Oil slides as rising US crude, gasoline inventories surprise

A bank employee counts U.S. dollar notes at a Kasikornbank in Bangkok

While OPEC agreed to stabilize oil prices by cutting production by 1.2 million barrels a day late a year ago, non-OPEC countries like the U.S. have quickly increased their production to compete for market share, leading to global oil prices fluctuating around the $50 per barrel level. A Wall Street Journal survey estimates that U.S. crude oil inventories would have fallen by 3.5 MMbbls between May 26, 2017, and June 2, 2017.

1990-After Iraq invaded Kuwait on August 2, the combined production of both countries-4.3 million barrels a day-was halted, according to the Energy Information Administration. For Organization of Petroleum Exporting Countries (Opec), it's likely to remain business as usual. Analysts think that, the risk would be Qatar walking away from the agreement with OPEC nations to curb its oil supply. Brent Crude was down 4.7% to $51.44 per barrel and the West Texas Intermediate was down 4.8% to $48.90.

Refinery crude runs fell by 283,000 barrels per day, EIA data showed, to 17.2 million barrels per day, from the previous week's record 17.5 million bpd rate.

Currently, oil prices gained support from growing tensions in the Middle East and signs of decline in U.S. inventory.

CNN reported late last month, however, that the entire spat with Qatar was sparked by a fake news report by Russian hackers.

On its part, OPEC has surprised each and every one with their high level of compliance with regards to the oil production cuts.

On May 25, OPEC and 10 non-OPEC partners including Russian Federation chose to roll over a 1.8 million barrels per day production cut agreement into March 2018.

As per an article published on MarketWatch, one analyst said that "increased tensions in the Middle East props up oil prices with a fear bid, but the dynamic of this Qatar issue is different because it is largely between Saudi Arabia and Iran".

But economics trumps nearly all, and the two's interests are certainly aligned in trying to reverse the damage done by Saudi Arabia's failed bid to squeeze USA shale drillers out of the market and the corresponding glut of supply forcing prices to painfully low levels - painful at least for oil producers.

United States crude futures fell 4.3%, or $2.04 a barrel, to $46.16 a barrel, as of 3.18pm GMT.

However, yesterday, Saudi Arabia and its allies announced that they were severing all ties with Qatar - an OPEC member.

Nymex reformulated gasoline blendstock-the benchmark gasoline contract-rose 1.40% to $1.53 a gallon. The figures added fuel to growing concerns OPEC's production cuts wouldn't be enough to offset growing US output thanks to contributions from American shale players. Oil prices had earlier fallen by more than 50 per cent in less than two years, from levels of over $120 a barrel.

Related News:

  • Sadiq Khan criticises 'ill-informed' Donald Trump's response to London attack

    Sadiq Khan criticises 'ill-informed' Donald Trump's response to London attack

    No reason to be alarmed ", Khan said while addressing residents. "It's shameful that we've reinforced a bully personality". President Trump has hurled more insults at London's mayor, Sadiq Khan .
    Juan Mata sends message to La Liga champions — Real Madrid

    Juan Mata sends message to La Liga champions — Real Madrid

    Madrid garnered a massive 17 points from game-changing goals scored in the last 10 minutes of nine different games. The so-called Madrid B-team rewarded the Frenchman by scoring 21 goals and winning all five of those games.

    Jail recording released showing Tiger Woods performing 2 breath tests

    Now, dash cam footage from the Monday morning arrest has been released, and it clearly shows how out of it Woods really was. He was arrested about 3 a.m. and released a few hours later on his own recognizance with no bond, according to records.
  • Warriors' Steve Kerr returns to the bench to coach Game 2

    That's what I was wondering after watching the Cleveland Cavaliers lose, 132-113, to the Golden State Warriors on Sunday night. What was so discouraging for the Cavs is that they played better in Game 2 but the result didn't really change.

    Explosion at corn milling plant rocks Wisconsin town

    Ehrhardt added that his son-in-law works at Didion Milling, but he was not working at the time of the explosion. A fire Monday night near a gas dryer in the plant was "totally unrelated" to the explosion, according to Clark.

    Indian-American girl wins Spelling Bee

    The sixth-grader from Fresno , California, won by spelling " marocain ", a French word for dress fabric made of ribbed crepe. She is also the 13th consecutive Indian-American victor ; 18 of the last 20 bees were won by Indian-Americans.
  • CT 2017: India thrash Pakistan in rain-interrupted tie

    Fast bowling has been their strength but losing Wahab Riaz is not something Pakistan would be amused with. Umesh Yadav took 3 wickets, Pandya and Jadeja took 2 wickets each and Bhuvneshwar took a wicket as well.

    Trump Believes Climate Change Is Real, Aide Says

    Her boss, however, has shaken up that image and raised doubts about America's global commitments. She also said Trump knows the U.S. has to be "responsible" with climate change.

