Oil supply to outpace consumption in 2018 - IEA

Oil supply to outpace consumption in 2018 - IEA

"The U.S. oil rig count continued to rise, up by 6 last week".

According to the IEA, non-OPEC supply will increase by nearly 1.5 million barrels a day in 2018, with about half of the expansion coming from USA crude production. USA shale-oil drillers, who aren't a part of the output agreement, have been cited as the main culprit, disrupting OPEC's efforts to stabilize oil prices.

West Texas Intermediate crude futures for August delivery, which will take over as the new "front month" contract at the end of the trading day, were marked at $43.19 per barrel at 10:15 eastern time, the lowest since November 14.

Increases in USA production of crude oil and hydrocarbon gas liquids has been the largest contributor to the 820,000 b/d of non-OPEC liquids supply growth from January through May 2017.

Trading on Monday assumed a depressingly familiar pattern, with losses amounting to a seven month closing low and accompanied by reports that the us rig count has increased yet again, thus fueling the bearish sentiment pervading the market.

OPEC tried to lower production and creates oil shortage globally, helping oil prices go up. Despite OPEC's recent decision to further extend the production cuts until the end of the first quarter of next year, it had a negative impact on the oil prices which were at a high range of 53-55 per barrel.

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Falih said there was a relatively big draw of around 50 million barrels from floating storage and a drop in industrialised nations' onshore storage of 65 million barrels compared to July past year.

It is hard to tell a group of the world's biggest oil producers, which run state-owned companies with hundreds of analysts, that they are wrong.

Libya is exempt from the current OEPC and top non-OPEC producer deal to remove 1.8 million barrels of crude per day from the market to help boost oil prices.

Futures tumbled as much as 3.3 percent in NY, heading toward the first bear market since August, as investors focus on rising production from countries that are not part of OPEC's deal.

Japan's customs-cleared crude imports fell 13.5 percent in May from a year earlier. OPEC's efforts are being undermined by its own members, some of whom have exemptions, and rising production in other countries, notably from shale-drillers in the U.S. The increased drilling activity led Rystad Energy to recently predict that monthly US oil production could hit a new record before the end of the year. With regards exempt Libya and Nigeria, the Saudi minister said that the two countries' output levels are within the range that OPEC had set when it forged the deal past year. She said Saudi Arabia's energy minister has made clear that reducing USA shipments was an option. In the last month alone, explorers drilled 125 more wells in the Permian Basin than they would open.