United States shale companies exposed to falling oil prices as hedges expire
Jun 15, 2017, 01:32
In its first forecast for 2018, the International Energy Agency said Wednesday it expected countries outside the cartel to increase production by about 1.5 million barrels per day, outstripping the growth in global demand.
Oil prices have fallen by about 10% since Opec and non-member countries including Russian Federation recently agreed to extend production cuts until the end of March 2018.
In its latest monthly report, the IEA expected a larger than expected increase in non-OPEC output of 700,000 for 2017 and the IEA also expected a further increase for 2018.
"Our first outlook for 2018 makes for sobering reading for those producers looking to restrain supply", the Paris-based agency said in its report.
Sign up now and get breaking news alerts delivered to your inbox. "Higher prices in winter than summer?" Traders will be watching figures on last week's USA stockpiles to be released later on Tuesday by industry group the American Petroleum Institute.
At 4:45pm BST, the Brent contract for August delivery was down 3.78% or $1.84 to $46.88 per barrel, while the West Texas Intermediate contract for July delivery was down 3.85% or $1.79 to $44.67 per barrel. The oil price has declined more than 10 percent since the May agreement.
As per the ASB, in 2016, world crude oil production inched up by 0.35 mb/d, or 0.5 percent, as compared to 2015, to reach 75.48 mb/d, marking the seventh consecutive year of growth.
Crude futures started the day on the front foot, as Saudi Arabia pledged to reduce exports to customers in July in an effort to help curb the glut in supply.
In the report, OPEC pointed to continued high compliance by its members with the supply deal and said oilstocks in OECD nations fell in April-although they are still 251 million barrels above the five-year average. He added that "OPEC should rethink its strategy of trying to verbally and artificially drive oil prices higher, because the result of [its current] strategy is very resilient USA production".
Overall sentiment remained downbeat however as the market has little confidence that production cuts by OPEC and Russian Federation are helping to drain excess supply.
Compared to May 2016, Opec crude production was down by 65,000 bpd, the IEA said.
The IEA forecast that non-Opec output will rise this year by 660,000 bpd compared with last year's decline of 845,000 bpd, and then accelerate next year by 1.5 million bpd, led by the U.S. and with gains from Brazil and Canada offsetting declines in the United Kingdom, Kazakhstan, Ghana, Congo, Mexico and China.
The president's claim was refuted by former FBI Director James Comey in congressional testimony before Trump fired him last month. Ryan hasn't commented on Schiff's latest challenge or on whether Nunes should be involved in the investigation at all.
His 384-foot drive was his third homer of the season - all three have been hit at Petco Park - and third grand slam of his career. Brett Gardner his 999th and 1,000th hits for the Yankees, who reopened a three-game lead in the AL East.
Subaru likely could push this as high as 350 horses without any major mods, but I assume it'll only jump to 325 at the most. Most rear drive performance cars would have a big problem, but the STI had some fast laps on the rain-soaked track.
Unconfirmed reports said the White House is thinking of reducing the number of visits to Cuba a person can make to one a year. However, the Trump administration is expected to maintain the full diplomatic relations restored by Obama, said the Post.
Edelman is assured of a spot in the Patriots 53-man roster while Amendola and Hawkins are expected to battle for the last berth. Via Albert Breer of TheMMQB.com, the two-year extension has a value of $11 million with $7 million fully guaranteed.
And the more you give me a little bit of an opportunity, the more you give me a little bit more of a leash, I can contribute. Golden State is taking its second shot at clinching the National Basketball Association championship Monday night.
With four strikeouts on Friday night, Kenley Jansen has now struck out 37 batters and walked none over his entire 2017 season. Garza, on the other hand, has given up 10 runs in his last two starts covering 11 innings of work.
There's also a split-view compose window that keeps the message you're replying to on one side and your new mail on the other. The browser also comes with a security tool called intelligent tracking prevention , which protects your privacy.
New iPhone 8 renders show off running iOS 11 and design
If the iPhone is connected to the vehicle via Bluetooth, the system will be able to pick up whether the user is driving or not. Furthermore, another user named Dave Schukin revealed that the drag and drop feature for iPhone is coming with iOS 11 .
Sooner surprise: Oklahoma coach Bob Stoops retires at 56
Stoops started out as the defensive backs coach for the Wildcats and ended his time in Manhattan as the co-defensive coordinator. A daughter attends Oklahoma and twin sons are seniors in high school who are potential major college football players.
Oliver Stone: Megyn Kelly Didn't Know Her Stuff with Putin
Putin took advantage of the occasion to show Stone a live broadcast with the work of the Syrian combat aircraft on his smartphone. To our knowledge, showers on most submarines are usually tiny and equipped for one person to use them at a time.
Trump Hotels unveils lower-budget American Idea chain
The Trump name will not be displayed anywhere in the hotels, the Times noted. "And we just saw there, there was a void missing. The company also says the first of dozens of hotels in another new Trump chain called Scion is under construction in MS , too.
Watch ICC Champions Trophy 2017 live on TV, online
Williamson and Taylor shared a 95-run partnership for the third wicket and were on the brink of taking control of the game. They could not play the full 50 overs as they were all out in 49.3 overs but by then, they have already scored 310 runs.
India set to launch heaviest satellite
Launching humans into space is a feat that so far only Russian Federation , the United States and China have achieved. The satellite GSAT-19, GSLV-Mk III delivers into orbit, weighs over 3 tons - a record for the Indian space industry.
Curry, Durant power Warriors past Cavs in Game 1, 113-91
"They constantly break records - last year being 73-9 [a regular season record]; this year starting the playoffs 13-0". In Game 1 of the NBA Finals , Durant proved to his critics that he isn't riding anyone's coattails in this series.