Crude falls back after U.S. oil producers up game

Open this

Prices had closed at a fresh three-year high Thursday, on the back of declining US crude stockpiles and perceived geopolitical risk to supply because of antigovernment protests in Iran.

Analysis by research firm Rystad Energy has found surging shale oil output could ramp up U.S. crude production by 10% this year, bringing the country's total oil output to nearly 11 million barrels per day.

OPEC does not officially set a target price for crude, but reportedly in February a year ago its biggest producer, Saudi Arabia, was aiming for a $60 barrel.

Week over week, US crude oil exports rose by 265,000 barrels a day last week and USA production increased by 28,000 barrels a day to 9.78 million.

"In our view, if the brent price averages around $60/bbl in FY18, inflationary pressure will rise, but will still be manageable".

According to the report, E&P companies would be aiming for profitable growth within existing oil acreage and cash flow, with improvement favoring companies with the greatest exposure to the best acreage and producers in the Permian Basin leading the way.

Meanwhile, a major winter storm this week helped support prices for crude and products, on worries that freezing temperatures could affect refinery infrastructure and lead to a spike in demand for materials such as diesel and heating oil.

Analysts at TAC Energy said oil's move lower "looks like a natural correction of the ongoing bull market". At its November meeting, the cartel agreed to extend its production ceiling to the end of 2018.

Crude oil futures extended strong recent gains Thursday morning after an industry survey showing another significant drop in USA inventories.

But in doing so, the organisation risks tightening the market too much, sending prices sharply higher and encouraging a faster-than-expected acceleration in production from USA shale producers. There is also concern that Russian Federation will double-cross the market and not cap its production as promised.

The alliance between Opec, Russia and other large producers to remove 1.8m b/d from the market since last January has had the biggest impact on draining bloated oil inventories. Supported by the global inventory drawdown and geopolitical woes, however, oil prices rose steadily in the fourth quarter of 2017 to end the year at above $60 per barrel WTI and $66 per barrel Brent.

While there is a risk they may take profits after recent gains, potentially pressuring the market if funds sell out of positions, there are reasons to suspect they will not be easily dislodged. A boost in exports from Iraq's south, the outlet for most of its crude, to a record 3.55 million bpd in December, offset relatively low shipments from the north, the survey found.

Related News:

  • Will CenterPoint use corporate tax savings to lower rates?

    Will CenterPoint use corporate tax savings to lower rates?

    Avista and Cascade Natural Gas have rate cases pending before the commission. Customers will not see immediate reduced rates or bill credits.
    No. 15 West Virginia women win sixth straight over Kansas

    No. 15 West Virginia women win sixth straight over Kansas

    The game remained knotted heading into a timeout at the 3:52 mark before a Sagaba Konate jump hook gave WVU a two-point lead. But the game remained closely contested until the closing minutes of regulation, tied at 51 with just over a minute to play.

    Southwestern Energy (SWN) Shares Bought by Wells Fargo & Company MN

    Beta, which measures the stock's volatility relative to the overall market, is a simple but effective metric for assessing risk. The energy company reported $0.06 EPS for the quarter, missing the Thomson Reuters' consensus estimate of $0.07 by ($0.01).
  • Michigan State basketball unmotivated in ugly win over Rutgers

    Michigan State basketball unmotivated in ugly win over Rutgers

    But a comeback would not be in the cards as the Scarlet Knights managed to score just nine points in those final eight minutes. But the issue was Rutgers had not taken enough advantage of a 6:05 scoreless stretch Michigan State had endured moments prior.
    Genworth Financial Inc (GNW) Stake Lowered by Brown Advisory Inc

    Genworth Financial Inc (GNW) Stake Lowered by Brown Advisory Inc

    Genworth Financial Inc . said on Wednesday it was pressing forward on its deal to be acquired by China's Oceanwide Holdings Co. About 1.97M shares traded. 1,783 shares were sold by STANSBURY HENRY TAYLOE, worth $257,109 on Wednesday, September 27.
    NYPD Investigating Terry Richardson for Sexual Assault

    NYPD Investigating Terry Richardson for Sexual Assault

    During the incident, Richardson also allegedly ejaculated on her chest and then continued to take photos . Another source said that cops were "looking into and speaking with those who were named in the media".
  • Hepatitis A exposure possible at food pantry amid outbreak

    Hepatitis A exposure possible at food pantry amid outbreak

    Investigators from several U.S. states are struggling with hepatitis A outbreaks that have been springing up across the country. Health officials are estimating that as many as 2000 customers may have visited that 7-Eleven location within that time range.
    Australian Open 2018: Billie Jean King wants Margaret Court Arena renamed

    Australian Open 2018: Billie Jean King wants Margaret Court Arena renamed

    She said she wished Court was at the Australian Open this year so they could have an open discussion about the issue. That Margaret has definitely homophobic views does not take away those accomplishments, no doubt about that.

