Oil prices fall as OPEC output, United States crude stockpiles rise

The International Energy Agency mirrored OPEC's sentiments in its own monthly report, saying stronger US crude oil production, which could increase faster than expected, is offsetting OPEC's production aim.

In the United States, which is not participating in any deal to hold back production, oil output C-OUT-T-EIA has risen more than 10 percent over the past year to 9.3 million bpd, and the Energy Information Administration (EIA) expects that figure to rise above 10 million bpd in 2018. Commercial crude oil inventories also fell less than projected, highlighting weak demand even as the US enters its summer driving season, when many vacationers take to the roads.

US crude futures fell by 1% to trade at $45.97 a barrel after the report was released.

Crude prices fell in Asia on Wednesday after disappointing figures from industry on USA inventories overnight and shrugging off upbeat industrial figures from China, though the market is awaiting official data later in the day.

Crude prices have fallen more than 10% since late May, pulled down by heavy oversupply despite a move led by the Organization of the Petroleum Exporting Countries to curb production.

Both contracts hit their lowest since May 5, driving them into technically oversold territory. With supplies plentiful, strong demand is needed to drive the market, but there are signs of a slowdown.

It also put Iran's refinery capacities growth rate per annum at 2.0 percent in 2016.

What was James Comey thinking when he met with Trump?
Unfortunately, one thing may come between Comey's truth and the public's ears - President Donald Trump . Congress voted to hold Attorney General Eric Holder in contempt for failing to turn over the records.

"Our first outlook for 2018 makes sobering reading for those producers looking to restrain supply", the IEA said in its monthly oil market report.

Traders said the slight increases were a result of the threat of a partial export halt in Libya.

OPEC on June 13 said a long-awaited rebalancing of the oil market was under way at a "slower pace" and reported that its own output in May jumped due to gains in nations exempt from a pact to reduce supply.

OPEC's pledge was to cut some 1.2 million bpd, while other producers including Russian Federation would bring the total reduction to nearly 1.8 million bpd.However, some OPEC members including Nigeria and Libya have been exempt from cutting, and their rising output undermines efforts led by Saudi Arabia.

Oil stocks are near record highs in some parts of the world, and producers outside the Opec deal are increasing output.

The EIA expects US output to grow by 460,000 bpd in 2017, while OPEC forecasts USA production to increase by 800,000 bpd in 2017.

Related Articles

  • Artist shares stories and songs at Langley's Relay for Life

    Artist shares stories and songs at Langley's Relay for Life

    As the survivors pass by, clapping and celebrating to the upbeat music, the memories of all those lost over the years surfaces, too.

    Korea trip off to uncharacteristic low-key start

    US diplomats, members of Congress and North Korea experts also were hesitant to declare a new chapter in bilateral relations. PYONGYANG, North Korea (AP) - Dennis Rodman's visit to North Korea has been uncharacteristically low-key so far.
    Former Corbyn critic Jess Phillips she is eating humble pie after election

    Former Corbyn critic Jess Phillips she is eating humble pie after election

    On Thursday, Mr Corbyn's party exceeded expectations and won 40.3 per cent of the vote - leaving Prof Goodwin with little choice but to go through with his promise.
  • TDP MP creates ruckus at Vizag Airport, Airlines takes him on board

    TDP MP creates ruckus at Vizag Airport, Airlines takes him on board

    Interestingly, the MP managed to board the flight but it was not clear who intervened to get him the boarding pass. Hours after tweeting that he would get the incident probed, Raju said there was no need for probe.

    Expert warns Oil may touch $30

    The majority of non-OPEC countries registered substantial declines in their 2016 average crude production, as compared to 2015. Oil prices are trading lower this afternoon.
    Democrats to back Republican opposition of Saudi arms deal

    Democrats to back Republican opposition of Saudi arms deal

    The Senate, which rejected Paul's plan on Tuesday, should have finally told the Saudis no more support until they stop the abuses. The United States has provided other assistance in the form of intelligence and refueling for Saudi aircraft on bombing missions.
  • Fox News Dropping 'Fair & Balanced' Slogan After Two Decades

    Fox News Dropping 'Fair & Balanced' Slogan After Two Decades

    The veteran opinion maker said he was "target No. 1" for liberal activists seeking to silence voices they don't like. If you take hands off the wheel, it pulls hard to the left, '" as one senior producer puts it.
    Panama switches diplomatic recognition from Taiwan to China

    Panama switches diplomatic recognition from Taiwan to China

    Panama had been among the largest economies to have maintained diplomatic relations with Taiwan . Beijing views it as the political foundation between Taiwan and mainland China .
    Clinging on to her job, Britain's May appoints new ministers

    Clinging on to her job, Britain's May appoints new ministers

    Or to put it another way, the deal with the DUP represents life or death both for the new government and for Mrs May as PM. May has said she intends to stay as prime minister despite failing to win a Conservative majority in the election.
  • ICC Champions trophy : Ben Stokes picks fight with Imad Wasim during match

    ICC Champions trophy : Ben Stokes picks fight with Imad Wasim during match

    Most teams have tried to swing the ball up front, and when it hasn't they have struggled to take wickets in the middle overs. However, the counter to that is fielding first means you don't have to worry about calculating what a good score might be.
    44 per cent senior citizen treated badly in India

    44 per cent senior citizen treated badly in India

    The nationwide survey pointed out that one out of two elders experience mistreatment and abuse in public places across India. Elder abuse can lead to an increased risk of nursing home placement, use of emergency services, hospitalization and death.
    Michigan officials charged in Flint Legionnaires' outbreak

    Michigan officials charged in Flint Legionnaires' outbreak

    Rick Snyder said he is standing behind two state officials who were charged for their alleged role in the Flint water crisis . A failure to treat the water properly also caused lead contamination in the water supply for the city of 100,000.