Oil production hits 10 million barrels per day

The US oil production exceeded 10 million barrels per day for the first time in four decades

Or is it six years?

Oil rose on Thursday after a survey showed OPEC's commitment to its supply cuts remains in place, even as USA production topped 10 million barrels per day (bpd) for the first time since 1970. This has had the side-effect of boosting Iraqi compliance with the OPEC deal.

USA production doesn't look to slow any time soon. Analysts had expected a decrease of 126,000 barrels.

Global oil demand is blowing away expectations as we had predicted. Within the Lower 48 states, November 2017 production reached a record high in Texas at 3.89 million b/d, followed by North Dakota at 1.18 million b/d. Imports rose by 389,000 barrels per day to 8.43 million barrels per day.

Iraq will begin exporting next week 60,000 bpd of oil from the fields in Kirkuk to an Iranian refinery across the border via tanker trucks, in exchange for refined oil for southern Iraq.

Oil-market news. Russian Energy Minister Alexander Novak plans to meet key oil-company executives for a regular discussion of annual results, two officials with knowledge of the matter said, asking not to be identified as the information isn't yet public. Goldman says that the global oil market was in a 1.1 million barrel a day deficit in the fourth quarter of 2017.

The investment bank revised up its forecast for demand growth in 2018 and forecast that oil prices could rise to $82.50/b by mid-year. J.P. Morgan last week forecast Brent would average $70 in 2018 and rise toward $78 in the first half of the year.

In other words, we have no oil glut!

New sanctions from the USA target tankers that were revealed to be delivering oil products from Russian Federation to North Korea.

The export boom is another manifestation of the transformation unleashed by hydraulic fracturing, or fracking, which shatters shale rock to unlock oil, and horizontal drilling, which cuts across shale formations to tap into multiple reservoirs of oil and gas. It is just good old fashion supply and demand.

The recent events in Libya described above, as well as others which have disrupted crude flows and caused prices to rally, have been sent to clients as "Impact Alerts".

Oil traders are growing increasingly confident over the outlook, with Bloomberg News reporting record bets on further price rises for both US and global oil benchmarks.

The price of Kuwaiti crude oil went up 31 cents yesterday and settled at Dollars 65.45 per barrel, compared to USD 65.14 per barrel in trading since last Wednesday, said Kuwait Petroleum Corporation (KPC). A decade ago, falling domestic production and a USA ban on exports meant that WTI served mostly as a proxy for US inventory levels."There was a time when the USA was disconnected from the global market", said Greg Sharenow, portfolio manager at PIMCO, who co-manages more than $15 billion in commodity assets. Just over half of USA crude comes from shale fields that include the Permian Basin in West Texas and he Eagle Ford shale in the South Texas.

Related News:

Most liked

No problem with Real Madrid motivation for Levante - Zidane
Zidane's decision to reunited Ronaldo, Gareth Bale , and Karim Benzema at the top of the formation has reinvigorated Madrid's attack.

Eagles offer tickets to fan who feared missing Super Bowl
In theory, Crisco should work, but other lubricants such as motor oil, machine grease and even lard would work better, he said. He's learned that while he wants to play well at all times, even when you're not, you just have to keep plugging away.

Akufo-Addo Meets Macron In Senegal
President Akufo-Addo left the country in the early hours of yesterday for a return trip to Senegal . Rihanna's efforts have helped raise a whopping $2.3 billion for education in underserved countries.

Missing California woman was actually just competing on 'The Bachelor'
Of course, any Bachelor nation fan knows that November was during the time period when Arie Luyendyk Jr.'s season was filming. The deputy said that they had spoken with Bekah M. on the phone and confirmed that she is, in fact, alive and well.