geo-political tensions easing, but also because the Texans are back and they are pumping like there's no tomorrow", said Matt Stanley, a fuel broker at Freight Investor Services (FIS) in Dubai.

United States crude oil production has climbed to 9.24 million barrels per day, according to the latest Energy Information Administration data, making it the world's third-largest producer after Russian Federation and Saudi Arabia.

The U.S. rig count has been rising steadily throughout the year, as shale producers continue to ramp up capacity in response to stable prices.

China on Monday reported first quarter GDP rose 1.3% on the quarter compared to the same period a year ago for an annual pace of 6.9%, beating expectations for the year comparison. It is of course Opec's business to decide on its output levels, but a outcome of (hypothetically) extending their output cuts beyond the six-month mark would be bigger implied stock draws. Forecast-beating March investment, retail sales and exports all suggested China's economy, the world's second-largest oil consumer, may carry solid momentum into spring.

The US drill rig count climbed to 683 last week, the highest since April 2015 and a 13th week of gains, Baker Hughes data showed on Friday.

China's March refinery throughput also rose to 11.19 million bpd, just shy of December's record, as margins remained attractive.


editors' picks

April 17, 2017
Insurers say Trump must do more to stabilize 'Obamacare'
Share with Us - We'd love to hear eyewitness accounts, the history behind an article, and smart, constructive criticism. Insurers say these have been too easily granted, allowing some people to sign up only when they need costly treatment.

April 17, 2017
'Nothing romantic happening', Sienna Miller rubbishes rumours with Brad Pitt
Though not much is known about this new man Hollywood Life reported that he is a British philanthropist whom Jolie met in 2016. Such exes include Juliette Lewis, Christina Applegate and Gwyneth Paltrow.

April 17, 2017
On Asia Trip, Pence May Fill Details On North Korea Policy
Recent satellite imagery suggests the country could conduct another underground nuclear test at any time. That led North Korea to issue routine threats of attacks on its rivals if they show signs of aggression.

April 17, 2017
Trump says China 'Working with us' on North Korean issue
President Trump boards Air Force One on Thursday at Andrews Air Force Base on the way to his Mar-a-Largo resort in Florida. He also said China hadn't been manipulating its currency for months and that he doesn't want to throw a wrench into U.S.

April 17, 2017
Walcott: 'Hard work starts now after letting Arsenal fans down'
Here are four urgent changes that need to made if they are to haul their way back into Champions League qualification positions. And he again batted away questions about his future after the game, saying he was "not in the mood" to discuss it.

April 17, 2017
Giants put outfielder Parker on DL with broken collarbone
This leaves the Giants sorely lacking in left field, and a move could just be dependent on Parker's timetable for recovery. And at the end of the day, if you can keep your team in the game and give them a chance to win, that's all you can do.

April 17, 2017
The Blazers Won't Win in Six, but So What?
More than half of McCollum's makes can from inside the paint as he went 11 for 16 before the break, with three 3s. The over is 18-6 in the last 24 meetings overall and the over is 9-3 in the last 12 meetings in Golden State.

April 17, 2017
Michele Roberts Calls Phil Jackson's Carmelo Anthony Comments Inappropriate
The Knicks are 80-166 in three full years that Jackson has been in charge, and have lost at least 50 games each season. In her statement she added that the "door swings both ways when it comes to demonstrating loyalty and respect".

April 17, 2017
Former Iranian President Mahmoud Ahmadinejad sees no threat from USA
The Guardian Council, which normally does not approve dissidents or women, will announce the final list of candidates by April 27. Kosar is an indigenous training jet, which has been designed, built, tested and standardized inside Iran.

April 16, 2017
Nintendo sets record with new game console
The game console manufacturer was proud to say that the console is one of the fastest-selling video game systems of all time. You didn't read that wrong: there were more copies of Breath of the Wild sold on Switch than there were Switches themselves.