Crude Oil Snaps Out Of Brief Funk

Crude Oil Snaps Out Of Brief Funk

Crude Oil Snaps Out Of Brief Funk

Crude oil price extended gains yesterday as Organization of Petroleum Exporting Countries (OPEC's) strong compliance with a supply reduction pact o set news that USA production topped 10 million barrels per day for the rst time in almost half a century. - Reuters picNEW YORK, Feb 2 ― Surging shale oil production in Texas and North Dakota is being felt on trading desks in Chicago, Houston and NY, where a brisk business in West Texas Intermediate crude futures is far outpacing contracts for London-based Brent crude.

USA crude oil production topped 10 million barrels per day (bpd) in November, according to monthly estimates published by the Energy Information Administration.

The report went on to say that OPEC pumped 32.4 million barrels per day (bpd) in January, up 100,000 bpd from December.

It was the first time domestic crude production has surpassed 10 million b/d since 1970, EIA said in its latest Petroleum Supply Monthly report, which was released Thursday.

Nationwide output climbed to 10.038mn bpd in November, the Energy Information Administration reported on Wednesday. The decline in Venezuelan production is also providing support.

The investment bank said it believed the oil market was now more balanced after the USA shale rush of 2014-16 oversupplied the market and saw crude prices drop below $30 a barrel in January 2016. It highlights that OPEC on the aggregate reduced imports by a total of ~180 million barrels (meeelion barrels) a year ago.

Giovanni Staunovo, a commodity analyst for UBS, told UPI the record-breaking output from the United States would normally send oil prices into negative territory.

Trump's Lawyers Arguing Mueller Has Not Met Threshold to Interview the President
But McCarthy said he sees no need to enact a law to prevent Mueller, a former director of the Federal Bureau of Investigation. On NBC's Meet the Press , he said, "I don't think there's a need for legislation right now to protect Mueller".

Crude oil production in Texas reached a record high 3.89 million b/d in November, EIA said.

Investor sentiment was also boosted by Goldman Sachs' outlook. Earlier this month, U.S. President Donald Trump waived the application of nuclear sanctions, but warned that this could be the last such waiver. As a result, Brent prices could hit $82.50 per barrel by the summer.

A decade ago, falling domestic production and a U.S. ban on exports meant that WTI served mostly as a proxy for U.S. inventory levels.

OPEC is reducing output by about 1.2 million bpd as part of a deal with Russian Federation and other non-OPEC producers.

Iranian officials said the Iranian nuclear deal signed in 2015 and that led to the lifting of restrictions on Iran's crude oil exports is absolutely not renegotiable.

In turn, production tends to follow changes in the rig count with a lag of up to six months, to allow for delays in completing wells and hooking them up to gathering systems.

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