Oil hovers near 2019 highs amid OPEC cuts

Oil Price Fundamental Daily Forecast – New Demand Concerns Weighing on Prices

OPEC and its de facto leader Saudi Arabia agreed late a year ago, along with producer allies such as Russian Federation, to cut output by 1.2 million barrels per day (bpd) to prevent a supply overhang from growing.

Much of that growing output is coming from USA shale fields, where drillers use advanced methods to squeeze crude oil and natural gas from rock formations.

Oil prices yesterday hovered close to 2019 highs at $67.14, bolstered by OPEC-led supply cuts and United States sanctions on Venezuela and Iran, but was prevented from rising further by slowing growth in the global economy.

Citing a goal to reduce the country's dependence on imported crude by 10 percent by 2022, Narendra Modi, prime minister for India, on Thursday endorsed revamped rules that will give producers pricing and marketing freedom that is now non-existent.

(GRAPHIC: U.S. oil production & storage levels link: https://tmsnrt.rs/2Vanxza).

Prices continue to be supported by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russian Federation.

Oil prices reversed earlier falls on Friday, lifted by OPEC's ongoing supply cuts and hopes that Washington and Beijing may soon end their trade dispute. "While a glut is taking hold in US crude stocks, product stockpiles inched lower thanks to robust domestic demand", Mr. Brennock added.

Facebook Background Location Tracking on Android Can Now Be Disabled
One user reported how resetting the shoe, uninstalling the app , even turning off Bluetooth, did not help the case. There is a more complicated answer but here's a short one: it gives users a marketplace to download cracked apps .

Andrea Pirlo: Juventus 'Didn't Want To Play' Atletico Madrid
As the minutes passed we felt stronger, were making chances, and took two to get the victory against a very strong opponent. And this match will be useful looking forward to the second leg".

Honda Shuts Factory in United Kingdom but Avoids Blaming Brexit
Honda has confirmed that it will close its factory in Swindon in the United Kingdom with the loss of 3,500 jobs. If confirmed the move will deal a massive blow to Britain's automotive sector just 40 days before Brexit .

On Tuesday, EIA forecast output from seven major US shale fields will rise by 84,000 bpd next month to 8.4 million bpd.

Crude inventories rose by 3.7 million barrels in the week to February 15, compared with analysts' expectations for an increase of 3.1 million barrels. That makes it "the only country ever to reach this milestone", said Stephen Brennock, analyst at brokerage PVM Oil Associates Ltd.

USA crude oil stockpiles rose for a fifth straight week to the highest in more than a year, as production hit a record high and seasonal maintenance kept refining rates low last week, the Energy Information Administration said.

Meanwhile, crude inventories in West Texas fell to the lowest in four months after an additional pipeline started transporting crude from the largest USA shale field to the Gulf Coast, largely for exports, data from market intelligence provider Genscape showed.

Of that, the bank said, "we could be seeing some weeks with 4.6 million bpd of gross crude exports by end-year, adding to this week's new record" of 3.6 million bpd.

"Oil markets are buoyant on the expected impact of Saudi output cuts, sanctions on OPEC nations Iran, and Venezuela, and optimism in China trade talks", he said. The group, known as OPEC+, agreed in December to cut output by 1.2 million bpd to prevent a crude supply glut from growing.

Goldman Sachs said in a note it expects OPEC output to average 31.1 million bpd in 2019, down from 31.9 million bpd.

Related news:

Hot News

isis-killer-beheading-video-story-top Shamima Begum says United Kingdom government is "making an example of me"
Feb 24, 2019 - 03:26
The situation with Shamima Begum's citizenship is complex and will likely be argued in the courts. The teenager's British citizenship is "her only hope at rehabilitation", her sister wrote.

isis-killer-beheading-video-story-top US Aid Deliveries to Venezuela Pursuing Political Goals - Foreign Minister
Feb 24, 2019 - 03:22
The "Venezuela Live Aid" concert, which featured some of the biggest names in Spanish-language music, was broadcast live online. But nearly as soon as the aid convoy departed, the limitations of Guaido's high-stakes gamble became clear.

