OPEC Pumping Record Amounts of Oil

OPEC Pumping Record Amounts of Oil

This comes on top of OPEC's most recent production report revealing a almost 340,000 barrels per day increase in May output versus April.

A day after OPEC complained that increased output in the USA was slowing efforts to rebalance supply and demand in the oil market, the IEA also suggested that the dynamism of U.S. producers could prove a headache for exporters.

Earlier in the session, the US Energy Information Administration (EIA) said the country's crude oil inventories fell by 1.7m barrels in the week through 9 June, well shy of analysts' expectations for a decline in the 2.7m to 3.0m-barrel range. Importantly, the IEA expected the increase in non-OPEC supply next year to be higher than the growth in overall global demand. "But then, we saw several pullbacks", said Michael Tran, director of global energy strategy at RBC Capital Markets.

However, rising US production has stymied OPEC's efforts to rebalance markets. But it said slowing demand growth in China and Europe in particular, as well as increasing supply, meant the deficit should narrow to 500,000 bpd from a prior estimate of 700,000. The rise has been driven by the oil price climbing back up after an initial deal by Opec and allies a year ago to cut production by 1.8m barrels of oil a day from January 2017.

The measures helped stabilise oil prices at the beginning of the year, with the worldwide benchmark Brent crude sticking above US$50 per barrel. Resurgent US tight oil production has been regarded as the biggest threat to its efforts.

"Based on our current numbers, assuming stable OPEC production, market deficits should be significant in 2H17, although adverse changes to demand and supply data can erode prospective stock draws", IEA said.

More news: LeBron James: Warriors' 'firepower' probably most I've seen

USA crude production has been steadily growing and last week rose to 9.33 million bpd, up 12,000 from the previous week, the EIA said. USA crude futures, meanwhile, were down 3.4 percent to $44.92 a barrel, the lowest intraday level since May 5.

But the agency also trimmed its forecast for supply-demand deficit in the second half of this year from 700,000 bpd to 500,000 bpd, such has been the pace of growth in supply in the United States, which has made up for most of the Opec/non-Opec cuts.

OPEC could decide to extend the cuts again at its next meeting in November. Iraq also passed Saudi Arabia as the number one supplier to India, the fastest growing oil consumer.

The renewal comes at a time when the global supply overhang has been depressing the oil prices and revenues for over the past three years.

While those supply reductions should eventually succeed, progress is much slower than expected, the IEA said.

Related Articles

  • Mourinho delighted to play Real Madrid in European Super Cup

    Mourinho delighted to play Real Madrid in European Super Cup

    United have been linked with Bale's Real Madrid teammates Alvaro Morata, Raphael Varane and James Rodriguez. We are still quite young as a whole team and we have a great squad.
    Russia Putin: Navalny urges people to join anti-corruption protests

    Russia Putin: Navalny urges people to join anti-corruption protests

    For that reason, he said he was unilaterally switching the venue to Tverskaya Street, Moscow's main avenue near the Kremlin. Navalny's key demographic among his supporters includes teenagers and students who have grown up only knowing Putin's rule.
    Hazmat called after geese poop on crowd at Disneyland park

    Hazmat called after geese poop on crowd at Disneyland park

    The tweet also mentioned that "guests were hit by fecal matter" from "geese that flew over", adding that there were "No injuries". Police and firefighters flocked to Disneyland on Friday, June 9, to address a problem affecting six kids and 11 adults.
  • Apple Now Allows Users to Tip with In-App Purchases

    Apple Now Allows Users to Tip with In-App Purchases

    This is set to hit the massive tipping economy in China where users pay content creators small sums of money via digital wallets. Take this app, called "QR code -", the 8th most profitable utility app in the App Store, according to Apple .
    Roger Federer comeback halted by Tommy Haas in Stuttgart

    Roger Federer comeback halted by Tommy Haas in Stuttgart

    Federer will play either Frenchman Pierre-Hugues Herbert or German Tommy Haas in the second round at Stuttgart on Wednesday. Federer reckons his rival, yet good friend, could well finish top of the rankings at the end of the year.
    Emirati diplomat to AP: 'Nothing to negotiate' with Qatar

    Emirati diplomat to AP: 'Nothing to negotiate' with Qatar

    He said: "The current crisis has nothing to do with the US Al Udeid Air Base in Qatar, as this is not an issue that concerns us". Meanwhile, Pakistan also chose to send military contingent to Qatar after a similar decision was made by Turkey.
  • Intel showcases new PC gaming, virtual reality experiences

    Intel showcases new PC gaming, virtual reality experiences

    Any team that can defeat any potential Intel Grand Slam victor , however, will earn $100,000. They're offering a $1 million bonus prize to te whoever wins 4-out-of-the-10 matches.
    All 30 candidates of Anand Kumar's Super 30 crack IIT JEE Advanced

    All 30 candidates of Anand Kumar's Super 30 crack IIT JEE Advanced

    On the basis of JEE Advanced 2017 results counselling will be held through JOSSA for admission to the IIT Students. Few Days Back IIT Madras released the answer key for the JEE Advanced 2017 in the official Portal on June 4.

    Sharing power, Southgate gives Kane captaincy against Scots

    Former Scotland worldwide Steve Nicol laments England's last-gasp equaliser as "unprofessional" defending by Scotland . They keep coming back at you", he said. "It was like watching a heavyweight boxer against a middleweight".
  • E3 2017: Metroid: Samus Returns announced for 3DS; Gameplay revealed

    E3 2017: Metroid: Samus Returns announced for 3DS; Gameplay revealed

    If music isn't one's beat, then the pair of Samus Returns amiibo should make for nice bonuses to grab alongside the game as well. What are your thoughts on Metroid: Samus Returns? And Nintendo did not show any games at this E3 so far from Retro.

    Draymond Green calls Cavaliers fans 'just rude' after mother's altercation

    Green finished with 16 points and 14 rebounds but the Warriors still lost 137-116 to the Cleveland Cavaliers . In the box score, Green was listed with one technical foul heading into the second half.

    Puerto Rico votes for statehood in referendum

    However, the results of these referendums were hardly reliable due to fact that most results favor whichever party was in power. Congress has final say on any changes to the U.S. territory's political status, regardless of the referendum's final outcome.