Oil rises on stronger financial markets, expectations of extended supply cuts

Oil rises on stronger financial markets, expectations of extended supply cuts

In a monthly report, the Organization of the Petroleum Exporting Countries said world oil demand will increase by close to 1.14 million barrels per day this year - 70,000 bpd less than initially expected. "Significant downside risks from escalating trade disputes spilling over to global demand growth remain".

Oil markets are experiencing a trend reversal in May, as investors are concerned about the decline in oil demand amid worries around a global recession.

U.S. West Texas Intermediate crude futures fell $1.35, or 2.5%, to $51.92 per barrel.

As the booming American shale industry propels USA production to new records, United Arab Emirates Energy Minister Suhail Al Mazrouei even indicated that OPEC may also need to constrain supply in 2020.

At 485.5 million barrels, United States commercial stocks were at their highest since July 2017 and about 8% above the five-year average for this time of year, it said. US President Donald Trump said he was holding up a trade deal with China.

In total, OPEC crude oil production showed a drop of around 400,000 bpd previous year, compared to 2017, according to the report.

Telegram blames China for 'powerful DDoS attack' during Hong Kong protests
No wonder more than a million people (about 1/7th of Hong Kong's population) took to the streets this week to protest the bill. That could also allow China to nab dissidents and those opposed to its government on bogus charges.

OPEC is set to meet at the end of June though a meeting of the wider producers that agreed to the cuts, known as OPEC+, may not occur until early July.

Although OPEC reduced demand estimates for the first quarter, it kept forecasts for 2019 as a whole mostly unchanged and projects that consumption growth will accelerate during the rest of the year.

Goldman Sachs stated in a note that OPEC might extend the supply cuts due to the uncertain macroeconomic future and volatile oil production from Iran among others. The investment bank says it believes the group's core members, including Saudi Arabia and the United Arab Emirates, will take steps to keep the market from tipping into oversupply or undersupply.

U.S. crude oil production decreased slightly during the week ending June 7, the U.S. Energy Information Administration (EIA) said Wednesday. "Meanwhile, non-OPEC supply continues to increase at a high pace, while the voluntary production adjustments as per the Declaration of Cooperation (DoC) have again risen to record-high conformity levels". "This would lead to a balanced market despite the vagaries of demand and Iran/Venezuela/Libya production", Goldman said in a research note.

A week earlier, crude stockpiles had increased by 6.77 million barrels.

Related News:



Most liked

Trump Sees Biden, Sanders or Warren as 2020 Democratic Nominee
He withdrew from the 2008 presidential race after a poor performance at the Iowa caucuses. For example, the President leads in Florida by 8 points, ' he said .

Trump says ready to hold talks with Iran despite tanker attacks
The operators of the Norwegian-owned MT Front Altair offered no immediate explanation of what happened to their vessel. Russian Federation pleaded with the U.S. and the Gulf States arrayed against Iran not to leap to conclusions.

Square Enix plans subscription service - if it can find the game code
GamesIndustry .biz reports that the publisher is also working with Xbox on the Game Pass and other subscription services . Now the Japanese company is considering a game subscription service of its own to let us play them all .

Huawei pushes back Mate X launch to September to conduct 'extra tests'
U.S. may try and influence some of the friendly nations, including the European Union not to deal with Huawei . I guess it goes without saying that over the past month, Huawei has been dealing with a massive problem.

Man Utd to host Chelsea in 2019/20 EPL opener
There's going to be a lot of Premier League available to watch for viewers next season but it's extremely expensive. On the first Super Sunday of the season, Newcastle play host to Arsenal while Manchester United face Chelsea .

Kourtney Kardashian Calls Kylie Jenner 'Entitled'
On the last parts of the teaser, she can be heard saying "I'm important". "You're Kris [mother-f-ing] Jenner". The Kardashian/Jenner family have been feuding over Kylie Jenner's new billionaire status.

Facebook gets big backers for its cryptocurrency
The stablecoin will be used for money transfers over its messaging infrastructure - WhatsApp, Instagram , and Facebook Messenger. With the company's plans to soon step into the crypto arena, the latest buzz tells us more about Facebook's new venture.

'Shark Tank' star Barbara Corcoran's brother found dead in Dominican Republic
Others said that he felt bad after he felt a strong smell of chemicals which, in their opinion, could be insecticide or pesticide. Dominican authorities acknowledged she died of a coronary heart assault, though her family acknowledged she used to be wholesome.

Boris Johnson rejects 'white flag' of Brexit delays
Mr Hancock's decision comes after he received 20 votes in the first-round ballot of Tory MPs on Thursday. The EU has repeatedly said it will not renegotiate that deal.

Eduardo Nunez: Dominican players 'embarrassed' by Ortiz shooting
Rivas-Clase skipped bail and was subsequently declared a fugitive, according to an online docket. Mirabal Acosta was arrested Tuesday in the town of Mao, in the northern Dominican Republic.

Vivo Z1 Pro Expected Specs, Release Date June 2019
The 5,000mAh battery of the smartphone carries support for dual-engine 18W fast charging through microUSB. It will sport a 6.53-inch full-HD+ (1080×2340 pixels) punch-hole display with 19.5:9 aspect ratio.

Tory rivals plot to stop Boris Johnson from winning power in UK
Hancock rejects the option of a no-deal Brexit, saying it is not a "credible" threat to make because Parliament won't allow it. On Tuesday 18 June, BBC One will host a live election debate between the Conservative MPs still in the race.

Kerr: 'Good chance' Durant plays in Game 5 or 6
But the defending-champion Warriors stormed back in Game 2 with a109-104 victory sparked by a historic 18-0 third-quarter run. Lowry also spoke on the matter during the post game presser, stating "He had no reason to touch me".

United States releases video of Iran allegedly removing unexploded device from stricken tanker
Navy Vice Admiral Michael Gilday specifically put the blame on Iran's Islamic Revolutionary Guard Corps for that attack. They say something come flying toward them, then there was an explosion, then there was a hole in the vessel.

Iran's top leader rules out talks with US
Both the ship's owner and its operator said that all 21 crew members had abandoned ship and were later rescued by a nearby vessel. Japan's Trade Ministry says the two oil tankers reportedly attacked near the Strait of Hormuz carried "Japan-related" cargo.