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EIA Predicts Record For US Crude Production Despite Harvey

14 September 2017

Oil prices remain near $50/bbl despite nine months of output cuts by a coalition of oil producers led by OPEC and Russian Federation.

Not only has demand for oil across Europe and the USA increased, but a number of factors relating to the production of the commodity, have also played a part.

On the other hand, close to 0.75 million bpd of U.S. oil output was impacted and United States oil production fell to 8.78 mbpd last week which will support oil prices.

Some bearish investors are saying the OPEC data was not a true assessment of production because the numbers were lowered by unrest in Libya which contributed the country's 112,300-barrel decline in August's production.

On Tuesday the Organization of the Petroleum Exporting Countries in its monthly report said its production fell for the first time since April.

According to OPEC, "the price of OPEC basket of 14 crudes stood at $51.82 a barrel on Monday, compared with $52.53 the previous Friday, according to OPEC Secretariat calculations".

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He has said that the Emir of Kuwait is now helping America in the Gulf and that "things are going well". He said both sides wanted peace and that the USA had "tremendous talent" working on the problem.

Analysts cautioned that global oil stocks are expected to build in 2018, however. That's down from an August estimate of 9.91 million barrels.

Nigeria more than made up for that though with output shooting up by 138,000 bpd to reach 1.86m bpd.

"Depending on the pace of recovery for the US refining industry post-Harvey, very soon OECD product stocks could fall to, or even below, the five-year level", the IEA's report read. But the EIA projects USA average crude oil production to reach 9.3 MMbbl/d for 2017 and 9.8 MMbbl/d in 2018-the highest annual average in us history.

Oil prices rose Wednesday, following a report from the International Energy Agency (IEA) that global demand in 2017 will rise by more than previously expected. For 2018, the world will need 32.4 million bpd of crude from OPEC.

Benchmark crude futures were sideways in range-bound trading early Tuesday in Asia, as the recovery of refining capacity in Texas shut by Hurricane Harvey more than two weeks ago slowed down to a crawl and the market awaited further direction from the latest weekly USA stocks data, due out from the industry body American Petroleum Association later Tuesday, to be followed by the official figures from the Energy Information Administration Wednesday.

The IEA revised down the global refinery throughput forecast for the third quarter of 2017 by 0.7 million bpd due to Harvey.

EIA Predicts Record For US Crude Production Despite Harvey