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Maintenance Leads to Drop In UAE's Oil Output

04 March 2018

U.S. West Texas Intermediate crude finished Thursday's session down 65 cents, or 1.1%, at $60.99 per barrel, after touching an intraday low of $60.18/Bbl.

"Looking ahead, crude oil futures prices continue to suggest that the benchmark WTI oil price will ease from current levels back to the US$50 range over the forecast horizon".

Oil also fell due to a stronger USA dollar, which makes commodities denominated in the US currency more expensive for other currency holders.

Crude oil prices slipped into negative territory during the previous session on anticipation of swelling US crude oil inventories.

Prices were supported by stronger global demand and a supply agreement between Organization of the Petroleum Exporting Countries (OPEC) nations and 10 non-OPEC producers to restrain their collective output.

USA crude inventories have fallen more than 100 million barrels in 12 months to their lowest in three years.

The price of crude oil was gaining ground slightly early Wednesday. US crude oil production increased steadily through 2017, reaching its highest level in more than three decades.

Chinese Communist Party approved a new package of reforms in the country
Xi took power in 2012, which was followed by his vow to restore China to its former glory among the superpowers of the world. Control of the state, which grants him the title of president, is arguably the least important of the three.

As of 1130 GMT, the Dollar Index was down 0.34, standing at 89.91.

Output from the 14 members of OPEC fell 80,000 barrels a day to 32.28 million a day in February, according to a Bloomberg News survey of analysts, oil companies and ship-tracking data.

Fawad said the market has been ignoring "good compliance with the production cuts by OPEC and non-OPEC countries". A weaker U.S. dollar can boost oil and other greenback-denominated currencies.

Soaring U.S. production has pressured oil futures at a time when OPEC members and Russian Federation have reduced output in an attempt to support prices.

Opec officials will meet United States shale executives at a U.S. energy conference on Monday, underlining the influence of American output on global prices. "A transition of the deal is needed but not yet visible, with both an over-tightening and an orderly unwinding being potential scenarios", said Norbert Rucker, head of commodity research at Swiss bank Julius Baer.

The OPEC/non-OPEC cuts totaling roughly 1.8 MMBPD, which began in January 2017, have helped raise prices from lows around $26/Bbl in January 2016.