Oil markets cling to near three-year highs on tighter US market

Oil Surplus Returns       Both OPEC and IEA forecasts suggest stockpiles will grow again in 1H                          
                    .cha

The US Energy Information Administration (EIA) forecast mostly flat crude oil prices and increasing production in 2018 and 2019 in a latest update yesterday. An oversupplied market contributed to a sharp decline in crude oil prices, which dropped below $30 per barrel two years ago.

Singapore average refinery profit margins have fallen below $6 per barrel this month, their lowest seasonal level in five years.

"EIA estimates that Opec countries cut crude oil production output in 2017, but those cuts were offset by increased production in non-OPEC countries, especially the United States and Canada", John Conti, EIA acting administrator, said in a statement.

Prices have fallen for three years straight since then because of a meeting between oil-producing nations on Thanksgiving where Saudi Arabia, the biggest oil exporter, said it would not curb output to balance out an global glut.

US crude oil production is expected to hit 10 million bpd next month, behind only Russian Federation and Saudi Arabia.

The monthly average for February is expected to surpass 10 million bpd, said Tim Hess, the lead analyst for the report.

The rally has brought out some concerns that the market could overheat, especially as US production is expected to rise to new records.

Production from the Permian is expected to be 3.6 million bpd by the end of 2019, an increase of roughly 900,000 bpd from December 2017, and 32 percent of USA crude oil production in 2019. While this spike in demand is an opportunity for USA producers, it comes at a cost to consumers in the region. That was slightly below the five-year average of just over 420 million barrels, the target for OPEC and others cutting output. Demand is expected to climb an additional 340,000 bpd in 2019 to 20.65 million bpd, the agency said.

USA crude oil production is being forecast to average 10.3 million b/d in 2018, marking the highest annual average production in US history.

Saudi Arabia and a number of Persian Gulf producers reduced crude oil production in support of the agreement.

Overall, dry natural gas production averaged 73.6 billion cubic feet per day in 2017, up 1 percent from 2016. The average sale price of gas in 2017 was $2.42/gal. Customers buying gasoline at grocery stores and other independent retailers may pay more than those shopping at name-brand outlets after the biggest gasoline pipeline in the USA sprung a leak in Alabama on September 9.

Near-term outlook for USOIL remains constructive as crude prices clear the May 2015-high ($62.56), while the Relative Strength Index (RSI) extends the bullish formation from the previous month and pushes deeper into overbought territory.

Related News:

  • Analyst's Ratings : Valeant Pharmaceuticals International, Inc. (NYSE:VRX)

    TheStreet upgraded shares of Valeant Pharmaceuticals Intl from a d rating to a c- rating in a report on Tuesday, November 7th. It has underperformed by 65.21% the S&P500.The move comes after 6 months positive chart setup for the $8.29 billion company.

    How Wisconsin politicians responded to Trump's 'shithole' comment

    On Twitter , President Macky Sall of Senegal wrote: "I am shocked by President Trump's comments on Haiti and Africa". Durbin, a key negotiator in DACA talks, recounted the meeting on MSNBC Friday, saying, "He said, 'Haitians ".
    By Kieran Gill for the Daily Mail

    By Kieran Gill for the Daily Mail

    But Riley has expressed caution, warning VAR technology will not correct all of the injustices witnessed during matches. I think Chelsea will be more hard to play against at The Emirates. "The VAR would have pulled me back if it was ...
  • Howard Weil Upgrades Patterson-UTI Energy (PTEN) to "Sector Outperform"

    Encompass Capital Advisors Llc sold 403,712 shares as Patterson Uti Energy Inc ( PTEN)'s stock declined 16.81%. (NASDAQ: PTEN ). The last close places the company's stock about $5.06 off its 52 week high of $29.76 and $9.87 above the 52 week low of $14.83.

    Constellation Brands, Inc. (NYSE:STZ) Shares Bought by Prudential Financial Inc

    The company reported $2.00 earnings per share for the quarter, beating the Thomson Reuters' consensus estimate of $1.87 by $0.13. In general, more thrust is placed on most recent actions by assigning higher weights to it than those assigned to past movements.
    Satellite images reveal North Korea may be preparing another missile test

    Satellite images reveal North Korea may be preparing another missile test

    Satellite imagery shows "significant tunneling" at North Korea's Punggye-ri nuclear test site, a report revealed Thursday. The accident is believed to have been caused by Kim Jong-un's last nuclear test which weakened the mountain.
  • Natalie Portman Presents Best Director: 'Here Are the All-Male Nominees'

    Natalie Portman Presents Best Director: 'Here Are the All-Male Nominees'

    And on that note, there has NEVER been an all-female group of director nominees, and in all honesty, we'll probably never see one. The night may have started off hours before Oprah's speech, but it was her moving words while accepting her Cecil B.
    Russian Federation  dossier already responsible for one death, claims lawyer

    Russian Federation dossier already responsible for one death, claims lawyer

    Feinstein told NBC News, "The one regret I have is that I should have spoke with Senator Grassley before". She also said she "had a bad cold" that may have "slowed down" her thinking.