    Stocks To Invest: Entegris, Inc. (ENTG), Target Corporation (TGT)

    NC now owns 5,450 shares of the retailer's stock worth $356,000 after acquiring an additional 1,450 shares in the last quarter. The stock of Sealed Air Corporation (NYSE: SEE ) has "Hold" rating given on Monday, June 12 by KeyBanc Capital Markets.
  • Bayern Munich Sporting Director Admits Interest in Coveted Schalke Star Leon Goretzka

    Bayern Munich Sporting Director Admits Interest in Coveted Schalke Star Leon Goretzka

    Bayern coach Jupp Heynckes had already praised the 22-year-old Goretzka in the previous days for his "brilliant development". It means he has been free to speak to foreign clubs since January 1.
    Tuesday forecast: temperatures remain frigid as cold snap continues

    Tuesday forecast: temperatures remain frigid as cold snap continues

    Wednesday's high in Madison was 12, 15 degrees below normal and 45 degrees below the record high of 57 for January 3, set in 1874. Signs and symptoms in adults include shivering, exhaustion, confusion, fumbling hands, memory loss, slurred speech and downiness.
    Kinder Morgan, Inc. (NYSE:KMI)

    Kinder Morgan, Inc. (NYSE:KMI)

    Smith Chas P & Associates Pa Cpas decreased Kinder Morgan Inc Com ( KMI ) stake by 10.42% reported in 2017Q3 SEC filing. Guardian Life Insurance Company Of America sold 24,468 shares as Kinder Morgan Inc Del ( KMI)'s stock declined 10.34%.


Most liked

World's richest man donates $33 million to fund scholarships for "Dreamers"
They also get no state aid in 44 states and and must pay out-of-state or worldwide tuition in more than 15 states. The organization now works with more than 70 low-priced colleges across 15 states.

Anthony Joshua, Joseph Parker heavyweight title fight set to be announced
The world heavyweight boxing unification fight between Anthony Joshua and Joseph Parker is poised to be confirmed. Parker is readying to fly to London for what is shaping to be an explosive first-up face-to-face meeting.

Magellan Midstream Partners, LP (NYSE:MMP) Steadying Above Moving Averages
Baystate Wealth Management Ltd Liability Company invested 0.04% in Philip Morris International Inc. (NYSE:KR) for 249,300 shares. The pipeline company reported $1.28 earnings per share for the quarter, beating the Zacks' consensus estimate of $1.26 by $0.02.

Harley-Davidson Target of Unusually High Options Trading (HOG)
As long as profit margins and other details stay intact, Harley-Davidson, Inc. can continue to provide value for investors. On average, analysts anticipate that Harley-Davidson, Inc. will post $3.87 earnings per share for the current fiscal year.

Bitcoin Conference Stops Accepting Bitcoin Payments Due To Congestion
The attendees of an upcoming Bitcoin conference have been told they won't be able to use the cryptocurrency to buy tickets. That won't stop organizers of this conference from trying again next year though, if there is a next year for bitcoin .

Hot Tickers: INSYS Therapeutics, Inc. (INSY), Hormel Foods Corporation (HRL)
The stock of BHP Billiton Limited (NYSE:BHP) earned "Sector Perform" rating by RBC Capital Markets on Wednesday, August 26. The investor is now holding $2.75 million shares due in part to a decrease of 2.42 million new shares in their portfolio.

Sandler O'Neill Lowers Valley National Bancorp (VLY) to Hold
One analyst has rated the stock with a sell rating, five have given a hold rating and five have given a buy rating to the company. To measure price-variation, we found AMZN's volatility during a week at 1.42% and during a month it has been found around 1.2%.

Ameriprise Financial Inc. Trims Stake in Scripps Networks Interactive, Inc. (NASDAQ:SNI)
The investor is now holding $11.18 million shares due in part to a decrease of 1.31 million new shares in their portfolio. Advisory Ser Ntwk Limited Liability Corporation holds 0% of its portfolio in Scripps Networks Interactive, Inc.

Tamil Nadu : Bus strike called off, services resumes after eight days
The move came after the Madras High Court appointed an arbitrator to settle the workers' wage dispute with the government. "The strike is being temporarily withdrawn keeping in mind the welfare of the people of the state", he had announced.

Rafael Benitez: 'Newcastle United are working on transfers'
Benitez admitted he will not allow anyone to leave St James' Park, unless they have a replacement ready to sign. Predict the score for this match and the rest of this round's Premier League fixtures in our Predictor game .

The Western Union (WU) Lifted to "Neutral" at Susquehanna Bancshares
The fund owned 45,698 shares of the credit services provider's stock after buying an additional 44,255 shares during the quarter. The regular trading started at $6 but as the trading progresses, the stock receded, ending the session with a fall of -4.96%.

More Than $4 Million in HUD Grants Awarded to Arkansas
Long Beach will receive about $8.19 million, Pasadena just over $3.25 million and Glendale slightly above $2.41 million. Family homelessness increased by 4 percent. "We know how to end homelessness".

Reduces Position in Express Scripts Holding Company (ESRX)
The figure tells us what earnings were generated from invested capital of Express Scripts Holding Company . RBC Capital Markets maintained the shares of ESRX in report on Wednesday, October 25 with "Hold" rating.

United Kingdom parking garage fire destroys roughly 1400 cars
Thankfully it seems the cars got the worst of it, with Merseyside Fire Service reporting no one was severely injured in the blaze. Merseyside Police said initial investigations indicate that an accidental fire within a vehicle caused other cars to ignite.

Kwara United players, officials involved in auto crash
The Ilorin based side are scheduled to face Niger Tornadoes in their first match of the new Premier league season on Sunday. Players and officials of Nigerian top-flight club Kwara United F.C. were involved in a road accident on Wednesday morning.