OPEC Still Overproducing: Scapegoats US Shale

OPEC Still Overproducing: Scapegoats US Shale

"Iran is taking aim at 4 million barrels per day, which would be above its production cap".

Increased shale production will transform the USA into one of the world's top oil exporters in just a few years, according to a new forecast by the consultancy PIRA Energy Group.

OPEC's oil production increased in June, driven by production output increases from Libya and Nigeria along with Saudi Arabia.

Meanwhile, as a first step to controlling what OPEC can control, namely supply, OPEC chief Barkindo said Libya and Nigeria are expected to send representatives to OPEC, non-OPEC Joint Technical Committee meeting in Russian Federation on July 22, where according to some, they will be asked to also enforce production caps on their output, joining the rest of OPEC in limiting supply. Distillate inventories rose again this week, this time by 2.079 million barrels compared to analysts forecast a 1.1-million-barel build.

USA crude imports fell last week by 282,000 bbl/d, while exports rose to 918,000 bbl/d from 768,000 bbl/d. Whopping 6.3 million barrels decline in the United States crude oil inventories as reported by the EIA on Thursday failed to lift the prices beyond an hour. Federal Reserve Chairwoman Janet Yellen said in prepared remarks. Global oil demand is poised to increase to 99.2 mln bps by 2021, the EIA said, and to 109.4 mln bpd by 2040.

Exxon Mobil Corp. (NYSE: XOM) traded up about 0.3%, at $80.83 in a 52-week range of $79.26 to $95.55.

Chevron Corp. (NYSE: CVX) traded up almost 0.5%, at $103.58 in a 52-week range of $97.53 to $119.00. BP (BP) jumped 1.8%. S&P has already downgraded Exxon Mobil, Royal Dutch Shell, Total, BP.

Venezuela's direct communication with OPEC indicated a production decline of 33,000 barrels per day.

Saudi Arabia told the Organization of the Petroleum Exporting Countries its oil production in June rose to 10.07 million bpd, slightly above its OPEC target, mainly due to an increase in domestic crude burning for power during summer. Last month, EIA forecast US drillers would produce 10 million barrels a day in 2018. Output from the repaired terminal is expected to raise the country's output to at least 2 million bpd.

But experts warn that shale won't be enough to make up for lack of investment in conventional drilling. During the next two to three years, this process is unlikely to cause any problems with non-Opec growth next year alone being enough to meet rising demand.

On Monday, Saudi Aramco CEO Amin Nasser echoed that sentiment at a conference in Istanbul, saying that shale and other energy resources, while important, weren't enough to replace conventional oil and gas operations, according to Reuters.



Related Posts

Fed plans more rate hikes to meet goals: Yellen
According to Thompson Reuters , "technology is expected to have had among the strongest earnings growth for the second quarter". The Energy Information Administration's weekly report on petroleum inventories in the U.S.is schedule for release at 10:30 a.m.

Amazon Prime Day today
If you've got one in proximity, ask, " Alexa , what are your deals?" and she'll read out bargains to you regularly. Being on the waitlist provides you with another chance to claim the deal if another buyers' claims time out.

'Spider-Man: Homecoming' slings $117 million debut
In June (17), the 21-year-old revealed Marvel Studios bosses are planning to turn the Spider-Man franchise into another trilogy. Focus rounded out the top ten with the period film The Beguiled which grossed an estimated $2.1M, down 34%, for $7.4M to date.

Top US general denies claim of possible war crimes in Mosul fight
The pockets of ISIS fighters and total clearing of the city is expected to take weeks. Marwan Hadi based inside the Old City.

Yankees' Aaron Judge ready to rock the Home Run Derby
Judge has created an incredible buzz around the majors and that should continue in his initial MLB Home Run Derby appearance. Moustakas also enters the derby on a hot streak, with 12 of his 25 home runs coming since the calendar flipped to June.

Awards Segment & More Announced For Tonight's RAW
Unless Braun Strowman undergoes a miraculous healing and comes back to kill Roman, because, as we know, he's never done with him. Lesnar would go to have a feud with Triple H that did not live up to expectations and lead to another major loss for Lesnar.

North Korea sanctions draft in China's hands
Speaking in Warsaw last week, Trump said he thought Russian Federation attacked the election but that "other countries" did, too. Xi told Trump that China had already stated its "principled position" on North Korea multiple times, according to Xinhua.

ACLU Files Suit: Trump Election Fraud Panel Is Ignoring Open Meeting Laws
That's also the conclusion of a report just released by the Brennan Center for Justice at the New York University School of Law. Some states have outright refused the request, while others have said they will submit only what is allowed under state laws.

Gilles Muller upsets Rafael Nadal in five-set marathon at Wimbledon
It was not easy to keep believing. "Physically, I'm not fighting anything like previous year with my knee". "I was playing well". The Croat had earlier beaten Roberto Bautista Agut 6-2 6-2 6-2 to progress to the last-eight for the fourth time in SW19.

Cariboo House Fire is Out of Control, now Over 1500 HECTARES
Crews are battling a wildfire that sparked on northern Vancouver Island Wednesday night and has now grown to 20 hectares in size. A lightning storm and high winds Friday afternoon touched off 138 wildfires , including several in the Prince George region.

© 2015 Stump Report. All Rights reserved.