GulfBase Live Support
06/12/2017 06:14 AST
Oil steadied above $62 a barrel on Tuesday as expectations of a drop in US crude inventories and prolonged supply curbs by Opec and other producers countered rising output in the United States.
An Opec-led producer group last week extended a supply-cutting deal through 2018, but the resulting support for prices could bolster US output which climbed to nearly 9.5 million barrels per day in September.
Brent crude, the global benchmark, was down 11 cents at $62.34 a barrel by 0950GMT. US crude, known as West Texas Intermediate, was down 20 cents at $57.27.
"US output will play the most significant role on the supply front in 2018," said Tamas Varga of oil broker PVM.
"A jump above $60 in WTI could easily push US production over the 10 million bpd mark, increasing the non-Opec forecast and capping further attempts to push prices higher."
The Organisation of the Petroleum Exporting Countries (Opec), Russia and other non-Opec producers last week extended their deal to cut output by 1.8 million barrels per day (bpd) until the end of 2018.
Opec and its allies are trying to get rid of excess oil in storage. They have made progress in this task and the latest US inventory reports are likely to show a third straight weekly drop in crude stocks.
Analysts expect the reports from industry group American Petroleum Institute (API) and the government's Energy Information Administration (EIA) to show crude stocks fell by 3.5 million barrels.
The API report is out at 2130GMT on Tuesday, followed by the government supply report on Wednesday.
Opec has shown strong compliance with the supply cut pledge and in November output fell by 300,000 bpd to its lowest since May, according to a Reuters survey.
However, rising US oil production presents a headwind for Opec's efforts and data last week showed US crude output rose to nearly 9.5 million bpd in September, approaching the high of 9.63 million bpd seen in 2015.
Times of Oman
Ticker | Price | Volume |
---|---|---|
SABIC | 114.77 | 5,915,941 |
(In US Dollar) | Change | Change(%) | |
---|---|---|---|
Brent | 68.12 | -2.02 | -2.88 |
WTI | 63.51 | 0.5 | 0.79 |
OPEC Basket | 64.98 | -1.5 | -2.26 |
05/04/2018
Opec crude production dropped to the lowest in a year amid the woes in Venezuela’s oil industry. Output from the 14 members of Organisation of Petroleum Exporting Countries fell by 170,000 barrels to
Gulf News
03/04/2018
Oil’s rally above $65 a barrel is being propelled by a sign that American explorers have curtailed drilling activity as well as ongoing speculation that the US could reimpose sanctions on Opec produc
Gulf News
29/03/2018
The Organization of the Petroleum Exporting Countries (Opec) is seeking “very long-term” cooperation with other crude exporters, the secretary general of the oil exporting group said on Wednesday.
The Gulf Today
28/03/2018
Saudi Arabia and Russia are working on a long-term oil pact that could extend controls over world crude supplies by major exporters for up to 20 years, the Kingdom’s crown prince has said.
Arab News
27/03/2018
International oil prices are likely to tick up into the “high-sixties” further into 2018, according to Dr Mohammed bin Hamad al Rumhy, (pictured) Minister of Oil and Gas. Speaking at the opening of t
Oman Daily Observer