Crude oil eases on record U.S. production, OPEC supply hopes

Crude oil eases on record U.S. production, OPEC supply hopes

Crude oil futures lost more ground on Friday, with the U.S. market set for a second week of decline on pressure from record U.S. production and expectations of OPEC boosting output, Reuters reports.

U.S. West Texas Intermediate crude CLc1 lost 16 cents, or 0.2 percent, to $66.88 a barrel by 0423 GMT, after falling almost 2 percent on Thursday.

Global benchmark Brent crude LCOc1, which was little changed in the previous session, was down 9 cents, or 0.1 percent, to $77.47 per barrel.

For the week, WTI is on track for a 1.5 percent fall, adding to last week’s near 5 percent decline, while Brent is set to rise 1.3 percent, widening the spread between the two benchmarks.

U.S. crude production has been rising to record-high levels since late last year. In March it jumped 215,000 barrels per day (bpd) to 10.47 million bpd, a new monthly record, the Energy Information Administration (EIA) said on Thursday.

“U.S. production is growing, the line is growing straight up when you look at U.S. production,” said Tony Nunan, oil risk manager at Mitsubishi Corp in Tokyo.

“The big thing is the increasing spread between Brent and WTI. Financially it makes sense for buyers to take WTI as it is so cheap.”

On Thursday, the premium for Brent over WTI surpassed $11 a barrel, the largest since early 2015. It has doubled in less than a month, as a lack of pipeline capacity in the United States has trapped a lot of output inland.

“A drop in inventories in the U.S. was overshadowed by U.S. output which jumped to a record-high level,” ANZ said in a note.

U.S. crude stockpiles fell 3.6 million barrels last week, the EIA said, exceeding expectations for a decline of 525,000 barrels.

Brent hit a three-week low below $75 a barrel on Monday after OPEC and its allies, including Russia, indicated they could adjust their deal to curb supplies and increase production, but recovered later in the week.

OPEC and non-OPEC producers have committed to cut output by 1.8 million bpd until the end of 2018, but are ready to make gradual supply adjustments to deal with shortages, a Gulf source familiar with Saudi thinking told Reuters late on Wednesday.

Sources told Reuters last week that Saudi Arabia, the effective leader of OPEC, and Russia were discussing boosting output by about 1 million bpd to compensate for losses in supply from Venezuela and to address concerns about the impact of U.S. sanctions on Iranian output.

Russia would be able to raise its oil output back to pre-cut levels within months if there is a decision to unwind the price-protection deal with OPEC and other producers, a Russian energy ministry official said.

Concerns about U.S. bottlenecks are contributing to the decline in U.S. futures as well. Prices for physical barrels of U.S. light sweet crude delivered at Midland are at their largest discount to the benchmark U.S. futures price in almost four years.

