Oil Prices Rise As Crude Demand Surges (USO)

Saudi Arabia has been curbing exports for the past few months to drain global and USA crude oil inventories to support crude oil (UWT) (DWT) prices.

Interruptions from Hurricane Harvey, dwindling OPEC production and seasonal maintenance caused output to come down by 720,000 barrels a day last month from July, to 97.7 million barrels a day, the International Energy Agency said Wednesday. Benchmark Brent crude rose 53 cents a barrel or almost 1 percent, to trade at $54.80. Russian oil production is holding steady, but still represents a slight increase from the average past year. The segmented analysis of the Saudi arabia crude oil refinery market research report 2017 is a lot more than simple figures; it is a an in-depth analysis of what it takes for the players in this market to prosper in each category they want to place themselves in.

"OECD product stocks were only 35 million barrels above the five-year average at end-July", the IEA said.

U.S. output will average 9.84 million barrels a day next year, the Energy Information Administration said in its monthly Short-Term Energy Outlook on Tuesday.

In their last report, global demand forecast was revised higher by 0.1 mbpd by both.

Opec and other producers including Russia, Mexico and Kazakhstan pledged to reduce output by about 1.8 million barrels a day to eliminate a global surplus that was weighing on prices.

On Tuesday, oil prices dropped as the aftermath of Hurricane Irma affected demand offset refinery restarts on the heels of Hurricane Harvey.

In its latest Short-Term Energy Outlook, out on Tuesday, the EIA said that the effect of the supply disruptions on the Gulf Coast will last for a while, which would boost the uncertainty around oil and gas prices in the coming weeks.

"The market is looking for a significant build in oil inventories". It has expected the USA economic growth to stay unaffected due to Hurricane Harvey, considering the offset of economic activity loss caused by the reconstruction work along the Gulf Coast. The EIA also raised their US oil demand forecast to 20.38 million barrels a day up from 20.3 million barrels.

In market developments, Saudi Arabian Energy Minister Khalid al-Falih discussed with his Venezuelan and Kazakh counterparts the possible extension of the global oil supply cut pact beyond March 2018, the Saudi energy ministry said in a weekend statement reported widely on Monday.

  • Carolyn Briggs