Published: Thu, April 13, 2017
Markets | By Erika Turner

Opec bets on U.S. petrol demand to drive up summer oil prices

Opec bets on U.S. petrol demand to drive up summer oil prices

Despite this, there are still concerns that oil markets remain bloated and oversupplied.

Domestic crude production increased 0.4% for the week to 9.24 million bpd from 9.20 million previously, an increase of 2.9% over the year.

Oil rig pumpjacks, also known as thirsty birds, extract crude from the Wilmington Field oil deposits area near Long Beach, California July 30, 2013.

The overall conclusion when you look at the figures is that the U.S. has managed to accumulate significant levels of proved shale oil reserves. Investors may cheer the move, but that's not exactly good news. Payrolls are once again rising in the oil and gas sector according to ADP job numbers. "It's now falling towards levels that's making it economical to ship on certain pipelines on a spot basis".

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Images of Samsung's refurbished Galaxy Note7 appear online, packs smaller 3200mAh battery
Sales of its new G6 flagship smartphone began in March and will not provide meaningful contributions until the second quarter . He added that sales of mid-to-low tier smartphones also helped the mobile business remain profitable.

OPEC pledged to reduce output by 1.2 million barrels a day, with Saudi Arabia taking the bulk of the cuts - and so far reducing production deeper that it agreed.

It could be argued that OPEC are playing a risky game in trying to protect their prices by limiting production levels, as U.S. shale producers have stepped in to fill the void. About one-third of the total came from Saudi Arabia, which, at 10.01 million bpd, was still below its quota of 10.058 million bpd. Gasoline supplies also declined by 3 million barrels, while distillate stockpiles were down by 2.2 million barrels last week, according to the EIA.

"With the pick-up in drilling activity, as well as increasing cashflows in the tight oil industry, USA tight crude output is expected to rise quickly and increase 335,000 bpd for the overall of 2017", OPEC said, using another term for shale.

Zinc continues to show strongest fundamentals with prices forecast to average $1.35 per pound in 2017 and $1.55 per pond in 2018. Production had increased in February to 10.011mn barrels a day as the country replenished its own storage tanks. WTI rose 5.5 percent to $51.03 a barrel in the report week.

The offers will add to a glut of light oil supplies in Asia, increasing competition with fellow Gulf producer Abu Dhabi National Oil Co and Russian Federation, said multiple sources, who declined to be identified due to the sensitivity of the matter. He is passionate about green energy and writes about this alongside investment matters in his articles.

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