Oil races to $80 as US drilling rises

Oil prices race to $80 as US drilling rises

Crude oil prices have increased more than 10% over the past month after President Donald Trump signaled it is likely the USA will withdraw from a 2015 worldwide agreement with Iran that eased sanctions in return for curbs to the country's nuclear program, the Wall Street Journal reports.

Brent crude futures, the global benchmark for oil prices, were at $78.21 per barrel at 0639 GMT, virtually unchanged from their last close and not far off a three-and-a-half year high of $78.53 a barrel reached the previous session. By 8am GMT, Brent was up 20c at $78.43. However, the cartel also revised higher the non-OPEC supply forecast by 10,000 barrels per day, which does not come as a surprise given the rising United States oil output. Global markets have tightened as the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, has been withholding supplies since 2017 in order to push up oil prices.

World oil prices have surged by more than 70% over the past year as demand has risen sharply but production has been restricted by oil cartel Opec, led by Saudi Arabia, and other key producers, including Russian Federation.

Iran produces roughly 4% of the world's oil, with the looming prospect of American sanctions set to cut off some of that supply.

Iran's supreme leader shares photo reading "Fire and Fury"
Iran responded with frustration, but it now appears to be engaging in a more off-the-cuff manner. Trump, I tell you on behalf of the Iranian people: You've made a mistake.

The cartel revised higher its forecast for global oil demand growth this year by 25,000 barrels per day - a bullish development for oil markets.

In China, the world's biggest oil importer, refinery runs rose almost 12 percent in April compared with the same month a year ago, to around 12.06 million barrels per day, marking the second-highest level on record on a daily basis, data showed on Tuesday.

The price of world benchmark Brent crude has risen over the past 28 months, from roughly $26 a barrel in early 2016, to approximately $77/Bbl Monday, as the balance between supply and demand continues to tighten, Kallanish Energy understands.

The Permian basin in Texas, the biggest US oil patch, is expected to see output climb 78,000 bpd to a fresh record of 3.28 million bpd.

Related News:



Most liked

Australia probes claim Google harvests data as consumers pay
With more than ten million Australians using Android phones, they could be paying $580 million in unnecessary fees every year. They made the disclosures to the ACCC as part of the digital platforms inquiry being conducted by the organisation.

Cauvery water row: Centre submits Cauvery Draft Scheme to Supreme Court
The authority, which will be headquartered in Bengaluru, is very similar to the Cauvery Management Board the Tribunal recommended. Karnataka said it will challenge the draft for being inconsistent with Sec 6A of Inter-State River Water Dispute, Act, 1956.

Fortnite: Burst Assault Rifle arrives today but weekly patch delayed
Epic made the announcement stating the Infinity Gauntlet Limited Time Mashup will end on May 15th. It fits in with the superhero theme of Fortnite season 4 , which was launched a few weeks ago.

Iran and Israel are shooting at each other in Syria. Why?
Its backing of radical groups such as Hezbollah, the Palestinian militant organization Hamas, and the Houthi Rebels is another. Iranian media described the Israeli attack as "unprecedented", but there was no official Iranian comment on Israel's claims.

Arsenal goalkeeper David Ospina requires 'readability' over seek for Arsene Wenger's successor
Arsenal travel to Huddersfield Town to end their Premier League season on Sunday. "I will stay in football for sure". Of course, it wouldn't just be the Premier League that would be affected.

Is Wayne Rooney moving to MLS?
Allardyce's situation is also uncertain amid supporter unrest over recent performances, but the 63-year-old is intent on staying. Rooney has reportedly come to an agreement to join the MLS club in the summer after this season back at boyhood club Everton .

Rafael Nadal breaks John McEnroe's 34-year-old record
Rafael Nadal's 21-match unbeaten run on clay has come to an end thanks to a surprise defeat to Dominic Thiem at the Madrid Open . Thiem will take on South African big man Kevin Anderson who finally broke his duck and made his first Masters semifinal.

Nick Young credits dream about Steve Kerr for solid Game 1 showing
Luc Mbah a Moute did not help the Rockets off the bench. "You've got two great scorers over there in [ Chris Paul ] and James". Golden State undoubtedly has a sizeable advantage with Klay Thompson and Draymond Green in the starting lineup.

Sadr headed for first place in Iraq election -commission
Sadr leads the al-Sairoon Coalition (The Marchers) that brings together his Sadrist Movement and the Iraqi Communist Party . The vote was widely seen as a verdict on Abadi's tenure and his pledge to be more inclusive of Iraq's Sunni minority.

A Sports Book Is Coming To A Betting Parlor Near You
In 2011, voters in New Jersey approved a ballot measure legalizing sports betting, hoping to revive their state's gaming industry. Critics have raised fears that legalized gambling could make "points shaving" or other forms of corruption more prevalent.

Manchester United ready to pay world record fee for Neymar
Due to the valuations mentioned above, the Emir is said to find suggestions of a €260m exit for Neymar to Real Madrid "humorous". The star also lauded his PSG teammate Kylian Mbappe, who is just 19, as "the best in the world for his age".

Israel has right to self-defence
Le Drian said that the 2015 agreement on Iran's nuclear activities remained in force despite the U.S. pulling out on Tuesday. Israel has warned it will not tolerate its archenemy Iran establishing a military presence on its doorstep.

Trump scrambles to save Chinese phone company hurt by his export ban
He returned to the topic more than five hours later by blasting past trade agreements between the two countries. But Mr Trump said he was optimistic about the future of the countries' trade relations.

Cooper Says Dern Is A "Disgrace", But Will Take Catchweight Fight
They told me even without a fight, they're going to make me make weight and they're going to stay on me, but that's what I need. There are champions that are caught for drugs and cocaine and things like that. "I believe that they won't", Dern said.

Liverpool favourite Peter Crouch predicts three-way Premier League title race next season
But he admits De Gea's growth has been phenomenal to watch and indicated that his brilliance between the sticks has shielded some shoddy defending from Manchester United .