The post Trump drags oil prices below $50 appeared first on Vanguard News. August Brent crude on London's ICE Futures exchange rose $0.09 to $50.04 a barrel. "Their failure to do so opens the door for, at the least, an increase in US shale production", Bob Yawger, director of the futures division at Mizuho Securities USA Inc in NY, said by telephone.
Opec should learn from the US Federal Reserve and do more to explain its long-term oil-output policies instead of just focusing on short-term goals, according to Goldman Sachs Group Inc.
The price of oil has continued its downward move despite an agreement between the OPEC and participating N-OPEC producers to extend the current supply cut agreement that aims to reduce global oil supply by 1.76 million barrels per day. While U.S. stockpiles have edged lower, rising American production and drilling is fanning concerns that OPEC's efforts to trim a global glut will be hampered.
US gasoline demand over the past four weeks was 0.7 percent lower year-on-year at 9.6 million bpd.
‧ US crude exports rose to average about 1 million barrels per day in April, according to Bloomberg calculations of US Census Bureau data released on Friday.
Trump framed his decision to pull the U.S.
But market watchers don't see the gains lasting.
But America's oil boom didn't slow almost as much as feared.
That is because crude production in the United States, which is not participating in the cuts, has jumped by over 10 percent since mid-2016 to 9.34 million bpd, close to levels by top producers Saudi Arabia and Russian Federation. Production is now growing at 95,000 barrels per day per month this year, largely thanks to hydraulic fracturing into shale formations.
The US Energy Information Administration (EIA) report on stockpiles is due later on Thursday, delayed by a day because of the Memorial Day holiday on Monday. "As you look back now at the deal, it looks increasingly lame".
There was some positive rhetoric from OPEC Secretary Barkindo with remarks that crude storage in some USA hubs had already fallen to the 5-year average and prices edged away from intra-day lows.
So how high will US production go?
USA production was 9.320 million barrels a day last week, 607,000 barrels a day more than a year ago (a rise of just over 6%).
Before the start of trading in NY, the U.S. Energy Information Administration reported gasoline demand in March was down year-over-year for the third month in a row, suggesting some consumer factors may not be eating away at the supply-side strains. The African producer now cranks out around 830,000 barrels a day, a huge jump compared with the sub-300,000 barrels a day seen in last July.