Saudi's refined oil exports offset crude curbs

Saudi's refined oil exports offset crude curbs

Analysts noted that extreme long positions in financial oil markets could hold back any optimism in prices, with several traders likely to cash in recent price gains, which saw crude climbed about 14 percent since early December.

The production cuts, introduced by OPEC and 10 non-member oil producers, have reportedly become the major price driver.

Venezuela saw a sharp drop in production, to the tune of 89,000 barrels per day. Other analysts, however, consider that there is only limited further upside for oil prices because some non-Opec producers are taking advantage of the firmer price to increase their output. The so-called shale revolution could help to alleviate Washington's reliance on foreign oil, including from turbulent Middle Eastern states, while also supporting a bid to export to more countries around the world. Russian Federation is also the largest non-OPEC contributor and a member of a joint committee monitoring compliance. The low was seen after the IEA forecasts crude supply to increase in 2018 in its latest monthly report, forecasting non-OPEC supply will rise by 0.2 month over month barrels per day on average. That's near the 9.789 million barrels a day seen for the week ended December 15, which was a weekly record based on EIA data going back to 1983. "We are determined to carry through the rebalancing", Novak, whose country is the world's top crude producer, told reporters.

USA crude inventories fell 6.9 million barrels last week, compared with forecasts for a 3.5 million-barrel draw, the US Energy Information Administration said.

The agency said: "This represents, after the downturn in 2016 and the steady recovery in 2017, a return to the heady days of 2013-2015 when US-led growth averaged 1.9 million bpd".

The UAE, which lagged many of its peers on compliance previous year, said it cut output by 38,000 bpd to below its OPEC target for the first time.

On 30 November a year ago it was announced that the oil price cut agreement would be extended until the end of 2018 in an effort to support oil prices.

OPEC made the additional point that U.S. shale oil companies have managed to lower their break-even costs by up to 50% since oil prices crashed in mid to late 2014 "by improving technology and efficiency". "Production was steady on a year ago as non-OPEC gains of almost 1 mb/d offset declines in OPEC". They agreed to cooperate beyond the end of this year, without deciding on a mechanism for this cooperation, he said.

Baker Hughes (BHGE) on Friday reported that the number of active oil-drilling rigs (http://www.marketwatch.com/story/baker-hughes-reports-a-weekly-decline-in-the-us-oil-rig-count-2018-01-19) fell by 5 to 747 this week, though that followed a rise of 10 rigs a week earlier.

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