Sci-tech

Finance News: OPEC Forecasts 1.3% Oil Demand Growth Next Year

Finance News: OPEC Forecasts 1.3% Oil Demand Growth Next Year

The oil cartel is composed of sovereign nation members, but shale oil producers are American private companies, making it harder for OPEC to have intergovernmental contact with the US shale sector.

Many traders and analysts say most of the agreement's benefits are being reaped by USA producers, who are flooding the market.

Rising production from OPEC is threatening that progress, the IEA warned. According to the latest estimates, compliance declined to 78% for June from 95% in May.

Libya and Nigeria, which are not subject to Opec's cuts, have produced a combined output increasing by more than 700,000 bpd over the past few months, the France-based energy agency said.

Despite a record drawdown from US oil inventories and the fact that Saudi exports to the United States are at a 30-year low, the International Energy Agency (IEA) is backtracking its prediction of a global oil market rebalancing because of an increase in OPEC oil production.

The IEA report followed the publication of OPEC's regular monthly oil report, which lowered its forecast for worldwide demand for supply from its members next year to around 32.2 million barrels per day. It reported that United States crude oil inventories fell 7.5 MMbbls (million barrels) to 495.3 MMbbls between June 30, 2017, and July 7, 2017.

Early Thursday morning, WTI crude for August delivery traded at $45.75 a barrel, up about 0.6% compared with Wednesday's closing price.

Supply issues will tend to remain the dominant short-term focus with more positive rhetoric from OPEC needed to revive confidence, although choppy trading conditions are liable to continue. This was driven by higher production even in those countries subject to an OPEC-led deal to cut production.

It wrote, "Given that the market is now out of patience for large stock draws and increasingly concerned about next year's balances, we believe that price upside will need to be front-end driven, coming from observable near-term physical tightness and signs of a USA shale activity slowdown on a sustained basis in coming weeks".

Not only has Libya's oil production rebounded, but it also appears that these gains are not temporary. Civil war and other violence caused Libyan production to declineby as much as 90% from its post-Qaddafi high of 1.5 million bpd in 2014. However, lasting price movements could be limited over the next year because some US tight oil producers have used financial instruments to guarantee a price above $50/b for their expected production.

On the impact of the slow production on Nigeria's budget, Mr. Kachikwu said with projected 2.2 million barrels and benchmark price of price of $42.50 per barrel approved in the budget, the country lost about four months due to delay in the approval of the budget.

The EIA also reported that gasoline supply fell by 1.6 million barrels as demand for gas surged again last week and cut the deficit year over year by half.


  • 'Clock is ticking' on Brexit negotiations, says chief European Union  negotiator Barnier

    'Clock is ticking' on Brexit negotiations, says chief European Union negotiator Barnier

    Mr Barnier is to be congratulated on his little bon mot - the man knows how to deliver a line - but that doesn't mean his version. "I'm not hearing any whistling, just the clock ticking", Barnier said , when asked by a reporter if he could whistle a tune.
    Police hunt for suspect who killed 3 in Alabama

    Police hunt for suspect who killed 3 in Alabama

    Jefferson County Chief Deputy Coroner Bill Yates said investigators were still at the scene and no identities were available. In Pennsylvania , he was charged in two separate sexual assault cases in 2015, for which he was jailed and released on bail.
    IPhone 8 Rumor: Apple Still Struggling WIth Wireless Charging, 3D Sensor Software

    IPhone 8 Rumor: Apple Still Struggling WIth Wireless Charging, 3D Sensor Software

    The report even suggests Apple may rely on the 3D sensor for authentication in lieu of the familiar Touch ID fingerprint scanner. A new report claims that Apple engineers and designers are having trouble fixing software issues with the the newest iPhone .
  • Qatar Airways to launch new service to Ukraine

    Qatar Airways to launch new service to Ukraine

    Qatar Airways has announced that it will launch a new direct service to Kiev, the capital of Ukraine, from August 28, 2017. A Qatar Airways A350 press conference with Qatar CEO Akbar Al Baker at center.
    Heavy rains trigger Flood Watch across the area

    Heavy rains trigger Flood Watch across the area

    Flash flooding quickly poses danger to motorists and those living in low-lying areas, according to the NWS. Flash flooding amid severe thunderstorms and heavy rains is affecting travel in parts of MI .
    Confirmation hearing today for FBI director nominee

    Confirmation hearing today for FBI director nominee

    Wray's resumé pales in comparison to those that his predecessors had under their belts before assuming the role of FBI Director. He said he's never been asked, nor would he give, the president a loyalty pledge, as Trump allegedly asked Comey for .
  • FDA Votes In Favor Of Gene Therapy To Treat Childhood Leukemia

    FDA Votes In Favor Of Gene Therapy To Treat Childhood Leukemia

    Others are expected: Researchers and drug companies have been engaged in intense competition for decades to reach this milestone. The drug enables patients' own immune cells to recognize and kill the source of the cancer: a different immune cell gone awry.
    Jimmy Carter treated for dehydration in Canada

    Jimmy Carter treated for dehydration in Canada

    A spokesperson for the Habitat for Humanity said all additional updates would be coming from the Carter Center in Atlanta. Earlier in the morning, Carter spoke to the volunteers and media about his involvement with Habitat for Humanity.
    Yellen keeps options open on rate hikes

    Yellen keeps options open on rate hikes

    In Europe, futures for the Eurostoxx 50 and the DAX were both up 0.3 percent, while the FTSE was 0.2 percent higher. But she said it was unclear when inflation would start to pick up in response to the strengthening economy.
  • Justice Dept. announces crackdown on opioid abuse by doctors

    Justice Dept. announces crackdown on opioid abuse by doctors

    Sessions cited the example of a group in MI , including six doctors, who billed Medicare for $164 million in false claims by prescribing unnecessary opioids.
    Facebook Messenger Home Screen Ads Might Probably Put Off Some Users

    Facebook Messenger Home Screen Ads Might Probably Put Off Some Users

    Lastly, " Sponsored messages " will allow businesses to re-engage with people who have previously started conversations with them. For now, ads on the Messenger app's home screen is still in beta, and Facebook has more time to improve its implementation.
    US Missile Defense System Completes Successful Test

    US Missile Defense System Completes Successful Test

    Chris Johnson, MDA Dir. of Public Affairs, said Tuesday morning that he couldn't comment much further on details of the intercept. China and Russian Federation both fear the system's advanced radar could be used to peer into their own territory.