Oil Falls As IEA Chief Sees 'Significant' Boost To US Output

19 January, 2017, 00:52 | Author: Brian Mcdaniel

Yesterday on Bloomberg, IEA Executive Director Fatih Birol said that higher oil prices will trigger a "significant" boost in USA shale output. So, we expect in 2017, as oil prices are increasing again, increasing shale oil production will cap the prices again.

Light, sweet crude for February delivery was recently down $1.14, or 2.17%, at $51.34 a barrel on the New York Mercantile Exchange, after earlier falling as low as $15.21 a barrel.

It's premature to say whether OPEC should continue cuts once the accord expires, Barkindo said in Bloomberg television interview in Davos.

In the meantime, the 800-lb. gorilla - US shale production - is on the rise.

Crude oil prices bottomed out in early 2016.

North Dakota bills targeting pipeline protests
Kempenich is quoted by the Minnesota Star Tribune saying: "If you stay off the roadway, this would never be an issue. Another would let the state sue the federal government for the cost of policing the protests.


The Bachelor: Vanessa Barfs Her Way Into Nick's (and America's) Heart
When Dominque Alexis chose to confront Viall about his lack of attention to her, he said he wasn't feeling it and sent her home. She puts on some lingerie and a trenchcoat and brings Nick to an oversized beanbag chair in the driveway, as one does.


Tensions rise between Italy and Germany over FCA dieselgate scandal
After Italy rejected Germany's allegations previous year , Berlin asked the European Commission to mediate in the dispute. A class-action suit has been filed against Fiat Chrysler by London law firm Siskinds.


Oil drew some support earlier Tuesday from top crude exporter Saudi Arabia, which said it would adhere strictly to its commitment to cut output under the agreement between OPEC and other producers, such as Russian Federation. "We think inventories are going to draw steadily as markets rebalance". DailyFX quotes Saudi energy minister Khalid Al-Falih as saying that extending the deal past the middle of the year is probably unnecessary, which may weigh further on prices.

"For each $10 per barrel increase in oil prices, oil demand will decline by 10 basis points".

Crude oil futures fell Wednesday morning as the dollar recovered versus other majors, denting commodities priced in the greenback.

He said that the powerful cartel's members were abiding by the terms of the 1.2 million barrels per day cut in output and that this would be effective from this month onwards. Last month, the Paris-based agency said it expected USA tight oil - as shale is also known - to rise only "marginally" in 2017.

However, exports from Iraq's State Oil Marketing Organization have been very high this year, with a company loading program showing that it plans to export as much as 3.64 million b/d of crude oil from its Persian Gulf terminals in February. Brent, the global benchmark, was recently down $1.20, or 2.16%, at $54.27 a barrel. The 2017 demand is projected to grow by another 900,000 barrels per day to 32.1 million bpd.

Recommended:



Popular

Powerful Earthquakes Near Rome, Italy
Some Rome metro stations were evacuated as a precautionary measure and services suspended. "I don't know if we did something bad . The first quake's epicentre was just four miles from Amatrice - a town devastated last summer by another natural disaster .

Interior nominee Zinke disputes Trump on climate change
State District Judge Russell Fagg of Billings had also indicated he may run, but decided against it earlier this month. Zinke was quetioned on a number of issues. "As a military commander, the tolerance is zero".

Beijing warns Trump: One China 'not negotiable'
Trump's attacks have strayed far outside Taiwan, beginning with accusations of Chinese currency manipulation, as well as aggressive territory-grabbing in the South China Sea .

Japanese tapeworm detected in wild salmon
Since salmon is packed and transported on ice, but not frozen, the larvae of the Japanese tapeworm might have survived the trip. The recent updates tell about the tapeworm in the fish which can infect your health to a major context.

Formula One: Bottas joins Hamilton at Mercedes
Valtteri Bottas will drive for Mercedes in 2017, while Williams have called Felipe Massa out of retirement as his replacement. Valtteri Bottas talks to Rachel Brookes after being confirmed as Lewis Hamilton's new team-mate at Mercedes .

Deepika, Vin's XXX: Return of Xander Cage
Caruso, the film also stars Donnie Yen, Kris Wu, Ruby Rose, Tony Jaa, Nina Dobrev, Toni Collette and Samuel L. On opening day, the movie earned collection of Rs 6.75 croress at box office, reported Indian Express .

Stevan Jovetic stunner ends Real Madrid unbeaten run
Jovetic bagged a goal as his side took a 3-1 lead, but some heroics from Sergio Ramos and Karim Benzema kept the run alive. With the victory, Sevilla narrow the point gap between them and Real to one.

Payet putting West Ham in sticky situation
He's got a contract with us, a long contract and I'll say what I always say: "we don't want to sell him". "Let's get serious. Payet played two seasons for Marseille but, at the time of his transfer, said he was unhappy to be sold and wanted to stay.

SpaceX Completes Successful Rocket Launch
An onboard camera captured the full descent of the rocket, which appeared to land right on the "X" in the center of the barge. Friction from the carbon overwrap, or even breaking carbon fibers, may have provided the spark needed to create the fireball.

Obama to ease Sudan sanctions as he leaves office
The country's long-time leader President Omar al-Bashir is wanted by the International Criminal Court for War Crimes. Sudan welcomed the USA decision, saying it was a "positive and important" development in relations with Washington.