Subscribe to Trend in Google News! Subscribe
Turkey reports 24,792 daily COVID-19 cases
Turkey reports 24,792 daily COVID-19 cases
Azerbaijani Navy officers successfully completes internship in Turkey (PHOTO)
Azerbaijani Navy officers successfully completes internship in Turkey (PHOTO)
10 envoys to be declared persona non grata: Erdogan
10 envoys to be declared persona non grata: Erdogan
Loading Bars
Latest
Iran boosts caviar exports
Monthly sales of goods at Iran Mercantile Exchange revealed
Iran's extraction from South Pars gas field to decrease
Iran shares data on tax revenues
Iran could become gas importer – NIOC
Iran extraction data on its from South Pars gas field
Iran’s Bahar Azadi gold coin price continues to rise
Chinese President Xi calls for global cooperation on terrorism, climate change
Sudan PM Hamdok is under house arrest: Report
New private sector led growth model can help Azerbaijan diversify its economy – IFC regional manager (Exclusive)
Kazakhstan logs 1,573 new COVID-19 cases in 24 hr
IS claims responsibility for bomb attack in Uganda
Tesla pulls its new Full Self-Driving beta due to software 'issues'
Turkey reports 24,792 daily COVID-19 cases
At least 4 dead in avalanche on Ecuador's volcano
Zika virus case reported in northern India
Saudi Arabia's Energy Minister says OPEC will not change its strategy
Hurricane Rick edges closer to Mexican coast north of Acapulco
Israeli-led research reveals plant mechanism for dealing with water shortage
Chronicles of Victory: President Ilham Aliyev announces that Gubadli city is freed from occupation on October 25, 2020
Chronicles of Victory: President Ilham Aliyev gave interview to US Fox News TV channel on October 25, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 25, 2020
116 illegal migrants rescued off Libyan coast
Azerbaijani Navy officers successfully completes internship in Turkey (PHOTO)
Military training session to be held in military unit of Azerbaijani MoD
At least 25, including minors, died in illegal refinery blast in Nigeria
Iran’s RCS receives 30th batch of COVID-19 vaccine
Mandatory vaccination issue to be solved in November, NCDC Head says
Some 16.03 million voters cast their votes in the presidential elections in Uzbekistan
Tug fights container fire on cargo ship off British Columbia
Tokayev arrives in Ashgabat for state visit
Voting in presidential elections in Uzbekistan ends
Growth of Uzbekistan’s real GDP makes almost 7% over 9 months
No mandatory vaccination in Georgia, PM vows
Uz-Kor Gas Chemical opens tender to attract services for int'l goods transport
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 2,036 more COVID-19 cases, 1,045 recoveries
Azerbaijan's executive power in Aghdam opens tender for road overhaul
Inflation rate in Iran increases
Renewable energy dev't envisioned in Azerbaijan's national priorities - minister (PHOTOS/VIDEO)
UK says substantial differences remain with EU over Northern Ireland trade
Israel, UAE sign 'green corridor' agreement for vaccinated passengers - Israeli consulate in Dubai
Turkmenistan to connect grids of its Akhal, Balkan regions with new high-voltage line
Iran reveals COVID-19 data for October 24
Relations between Iran and Azerbaijan to continue based on mutual respect - Iranian FM
Kazakhstan boosts revenues from transporting cargo by air
Azerbaijan sees rise in total assets of local banks in September 2021
Georgia reports 3,436 coronavirus cases, 4,483 recoveries, 43 deaths
Azerbaijani MoD publishes video on events that took place last year this week (VIDEO)
Uzbekistan's CEC talks voters turnout as of 11.00
Total value of mortgage loans issued by Azerbaijani banks up in 9M2021
Prices of potatoes change in Uzbekistan
First VP Mehriban Aliyeva shares photo from visit to Zangilan with President Ilham Aliyev (PHOTO)
Daily COVID-19 case count at 1,677 in Kazakhstan
96 new positive cases of coronavirus detected in Kyrgyzstan
Azerbaijani banks increase issuance of consumer loans
Presidential elections kick off in Uzbekistan
Cargo ship on fire, spewing toxic gas off Canada’s Pacific coast: Officials
Tesla hikes price of Model X, Model S variants by $5,000
IRICA shares data on import of COVID-19 vaccine to Iran
Japan keen to invest in restoration of Azerbaijan's liberated lands
1,677 more COVID-19 cases reported in Kazakhstan
1 dead, 7 injured in shooting at off-campus party near Georgia university
Tesla posts a $1.62 billion profit in Q3 despite difficult car market
198 illegal migrants rescued off Libyan coast
10 envoys to be declared persona non grata: Erdogan
UN's Guterres welcomes Saudi Arabia's climate initiatives in call with King Salman
Presidential elections to be held in Uzbekistan
UK says substantial differences remain with EU over N.Ireland trade
New migrant caravan in Mexico pushes past blockade to head north
Aramco aims for net zero emissions from operations by 2050, CEO says
U.S. administers nearly 413 mln doses of COVID-19 vaccines
Chronicles of Victory: Azerbaijani president gives interview to Le Figaro newspaper on October 24, 2020 (PHOTO/VIDEO)
Chronicles of Victory: October 24, 2020
Buy/sell operations at Iran Mercantile Exchange growing
Iran unveils details of its trade turnover via Astara customs
Putin invites Israeli prime minister to visit St. Petersburg
Iran's Energy Exchange announces products to be on sale on October 24
Turkmenistan launches production of new types of paving slabs
Azerbaijani banks ramp up business lending since early 2021
Georgia and Ukraine talk cooperation within European integration
Iran reveals COVID-19 data for October 23
UK records another 44,985 new coronavirus cases
Tactical-Special Exercises of Azerbaijani Special Forces end (VIDEO)
First Vice-President Mehriban Aliyeva shared photos from Aghali village of Zangilan district on her official Instagram page (PHOTO)
Azerbaijani, Iranian FMs talk recent relations developments
Members of Nizami Ganjavi International Center join call towards cop26
Arayik Harutyunyan's visit to Russia is solely private - embassy of Azerbaijan
NATO not ready for equal dialogue with Moscow - Russian defence chief
Saudi-led coalition says destroys Houthi vessels, bomb-laden boats site
Kazakhstan updates forecast for completion of grain harvesting
IRENEX shares data on sales of Sepahan Oil Company in energy exchange
EIB to help reduce COVID-19 effects on Georgian SMEs
Moscow comments on reports about holding Russia-Armenia-Azerbaijan summit on Nov.2021
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 2,315 more COVID-19 cases, 981 recoveries
First Vice-President Mehriban Aliyeva shared footage from Zangilan visit on her Instagram page (VIDEO)
Turkmenistan to participate in EXPO-2025
Georgia and Ukraine sign protocol on economic cooperation
Weekly review of key events in Azerbaijan's ICT sector
All news