Oil declines to 2-week low as stocks slide

10 February, 2018, 08:55 | Author: Lora Ball
  • An offshore oil platform is seen at the Bouri Oil Field off the coast of Libya

The U.S. Energy Information Administration on Wednesday reported U.S. crude output climbed to 10.251 million barrels a day last week - a weekly record - mainly as a result of relentless shale production.

According to the agency's short-term energy outlook, Brent crude oil is forecast to average $62.39 per barrel in 2018, against EIA's Januray projections of $59.74/bbl.

The number of rigs drilling for crude in America jumped to the most in nearly six months, and US output breached 10 million barrels a day in November, the highest in more than 40 years.

"Brent crude oil spot prices averaged $69 per barrel in January, an increase of $5/bbl from the December level".

In contrast to declining domestic production, EIA estimates that growth in China's consumption of petroleum and other liquid fuels in 2017 was the world's largest for the ninth consecutive year, growing 0.4 million b/d (3%) to 13.2 million b/d. The 1.2-1.8 million-barrels-per-day cut in output, which was enforced from January 2017 in response to a sharp fall in crude-oil prices that hovered around $40 per barrel in late November, had some effect in driving prices higher.

Strengthening of the dollar is an unfavorable factor for commodity assets, prices of which are denominated in USA currency, as it increases the value of these assets for holders of other currencies. Stock indexes from Japan to Germany tumbled on Tuesday after a frantic sell-off in US shares sent the Dow Jones Industrial Average to its biggest loss in 6 1/2 years.

More news: PH gov't to seek other sellers if Canada refuses chopper deal

USA oil shipments to China have surged, creating trade between the world's two biggest powers that until 2016 just did not exist, and helping Washington in its effort to reduce the nation's huge trade deficit with China.

The futures market is in backwardation where prompt oil prices exceed those for future delivery 0#CL: , suggesting investors expect demand to outpace supply.

Oil services company Baker Hughes said total US onshore rigs rose by 26 to 791, the highest since April 2015 and the biggest one-week rise in a year. Whether this is a blip or the beginning of a longer term decline in crude prices is still an open question. Distillate production averaged over 5.1 million barrels a day last week, up about 500,000 compared to the prior week's production. Major indexes rose more than 1 per cent in a drastic swing after starting the session 2 per cent lower from Monday.

"Thus a real pain-trade has not yet hit the oil market", said Bjarne Schieldrop, head of commodity strategy.

The Forties pipeline, which carries around a quarter of all North Sea crude oil output and roughly a third of Britain's total offshore natural gas production, shut down on Wednesday for the second time in two months, after a feed control valve closed at its Kinneil facility in Scotland.

Recommended:

  • Knicks' Porzingis tears ACL in left knee

    Knicks' Porzingis tears ACL in left knee

    The club had been comfortable with the idea of offering Porzingis an extension this summer. Porzingis said it was his "dream come true" to make the All-Star team.
    Paris parade previews Trump's marching orders for DC

    Paris parade previews Trump's marching orders for DC

    She said Trump wants the Pentagon to "explore a celebration" that will allow Americans to show appreciation for the military. Norman Schwarzkopf who leads the Desert Storm Homecoming Parade in Washington , D.C, June 8, 1991.
    Syria conflict: United States  in rare counter-strike after Deir al-Zour attack

    Syria conflict: United States in rare counter-strike after Deir al-Zour attack

    At least 100 militants were killed in the Coalition's attack, a USA military official told reporters on Wednesday. No American troops were wounded or killed in the attack, however one SDF member was hurt.
  • Black Lives Matter activist shot, killed in New Orleans

    Black Lives Matter activist shot, killed in New Orleans

    The GoFundMe raised more than $20,000 in the first 20 hours of being posted, well over the $7,500 goal. Moye was active in the movement for racial justice after the police killing of Walter Scott .
    Terrorist Who Murdered Rabbi Raziel Shevach, Hy

    Terrorist Who Murdered Rabbi Raziel Shevach, Hy"d, Killed"

    Jarrar is thought to be behind the drive-by shooting attack that killed a Rabbi living in a nearby settlement of Haft Gilad. Twenty-one Palestinians have been killed since Trump's announcement, most in clashes with Israeli forces.
    Remembering the Munich Air Disaster

