While rates of global production have slowly risen, it's unlikely that oil producers will be able to keep up with demand thanks to restrained production in both the United States and Saudi Arabia. So, for the working week that ended on May 18, the country's oil reserves fell by 1.3 million barrels.
"This discussion about possible OPEC supply increases after the June meeting has put a brake on the oil price for the time being, so $80 is a big hurdle to overcome", Commerzbank strategist Carsten Fritsch said. The latter is somewhat surprising, Flynn said, because Brent crude is trading at more than a $7 premium to USA crude, making exports more attractive. Venezuela has been producing about 500,000 barrels a day less than its quota under the OPEC production cuts, and more USA sanctions could cut that number even further.
Libya, an OPEC member, recently announced it will decrease oil production by 120,000 barrels per day because unseasonably hot conditions are affecting power supply.
'Ballistic Blocks' Shooting From Kilauea's Crater, USGS Says
It comes after more than a dozen fissures recently opened miles to the east of the crater and spewed lava into neighbourhoods. The US Geological Survey says the massive eruption took place near the volcano's summit at 4:17 AM Thursday local time.
Meanwhile, on Wednesday, Charles Schumer, U.S. senate democratic leader, held a news conference at a Washington Exxon station to criticize Trump for gasoline prices jumping 25 percent since the brash billionaire took office previous year. Refinery utilization rates rose by 0.7 percentage point to 91.8 percent of total capacity. Augusto Montiel said the U.S. sanctions have hit oil production in Venezuela and criticised Washington for "interfering" in its domestic affairs.
"You want to get out of the long positions if you are expecting that OPEC is going to increase production", James Williams, president of London, Arkansas-based energy researcher WTRG Economics, said by phone. He noted that the glut in commercial inventories was "almost gone" and that the buffer of spare production was still relatively small, an ominous situation when geopolitical risks remain high.
At the moment the barrel of WTI is losing 2.73% at $68.62 facing the next down barrier at $67.65 (low May 8) seconded by $66.94 (55-day sma) and finally $66.86 (low May 1).
The Trump decision to renew US sanctions on Iran could cut as much as half a million barrels a day from Iranian oil exports.