Oil up on OPEC output decline; U.S. refinery restarts
Oil prices rose on Tuesday after OPEC forecast higher demand in 2018 and Russia and Venezuela confirmed their commitment to a production-cutting deal to reduce the global crude glut, APA reports quoting Reuters.
In its monthly report, the Organization of the Petroleum Exporting Countries also said the two hurricanes that hit the United States in recent weeks would have a “negligible” impact on demand.
About 6.1 million customers were without power following Hurricane Irma, down from a peak over 7.4 million late Monday, according to local utilities.
The market was assessing Irma’s effect on demand, even as refinery restarts in the wake of Hurricane Harvey boosted expectations for crude oil consumption.
The largest refinery in the United States, in Port Arthur Texas, was running at reduced rates, sources told Reuters.
Brent crude LCOc1 settled up 43 cents or 0.8 percent to $54.27 per barrel. Its session low was $53.42.
U.S. West Texas Intermediate (WTI) CLc1 was up 16 cents or 0.3 percent to $48.23 a barrel. It hit a session low of $47.73.
U.S. crude stockpiles rose nearly twice expected levels last week as refineries cut output following Hurricane Harvey, while gasoline and distillate inventories drew, industry group the American Petroleum Institute said after the market settled.
After the API report, U.S. gasoline futures rose RBc1, surpassing their session high.
Crude inventories rose by 6.2 million barrels in the week to Sept. 8 to 468.8 million, compared with analysts’ expectations for an increase of 3.2 million barrels.
The U.S. Department of Energy’s Energy Information Administration (EIA) reports Wednesday. [EIA/S]
This week’s numbers might be incomplete indicators of the longer-term supply and demand outlook, said Mark Watkins, regional investment manager at U.S. Bank.
“Over the next two to three weeks, the EIA inventory numbers will be rather sloppy because you have production disrupted, refineries going offline and online,” he said. He added that OPEC figures are a better signal. “That’s why you have to look out further.”
Output by OPEC’s 14 member countries fell in August by 79,000 barrels per day (bpd) from July to 32.76 million bpd.
Should OPEC keep pumping at August’s rate, the market would see a small supply deficit next year, versus a 450,000-bpd surplus implied by last month’s report.
OPEC said inventories were falling and noted a rising premium of Brent crude for immediate delivery over that for later supplies.
Russian and Venezuelan energy ministers met in Moscow and confirmed their commitment to the output cut deal.
The U.S. EIA said it expects U.S. crude oil production in 2018 to rise by more than previously expected.
Related news releases
- 23.11.2017Ambassador: Southern Gas Corridor to allow Azerbaijan to turn into a huge energy exporter
- 22.11.2017SOCAR clarifies gas import from Gazprom
- 22.11.2017Azerbaijan resumes gas import from Russia
- 21.11.2017TAP realization bases on Europe’s fundamental values - Snam
- 20.11.2017SOCAR reduces oil output by 2% in January-October
- 20.11.2017Minister: 94 percent of works on TANAP completed
- 20.11.2017Number of BP’s Azerbaijani national employees declining
- 20.11.2017BP: 98 percent of construction on SCP Expansion is completed
- 20.11.2017South Caucasus Pipeline spends $657M this year
- 20.11.2017BTC spends $120M this year
- 20.11.2017BP: 27 million standard cubic metres of Shah Deniz gas was exported from Sangachal Terminal daily
- 20.11.2017Shah Deniz spends more than $2.6 billion this year
- 20.11.2017Shahdeniz 2 is now over 97 percent complete: BP
- 20.11.2017Volume of AGC production announced
- 17.11.2017Price of gasoline AI-95 and AI-98 increased in Azerbaijan
- 16.11.2017Volume of oil and gas transported via main pipelines announced
- 16.11.2017Azerbaijan exports 38% of its gas reserves
- 16.11.2017Azerbaijan reduces diesel production by 21%
- 16.11.2017SOCAR President: Works on SGC carried out on schedule
- 16.11.2017SOCAR: Petkim quintuples revenues
- 16.11.2017Transneft halts oil transportation from Azerbaijan due to earthquake
- 15.11.2017Three high-ranking officials of Energy Ministry dismissed
- 15.11.2017Ministry: Baku and Ankara implemented a project that Europe could not carry out for years
- 14.11.2017Turkish Minister of Energy and Natural Resources to visit Azerbaijan
- 14.11.2017Azerbaijan increases revenues from gas export
- 14.11.2017Azerbaijan sees 27% growth in revenues from crude oil export
- 14.11.2017SOCAR Petroleum: Current break in sale of AI-98 gasoline to last for a month
- 13.11.2017OPEC member states decrease oil production
- 13.11.2017Working Group on improvement and finalization of 2016 EIT report holds meeting
- 13.11.2017SOCAR might buy oil refinery in Italy
- 13.11.2017Azerbaijan sees 7.2% decline in oil output
- 13.11.2017Azpetrol General Director reveals forecasts on gasoline price
- 13.11.2017Azpetrol comments on quality of fuel
- 13.11.2017General Director: Azpetrol already plans to install facilities designed for charging electric vehicles
- 13.11.2017BTC transported more than 344 million tonnes of oil so far
- 13.11.2017Volume of Azerbaijani oil transported through Ceyhan port announced
- 10.11.2017Azerbaijani president: Extension of ACG will bring tens of billions of dollars in additional investment
- 10.11.2017President Ilham Aliyev attends opening of “Yeni Ganja” substation
- 10.11.2017Petkim pays $11M advance for construction of new administrative building
- 10.11.2017SOCAR transfers AZN 1.3B to state budget
- 13.09.2017Non-OPEC countries fulfill agreement by 118% thanks to Azerbaijan
- 13.09.2017IGB to sign agreement with Azerbaijan in early 2018 - OFFICIAL
- 14.09.2017Ceremony being held for signing a new contract on development of ACG field by 2050
- 12.09.2017Azerbaijan gets 41% decline in export of oil products
- 12.09.2017Azerbaijan gets 22% rise in revenues from natural gas export
- 12.09.2017Azerbaijan gets 22% decline in revenues from crude oil export