Oil prices drop as supplies increase

Cornelia Mascio
Giugno 13, 2018

Fox News contributor John Layfield on the impact of rising oil prices on the USA economy.

The Organization of the Petroleum Exporting Countries and some non-OPEC producers, including Russian Federation, started withholding output in 2017 to reduce a global supply overhang and prices have risen by around 60 percent over the previous year. US light crude CLc1 was 15 cents lower at $66.21.

Brent crude LCOc1 was down 30 cents at $75.58 a barrel by 1000 GMT. The International Energy Agency said Saudi Arabia and other Gulf producers may need to boost supply to offset potential losses of 1.5 million barrels a day from Venezuela and Iran by next year.

Dutch bank ING, however, said some OPEC members would "struggle to push production back to October 2016 levels".

Pumped further by global trade war fears, oil prices have since surged to multi-year highs, only to then fall back again somewhat, the IEA said.

In April Saudi Energy Minister Khaled al-Faleh said the global market has the capacity to absorb higher oil prices - a remark that drew a swift reaction Trump.

"The prospect of easing supply curbs from OPEC-led producers continues to be reflected in oil's overall depressed price", Otunuga said.

However, the API reported a surprise buildup in gasoline inventories for week ending June 8 in the amount of 2.33 million barrels. American oil production has jumped by nearly a third in the last two years to a record 10.8 million barrels per day.

"To make up for the losses, we estimate that Middle East OPEC countries could increase production in fairly short order by about 1.1 mb/d and there could be more output from Russian Federation on top of the increase already built into our 2019 non-OPEC supply numbers", it added.

An oil production shortfall in Iran and Venezuela may force OPEC and Russian Federation to decide later this month to open their taps, the International Energy Agency said Wednesday.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE