Home » Money

Oil drops 2% as United States climate withdrawal compounds glut concerns

06 June, 2017, 06:37 | Author: Paula Vaughn
  • Oil falls on potential undermining of OPEC-led deal

Oil rebounded from the lowest close in more than two weeks after industry data showed USA crude stockpiles extended declines, easing an inventory overhang.

"Trump seems to be removing any barriers he can find that would obstruct growth of crude oil or natural gas", said Stewart Glickman, energy equity analyst at CFRA in NY.

The Organization of the Petroleum Exporting Countries pledged to reduce output by about 1.2 million barrels per day (bpd) for six months from January 1 as part of a deal with Russian Federation and other non-members.

On Monday the price of oil went up slightly as caution ruled the market as it increasingly becomes clear that the OPEC-led efforts to reduce supplies are being undermined by drilling activity in the United States. The African producer now cranks out around 830,000 barrels a day, a huge jump compared with the sub-300,000 barrels a day seen in last July.

U.S. President Donald Trump's withdrawal from the Paris agreement, the landmark 2015 global pact to fight climate change, drew condemnation from Washington's allies and many in the energy industry - and sparked fears that U.S.

Both crude benchmarks fell by about 3 percent to three-week lows on Wednesday after news that an increase in Libyan oil production helped to boost monthly OPEC crude output in May, the first monthly rise this year.

Crude stockpiles were down by 6.4 million barrels in the week to May 26, compared with analysts' expectations for a decrease of 2.5 million barrels. While U.S. stockpiles have edged lower, rising American production and drilling is fanning concerns that OPEC's efforts to trim a global glut will be hampered.

Veterans Affairs to revamp how it stores veterans' health information
The decision to purchase a new commercial system rather than fix the VA's in-house system, called VistA, was long-awaited. Shulkin said there is a public interest exception that necessitated fast-track approval.

However, US crude production rose to 9.34 million bpd last week, up almost 500,000 bpd from a year ago.

Higher supply from Nigeria and Libya, OPEC members that are exempt from the production-cutting deal, offset improved compliance by others.

During the reporting period, the Organization of Petroleum Exporting Countries and its partners extended their existing cuts by nine months.

In its weekly rig-count report issued Friday, oil services group, Baker Hughes said 11 extra rigs were being used to look for oil last week taking the figure in total to 733.

In Libya, output has recovered to 827,000 bpd after technical problems were resolved at the Sharara field. Speculators fled bearish positions for a second week.

Russia's Rosneft CEO Igor Sechin also said the market can not stabilize unless all producers cut output.

"As these numbers are getting confirmed, the initial optimism about OPEC's temporary cuts, may turn to increasing skepticism about OPEC's choice of policy once the current output deal expires next year", Tonhaugen said.

Recommended:

  • Trump Has Asked The Supreme Court To Revive The Travel Ban

    Trump Has Asked The Supreme Court To Revive The Travel Ban

    The Supreme Court sits from early October to the end of June, and is no longer scheduling cases for arguments during this term. Thursday's filing reflects numerous same arguments that administration lawyers have made in the lower courts.
    'Wonder Woman' Review: Her Time Has Come

    'Wonder Woman' Review: Her Time Has Come

    That was when the Lebanese campaign against Gadot's movies began, as the same campaigners sought to bar Batman Vs Superman . So what is the truth? To date, only Lebanon has chose to ban the film, which was inspired based on character in DC Comics.
    Kendall Jenner reacts to Caitlyn

    Kendall Jenner reacts to Caitlyn "dissing the Kardashians"

    In another clip, we see that Kendall Jenner has finally learned of the things said in the memoir and is visibly livid about it. Caitlyn spilled the beans about her failed marriage to the family matriarch, Kris , including details about their sex life.
  • Grande returns to Manchester to honor victims with benefit

    Grande returns to Manchester to honor victims with benefit

    American fans were able to watch the concert on the cable channel Freeform, as well as Grande's YouTube and Facebook pages. Grande came back onstage to sing Fergie's verse on the Black Eyed Peas hit, "Where Is the Love?" with the group.
    India hopes new rocket can carry humans into space

    India hopes new rocket can carry humans into space

    The rocket is powered by an indigenous engine that uses liquid oxygen and liquid hydrogen as propellants, Kumar told reporters. GSLV-Mk III is the heaviest rocket ever made by India and is capable of carrying the heaviest satellites made till date.

    Trump withdraws US from Paris climate deal

    The announcement follows Trump's decision to pull out of the climate deal that almost 200 nations agreed to in late 2015. Over 180 mayors snubbed the President's announcement by affirming their commitment to the Paris accord at a city-level.
  • Defending champ Nordqvist shoots 7-under 64 for LPGA lead

    Defending champ Nordqvist shoots 7-under 64 for LPGA lead

    With Ryu's streak ended, Stacy Lewis becomes the tour's active leader in consecutive cuts made, with 49, including this event. She triumphed in five tournaments last year, including the Women's British Open, but has not yet won one this year.

    $3.8 billion Dakota Access oil pipeline begins service

    At least 761 people were arrested during the standoff, according to The Associated Press . Fortunately, no waterways were affected in the incidents.
    Time Warner's 'Wonder Woman' Jump-Starts Summer Box Office, Female Superhero Genre

    Time Warner's 'Wonder Woman' Jump-Starts Summer Box Office, Female Superhero Genre

    Wonder Woman closes out its opening weekend with $100.5 million in domestic ticket sales, according to Warner Bros . projections. Director Patty Jenkins now holds the record among female filmmakers for the most lucrative opening weekend ever .
  • New smart speaker expected as Apple kicks off conference

    New smart speaker expected as Apple kicks off conference

    As Schiller introduced the device, he acknowledged that there are several other smart home speakers available on the market. All information is recorded locally on the device and sent to Apple servers encrypted using an anonymously Siri identifier.
    Gators roll in softball World Series opener

    Gators roll in softball World Series opener

    The Aggies enters the Women's College World Series with a 47-11 record and are making their first appearance in OKC since 2008. And Florida's younger players have grown up fast after their crushing super-regional loss to Georgia previous year .

    House committee issues subpoenas; Comey OK'd to testify

    The committee was due to interview 10 witnesses this month, but its senior Democrat objected the move, sources told Politico . Schiff said that in both Sessions' and Nunes' cases, "commitments to recuse themselves have not been fully honored".


Popular

Man jumps through wayward car's window to stop it
The video from the Dixon Police Department shows a vehicle moving slowly, running a red light, and heading into oncoming traffic. An Illinois man put his life on the line to help a driver having a seizure , possibly saving many lives with his heroics.

Will take Mamata on board, says Sushma
I reject both these allegations", she said. "We are trying to find out if any Indians are stuck there", she told reporters. Top officials of the two countries still met in the following months; but could not cap the downward spiral in relations.

Thad Matta out as basketball coach at Ohio State
More realistic names that have already surfaced include Chris Mack, Chris Holtmann and Mick Cronin. We weren't winning the battles in recruiting that I thought we might have change to win as he did".

Trump to embrace privatization of air traffic control system
House Transportation and Infrastructure Committee Chairman Bill Shuster , R-Penn., has proposed using NavCanada as a model. But it remains to see if the proposal retains the backing of another critical organization - the controllers union.

Top journalist dismisses Arsenal's mega-bid for Mbappe
He said: "The player would tell you that I was at his home a year ago to try to get him here". Mbappe scored 23 goals this season and the 18-year-old is Europe's most wanted young striker.