Russian crude oil output unchanged in June, in line with compliance

Dianna Christensen
July 4, 2017

Still, some analysts say last week's US output data are hardly compelling as activity was impacted by a tropical storm in the Gulf of Mexico.

August West Texas Intermediate crude rose 74 cents, or 1.6%, to $46.78 a barrel on the New York Mercantile Exchange, ahead of the U.S. Independence Day holiday Tuesday. Brent hasn't experienced such a winning streak since 2012. Brent prices have still dropped 16 percent this year as rising supply from OPEC members Libya and Nigeria along with the offsetting cuts from the Organization of Petroleum Exporting Countries and its partners.

OPEC has lost its grip on the oil market, but oil prices will likely set a bottom in the low $40s per barrel, according to the latest CNBC Oil Survey. "It gets tougher to use up all that crude as refinery utilization starts to ease off as we move past the peak of summer driving season". While U.S. drillers cut two oil rigs in the week to June 30, the total rig count of 756 is still more than double the count the same week a year ago, Baker Hughes said on Friday. "And given how far we've fallen, you're seeing bargain hunting by some". "There is cause to be confident that the long-awaited oil market rebalancing is fast approaching", Stephen Brennock, an analyst at PVM Oil Associates Ltd., told Bloomberg. In 1990, OPEC supplied 62 percent of all crude imported into the U.S. This share gradually declined until 2008, as Canadian output grew and displaced imports from overseas.

Bank of America Merrill Lynch analysts cut their forecasts on Friday, saying the rise in output from Libya, Nigeria and USA shale fields coupled with weaker demand growth, meant the market would be more oversupplied than previously expected. United States production has now recorded three week-on-week declines in less than two months.

"The decline signals that US oil supply struggles to remain profitable between $40 and $45 a barrel", said Vivek Dhar, a commodities strategist at Commonwealth Bank of Australia.

On Abu Dhabi's finances, the bank says there have been changes to the revenue the central government receives from government-related entities (GREs) that should improve its fiscal position. Worryingly, the major USA basins like the Permian, Arkoma Woodford and Haynesville shale continue to add rigs.

Tennessee pens snarky reply to California's travel ban
The law also has a few exceptions that could preserve upcoming Texas games for California teams. Individual travel is still permitted by California residents but not on the taxpayer's dime.

Can't Survive With 60% Tax, Say Tamil Nadu Theatres Promising Strike
However, there is no information yet on whether to collect entertainment tax or not", said the official. GST accounts for Rs. 28, Entertainment Tax accounts for Rs. 30 and other taxes account for Rs. 6.

Illinois Legislature to Miss Midnight Deadline to Pass Budget
And the downstate Republicans said they helped play a role in breaking the budget logjam. "We are so close I can taste it". Rauner called a 10-day special session to solve the budget crisis before the start of the fiscal year on July 1.

Markets have been awaiting data on market re-balancing but physical markets remain oversupplied and inventories remain elevated.

"Several factors risk tipping the market back into over-supply", Birch said.

"Therefore, this data still has very limited implications for US production this year", they wrote in a note Monday.

"After all, our work shows that the typical Opec output cut takes 3 to 5 quarters to impact the term structure of oil markets, the cartel's stated goal when it agreed to curb production last December". "The market ignored this, reacting instead to the slight decline in drilling activity in the US reported by Baker Hughes".

The U.S. dollar.DXY fell to its lowest since October in early trading on Friday, giving investors an incentive to buy dollar-denominated commodities such as crude oil.

Other reports by GlobalViralNews

Discuss This Article