SK Innovation sees oil prices staying low, eyes USA crude

03 Juin, 2017, 15:36 | Author: Marc Bacque
  • SK Innovation sees oil prices staying low, eyes USA crude

Oil price is struggling to gain grounds despite the OPEC and N-OPEC agreement on production deals.

All dynamics are factored in: The IEA's growing outlook for global oil demand, the now confirmed OPEC and Russian production cuts, and a robust outlook for USA production growth.

Analysts at Rystad Energy are predicting USA crude oil output could top an old record set in November 1970 by the end of the year.

And Middle East grip on oil prices is set to weaken further amid tough measures from the U.S. led by Donald Trump.

Industry data on USA oil inventories from the American Petroleum Institute (API) late on May 31 was seen buoying prices. Still, analysts diverge on the future impact of the cut and whether the cartel and its non-OPEC counterparts have an effective exit strategy once they unwind the agreement that has taken 1.8 million barrels per day (mbd) off the market.

Analysts predict USA crude oil could rise even faster as prices increase.

Today's inventory report from US Energy Information Administration (EIA) will be released at 15:00 GMT.

A week ago, the OPEC and some non-OPEC members met in Vienna to roll over the output cut deal to reduce 1.8 million barrels per day (bpd) until the end of next March.

World leaders pledge to boost climate efforts after Trump move
The president of the European Council says the EU and China are convinced that the USA decision is a "big mistake". Trump said he intends to exit the Paris climate agreement , and that got Macron in front of a camera.


Broker Changes For Honda Motor Company, Ltd. (NYSE:HMC)
Zacks Investment Research cut Honda Motor Co from a hold rating to a sell rating in a research report on Tuesday, April 25th. The business had revenue of $3,763.40 billion during the quarter, compared to analysts' expectations of $3,670.98 billion.


Deutsche Bank AG Reiterates Buy Rating for Cognizant Technology Solutions Corp (CTSH)
Equities research analysts forecast that Cognizant Technology Solutions Corp will post $3.65 EPS for the current fiscal year. Parnassus Investments CA owned about 0.07% of Cognizant Technology Solutions Corp at the end of the most recent quarter.


Brent crude futures for July LCOc1 were up 39 cents, or 0.8 percent, at $51.15 a barrel by 0552 GMT, after trading higher earlier. It was the 20th straight weekly increase in the number of active USA oil rigs.

However, U.S. crude production is rising fast as new technology helps to extract shale oil, making the United States more self-sufficient in energy. It's above the three-year peak of 800,000 bpd hit in early May 2017.

According to the EIA, crude inventories in the USA market in the week to May 26 dropped by 6.4 million barrels per day to 509.9 million barrels, way more than the market forecast of a 4.4 million-barrel decline.

OPEC's decision to extend the same level of cuts for nine months rather than reducing production further could prove insufficient to draw out the surplus despite OPEC's strict compliance with the curbs.

WSJ's May analyst survey puts crude at an average of $56 a barrel this year, down a dollar from April survey.

The U.S. inventories data provided some relief after a week of negative news on the global supply-demand balance.

Rosneft, Russia's largest oil producer, has borne the brunt of output cuts under the extension deal.

Russian Federation is paying close attention to US oil production these days, and the CEO of the state-owned oil company Rosneft, Igor Sechin, publicly expressed concerns that surging American supplies could overcome petrostate efforts to cut production and push prices back up.

Conseillé:

  • La position du gouvernement "intenable" voire "toxique" selon le PS — Ferrand

    L'entreprise avait choisi, entre trois propositions, celle d'une société immobilière appartenant à la compagne du ministre. Baroin, sous-entendant que le chef de l'Etat devrait faire démissionner M.
    Trump Makes Two Conservative Picks for Fed

    Trump Makes Two Conservative Picks for Fed

    Though the Fed has not published its plan in detail, policymakers have said the portfolio would shrink as if on "autopilot". Notably, if these 2 nominees are eventually confirmed, the tone of the Fed Board will swing to a more Hawkish mode.
    'Absolutely' no income tax rise for high earners, say Tories

    'Absolutely' no income tax rise for high earners, say Tories

    We've set that out in the manifesto . "The only way they can be sure their taxes won't rise is to vote Conservative". New promise comes less than a week before United Kingdom election as polls show Conservative majority narrowing.
  • La police de Manchester libère un suspect

    A Manchester, les habitants se préparent à vivre dimanche un grand concert de charité pour les victimes de l'attentat. L'enquête porte notamment sur le quartier de Rusholme, au sud-est de Manchester, où un homme a été arrêté.