    Remembering the Munich Air Disaster

    Some surviving doctors and nurses involved in the treatment of manager Sir Matt Busby and his team were also in attendance. It is hoped as many as eight of the players who lined up through the schoolboy ranks with him will be there.
  • J&K police arrest four for terrorist's escape

    J&K police arrest four for terrorist's escape

    Another local militant Hilal, whose role has been ascertained in the case, remains at large along with the main accused Naveed. Naveed escaped from police custody after a shootout in SMHS hospital on Tuesday in which two policemen were killed.
    S Africa's Zuma clings on in face of uncertainty

    S Africa's Zuma clings on in face of uncertainty

    Opposition parties are demanding that a vote of no confidence be held to remove Zuma. Both Mr Zuma and the Guptas deny any wrongdoing.
    Mohamed Salah vows to stay at Liverpool

    Mohamed Salah vows to stay at Liverpool

    Salah did it in 23 games, and the last Liverpool player to do it quicker in top-flight football was Fred Pagnam in 1915. Salah told Marca that he could not comment on what Cuper had said and stressed he was happy at Anfield.
  • Arun Jaitley clarifies on cost parameter to calculate returns to farmers

    Arun Jaitley clarifies on cost parameter to calculate returns to farmers

    He also advised Rahul to learn "lessons on national security" from former Defence Minister Pranab Mukherjee. On Friday, BJP chief Amit Shah targeted the Congress for its attack on the government over the Rafale deal.
    Sonos made a playlist for Apple's HomePod launch

    Sonos made a playlist for Apple's HomePod launch

    If Siri finds a coffee shop that sounds to your liking, for example, there's no way to send that information to your iPhone. With the launch, Apple is taking on existing smart speakers, such as the Amazon Echo ($100) and Google Home ($129).
    Chopping out asparagus might cease breast most cancers spreading

    Chopping out asparagus might cease breast most cancers spreading

    Dr George Poulogiannis , Dr Michel Wagner and PhD student Marc Olivier Turgeon worked on the research that took place at the ICR. ER-positive breast cancer, diagnosed in two-thirds of breast cancer patients, is fueled by the presence of estrogen in the body.


Popular

Apple plays down iPhone source code leak risk
This could lead to new attacks and vulnerabilities for iOS, but jailbreaking might also come back. That means the release of the source code could amount to a gold rush for many researchers.

USA: Pelosi Demands Inclusion of Immigration Issue in Budget Law
Ryan insisted he's committed to bringing an immigration bill to the floor, but said it must be one that President Trump will sign. On Tuesday, Ryan said, "We're not going to bring immigration legislation through that the president doesn't support".

Trump orders big military parade in Washington
Defense Secretary Jim Mattis said the president's desire for a massive parade reflects his pride in the military. Republican Senator Lindsey Graham told reporters on Capitol Hill that a parade "makes sense", with some caveats.

Kim Jong Un holds military parade before start of Olympics
"We clearly state that we don't have a willingness to meet with the U.S. side during our visit to South Korea ". The band were expected to perform a mix of South Korean pop songs from the 1980s, as well as North Korean music.

General Motors Reports $5.2 Billion Loss on Charge for US Tax Reform
It worsened, as 66 investors sold GM shares while 322 reduced holdings. 96 funds opened positions while 242 raised stakes. Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of common stock.

North Korea hosts military parade on eve of South's Olympics
North Korean leader Kim Jong Un , wearing a black coat and hat, appeared with his wife Ri Sol Ju, who wore a black robe. A group of 280 North Koreans arrived in South Korea on February 7 to support athletes from the two sides at the Games.

Hip-hop star Drake surprises Miami women's shelter with $50000 donation
Drake has been in Miami filming a video for his new song " God's plan " which has been killing it on the various airways. I applied to scholarships a year ago for which I had to write an essay.

Georgia, Ohio State enter signing day vying for top class
Georgia flipped five-star linebacker Quay Walker from Alabama and four-star linebacker Otis Reese from MI . Kirby Smart and Georgia ended the early signing period with the No. 1 class in the country.

Disney Q1 Results Positive, Adds New ESPN App
Net income soared 78% to $4. 4 billion - largely as a result of the one-time benefit from the new federal tax laws. But many sports fans might be left wondering what exactly they are paying an extra five dollars a month for.

Carter Page: FBI 'shredded' Constitution by eavesdropping on him
Page said he used that description in connection to meetings he held in advance of an worldwide summit about global energy issues. Page has said that he's never spoken to President Donald Trump despite his status as a foreign policy adviser.