Iraqi’s oil minister Jabbar al-Luaibi and other OPEC members are considering an extension of the production cut agreement through 2018, instead of expiring in March.
“All in all, the outlook seems to be bright, and prices are rising,” said al-Luaibi (via MarketWatch).
Current oil prices are not spurring ample new production or investment in exploration, potentially leading to a volatile pricing environment as demand continues to increase. The world could soon see a recurrence of very high oil prices with growing demand (via World Oil).
The International Energy Agency (IEA) says the global oil glut is shrinking due to strong demand and production declines in OPEC and non-OPEC countries. Traders say we may see a near-term price pullback, giving hedge funds a chance at a breakout to the upside. WTI crude oil is up over $50.00 today (via FXEmpire.com).
The International Energy Agency (IEA) reported Wednesday that global oil supplies dropped by 720,000 barrels per day in August. The agency forecasts oil demand growth of 1.6 million barrels per day for the full year. WTI crude oil is up this morning to a one-month high of $49.81 (via The Wall Street Journal).
For the first time in four months, global oil supplies have fallen as demand has increased -- with WTI crude futures climbing to $49.28. The International Energy Agency (IEA) has revised demand estimates from 1.5 million barrels per day in July to 1.6 million barrels per day in September (via The Wall Street Journal).
The impact on oil use caused by Hurricane Harvey is expected to exceed the negative impact brought on by Irma. Ongoing recovery efforts for both storms should create additional demand for oil, offsetting the negative impact seen over the past few weeks. Meanwhile, WTI crude prices are up this morning to over $48.00 (via World Oil).
Oil will continue to trade within a tight price range as Irma moves across Florida. Over the weekend, OPEC discussed the possibility of extending its oil output cut beyond the March 2018 expiration, which should prove supportive for crude prices. Concurrently, gasoline futures have rallied at a two-year high of more than $2 per gallon.
Taking a short-term view, traders have cited Irma for a recent 3 percent drop in oil prices. Brent crude loss has been modest, finishing at $53.78 just one day after being at their highest levels since mid-April (via MarketWatch).
Hurricane Harvey has been no match for Valero Energy's Gulf Coast refineries. All five locations are returning to their normal capacity of 1.1 million barrels per day, with two locations having never ceased production (via Reuters).
WTI crude prices were at $49.06 per barrel this morning, still close to their highest level in more than three weeks and down only marginally. This pricing is despite damage to certain infrastructure in the heart of the oil and gas industry affected by the landfall and continued threats to U.S. West.
Analysts are projecting that demand may continue to be distorted as multiple weather systems threaten crude shipments across the Caribbean.