Oil Prices Jump Over 1 Percent Amid Tightening Supply

14 April, 2019, 23:16 | Author: Eric Barnett
  • A pump jack stands at dusk in the Permian Basin area in Texas U.S. Bloomberg  Angus Mordant

After closing the previous session at $70.98 a barrel on Thursday, global benchmark Brent crude gained 0.2% to trade at $71.12 per barrel at 0630 GMT.

However, global oil markets remain firm, amid Opec+ supply cuts, US sanctions on oil exporters Venezuela and Iran and increased fighting in Opec member Libya.

Oil prices doubled on three occasions thanks to the cuts led by OPEC countries, U.S. sanctions on Iran and Venezuela and the renewal of fighting in Libya.

OPEC's largest producer Saudi Arabia saw its output dropping to its lowest in over two years, boosting compliance with supply cuts to 153%, according to the IEA's Oil Market Report.

But the group said that the market remained oversupplied and warned of slowing demand growth, according to S&P Global Platts.

Oil prices fell on Thursday, pressured as USA crude stockpiles surged to their highest levels in nearly 17 months amid record production and as economic concerns cast doubt over growth in demand for fuel.


"Oil prices at $70/bbl for Brent are less comfortable for consumers than they were at the start of the year", the reports says.

Current oil demand stands around 100 million bpd.

On a less-brighter note, the World Trade Organization recently slashed its estimates for 2019 economic growth by a staggering 1.1 percent.

Additionally, supply from Libya is also in decline as tensions continue between UN-backed Government of National Accord and east Libya-based commander Khalifa Haftar who now controls around half of the oil fields in the country that have a total of 1.1 million bpd of oil production. Conflict between the United States and Iran could have also helped boost oil prices considering the risk of President Trump extending Iranian restrictions. Moreover, news out that Russian Federation has shied away from committing to extend oil production cuts along with OPEC could also weigh adversely on crude prices if this risk materializes.

The kingdom also self-reported production of 9.79 million bpd, its lowest since January 2017 and a fall of 350,000 bpd month on month.

At the last OPEC meeting in Vienna, the group's members agreed to slash output by 812,000 bpd, with Russian Federation and nine other non-OPEC allies committing to a cut of 383,000 bpd for the first six months of 2019. However, U.S. gasoline stocks fell by a whopping 7.7 million barrels, sending U.S. gasoline futures higher by 3.5 per cent on their close on Wednesday.

Recommended:

  • How to watch Game of Thrones season 8 on Netflix

    You can watch Game of Thrones last season in Australia via Foxtel Now at A$25 per month (roughly translates INR 1,230). Here is how, where and when you can watch or live stream the season 8 premiere of Game of Thrones .
    GAMES OF THRONES Actor Cast as TITANS' BRUCE WAYNE

    GAMES OF THRONES Actor Cast as TITANS' BRUCE WAYNE

    You can see Glen in action in the Game of Thrones season premiere on April 14, and when Titans returns this fall. No release date has been set for Titans 2, but hopefully we can get it sometime later in the year.
    Bruins outmuscle Maple Leafs 4-1 in Game 2

    Bruins outmuscle Maple Leafs 4-1 in Game 2

    Kadri and John Tavares were denied on a Leafs' power play, and Zach Hyman hit the post as the visitors tried to respond. Jake Muzzin was bloodied by a hard David Pastrnak hit, and then delivered a thunderous check of his own on Torey Krug .
  • University students vote to pay reparations

    University students vote to pay reparations

    As a result of the resolution, students will now be charged an additional $27.20 per semester. Georgetown is the first major college to pass such a reparations fund.
    Air accident near Mount Everest leaves three dead

    Air accident near Mount Everest leaves three dead

    The pilot and three other crew members survived and are being treated at a hospital in Kathmandu after being airlifted there. At least four persons including Manang Air Pilot CB Gurung have been also been injured in the crash, the report added.
    Jovic not interested in Barcelona, claims father

    Jovic not interested in Barcelona, claims father

    Jovic himself has said that he would be open to staying at Frankfurt if the team make it into Europe's top competition. Goncalo Paciencia and Luka Jovic got the goals for the visitors.
  • Joel Embiid gives troubling health update ahead of playoffs

    Joel Embiid gives troubling health update ahead of playoffs

    Johnson showed Embiid whatever message was on the phone and then slid it into his warmup trousers pocket. The NBA Operations Manual bans the use of cellular phones on the bench during games.
    NASA hires SpaceX to help it crash an asteroid

