February 17, 2019

OPEC's oil exports to United States fell to five-year low in January

07 February 2019, 01:57 | Joann Bryant

Guyana could soon eclipse Venezuela's oil production - News for the Oil and Gas Sector

Russian Energy Minister Novak and UAE's Oil Minister Al Mazrouei OPEC Secretary General Barkindo attend a meeting in the OPEC headquarters in Vienna

Benchmark Brent crude had slipped 62 cents to $61.36 a barrel by 1000 GMT, after rallying about 15 percent in January.

There is ample spare capacity in other oil producers and strategic reserves to compensate for a loss of Venezuela's crude exports, helping explain the tepid reaction of global oil prices to US sanctions announced a week ago.

USA crude inventories rose by 2.5 million barrels last week, the American Petroleum Institute said on Tuesday.

U.S. West Texas Intermediate (WTI) crude futures fell 70 cents, or 1.27 percent, to settle at $54.56 a barrel.

Analysts said that US sanctions on Venezuela had focused market attention on tighter global supplies. They closed down 1.3 percent on Monday, after earlier touching their highest since November 21 at $55.75 a barrel.

Market participants have already been focused on signs of tightening global crude supply after the Organization of the Petroleum Exporting Countries (OPEC) and allies began an agreement in January to cut output.

OPEC oil supply fell in January by the largest amount in two years despite sluggish production declines from Russian Federation, according to a Reuters survey. USA crude was down 48 cents at $53.18.

Analysts said that USA sanctions on Venezuela had focused market attention on tighter global supplies.

National Security Adviser John Bolton and Treasury Secretary Steven Mnuchin announce sanctions against Venezuela state-owned oil company PDVSA and embattled president Nicolas Maduro.

The United States has promised to soften the sanctions against PDVSA if Caracas transfers control over the company to opposition leader Juan Guaido or any democratically elected government.

Morse predicted that moving forward "We have plenty of potentially bullish moves in the market" following a period of soft demand before the seasonal fuel consumption rise begins around May, with Brent rising into the mid-$60 range and hitting $70 before year end - which the researcher believes will encourage USA producers to allocate more money to drilling.

However, while OPEC is cutting output, the United States has expanded supply, with production most recently totaling 11.9 million bpd.

"The market seems to be turning on renewed worries that there doesn't seem to be a lot of progress on the U.S". Buyers were also encouraged to shed long positions on renewed concerns over lower demand due to the slowdown in China's economy amid uncertainty over U.S.

U.S. President Donald Trump said in his State of the Union address that a trade deal with China was possible.

Other News

Trending Now

Google's New Chrome Extension Will Alert You If Your Password Is Compromised
"We want to help you stay safe not just on Google , but elsewhere on the web as well", Google said today. Google also says the extension was created to be actionable and not too much of a pest to users.

Raiders to play in San Francisco in 2019, 49ers must approve
The Raiders also considered sharing Levi Stadium in Santa Clara with the Niners, but that backup plan failed to materialize. Rather than a bus on game day, charter a ferry to take the Raiders from their Harbor Bay practice facility to Oracle Park.

Melbourne Cup winning trainer faces ban
Weir chose to lie down without a fight during a marathon show cause hearing at Racing Victoria headquarters last night. On Friday, stewards ordered all horses trained by Weir to be scrapped from the weekend races.

The Leading Goalscorers In El Clasico History
Real Madrid coach Santiago Solari had said earlier on Tuesday that he hoped Messi would be available. We have the player we believe is the best in world but they also have great players.

Obesity-linked cancers on the rise in young adults
Incidence in young adults also increased for two cancers that aren't linked to obesity: gastrointestinal cancer and leukemia. Even though cancer most often strikes older adults, the sharpest increases were found in younger age groups.

Iran tests long-range cruise missile, releases video
Some source also reported that new cruise missile has a range of over 1,350 kilometers and will be used against fixed ground targets.

EU leader: ‘Special place in Hell’ for no plan Brexiteers
At the moment the pro-Brexit stance of the United Kingdom prime minister and the leader of the opposition rules out this question. He said Britain's political instability was another proof of why the backstop was needed.

New Zealand vs India - Highlights & Stats
MS Dhoni (39) top-scored for India but the tourists were beaten long before his dismissal in the penultimate over. This will be New Zealand's fourth different opening combination in four worldwide games.

Lady Gaga and Bradley Cooper to perform "Shallow" at Oscars
This was followed by a few minutes of a musical treat wherein they sung their uber-popular A Star Is Born hit Shallow . Fortunately, the Academy confirmed last week that all of the nominated songs would be performed at the ceremony.

Ariana Grande pulls out of Grammys 'over fights with show bosses'
Ariana was all set to perform but then had a disagreement with the show's producers over which songs she would perform. Grande also likely wants to use the platform to promote her new album " Thank U, Next ", featuring that track.