OPEC Sees Tighter 2019 Market As Nigeria, Others Defy Cuts

OPEC Sees Tighter 2019 Market As Nigeria, Others Defy Cuts

Oil production in the USA has risen by more than two million bpd since early 2018, to a record 12.2 million bpd.

The global investment bank revised its oil price forecast higher Thursday, pointing to a cocktail of market conditions.

The average daily oil production reached 793,000 barrels in January, 806,000 barrels in February and 792,600 barrels in 2018, the Ministry of Energy said.

On Tuesday, the 9th of April 2019, during the midday Asia Pacific trading hours, Brent crude hit a five-month high above $71, while United States crude had resurfaced over $64.50 level for the first time after November 1st, 2018.

Current oil demand stands around 100 million bpd.

Follow Trend on Telegram.

According to EIA's data, USA crude oil production averaged 12.2 million barrels per day (b/d) last week, the same as the previous week and up by about 1.7 million b/d year-on-year.

In other news, earlier this week, the Energy Information Administration reported that US crude inventories rose to their highest level since November 2017. Those include steep OPEC supply cuts, robust demand, geopolitical risk and investor positioning that leaves crude futures plenty of room to run.

More news: Scientists release first photograph of a black hole

Venezuela's oil output sank to a new long-term low last month due to USA sanctions and blackouts, the country told OPEC, deepening the impact of a global production curb and further tightening supplies.

The combined supply cuts have helped to drive a 32 percent rally in crude prices this year to almost $72 a barrel, prompting pressure from U.S. President Donald Trump for OPEC to ease its market-supporting efforts. But it said that the market remains oversupplied and warned of slowing demand growth.

"Now there is a suggestion that OPEC may surprise us and raise production pre-emptively if we get a price spike", said Phil Flynn, an analyst at Price Futures Group in Chicago. Furthermore, U.S. gasoline stocks fell by a whopping 7.7 million barrels last week.

The investment bank said in a recent note that it now expects benchmark Brent crude prices to average $66 per barrel in 2019, compared with its previous estimate of $62.50.

"Russia will not increase its output unless in co-ordination with the rest of OPEC and OPEC+ countries", Mazroui said.

Propane/propylene inventories increased by 1.2 million barrels last week and were about 19 percent above the five-year average for this time of year.

OPEC production meanwhile fell by 0.55 mbd in March to 30.13 mbd - a four-year low - largely due to cuts in Saudi Arabia and crisis-hit Venezuela, the IEA said.

Related Articles