    Prostate cancer trial stuns researchers: 'It's a once in a career feeling'

    According to the investigators, adverse events were consistent with experience for castration-resistant prostate cancer . Fizazi said a trial to see if Zytiga has a benefit when added to hormone therapy and chemotherapy is still under way.
  • Noel Gallagher is donating song royalties to Manchester fund

    Noel Gallagher is donating song royalties to Manchester fund

    Chris added: "Everyone knew in advance you couldn't be there physically, so thank you for being there in spirit". As reported by NME , Gordon Smart of Radio X defended the elder Gallagher.
    Piano-playing bear strikes viral chord at Colorado apartment

    Piano-playing bear strikes viral chord at Colorado apartment

    There have been no reports of violent interactions with animals within Vail in recent years, according to police. If this bear was looking for a standing ovation, he likely didn't realize he was playing for such a tough crowd.
    Halep and Svitolina advance to French Open quarterfinals

    Halep and Svitolina advance to French Open quarterfinals

    The pair fell out in April after Cornet and her Fed Cup team-mates taunted Garcia and have not been on friendly terms since. Svitolina will face Romaninan third seed and 2014 runner-up Simona Halep for a place in the semi-finals.


Most liked

Formula 1 veteran Robert Kubica tests F1 vehicle with Renault in Spain
Renault gave me my first F1 test in 2005, so I appreciate another test this time around", he continued. Renault revealed the test had taken place on Tuesday in a series of posts on Twitter.

Manila Casino Gunman Identified
The suspect torched gaming tables, slot machines and carpets before going to the storage room where casino chips were kept. Filipino police say they have identified the gunman behind an attack on a Manila Casino that left 37 people dead .

Apple Watch adds gym equipment integration, built-in Bluetooth
A crown at the top left corner of the screen also allows users to scroll through a list of timely news and content. In addition to these features, watchOS 4 comes with support for the new person-to-person Apple Pay feature.

Charles Barkley takes up Bettman's invitation to Cup Final
He also said among basketball players, "A lot of the brothers root for Seth Jones because his father [Popeye] played in the NBA". Sir Charles has been a hockey fan since his days with the Philadelphia 76ers following the 1990s Eric Lindros-led Flyers teams.

Foodpanda signs up Shah Rukh Khan as brand ambassador
The King Khan was invited to Dubai by the show team thinking he has an interview with Lebanese-Armenian presenter Nishan. Most viewers were shocked to see Shah Rukh so furious, nearly violent, upon realising that he had fallen for the prank.

Conway's Husband Clarifies Critical Trump Tweet, Still Supports President
In later tweets, Conway acknowledged that he supported the ban, but doubled down on Trump's error in sending those tweets. This was the second executive order President Trump signed on the matter.

Former Ravens pass rusher Elvis Dumervil signs with 49ers
The news of the Dumervil signing came not long after the Niners announced they have signed veteran cornerback Brandon Boykin. Look for this to happen, as San Francisco strives to upgrade what has been an anemic pass rush in recent years.

Solo climber is 1st up mighty California rock without ropes
The climb up 3,000-foot (914-meter) El Capitan used to take days to complete with the aid of ropes, safety gear and a partner. The first one he aborted in November after about an hour when conditions didn't feel right to him.

9 local guards dead, 11 Americans wounded in Kabul
The U.S Embassy and the North Atlantic Treaty Organisation mission in Kabul are also near, about a kilometer away from the site. Also in the area is Afghanistan's foreign ministry, the presidential palace and its intelligence and security headquarters.

Girl Thrown Out of Soccer Game Because She 'Looks Like a Boy'
They don't deserve to be disqualified for not fitting some outdated, sexist notion of what makes someone "look like" a girl. Tournament organizers even saw Mili's insurance card and were still not convinced.

China's Li: fighting climate change is 'global consensus'
He says, "I've seen some different press releases back and forth, so before I make an opinion, I want to sit down and read it". Trump has not given any indication of which way he is leaning, saying he'd been "hearing from a lot of people, both ways".

Robbie welcomed to One Love Manchester stage by Take That
Though Liam's sibling did not appear on stage, he was joined by Coldplay as he sang for the city he was brought up in. Seven people were killed and 48 were injured in that attack. "Evil will test us".

Putin urges 'joint work' with Trump on climate
He also said that the pact puts the United States at the mercy of foreign powers; in fact, the agreement is voluntary. He's said California's economy is proof that combating climate change isn't the economic deadweight Trump suggests.

Congress Roasted For Map That Marks Out 'Indian Occupied Kashmir'
"For Modi, the soldiers have become a shield to play politics and hide his failures", the PTI quoted him as saying. Referring to what he described as the abysmal GDP numbers of this quarter, Mr.

Putin ridicules claims of meddling in US vote
Trump, he said: "You shouldn't make a noise about this, but should create the conditions for joint work". He also rubbished claims the Kremlin had struck secret deals with Trump's team.