    NASA hires SpaceX to help it crash an asteroid

    DART's target launch date is on June 2021, at the Space Launch Complex 4E at Vandenberg Air Force Base in California. In addition to DART , SpaceX's future launch manifest includes NASA LSP missions SWOT and Sentinel-6A .
    SpaceX successfully lands all three Falcon Heavy boosters

    SpaceX successfully lands all three Falcon Heavy boosters

    SpaceX has carried out its first commercial launch with its Falcon Heavy rocket tasked with placing a Saudi satellite in orbit. Earlier, boisterous spectators chanted along with the launch announcer who counted down the final 10 seconds before liftoff.
  • Facebook hid creepy messages inside its VR controllers

    Facebook hid creepy messages inside its VR controllers

    Peace added: "We think it's important to be transparent with our community and take responsibility when there's an error". They have also indicated that the hardware of the actual products has not been compromised.
    LeBron James reportedly struggling with recruiting - to Looney Tune Land

    LeBron James reportedly struggling with recruiting - to Looney Tune Land

    The Lakers entered Friday's matchup against the Los Angeles Clippers at 35-44, guaranteeing a record below.500 for a sixth straight year.
    Monkeys implanted with HUMAN BRAIN genes - with SHOCKING results

    Monkeys implanted with HUMAN BRAIN genes - with SHOCKING results

    In the future, similar research might enable scientists to develop treatments for diseases caused by abnormal brain development. These surviving monkeys were put through a barrage of cognitive tests, including memory tests and brain scans.


Popular

From Texas to Georgia, South braces for storms and potential tornadoes
The 13-year-old boy drowned in a drainage area in West Monroe late Saturday afternoon, the Ouachita Parish Sheriff's Office said. Multiple people were injured and several homes were damaged in Hamilton, Mississippi, said Monroe County Coroner Alan Gurley.

Bezos: Amazon will take risks, learn from failures
Amazon's third party sales in 2018 accounted for 58 percent of total sales, up from 56 percent in 2017, Bezos said . Amazon also offers the Career Choice program that pays up to 95 percent of education tuition and fees for workers.

Trump’s sanctuary city idea could help migrants stay in the US
Neal said Saturday that the administration has no right "to question or second guess" his motivations. Neal dismissed Mnuchin's concerns, writing they "lack merit".

BTS dropped a new video with Halsey and it's everything
To build on that momentum, NBC shared a new promotional video featuring BTS , Stone and cast member Cecily Strong. However, she's not the only star to team up with Jimin , V: The Series , Jin , Jungkook , Suga , J-Hope, and RM.

Twitter Scorches AOC For Comment to Dan Crenshaw About Terrorism
Lesley Clark works out of the McClatchy Washington bureau, covering all things Kentucky for McClatchy's Lexington Herald-Leader. "Why don't you go do something about that?" Omar and Ocasio-Cortez are two of the 213 co-sponsors of the bill in the House.

Footage Shows Chicago Officers Punching, Tasing 16-Year-Old Girl In School
Police said her actions led the three of them to fall down a flight of stairs, causing all three to be treated at local hospitals. Stroth also called on Mayor-elect Lori Lightfoot to "address this important issue and make our schools safe".

Pope Francis Kneels, Kisses Feet of Once-Rival South Sudan Leaders
Pope Francis has kissed the feet of South Sudan's leaders appealing to them as brothers to keep the peace. The pope kissed Kiir and Machar's feet, as well as those of Kiir's three vice presidents.

Trump says he considered his daughter Ivanka to lead the World Bank
When jobs open up in the Trump administration-a frequent occurrence-Ivanka is at the top of her father's mind. In the Atlantic interview, the president also praised Ivanka Trump for possessing "a great calmness".

2 children killed, dozens hurt as powerful storms slam Texas
The sheriff's office says the county saw other downed trees and power lines and minor structural damage from the storms. The most significant risk of severe weather is expected Saturday, but there's still considerable potential Sunday.

Star Wars: Jedi Fallen Order trailer, gameplay details and release date revealed
Respawn then provided us with a development update at EA Play 2018, revealing the title of the game and some early details. Friday's convention kicked off with the reveal of the first teaser for Star Wars Episode IX: The Rise of Skywalker .