isis-killer-beheading-video-story-top Freezing rain warning now in effect for Toronto
Feb 24, 2019 - 02:57
A freezing rain warning issued by Environment Canada for Toronto and most of the GTA Wednesday morning remains in effect. Total accumulation will be between 4 and 8 inches, with the highest amounts expected near Chambersburg and Carlisle.

isis-killer-beheading-video-story-top Chris Hemsworth to play wrestling legend Hulk Hogan in biopic
Feb 24, 2019 - 02:33
The site adds that a deal is " in the midst of closing " with Netflix . He became perhaps the biggest star in WWE's five-decade history.

isis-killer-beheading-video-story-top FATF gives Pakistan a breather, escapes getting blacklisted
Feb 24, 2019 - 02:14
In the wake of the Pulwama attack, India had reportedly been pressuring the FATF to take strict action against Pakistan. FATF is an inter-governmental body that works to stop terror financing, among other objectives.

isis-killer-beheading-video-story-top Canadian-made Cuphead may come to the Nintendo Switch
Feb 24, 2019 - 00:14
If the latest rumours are accurate, it looks like Nintendo might be ready to test the waters to see if the market is ready for VR. They back up the claim that Ori and the Blind Forest is on the way to Switch and add that Cuphead is in the works as well.

isis-killer-beheading-video-story-top China reveals SHOCKING response to Venezuelan crisis warning US NOT to intervene
Feb 23, 2019 - 10:26
Instead, they sleep on the sides of roads, look for odd jobs and try to hitch hike to Boa Vista, about three hours drive south. He says opposition efforts to bring in aid area a USA -backed "cheap show" to undermine his government.

isis-killer-beheading-video-story-top UK backlash at Meghan's lavish US baby shower
Feb 23, 2019 - 10:15
The two-story suite also comes with five elegant bedrooms, four fireplaces, six bathrooms, and two powder rooms. Meghan, Duchess of Sussex , arrives for her baby shower at the Mark Hotel on Tuesday, Feb. 19, 2019, in NY .

isis-killer-beheading-video-story-top Bernie Sanders joins 2020 US Presidential race
Feb 23, 2019 - 07:30
Vermont Senator Bernie Sanders is giving it another go for the US presidential nomination, this time for the 2020 race. He would also be the first Jewish person to hold the United State's top office.

isis-killer-beheading-video-story-top Hair apparent: Hanoi barber offers free Trump, Kim cuts ahead of summit
Feb 23, 2019 - 05:23
He expressed hope that Biegun's negotiations with North Korea will be successful to help the upcoming summit produce good results. When Trump and Kim met in Singapore, it was the first ever meeting between a sitting US president and a North Korean leader.

isis-killer-beheading-video-story-top Wallace's giant bee, world's largest, refound by scientists
Feb 22, 2019 - 07:12
The huge size and apparent rarity of the species has also made it a target for wildlife trade. Since Messer rediscovered the bee, other teams have looked, but have had no luck.

isis-killer-beheading-video-story-top California to Sell Debt in March for Train Trump Blasts as Waste
Feb 22, 2019 - 05:00
The action marks an escalation in the battle between President Donald Trump and the state of California since Gov. Newsom's new plan would only consist of 110 miles of track in the Central Valley, from Bakersfield to Merced.

isis-killer-beheading-video-story-top Yuwa India wins Sport for Good Honour, Djokovic, Biles bag top honours
Feb 21, 2019 - 08:57
He went to on to clinch the 2018 US Open title and 2019 Australian Open , along with returning to world number one ranking. The Laureus World Sports Academy recognized Eliud Kipchoge with the Laureus Academy Exceptional Achievement Award.

isis-killer-beheading-video-story-top Labour Reinstates Militant's Derek Hatton Amid Party Split, Antisemitism Row
Feb 21, 2019 - 08:57
Sarah Wollaston said she hoped ministers in the government would resign in protest over the direction of Brexit. Britain's main opposition Labour Party leader Jeremy Corbyn leaves his home in London on February 19, 2019.

isis-killer-beheading-video-story-top Watch Champions League Game Online
Feb 21, 2019 - 08:43
It was certainly a talking point during his first visit to the Wanda since his departure from Real Madrid last summer. A replay showed his effort took a deflection off the five-time Ballon d'Or victor , much to his chagrin.