US Shale Growth Could Support Caribbean Oil Storage Terminals

Feb 02, 2018, 21:11
US Shale Growth Could Support Caribbean Oil Storage Terminals

"It seems the focus was as well on US strong oil demand growth and the inventory products decline is lending support to prices", he said.

Brent crude, the global benchmark, was down 0.10% at $69.58 a barrel on London's Intercontinental Exchange.

Goldman sees a global oil market deficit of 0.2 million barrels per day (mb/d) in 2018, followed by a global surplus of 0.73 mb/d in 2019. In December 2016 was a meeting of oil producers outside the OPEC.

In recent months, WTI prices have climbed higher and the rig count has also started to turn up again, which should boost production in the second half of 2018.

Certainly that seems to be the goal of energy producers: Exxon Mobil will reportedly triple its production of oil and chemical feedstocks in the Permian Basin and expand regional infrastructure by 2025; this comes on the heels of Exxon announcing it will increase its USA investments to $50 billion over the next five years, thanks to us president Donald Trump's tax reforms.

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WTI prices have been on an upward trend since February 2016. Analysts had expected a decrease of 126,000 barrels.

Oil output by the OPEC, also rose in January from an eight-month low as higher output from Nigeria and Saudi Arabia o set a further decline in Venezuela and strong compliance with a supply reduction pact, a Reuters survey found.

"With low and declining inventories in key commodity markets, we expect commodity price volatility will rise from the current historically low levels".

Barrel is the unit of measurement of oil volume.

"The decline in excess inventories was fast-forwarded in late 2017 by stellar demand growth, high OPEC compliance, heavy maintenance as well as collapsing Venezuela production", Goldman analysts Damien Courvalin and Jeff Currie said in the report. As a result, the slowdown in US exports could create an additional factor sup-porting fuel prices in the short term.

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Iranian officials said the Iranian nuclear deal signed in 2015 and that led to the lifting of restrictions on Iran's crude oil exports is absolutely not renegotiable.

Futures rose for a second day in NY, adding as much as 1.4 per cent.

Crude oil prices seeped into negative territory early Wednesday amid expectations of a build in USA crude oil inventories.

Just over half of US crude comes from shale fields that include the Permian Basin in West Texas and he Eagle Ford shale in the South Texas. Russian Federation isn't the only country caught supporting North Korea's fuel needs this month: at least six Chinese ves-sels were delivering oil to North Korean ports as well.

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