Oil rises slightly, but growing global supply a worry
Oil prices rose modestly on Monday, but increased drilling activity in the United States and uncertainty over Libyan and Nigerian production cuts clouded the future supply outlook, APA reports quoting Reuters.
U.S. crude futures settled up 17 cents or 0.4 percent to $44.40 a barrel, while Brent crude futures also rose 17 cents or 0.36 percent to $46.88 a barrel.
Despite the modest rally on the day, Brent crude prices were 17 percent below their 2017 opening level.
With lingering questions surrounding production cuts, the market is "iffy on what OPEC is going to do," said James Williams, president of energy consultant WTRG Economics in London, Arkansas.
The Organization of the Petroleum Exporting Countries and some non-OPEC members agreed in May to curtail production until March 2018, but the move has failed to eliminate a global glut of crude.
Several key OPEC ministers will meet non-OPEC country Russia on July 24 in St Petersburg, Russia, to discuss oil markets.
Kuwait said on Sunday that Nigeria and Libya had been invited to the meeting and their production could be capped earlier than November, when OPEC is scheduled to hold formal talks, according to Bloomberg.
However, Nigeria's oil minister was unable to attend the OPEC meeting because of a previous commitment, the Kuwait Oil Minister Essam al-Marzouq told reporters on Monday.
Libya said on Monday it was ready for talks but added that its political, economic and humanitarian situation should be taken into account in talks on caps.
Meanwhile on Monday the CEO of Saudi Aramco Amin Nasser told a conference in Istanbul he thought the world was headed for a global supply shortage.
"The volume of conventional oil discovered around the world over the past four years has more than halved compared with the previous four," Nasser said.
Yet U.S. oil production continues to grow, rising more than 10 percent since mid-2016.
U.S. energy firms added seven oil drilling rigs last week, marking a 24th week of increases out of the last 25 and bringing the count to 763, the most since April 2015, energy services company Baker Hughes said.
BNP Paribas joined a growing list of investment banks and analysts that have cut their crude oil price forecasts for the coming year.
"We thus have made deep cuts to our crude oil price forecasts. We now see the price of WTI averaging $49/bbl in 2017 (-$8/bbl revision) and that of Brent $51/bbl (-$9/bbl revision)," the bank said in a note.
Related news releases
- 27.07.2017Oil jumps to near eight-week high after big draw in U.S. crude stocks
- 25.07.2017Azerbaijan increases gas export to Turkey
- 25.07.2017BP: TANAP is significant project for us
- 25.07.2017Anglo Asian Mining earns $19.4M from sale of gold
- 25.07.2017Oil extends gains as Saudi pledges export curbs
- 24.07.2017Country manager: TAP construction won’t have negative impact on environment
- 22.07.2017Oil dives 2 percent; consultant sees OPEC crude output rise in July
- 21.07.2017President Ilham Aliyev opens Pirallahi solar power plant
- 20.07.2017Rovnag Abdullayev: 90% works copmleted in STAR refinery
- 20.07.2017SOCAR President: $8.5B invested in TANAP so far
- 20.07.2017Azerbaijan’s investments in Turkey to reach $20B
- 20.07.2017Oil jumps to six-week high on surprisingly big U.S. inventory draws
- 18.07.2017Ischinger: Sanctions against Russia pose threat on European energy security
- 18.07.2017Import of certain types of gasoline to Azerbaijan exempted from duties
- 18.07.2017Azerbaijani President: "The Southern Gas Corridor is probably the largest infrastructure project in Europe"
- 17.07.2017Azerbaijan increases gas transportation 10% this year
- 17.07.2017Azerbaijan sees 8% rise in gasoline production
- 17.07.2017Azerbaijan sees 3.2-fold increase in gold production
- 17.07.2017Azerbaijan investing billions of dollars for realization of SGC soon – president
- 17.07.2017Israel to join TANAP
- 15.07.2017S&P: SOCAR plays critical role in Azerbaijan’s economy
- 15.07.2017SOCAR to attend tender for construction of underground gas storage facility in Georgia
- 15.07.2017Price of gasoline Aİ-92 increased in Azerbaijan - OFFICIAL
- 14.07.2017EBRD to allocate $39M for Tamiz Shahar
- 14.07.2017SOCAR gets 7% decline in gas production
- 14.07.2017SOCAR reduces oil output by 2%
- 13.07.2017Azerbaijan gets 9% decline in oil production
- 10.07.2017Erdogan: Southern Gas Corridor is priority for Turkey
- 10.07.2017PM: Turkey, Georgia and Azerbaijan demonstrated significance of regional cooperation
- 10.07.2017Saudi Aramco to invest $300B to oil production
- 10.07.2017SOCAR increases transfers to state budget adn SSPF
- 10.07.2017Azerbaijan quadruples revenues from energy export
- 10.07.2017Secretary of State: US intends to cooperate with Turkey on SGC
- 10.07.2017Azerbaijan gets sixfold increase in revenues from natural gas export
- 10.07.2017Azerbaijan gets 29% rise in revenues from crude oil
- 10.07.2017SOCAR President: Azerbaijan is ready to meet Europe’s demand for gas
- 08.07.2017Oil prices drop 3 percent on rising global supplies
- 07.07.2017Azerbaijan meets 14% of Georgia’s demand for fuel
- 07.07.2017SGC ends 2016 on loss of AZN 98M
- 07.07.2017SOCAR made more than a half of its bank deposits in USD
- 11.07.2017IEA Executive Director: Oil producers’ efforts result in failure - INTERVIEW
- 11.07.2017Iran to spend $140B for increase of oil and gas output
- 13.07.2017Oil rises as U.S. crude stocks drop by more than expected
- 10.07.2017WPC President: Azerbaijan is sensitive about its investments and natural gas export
- 10.07.2017President Ilham Aliyev: Turkey-Azerbaijan friendship brings stability to the region
- 10.07.2017President: Shahdeniz 2 will be completed soon