A sense of OPEC divisions a blow to oil prices

A bank employee counts U.S. dollar notes at a Kasikornbank in Bangkok

A bank employee counts U.S. dollar notes at a Kasikornbank in Bangkok

Currently, oil prices gained support from growing tensions in the Middle East and signs of decline in U.S. inventory.

World fuel production and consumption is roughly in balance, at nearly 98 million bpd, although inventories remain somewhat bloated, according to the U.S. Energy Information Administration (EIA).

Crude futures edged up in early Asian trading on Thursday following heavy losses in the previous session after official data showed that USA inventories rose for the first time in 10 weeks, reawakening concerns over a glut. Crude stockpiles at the Cushing oil hub in Oklahoma fell 1.4M barrels last week.

Gasoline inventories also unexpectedly rose, imports increased, and exports dropped, the EIA data showed. USA commercial crude inventories increased by 3.3 million barrels last week, maintaining a total US commercial crude inventory of 513.2 million barrels.

Brent crude futures were at US$50.08 per barrel at 0504 GMT, down 4 cents from their last close.

Commodities brokerage Marex Spectron said it expects a "lower supply of crude oil on the physical market" in the coming weeks, lending oil prices some support.

Crude oil prices remained under pressure in Wednesday trading as geopolitical issues in the Persian Gulf lead to questions about OPEC unity.

Emirates Team New Zealand hold early advantage in Americas Cup
However, despite Emirates Team New Zealand securing back-to-back victories on day one, Burling is not getting carried away just yet.

Gasoline stocks rose by 3.3 million bbl, compared with analysts' expectations in a Reuters poll for a 580,000 bbl gain.

Qatar with a production capacity of about 600,000 barrels per day (bpd) is one of OPEC's smaller oil producing nations.

American benchmark West Texas Intermediate (WTI) lost 5 percent to reach as low as $45.78 per barrel - its lowest level since May 8. This decision came in the wake of OPEC's November 30 decision to cut output by 1.2 million bpd for six months effective from January 1.

Royal Dutch Shell (LSE: 0LN9.L - news) lifted force majeure on exports of Nigeria's Forcados crude oil, bringing all the country's oil exports fully online for the first time in 16 months.

Crude stockpiles at Cushing, Oklahoma, the delivery point for WTI and the biggest United States oil-storage hub, probably decreased by 750,000 barrels, according to a forecast compiled by Bloomberg.

First of all, the latest development in the Middle East is actually a diplomatic incident, which is unlikely to lead to any military action under normal circumstances, indicating no disruption to the regional oil production and supply.

Recommended News

  • Greece Reaches Deal with European Lenders for Bailout Installment

    For Greece, that would limit the amount it has to pay out on debt servicing each year, money it can use to help the Greek economy and society.

    Ramnath Kovind's nomination as presidential candidate gets mixed reactions from political parties

    Sources say that being Dalit, Kovind is unlikely to face opposition from other parties. He has also headed groups that work to improve the conditions of Dalits.

    BJP playing vote bank politics by nominating Dalit for president: Shiv Sena

    In itially, Shiv Sena had proposed the name of RSS chief Mohan Bhagwat as NDA's presidential nominee. If the government tries to cheat them, Sena will throw the loan waiver papers as trash", he said.
  • Manchester United, Chelsea Transfer Rumors: Ronaldo, Nainggolan, Morata

    Manchester United, Chelsea Transfer Rumors: Ronaldo, Nainggolan, Morata

    I spoke directly to Mauricio Pochettino and Antonio Conte , although the norm is clubs call my dad or agent. It is understood that Conte tried to sign Morata again for Chelsea last summer.

    Democrats stall Senate work to protest healthcare secrecy

    Senate Republican Marco Rubio said he hoped there would be "plenty of time for debate and analysis" on such a crucial bill. Closed-door discussions were also used to resolve differences with anti-abortion Democratic Rep.

    Russia Issues Strong Statement Against US Air Skirmish in Syria

    State TV posted black and white aerial video on their website on Monday which they labelled as the moment of impact of the attack. Government troops seized al Bab in February and took control of the main roadways leading from the city into Raqqa .
  • Ostapenko's Historic French Open Win

    Ostapenko's Historic French Open Win

    She is the first unseeded woman to win the French Open since 1933. "Nobody taught me, it's just the way I play ", said Ostapenko . The 2017 French Open women's final at Roland Garros will showcase unranked Jelena Ostapenko against No. 3 Simona Halep .

    Manny Pacquiao-Jeff Horn bout will be televised live by ESPN

    A 14-hour time difference means it will be mid-afternoon on July 2 in Brisbank when the Pacquiao and Horn meet in the ring. The card will take place in Australia and ESPN will bring live coverage, which starts at 9 p.m. (EDT).
    Sarfraz hopes Champions Trophy triumph ends Pakistan exile

    Sarfraz hopes Champions Trophy triumph ends Pakistan exile

    Overall Pakistan had been the better side in every respect: batting better, fielding better and bowling better . The way they turned things around, it was fantastic ", Kohli said .
  • London Mayor Floats Canceling Trump's UK Visit

    London Mayor Floats Canceling Trump's UK Visit

    His tweet took Khan's comment that Londoners had " no reason to be alarmed " about the increased police presence out of context. But Khan doubled down on his stance just hours after Trump criticized his response to the London terror attack .

    Trump's legal plan quite simple so far: Fight, fight, fight

    He was speaking on Fox News Sunday where specific questions about the alleged investigation were asked of him. He says there should at least be tapes of any telephone conversations between the president and Comey.
    London mosque attack suspect named, held on terror grounds

    London mosque attack suspect named, held on terror grounds

    British Prime Minister, Teresa May said she would chair an emergency response meeting later on Monday morning. The Muslim Council of Britain said the vehicle had hit people as they were leaving Finsbury Park mosque.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.