Russian Federation has potential for oil output hike within months

Russian Federation has potential for oil output hike within months

US crude production rose in March by to 10.47 million bpd, a monthly record, the Energy Information Administration said on Thursday.

Brent was set to rise 1.8 percent for the week.

But as far as John Kilduff, founding partner for Again Capital, is concerned, the big news story for crude and something to monitor "is this emerged disconnect between Brent and WTI: this is a three-year high in the spread differential", he said, referring to Brent's premium over WTI futures remaining near three-year highs above $10 per barrel, having surpassed $11 on Thursday (due partly to a lack of pipeline capacity in the USA keeping a lot of output within the country).

Global benchmark Brent, little changed in the previous session, was up 12 cents at $77.68 per barrel.

However, the American production has increased significantly and seen a growth of 27 per cent in the last two years to around 10.73m barrels per day.

The dollar strengthened after U.S.jobs data beat expectations, which also weighed on oil prices.

Quotes of WTI oil futures for July on Thursday morning decreased by $0,04 (0,06%) to $68,17 a barrel. "Financially it makes sense for buyers to take WTI as it is so cheap".

More news: Giuseppe Conte named Italian PM as leading parties form alliance

"A drop in inventories in the U.S. was overshadowed by United States output which jumped to a record-high level", ANZ said in a note.

According to the report, oil inventories in the Organisation for Economic Cooperation and Development, OECD, industrialised nations in March fell to 9 million barrels above the five-year average, down from 340 million barrels above the average in January 2017.

Brent crude dropped from $80 per barrel on Wednesday last week to $75 on Monday when Opec revealed its intention to increase supply to the market, plugging the gap left by missing Iranian oil and declining production in Venezuela.

"Investors will hold tight till June 22 as OPEC members meet in Vienna (to consider).supply cut policies for 2018 and beyond", said Benjamin Lu, a commodities analyst at Singapore-based broker Phillip Futures.

Saudi Arabia, effective leader of the Organization of the Petroleum Exporting Countries, and Russian Federation have discussed boosting output to compensate for supply losses from Venezuela and to address concerns about the impact of USA sanctions on Iranian output.

Hedge funds invested in US oil are betting pipeline bottlenecks will make Texas crude even cheaper. Crude grades on the U.S. Gulf Coast are surging, with prices in East Houston the strongest versus WTI since at least 2016 and Light Louisiana Sweet the strongest in three years.

Related Articles

  • Players continue to pan National Football League  anthem policy

    Players continue to pan National Football League anthem policy

    Allison is at least the second Congressman to weigh in on the National Football League anthem debate on Twitter , but Rep. Players are allowed to remain in the locker room during the national anthem if they choose to do so.
    Sears store in Eau Claire will remain open

    Sears store in Eau Claire will remain open

    That's compared to a net income of $245 in the first quarter of '17, which was due in part to the sale of the Craftsman brand. After the latest closings, there will be about 820 Sears and Kmart stores, down from about 2,000 locations five years ago.
    Laurent Blanc 'new favourite' for Chelsea job

    Laurent Blanc 'new favourite' for Chelsea job

    Sky Sports reports that Everton are set to appoint former Watford boss Marco Silva as the new manager , replacing Sam Allardyce. He's not someone who'll use Napoli as a stepping stone.
  • Karthik Nemmani, 14, wins National Spelling Bee

    Karthik Nemmani, 14, wins National Spelling Bee

    Oh, and the meaning of that winning word, koinonia? The last Bay Area speller was eliminated in Round 9, the first evening round. He said there were eight or nine words during the prime-time finals he didn't know - a rare admission for a national champion.
    Kim Kardashian meets with Donald Trump to talk about prison reform

    Kim Kardashian meets with Donald Trump to talk about prison reform

    Kim Kardashian found herself in the middle of a lot of criticism after she chose to meet with Donald Trump over prison reform. As Radar previously reported , Kardashian's rapper husband, Kanye West , is an avid Trump supporter.
    How Amazon plans to block Australians from using popular feature

    How Amazon plans to block Australians from using popular feature

    Currently GST is only charged on items bought from overseas sites and shipped to Australia if they're worth more than $1000. But even with the changes, the number of products available will be a fraction of what's on sale globally.
  • Telegram Says Apple Has Prevented It From Updating Since April

    Telegram Says Apple Has Prevented It From Updating Since April

    It usually takes around a week for Apple to either approve an app or give some indication as to why it has been rejected. It has attracted more than 200 million users since its launch by Durov and his brother Nikolai in 2013.
    Assassin's Creed Odyssey possibly leaks ahead of E3 2018

    Assassin's Creed Odyssey possibly leaks ahead of E3 2018

    The clip shows what seems to be a Spartan-looking character kicking another solider off a cliff; an homage to Frank Miller's 300. We've heard the same details from three people who have played the game, and several more who have heard about it secondhand.
    United States  allies hit back at Washington's steel, aluminium tariffs

    United States allies hit back at Washington's steel, aluminium tariffs

    Canada and Mexico , embroiled in talks with the U.S. to modernise the North American Free Trade Agreement, responded swiftly. He said: "If there were to ever be a trade war which is what so many people are calling this, the USA would stand to win".
  • Stephan Lichtsteiner: Arsenal has reported deal for Juventus RB

    Stephan Lichtsteiner: Arsenal has reported deal for Juventus RB

    Unai Emery is reportedly looking at Sevilla goalkeeper Sergio Rico for a transfer to the Emirates this summer. Everton defender Williams suffered a suspected rib injury, which forced him to go to hospital for an X-ray.

    Visa card network crashes across UK, Europe

    The issue appears to be due to this latter system, with Visa's network also forming the backbone for many financial institutions. AIB said it is aware of intermittent issues with AIB cards and is working to resolve the matter.
    Abramovich Withdraws British Visa Application After Delays, Media Reports

    Abramovich Withdraws British Visa Application After Delays, Media Reports

    The statement by the club said: 'Chelsea Football Club announces today that it has put its new stadium project on hold. The Jerusalem Post reported that the oligarch then withdrew his request for a British investor visa.