Crude export disruptions from key terminal after Libyan oil field production halt
- Author: Kelly Blake Mar 02, 2018,
Mar 02, 2018, 3:38
Oil prices fell on Wednesday as weak Chinese and Japanese industrial data triggered concerns of an economic slowdown that could lower oil demand, and as an industry data report showed an increase in USA crude stockpiles amid soaring output.
US crude oil production has risen by a fifth since mid-2016 to more than 10 million bpd. Last week, the US Energy Information Administration said there was a surprise drop in oil reserves against a background of lower imports and higher exports.
The U.S. bypassed Saudi Arabia late past year and is nipping on the heels of Russian Federation to be the world's biggest oil producer. On Tuesday, Brent fell 87 cents to $66.63.
Flood Watch remains in effect until Wednesday
We've also had a lot of recent snowmelt and will see more, which adds to the amount of liquid making it into rivers and streams. Tobin said right now, our area is at a fine break-over point of whether we're going to actually experience flooding.
Brent for April settlement was up by 4c to $67.35 a barrel on the London-based ICE Futures Europe exchange.
Prices did draw some support from Saudi Arabian oil minister Khalid al-Falih, who on Saturday said the country's crude production in January-March would be well below output caps, with exports averaging less than 7 million barrels per day.
Gasoline inventories rose by 2.5 million barrels, compared to analyst expectations for a 190,000-barrel drawdown. That era may be coming to an end now that United States crude oil production hit a 47-year high of 10M b/d at the end of 2017 and is forecast to surpass 11M b/d by the end of 2018, which would make the U.S. one of the largest crude oil producers on the planet.
In disclosing this in its Oil Market Report for February, IEA also noted that compliance with OPEC supply cuts reached an unprecedented high of 137 per cent in the review month.
Trump endorses Romney in run for US Senate seat in Utah
He's a Brigham Young University graduate who went on to become the first Mormon presidential nominee of a major political party. President-elect Donald Trump and Mitt Romney dine at Jean Georges restaurant, November 29, 2016 in New York City.
Mr Al-Falih welcomed the rise in US production, saying that demand is seen remaining strong in 2018 and that the market will be able to absorb that supply.
Even if the demand for oil increases (if you subscribe to the theory that states the global economy is witnessing robust growth), the supply side will flood the oil market, and it could have an adverse effect on oil prices. In November 2017, crude oil production was 10.03 million barrels a day.
A Reuters survey on Wednesday found OPEC production fell in February to a 10-month low.
Prices were pressured earlier after three of the world's top consumers of crude - China, India and Japan - reported a slowdown in monthly factory activity. Venezuela's hit came amid USA -imposed financial sanctions and shrinking production. FRX/ A strong dollar makes oil more expensive for buyers using other currencies.
Freezing rain expected to make Monday morning hard
Rain is likely Saturday afternoon with a high near 41, then the rain could be joined by snow at night. Sean Reilly, city spokesman for Overland Park, said road crews reported to work at 4 a.m.