Oil Prices On Track For Solid Weekly Gains

Pump jacks are seen in the Midway Sunset oilfield California in this

Pump jacks are seen in the Midway Sunset oilfield California in this

Despite the November, 2016 Vienna crude oil agreement among OPEC and certain non-OPEC (NOPEC) producers and its subsequent May 2017 extension, the global crude oil market is still burdened with excess supply and may be far from re-balancing. According to the Libyan National Oil Corp., officials from Statoil were told of the "improvement of security situation in the production areas and NOC plans to return production to its normal levels". China imported 8.55 million bpd of oil in first half of this year, up 13.8 per cent from the same period in 2016.

The growing concern is that rising Non-OPEC output, led by the U.S. is increasingly offsetting the reduced OPEC production.

After the numbers of operating oil rigs declined in the last to last week, the operating oil rigs posted a rise for the 25th time in last 26 weeks. In last week, there was an increase of 2 operating rigs in the United States, pushing the total number to 765, the highest since April 2015. "The problem is that there is someone waiting in the dark corner for OPEC - it's shale oil producers and whenever prices rise, they raise production", he said. And, of course, Russian Federation got the better end of the bargain, agreeing to a puny 300,000 bpd reduction-and a gradual one at that-from its record-high October daily production rates, while Saudi Arabia had to shoulder a burden of about half a million bpd.

The number was just short of December's record high of 11.26 million bpd.

Since January 2017, shale production has started to edge up and is now nearly back near its peak.

Crude oil futures were lower Monday amid delayed reaction to data showing the USA oil rig count rose again last week. Global crude oil demand rose to 97.4 MMbpd in 2Q17.

Confirmed: Meizu Pro 7 to be unveiled on July 26
The dual cameras module sitting on the backside of the Meizu PRO 7 is equipped with Sony IMX386 + IMX286 12-megapixel sensors. According to Compareraja, there will be a Pro 7 and a Pro 7 Plus .

OPEC intervention was the only mechanism that prevented oil prices from crashing completely.

OECD oil inventories fell slightly in May by 6 million barrels but remain 266 million barrels above the five-year average.

Global oil prices rose to the highest level in almost two weeks after better-than-expected economic data from China boosted demand speculation amid signs that the pace of US production may be slowing.

The bounce in prices could extend in the near term given that most of the bearish triggers have been baked into prices.

West Texas Intermediate crude futures for August delivery were marked 0.34% higher from their Friday close at $46.70 in the opening hours of European trading while Brent contracts for September, the global benchmark, were seen 0.25% higher at $49.03 per barrel. An extended rally towards higher resistance zone of Rs 3,100-3,120 now looks possible.

Recommended News

  • Ban over, top IPL teams back into fray

    Ban over, top IPL teams back into fray

    Mahendra Singh Dhoni will enjoy a few more days as he will join the one-day team in August. We have followed all the BCCI guidelines and are gearing up for an exciting season.
    Won't accept old notes, center tells Supreme Court

    Won't accept old notes, center tells Supreme Court

    It had asked the government to consider creating a window for people with such legitimate reasons to deposit scrapped notes. The government said that it had come across a huge amount of malpractices in the post-demonetisation period.
    It's full steam ahead for a seventh Disney cruise ship

    It's full steam ahead for a seventh Disney cruise ship

    First of all, Ellen's Energy Adventure will be closing its doors for good on August 13, as reported by the Disney Parks Blog . Disneyland Paris is now in the midst of a stunning 25th Anniversary Celebration .
  • Netflix subscriber surge pushes stock to all-time high

    Netflix subscriber surge pushes stock to all-time high

    Following the transaction, the chief executive officer now directly owns 91,994 shares in the company, valued at $12,968,394.18. Out of 28 analysts polled by TipRanks , 19 are bullish on Netflix stock, 8 remain sidelined, and 1 is bearish on the stock.
    Soundcloud may be on its knees but Chance the Rapper says it's

    Soundcloud may be on its knees but Chance the Rapper says it's

    Last week, SoundCloud said it was firing 173 staffers and closing its London and San Francisco offices to focus on Berlin and NY . This was followed by tweets from SoundCloud themselves saying, "*airhorn* Spread the word: "your music isn't going anywhere.
    Sad! Horror movie legend, George Romero dies at 77!

    Sad! Horror movie legend, George Romero dies at 77!

    In 1978, Romero made another cult classic movie in the zombie genre, Dawn of the Dead and it earned over $55 million worldwide. The US-born director died following a "brief, but aggressive battle with lung cancer", according to his manager Chris Roe.
  • Track fire disrupts A, B, C, D subway service

    Track fire disrupts A, B, C, D subway service

    Some were also trapped aboard a D train for about an hour. "We're stuck on a s/b D train near at the 145th stop auto # 2536". The fire was ongoing as of 9:00 a.m. with firefighters on the scene, and has been brought under control by 9:30 a.m.
    China's trade with North Korea rises 10%

    China's trade with North Korea rises 10%

    Congress in 2013 required the Defense Department to research a third site for ground-based interceptors to defend the U.S. He pledged on television that his "showdown with USA imperialists has reached its final phase".
    Racial disparity in dementia risk, experts report

    Racial disparity in dementia risk, experts report

    The results showed that a larger number of stressful events was linked to poorer cognitive function in later life. This is the first study to look at racial disparity in the risk of incident dementia among this older population.
  • Shikhar Dhawan replaces injured Murali Vijay for Test series in Sri Lanka

    Shikhar Dhawan replaces injured Murali Vijay for Test series in Sri Lanka

    After a magnificent series against England and Bangladesh, Vijay managed just 113 runs in three Tests at an average of 22.60. The ODI series will begin at the Dambulla International Stadium on August 20 followed by the second and third ODIs at Kandy.
    The Open: Rahm has all the makings of an Open champion - Norman

    The Open: Rahm has all the makings of an Open champion - Norman

    Asked to pick between winning at Augusta and prevailing at The Open this week at Royal Birkdale, Garcia said: "It's hard to say". Stenson will hope to emulate the Irishman this year at the Merseyside course, but he has serious competition to contend with.
    Mom hilariously recreates Beyoncé's viral photo with newborn twins

    Mom hilariously recreates Beyoncé's viral photo with newborn twins

    The mock photos prompted one creative social media user to put forth an effort of her own, albeit with altogether different "twins".

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.