    Richard Ferrand ne démissionnera pas car il a sa "conscience pour lui"

    Ferrand brigue un second mandat de député , sous l'étiquette de la République en marche (REM), dans la 6e circonscription du Finistère.
    PSG: Alexis Sanchez trop gourmand?

    PSG: Alexis Sanchez trop gourmand?

    Mais Arsenal veut garder son joueur et le lui a récemment montré en lui proposant un salaire de 320 000 euros par semaine. Du coup, le dossier devrait être refermé annonce le papier francilien.
  • UK's May grilled by voters, urged to confront Trump on Paris

    It has retrofitted police cars and other city vehicles to run on natural gas, and optimized traffic lights to reduce idling times. He says he's committed to moving Pittsburgh towards its future as a technological and medical research hub.

    California to discuss linking carbon market with China

    And he pointed out that Trump has merely served to demonstrate that climate denial has "no integrity and no future". As you know, the president really emphasized in his remarks today that he was doing this for Pittsburgh, not Paris.
    U.S.  weapons sale to Saudi to jeopardize regional security: Iran

    U.S. weapons sale to Saudi to jeopardize regional security: Iran

    The commander-in-chief stepped away from his anti-Muslim rhetoric by calling Islam "one of the world's great faiths". There was no mention also of civil liberties and human rights violations - and Arab leaders should feel relieved.
  • Nokia 6, Nokia 5 and Nokia 3 to receive Android O update

    Further, there is 32GB/64GB storage and have 16MP main snapper with PDAF at its rear and an 8MP selfie camera. It's expected that the event will be for the launch of its Nokia branded Android smartphones in the country.
    Blasts near funeral in Afghan capital, at least 12 dead

    Blasts near funeral in Afghan capital, at least 12 dead

    As per the report, three blasts took place in the city near a cemetery where Senator Ezadyar's son is being buried. Ezadyar's son was killed in the mass rally in Kabul on Friday after security forces opened fire on demonstrators.
    Chinese malware infects 250 million according to Check Point

    Chinese malware infects 250 million according to Check Point

    The signs of the infection are that the user opens their browser to a home page not of their choosing, and they can not alter. However, the fake search engine includes pixels that are used to track a user's actions from one site to the next.


Populaire

Ferrand: Macron veut la solidarité, souligne le rôle de la justice
Enfin, ce dernier (aurait) défendu, dès 2012, les intérêts des Mutuelles de Bretagne en portant une proposition de loi qui leur était favorable.

Lions centre Payne out of NZ tour opener
Maybe when the 30,000 Lions supporters arrive and they do the poll again the number might go up". "I'm hugely excited about it". Warren Gatland's side did not, as you would have expected, move away from the opposition after taking the lead.

Chico's FAS (CHS) Given Daily Media Impact Rating of 0.25
Following the completion of the purchase, the senior vice president now owns 30,190 shares in the company, valued at $416,018.20. Following the transaction, the insider now owns 153,260 shares of the company's stock, valued at approximately $2,191,618.

Colorado Mayors Sign Pledge to Uphold Paris Agreement
Another coal mine is due to open soon about an hour and a half's drive outside Pittsburgh, but it will bring with it just 70 jobs. In the USA , natural gas has overtaken it as a power station fuel, partly due to fracking bringing the prices down.

PM Narendra Modi arrives in Paris; to meet French President Macron
Modi addressed the large gathering of business leaders at the Forum, where India was the guest country for the first time. He said, "In Vedas, written 5000 years ago, says -milking of nature is permitted, but exploitation of nature is not".

35 injured in massive blast in Southern Iran
Those who were trapped in the fire were reportedly transferred to safety via a hoist and a 54-metre ladder. He added that their general condition is favorable.

Hackers could be from 'anywhere' - Putin
Reiterating that relations between India and Russian Federation are strong, the PM said that the whole world will read the St. Petersburg Declaration carefully, to understand this relationship, and see how the two countries move forward.

Prostate cancer treatment 'could help more patients'
Sir Harpal Kumar, Cancer Research UK's chief executive, said: "These results could transform the treatment of prostate cancer". Yet, only 14 per cent of black men are aware of their higher risk.

Premier huitième pour Garcia, qui rejoint Cornet
Garcia et Cornet en découdront pour une place dans le grand 8, une première pour une bleue depuis Marion Bartoli, en 2011. C'est ensuite la Taïwanaise qui s'est retrouvée en position de conclure sur son service à 6-5, en vain.

Eagle Bancorp, Inc. (EGBN) Given Hold Rating at Keefe, Bruyette & Woods
Zacks Investment Research lowered Eagle Bancorp from a "buy" rating to a "hold" rating in a report on Wednesday, March 22nd. Teachers Advisors LLC owned approximately 0.17% of Eagle Bancorp worth $3,478,000 at the end of the most recent quarter.