Economy

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.



Like this

Latest


17 October 2017
Reese Witherspoon shares story of harassment: A director assaulted me at 16
Witherspoon revealed that she was also sexually assaulted at 16-years-old, and then silenced after the incident. The actress said she would "see this man on a daily basis for years to come".

17 October 2017
FCC chairman throws cold water on Trump's NBC threat
Courts have held that a station exercising its First Amendment rights is not adequate grounds to challenge a license. Pai previously lamented the number of complaints the FCC received about taking away licenses from cable broadcasters.

17 October 2017
Bajaj Auto Q2 profit falls 0.97% to Rs1,112 crore
The company received Rs 618 crore as share of profit after tax of associate companies, up from Rs 543 crore a year ago. Persistent Systems rose 2 percent after the company reported better then expected earnings for September quarter.

17 October 2017
Donald Trump Warns John McCain: 'At Some Point, I Fight Back'
It McCain's passionate speech as he took to the podium that is creating a buzz. We will not thrive in a world where our leadership and ideals are absent.

17 October 2017
Betting On Twenty-First Century Fox, Inc. (NASDAQ:FOXA) ?
Clark Estates Inc increased Cardinal Health Inc (NYSE:CAH) stake by 15,000 shares to 147,000 valued at $11.45 million in 2017Q2. The fund owned 356,491 shares of the company's stock after purchasing an additional 72,459 shares during the quarter.

17 October 2017
This Cow on the Loose in Brooklyn Is All of Us
The insane scene took place Tuesday beginning at around 11 a.m. local time, and it took nearly two hours to capture it. Police cornered the animal in Prospect Park and were trying to approach him shortly after noon, a spokesperson said.

17 October 2017
Comprehensive Stock Analysis Of PayPal Holdings, Inc. (PYPL)
They now have a $78.00 price objective on the credit services provider's stock, up from their previous price objective of $71.00. Short traders are more bearish on shares of PayPal Holdings, Inc . recently if you take a look at the change in short interest.

17 October 2017
Warner: Aussies driven by hate in Ashes campaign
It's exciting - people want to see that. "I think that is missing a little bit from the game now". "Let a couple of penalties go". "I´d love to win an Ashes series - it´s something I haven´t been able to do yet".

17 October 2017
AT&T exclusive dual screen smartphone functions in four modes
Simply fold the device in Mirror mode and place it on a table for easy viewing from two separate sides of the device. Chinese smartphone maker ZTE has unveiled the new Axon M Android phone, a dual screen "foldable" Android phone.

17 October 2017
11 million USA men are infected with oral HPV
He's a research assistant professor at the University of Florida College of Public Health and Health Professions. Different types of HPV are classed as either high risk or low risk, depending on the conditions they can cause.



Recommended