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Oil Futures Climb 1 Percent After US Stockpile Draw

02 Juin 2017

Falih, who now holds the OPEC presidency, said after the May 25 meeting that keeping the existing cuts for another nine months was the best outcome.

The trading range between $US45-$US55 is "the path of least resistance", said Bill O'Grady, chief market strategist at Confluence Investment Management in St. Louis, in a telephone interview.

Meanwhile, the strengthening relationship between Russian Federation and Saudi Arabia, two of the main players in the OPEC balancing effort, could signal a new axis in market influence.

While costs for shale production, known as tight oil, are edging higher now, expenses associated with deep-water drilling is finally coming down, Rodger said. If that's the case, the oversupply is likely to last until 2019.

Analysts at Rystad Energy are predicting us crude oil output could top an old record set in November 1970 by the end of the year.

Goldman Sachs has cut their crude oil forecast for Brent from an average of $56.76 to $55.39 a barrel and for the WTI from $54.80 to $52.92 a barrel.

The official selling price of a basket of Malaysian crude oil for May loading has been set at $53.63 a barrel, the lowest since last November, Malaysian state oil firm Petronas said on Thursday.

"And, now, with the last week's decision of the OPEC and non-OPEC countries to continue their cooperative efforts, we have seen further momentum in the right direction, indicating a steady re-balancing of the market".

Global rating agency Standard & Poor's (S&P) has confirmed the long-term rating of Ukraine, both for national and foreign currencies. The agreement created to cut the participants' oil production is expected to reduce the oversupply of crude oil in the global market in order to back higher oil prices. Over the past 12 months, Exxon stock has traded down about 9.6%. "It's going to a number of locations but increasingly Asia, where the real global battle for market share is on".

"While we are bullish on near-term prices as inventories normalise".

"It is in our strategy in the future that maybe we will consider hedging part of Iraqi crude; SOMO is floating an idea now and this is yet to be studied", Falah al-Amri, who is also Iraq's OPEC governor, told Reuters in an interview. They even reached the level that used to be prior to the so-called Vienna Accord. It estimated that large operators such as Anadarko Petroleum Corp. and Marathon Oil Corp. are expected to increase output by 400,000 barrels a day, with smaller independent producers projected to add a further 100,000 barrels. As a result, these producers have managed to produce more oil with fewer rigs, due to the use of longer laterals, and more pressure pumping, bringing down their break-even oil price from over $80 per barrel in 2014 to $50-$60 per barrel at present.

One more risk for OPEC deal: Iran said its current crude oil output level will not be reduced under the extension of the OPEC production cuts.

Oil Futures Climb 1 Percent After US Stockpile Draw