Oil futures drooped on Wednesday, after eight straight upward sessions of gains after US crude inventory data suggested that the market was still heavily supplied.
The six secondary sources used by OPEC are the International Energy Agency, oil-pricing agencies Platts and Argus, the U.S. Energy Information Administration (EIA), consultancy Cambridge Energy Research Associates (CERA) and industry newsletter Petroleum Intelligence Weekly (PIW).
U.S. West Texas Intermediate (WTI) CLc1 fell by 19 cents to $52.88 a barrel, after touching a five-week high of $53.23.
"Although the oil market will likely tighten throughout the year, overall non-OPEC production, not just in the US, will soon be on the rise again", it said in the report.
Benchmark Brent crude futures settled up 3 cents to $55.89 a barrel after touching a one-month high on Wednesday.
Oil futures have been pinned in a range, supported by production cuts from the Organization of Petroleum Exporting Countries cartel and other producing states but capped by rising US shale oil production.
In December, OPEC and non-OPEC producers agreed to cut output by 1.8 million barrels per day for six months to help stabilize oil prices. OPEC will also release its Monthly Oil Market Report tomorrow-another market mover that is expected to push up prices as early reports show that OPEC over-complied in March.
Columbus loses top defenseman for rest of playoffs
Calvert didn't want to talk about the play Monday, but he did say it wasn't payback for anything that happened in the game. The Grosse Pointe native played two seasons for the Wolverines from 2014-16 and had 20 goals and 41 assists in 71 games.
Moreover, higher prices could put the market at risk of another glut, because higher prices could incentivize US shale producers to drill for more oil.
Crude oil climbed to a five-week high on Tuesday, with prices underpinned by tensions following a United States missile strike on Syria and a shutdown at Libya's largest oilfield.
Support is building within the OPEC to extend its oil production cuts beyond June.
While speculation that the Organisation of Petroleum Exporting Countries (Opec) and its allies will extend their six-month pact aimed at eroding a global glut is helping boost prices, there is also concern that rising USA output will counter the reductions.
"Despite some downside risks, general expectations for demand growth for oil products in the coming months remain bullish", the report said. Production will likely grow by 300,000 a barrels a day this year and another 700,000 barrels a day in 2018, to an average of 9.9 million barrels a day.
"U.S. production rose 36,000 barrels per day, the most since January 2016 and the Baker Hughes rig count of 672 is the highest since August 2015". Total oil consumption in 2017 is expected to stand at 96.32 million barrels per day, according to the report.
Comments