Crude futures advanced Monday morning in volatile trade, amid ongoing concerns that stockpiles will prove resilient to production cuts led by the global oil cartel.
A deal by the Organization of the Petroleum Exporting Countries with Russian Federation and other non-OPEC producers to cut supplies by around 1.8 million barrels per day (bpd) between January this year and March 2018 has so far not led to the tighter market and higher prices that producers have hoped for. My take? The world is tantalisingly near a short-term bottom in crude oil prices.
US drillers added two oil rigs in the week to July 14, bringing the total to 765, Baker Hughes said on Friday.
The demand figures from the IEA were backed up by recently released data from China showing that refinery demand in June was the second strongest on record. Three years ago, in July 2014, Brent crude traded at $110 a barrel, on the eve of an epic crash that saw the price of the world's preeminent light sweet crude benchmark plunge to $28 a barrel by February 2016.
In any case, as the North American land drilling rig count doubled, U.S. shale output took advantage of the rise in Brent after November 2017.
Oil steadied above $46 a barrel in NY after China's economic growth in the second quarter slightly surpassed expectations, while OPEC's commitment to supply curbs faltered. With things as they are now in the global oil market, it couldn't be a better time for Libya to restore its former status as a major oil supplier. The smaller increases are giving oil traders hope that the drilling boom could be curbed, which in turn would contribute to a tighter market.
While Libya's closest frenemies within OPEC reduced their oil output to stabilize the market, the North African country could be in a prime position to snag some market share. Equatorial Guinea, which became an OPEC member in May, also resulted in the OPEC output increase by 0.15 mbpd.
KPI plans to be able to refine 800,000 barrels a day outside of Kuwait within five years, including at a plant under construction in Vietnam, Rashidi said. Non-OPEC supply forecasts also continue to be revised upwards. The IEA saying that supply is a problem, yet demand is picking up was "a pillar of strength that we hadn't gotten in a while".
Ostia, tromba d'aria sulla spiaggia
Tromba d'aria si è abbattuta su Litorale di Ostia , almeno una decina i feriti. Tre pazienti con leggere contusioni, invece, in codice verde al Sant'Eugenio.
"The choices have increased and crude is available at competitive prices", said M. K. Surana, chairman of oil refiner Hindustan Petroleum Corp.
Weekly data from EIA shows that total U.S. oil production is close to 9.4 million bpd, the highest since August 2015.
Eurozone inflation slowed to a 6-month low in June as estimated, final data from Eurostat showed Monday. This is going to remain the biggest head-wind for oil prices. Global crude oil demand rose to 97.4 MMbpd in 2Q17. The IEA also expects that U.S. crude oil inventories will fall in 2017. This is latest in a series of price downgrades at major investment banks.
The bounce in prices could extend in the near term given that most of the bearish triggers have been baked into prices.
This led to speculative panic selling in the oil market and a 20 per cent decline in Brent crude to $46 six weeks after the Opec last met in Vienna. An extended rally towards higher resistance zone of Rs 3,100-3,120 now looks possible.
Looking ahead, Rs 2,900 is likely to provide immediate support and the short-term bias looks positive above the same.
Buying on dips is thus advised.