New Report: US Oil Will Smash Records in 2018

New Report: US Oil Will Smash Records in 2018”

Overnight, crude oil prices settled lower on Thursday as a bearish outlook on global oil demand for 2018 offset data showing USA crude oil stockpiles fell for the third-straight week.

Inventories of USA crude fell by roughly 2.8 million barrels in the week ended October 6, handily beating expectations of a draw of 2 million barrels.

It continues to see global demand for crude growing by 1.6 million barrels per day in 2017, before moderating to 1.4 million bpd in 2018.

For 2018, production is expected to average 9.9m bbl/day, the EIA said.

"Taking 2018 as a whole, oil demand and non-OPEC production will grow by roughly the same volume and it is this current outlook that might act as the ceiling for aspirations of higher oil prices".

"We have kept buying USA crude since we made our first purchase of it, nearly 2 million barrels every month because we found the economics of USA crude are good", said Kim Woo-kyung, a spokeswoman at SK Innovation, which owns SK Energy.

Supplies at the storage hub of Cushing, Oklahoma, rose by 1.216 million barrels.

The mixed report on inventories from the EIA came ahead of a monthly update from the International Agency Energy on Thursday suggesting that global demand for oil could come under pressure next year. The API and EIA figures often diverge.

Two other South Korean refiners - GS Caltex Corp. and Hyundai Oilbank - also bought 2 million barrels of American crude oil last year and in the first half of this year, respectively.

The upbeat forecast for oil demand growth, however, was offset by a rise in OPEC production by 90,000 barrels a day, fueling concerns that OPEC compliance with the deal to curb output is starting to wane.

West Texas' Permian region will account for most of the crude oil production growth for the second half of 2017, based on STEO predictions.

South Korea's top oil refiner SK Energy has bought 6.5 million barrels of US crude to be delivered between November and January as it stepped up imports of the competitively priced oil, a company spokeswoman said.

Natural gas futures rose 0.60% to $3.007 per million British thermal units.

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