US Production More than Offsetting OPEC-led Supply Cuts

Crude Oil

Crude inventories rose 6.8 million barrels, compared with analyst expectations for a 849,000-barrel drawdown, to their highest since July 2017 and about 6% above the five year average for this time of year. WTI ended $1.80, or 3.4%, lower at $51.68 a barrel.

The inventory builds were said to be caused by US crude imports rising last week by 1.1 million barrels per day (bpd), while crude production added another 100,000 bpd to a new peak at 12.4 million bpd. During the session, WTI touched a low of $50.60 a barrel, its lowest since January 14.

U.S. West Texas Intermediate crude futures rose 23 cents, to $53.48/Bbl, up from a session low of $52.43/Bbl.

Brent futures had also sank as low as $59.45, also its lowest since mid-January.

US crude production continues to surge, however, as increased drilling in the prolific Permian shale basin helped push output to a record 12.4 million barrels per day (bpd) by the end of May. Stockpiles of distillates, including diesel and home heating fuel, jumped by 4.6 million barrels.

"The across-the-board inventory builds makes for a very bearish report", said John Kilduff, a partner at Again Capital.

Much of the concern about production is concentrated in nearby months, while the outlook further forward is dominated by fears about consumption.

Crude futures clawed back some gains on Tuesday as the stock market bounced on hopes the Federal Reserve will cut interest rates.

Botswana court decriminalises homosexuality in landmark judgment
Stating that the law was unconstitutional, the High Court said that human dignity is harmed when minority groups are marginalised. The wording resembles that of the laws of many other former British colonies where homosexuality is illegal .

Justin Bieber backtracks over offer to fight Tom Cruise in the Octagon
As reported by TMZ , he was asked about the freaky outburst when leaving wife Hailey Baldwin's fashion line office in LA. He wrote on Twitter that his company will host the match and urged Tom to accept the challenge.

Reaction to Everton's 2019/20 Premier League fixtures
He started 27 times in the league and directly contributed in 15 goals . This will be our first home fixture on opening weekend since 2010/11.

Iran's oil output has plummeted to a record low since 1990 in May as a result of US sanctions, Bloomberg reported on Monday June 3.

Earlier, production at Kashagan was around 330,000 to 340,000 barrel per day.

"So that's going to be the next level to watch".

-China trade conflict and the new trade dispute that the USA opened with Mexico just last week will start to impact global economic growth and lead to slowdown in economic activity and oil demand growth.

Experts think the most immediate possibility of relief for depressed crude prices is the Organization of the Petroleum Exporting Countries (OPEC), which will convene later this month or early in July to decide if their output cuts should be extended to the end of 2019.

Saudi Energy Minister Khalid al-Falih said on Monday a consensus was emerging among producers to continue working "to sustain market stability" in the second half of the year.

The number of rigs drilling for oil fell to just 800 at the end of May, down by nearly 10 percent from a current-cycle peak of 888 in November 2018, according to oilfield services company Baker Hughes. Igor Sechin, CEO and chairman of Russian energy giant Rosneft, this week said Russia should be free to hike output and floated the idea of seeking compensation if Moscow agrees to roll over the production deal.

Related:

Comments

Latest news

Logano edges Kurt Busch, Truex at Michigan
Logano and Truex were up front on the restart, along with Kurt and Kyle Busch , and Logano pulled ahead in his No. 22 Ford. The previous mark of 162 was set in 1989 by Rusty Wallace - although Logano's race was extended by the overtime.

Ariana Grande drags anti-LGBT protester who disrupted concert
Wish him peace and a healed heart 'cause girl yikes" Ariana has been a big supporter of lbtq+ rights even in the past. The fan that tweeted the video of the protester said it was all she could do not to kick him with her high heels on.

Playstation Network crashes as thousands of gamers can't get online
According to the outage tracking site Downdetector , the server issues are mostly happening in Europe. Many users who attempted to log onto PSN were met with an error code 'WS-37403-7'.

Paramount Developing Animated Spice Girls Movie
The Spice Girls (minus Victoria) are now nearing the end of their reunion tour which has seen them complete dates around the UK. The film will feature the voices of all five members of the original band and a plot in which the quintet become superheroes.

Trump mocked for 'Prince of Whales' tweet
Tweeting on Thursday, the president continued and denied any suggestion of wrongdoing. With that being said, my full answer is rarely played by the Fake News Media.

Sarah Huckabee Sanders Leaving White House Job
Sanders, for her part, has yet to issue a statement on the matter. " Thank you for your service to America and Donald Trump! ". She faced online harassment, was ridiculed by late night comedians and was asked to leave a Virginia restaurant.

Erdoğan says Turkey already bought Russian S-400 systems
Earlier this month, Erdogan said Turkey had also been discussing a USA offer to sell Patriot missiles. Russian Federation said on Tuesday it planned to deliver its S-400s to Turkey in July.

Martinez: Hazard could be catalyst for new Real Madrid era
"And now we all look forward to see how the new chapter at Real Madrid will start". Real Madrid on Friday confirmed the signing of the Belgian National Team captain .

Ashleigh Barty congratulated by Evonne Goolagong Cawley after French Open win
Ash Barty's partner has posted a touching tribute on Instagram after the Queenslander lifted the French Open trophy last night. Barty served up 38 aces over the course of the tournament and showed just why her serve is the best part of her game.

David Ortiz: Former Boston Red Sox star recovering from surgery after shooting
Dominican authorities said Ramon Martinez Perez, known by the alias "Rolfie", was detained and being questioned, according to NBC. It's unclear what charges the suspects are expected to face, but investigators are treating the case as an attempted murder.

Further blow to Samsung Galaxy Fold as AT&T cancels pre-orders
Moreover, details about the global availability and pricing of the Galaxy A10e are yet to be revealed. Samsung first debuted a Night Mode camera feature with the launch of the Samsung Galaxy S10 series.

Retailers needs 'harmonized approach' when banning single-use plastics, council says
China banned the import of plastic waste previous year , causing other Southeast Asian nations to become new destinations. Several Canadian cities already ban the use of plastic bags and some provinces have banned other products.

Visa's new platform for cross-border payment is powered by blockchain
The world of B2B payments could be about to get a lot simpler for businesses of all sizes thanks to a new release from Visa . Instead, Visa will count on its experience in complex payments, compliance, and cybersecurity.

Vatican rejects people choosing, changing genders
It's a sign that the church is not changing, and it's most hard for LBGT Catholics who are still committed to their faith. A democratic State can not impose a single current of thinking on gender, the Vatican said in a statement on Monday.

Trump defends his China strategy, Beijing says ‘not afraid’ of trade war
Trump maintained that he had a "great relationship" with Xi despite the rise in trade tensions between their two countries. Trump often attends important talks with little advance work and makes policy on the fly.

Other news