    Harris slams Trump for 'hateful words' amid immigration debate

    Graham was at the Oval Office Thursday to present a bipartisan agreement to overhaul the nation's immigration system to Trump. Durbin, a key negotiator in DACA talks, recounted the meeting on MSNBC Friday, saying, "He said, 'Haitians ".
  • Major Changes for Troubled Youth Prison

    Major Changes for Troubled Youth Prison

    Up to three new prisons would be in southeastern Wisconsin near Milwaukee, though the sites have not yet been chosen. His plan doesn't call for opening the new regional prisons until 2019 at the earliest.
    Naby Keita to become a Liverpool player this weekend?

    Naby Keita to become a Liverpool player this weekend?

    That's not going to cut it with the Liverpool fans will are desperately searching for any hint he will arrive in January. However, they were quickly quashed by Liverpool Echo reporter James Pearce.
    Dark Souls 1 Reportedly Being Remastered for Multiple Platforms

    Dark Souls 1 Reportedly Being Remastered for Multiple Platforms

    The most recent entry in the Dark Souls franchise, Dark Souls 3, came to consoles and PC in early 2016. It's unclear what the resolution and frame rate are on a standard Xbox One or PS4 at this point.


Most liked

WTA Sydney - Angelique Kerber beat Ashleigh Barty to win a title again!
Kerber , the 2016 Australian Open champion, won four consecutive singles matches at the Hopman Cup, followed by five in Sydney. It is her 11th career WTA title and positions her as one of the favourites for the Australian Open.

Stock Notebook: Take-Two Interactive Software, Inc
Shares of Take-Two Interactive Software (NASDAQ TTWO) traded up $0.32 during midday trading on Tuesday, reaching $117.30. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) has "Buy" rating given on Friday, November 10 by BMO Capital Markets.

SC asks Maha govt to bring all records of Loya's death
The issue came to spotlight in November 2017 after media reports, quoting his sister, fuelled suspicion about his death. In his plea, Poonawala contended that the circumstances around the death of the judge were questionable and mysterious.

Claressa Shields vs. Tori Nelson live stream
Hammer (22-0, 10 KOs) said she couldn't wait to make her USA debut. "I think she's pretty scared, to be honest". It looked as if Shields would get her icing on the cake with a knockout in the tenth as she had Nelson reeling.

Android 8.0 Oreo update rolling out to unlocked HTC 10
To manually download the update, Android Police suggests user to download the 1.8GB RUU package from the official HTC site. As promised during the launch of the device, Xiaomi had rolled out the Android 8.0 Oreo update to Mi A1 on 31 December.

Banco Santander, SA (SAN) Given Consensus Rating of "Hold" by Brokerages
Zacks Investment Research lowered Banco De Chile from a "hold" rating to a "sell" rating in a report on Tuesday, January 2nd. The firm operates in six divisions: Surveillance, Instruments, Security, OEM and Emerging Markets, Maritime, and Detection.

LeBron James called out of bounds on potentially game-winning possession
But the Cavs have often looked old, slow and disinterested this season - which is precisely how they looked Thursday night. That's true and Cleveland likely won't consider Toronto a real threat until they provide a post-season scare.

India bracing for next match as SA coach fires pace warning
However, Rahane struggled to get going in India's 1-0 win over Sri Lanka in the three-Test series past year . But we chose to go with this combination and current form was definitely the criterion.

Altaf Bukhari Says Don't need lessons on education From Army Chief
Rawat said diplomatic efforts were under way and border demarcation talks were on between Bhutan and China. The Army chief noted that opening more public and CBSE schools was the way forward.

Trump's Reported Expletive Hits Home for Connecticut Immigrants
Overshadowing the event was mounting backlash from Trump's comments during a private meeting with lawmakers the day before. That's according to three people who were briefed on the conversation but weren't authorized to describe it publicly.

Tanger Factory Outlet Centers, Inc., (NYSE: SKT) - Investor's Alert (Volatility in Focus)
Arizona State Retirement System boosted its stake in shares of Tanger Factory Outlet Centers by 1.8% during the second quarter. Geldner sold 2,250 shares of Tanger Factory Outlet Centers stock in a transaction that occurred on Tuesday, November 28th.

Plains All American Pipeline, LP (NYSE:PAA) MF Rank in the Spotlight
It dived, as 59 investors sold MMM shares while 612 reduced holdings. 9 funds opened positions while 29 raised stakes. (NYSE:CLH). Credit Suisse Group initiated coverage on shares of Plains All American Pipeline in a research report on Thursday, January 4th.

Flores responds to Trump's controversial remarks about other nations
Baltimore Mayor Catherine Pugh said Trump is arguably the most influential person in the country and possibly the world. To believe otherwise is to oppose the very idea of America. " It was a heartbreaking moment ", Durbin said.

Presentata un'offerta ufficiale al Barcellona
Sarebbe questo l'ultimo gradino da superare per portare il brasiliano a Milano. "Il Barcellona è un osso duro, non è fatta come si dice".

Silicon Motion Technology Corp. (NASDAQ:SIMO) Shares Sold by Nationwide Fund Advisors
It has outperformed by 4.76% the S&P500.The move comes after 7 months negative chart setup for the $1.84 billion company. Royal Commercial Bank Of Canada holds 0% of its portfolio in Skyline Corporation (NYSEAMERICAN:SKY) for 124,411 shares.