Saudi Arabia's Crude Supply to US Gulf Falling Fast and Hard

Saudi Arabia's Crude Supply to US Gulf Falling Fast and Hard

U.S. West Texas Intermediate crude oil futures were at 56 dollars 78 cents per barrel, down 16 centsfrom their last settlement. The total is 446 million barrels.

The prices of crude oil declined on Thursday on the back of a record high production by the United States and weakening factory output in China and Japan.

US crude futures extended gains after the data was released and traded up $1.78 at $57.28 a barrel by 11:04 a.m. EST (1604 GMT). Oil prices had crashed below US$30 per barrel down from over US$100 per barrel due to a glut in supplies and weak global demand. May Brent crude oil futures are trading $66.56, up $0.25 or +0.38%.

Despite hitting their highest levels since mid-November this week, Brent futures ended the week 3.3 percent lower and WTI dropped 2.7 percent.

Prices were dragged down by surging American crude oil production, which has risen by more than 2-million barrels a day over the past year, to an unprecedented 12.1-million barrels a day.

A Reuters poll showed analysts expect global fuel demand to slow this year amid a broad economic slowdown.

The weakness is also being felt across the wider region.

More news: Priyanka Chopra and Sophie Turner star in Jonas Brothers' comeback song video

EIA says crude oil inventories decreased by 8.6 million barrels. South Korea's exports contracted at their steepest pace in almost three years in February as demand from China cooled further.

OPEC, Russia and other non-members - an alliance known as OPEC+ - agreed to reduce supply by 1.2 million bpd.

February's output is the lowest by OPEC as a group since February 2015, excluding membership changes that have taken place since then, according to Reuters surveys.

In Venezuela, oil exports have plunged 40 percent to around 920,000 bpd since the US government slapped sanctions on its petroleum industry on January 28.

The biggest drop in supply came from Saudi Arabia, OPEC's biggest oil producer, which pumped 130,000 bpd less than in January, the survey showed.

A lack of adequate investments in oil and gas which is expected to be US$11 trillion by 2040 as per OPEC would lead to supplies falling short of demand.

Related Articles

  • UEFA bans Sergio Ramos for additional Champions League game

    UEFA bans Sergio Ramos for additional Champions League game

    UEFA has issued a two-match suspension to Sergio Ramos after finding him guilty of getting booked deliberately against Ajax . Following an investigation opened by Uefa Ramos was handed an additional one match for obtaining the booking on goal .
    Gap, Old Navy to split into separate companies

    Gap, Old Navy to split into separate companies

    Plus, closing 230 stores signals that Gap "must have seen that there was too much waste in its business model". FILE PHOTO: Customers arrive to shop at an Old Navy store in the Brooklyn borough of New York June 15, 2015.
    Victoria’s Secret will close 53 stores as struggles mount

    Victoria’s Secret will close 53 stores as struggles mount

    Burgdoerfer credited the strong performance in part to White Barn candles into some new and existing stores. The hard holiday period and planned store closures are the latest turmoil for the brand.
  • Canada allows Huawei CFO extradition case

    Canada allows Huawei CFO extradition case

    Beijing has accused Washington of a politically motivated attempt to hurt a potential competitor to USA technology vendors. China also sentenced another Canadian, Robert Lloyd Schellenberg, to death in a sudden retrial of his drug-smuggling case.
    Liverpool Boss Jurgen Klopp Gives Fitness Update On Roberto Firmino

    Liverpool Boss Jurgen Klopp Gives Fitness Update On Roberto Firmino

    Wolves" eight-game unbeaten run ended in a 1-0 defeat at Huddersfield and boss Nuno Espirito Santo said: "We have to improve. How important is a win at Goodison to regain momentum? Henderson started the midweek win over Watford on the bench.
    What to make of the collapse of the Hanoi summit

    What to make of the collapse of the Hanoi summit

    The two leaders previously sounded optimistic about denuclearisation and had planned a signing ceremony and a celebratory lunch. The US presented Mr Kim with evidence of additional secret nuclear sites, surprising the North Koreans, according to Mr Trump.
  • Pakistan returns Indian pilot as violence rages in Kashmir

    Pakistan returns Indian pilot as violence rages in Kashmir

    It wasn't clear when he recorded this statement, but it was clearly while he was in the custody of the Pakistan military. Indian media and politicians have since been blaming Pakistan for the attack without any evidence.
    Venezuela calls for Trump-Maduro talks

    Venezuela calls for Trump-Maduro talks

    To pass the Security Council, a resolution must secure nine votes, and the U.S. draft appears capable of meeting that threshold. It stresses the need to ensure the safety of all the members of Venezuela's National Assembly.
    Prince William and Kate on royal visit to Northern Ireland

    Prince William and Kate on royal visit to Northern Ireland

    It's likely the reason that Kate Middleton has opted for a green outfit for tonight's royal engagement in Belfast. It seems the Duchess' pregnant sister-in-law Meghan Markle may have struck up her broodiness.
  • Trump’s Rollicking, Two-Hour CPAC Speech is Longest of His Presidency

    Trump’s Rollicking, Two-Hour CPAC Speech is Longest of His Presidency

    Mr Trump's second summit with Kim Jong-un in Vietnam ended abruptly without a deal this week . New Yorker reporter Osita Nwanevu joins Hari Sreenivasan.
    Global stocks rise after Trump tariff extension

    Global stocks rise after Trump tariff extension

    China has retaliated with duties on Dollars 110 billion of U.S. goods. "We have to get it approved, let's see what happens". The trade war was started by Trump over claims of unfair trading practices and intellectual property theft by the Chinese.
    Did Global Pressure Lead Imran Khan To Announce Pilot's Release?

    Did Global Pressure Lead Imran Khan To Announce Pilot's Release?

    Modi earlier in the day warned that " India's enemies are conspiring to create instability in the country through terror attacks". Pakistan also has refused to renounce a first-strike option with its atomic bombs should it feel outgunned in a conventional war.