Potential for Stronger Output Suppress Increase in Oil Prices

04 July, 2017, 01:17 | Author: Franklin Nunez
  • Could Weak Oil Prices Continue to Drive Truck Demand in 2H17

Now trade is carried out by the exchange's two divisions, the NYMEX Division and the COMEX Division, the first one designed for trades of oil, gas, platinum, palladium, ethanol, coal, electricity and carbon dioxide emissions, the second one for gold, silver, copper and aluminum.

Opec's attempt to cut the world oil glut has backfired and will further stress the more exposed economies this year, according to a new report by Bank of America Merrill Lynch. However, it still finished the first half with its worst performance for the period since 1998. Benchmark Brent and WTI futures have been languishing 15-16% below their year-to-date highs after a battering in recent weeks. WTI is down 5.64% over the past year. They've seen copper prices drop as scrap dealers de-stocked heavily to take advantage of higher prices. EIA projects that USA output will grow every quarter this year before tipping past 10 million barrels a day in 2018.

But the undercurrents of shale producers' survivals in the price downturn are the deployment of internal corporate mechanisms in budgeting and allocating capital resources to drilling programmes.

In refined products, RBOB heating oil futures remained flat at 1.483 a gallon at the NYMEX. In the first half of 2017 whose trading ended last Friday, U.S. crude future have posted their biggest loss in 19 years. The EIA in its latest monthly report in June projected a 460,000 b/d on-year rise in 2017 USA output to 9.332 million b/d and a further 700,000 b/d jump in 2018. USA production has now recorded three week-on-week declines in less than two months.

First issue under Bond Connect by China's policy bank oversubscribed
As of 31 December 2016, the outstanding value of the onshore bond market was US$8.1 trillion, making it the world's third-largest. The first day of China's new bond link to the rest of the world started yesterday, with little in the way of a market reaction.

West Texas Intermediate for August delivery fell 4 cents to $46 a barrel on the New York Mercantile Exchange at 10:59 a.m.in London.

Experts have advised producers to change their strategies in exploration and production to avert utter global petroleum chaos.

"We have just completed a marathon round of meetings in Vienna, where the OPEC and non-OPEC countries have agreed to continue working together as part of the Declaration of Cooperation in order to ensure that we achieve a balanced market sooner rather than later". For instance, we see U.S. shale oil supply grow on a year-on-year (YoY) basis by 1.1 million b/d at $55/bbl but see growth of just 200,000 b/d at $45. In particular, horizontal rig units stayed put at 792 - the most since April 2015.

President Trump early this year proposed selling half of the SPR to help fund the USA budget deficit.

President Trump Tweets Video of Him Tackling 'CNN' in Wrestling Ring
The tweet, which was posted on Trump's personal account, was retweeted by the official presidential Twitter . This media house does not correct any spelling or grammatical error within press releases and commentaries.

Another factor, affecting oil prices is concern about the growth of oil production in Libya.

Investment bank Goldman Sachs revised its oil price lower and admitted it misread the sentiment of the market.

United States government data showed on Wednesday that domestic crude production dropped by 100,000 barrels per day (b/d) to 9.3mb/d last week, the steepest weekly fall since July 2016.

Christie orders NJ government shutdown amid budget deadlock
Christie doesn't seem likely to back down, and has threatened to line-veto other items in the budget unless he gets his way. They laughed when they heard Christie and his family were spending the weekend across the inlet during the shutdown.



David Price had words for Dennis Eckersley after Thursday's win
Last-place Toronto (37-43), which has lost three straight and seven of its last nine contests, is 8 1/2 games behind the Red Sox. Don't look now, but the Red Sox are showing the form that made them the majority pre-season choice to win the AL East.

Qatar Working With US, Kuwait on Response to Saudi Demands
The Gulf dispute has brought Qatar and Turkey even closer together over the past month. The four countries accuse Qatar of supporting terrorism - a charge it denies.

GST Rollout : Linking Aadhar with PAN, the 'ifs' and 'buts'
The government has made it compulsory for taxpayers to link existing Aadhaar numbers with PAN with effect from July 1. The individuals misunderstood that the PAN is invalid after the deadline if they did not link Aadhar with PAN.

Trump backs repealing 'Obamacare' now, replacing it later
Kansas Senator Pat Roberts has stated he favors the current bill while the Junior Senator from Kansas Jerry Moran does not. Surely, the GOP would not want to wait until repeal to sit down to the hard work of replacement.

Suspect arrested in 'savage' road-rage murder of teen
Police reviewed video tapes from surveillance cameras along Route 100, as well as neighboring residences and businesses. They also determined that the bullet that killed Roberson came from a 40 caliber Smith & Wesson handgun.

Homeland Dept. to build border wall prototypes starting this summer
Last week he suggested placing solar panels on the wall to produce energy, which could then be sold to help pay for the cost. Experts believe that a wall might not be necessary in all stretches of the 2,000-mile border between the US and Mexico.

Not supporting theatre owners' indefinite strike against GST: TN Producers' Council announces
As per the newly implemented GST, theaters which sell tickets above RS 100 should pay 28% tax and theaters which sell tickets below RS 100 should pay 18% tax.

India concerned over China's construction work, Beijing says neighbour's troops trespassed
Indian leaders did not attend China's "Belt and Road" summit aimed at boosting regional economic and political ties last month. The statement by the Indian government is revealing in the way it details the happenings at Dhoka La.

Projectile from Syria landed in Israel's Golan Heights
On each occasion Israel has responded by targeting Syrian army positions. "This is an implementation of old policy". Whoever attacks us - we will attack him.

Friday's Weather: Temperatures in the 80s, strong storms possible later this evening
Expect heat for the Fourth of July holiday with the hottest day of the week falling on Monday with highs in the middle 90s. There could be a passing shower in the morning and possibly a thunderstorm in some towns during the afternoon.