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
- 19.09.2017President Ilham Aliyev awards some oil workers
- 18.09.2017Azerbaijan gets decline in solar power production
- 18.09.2017Azerbaijan triples gold production
- 18.09.2017Gas processing plant processes 1.7 bcm of gas this year
- 15.09.2017Azerbaijan sees 18.5% decline in diesel production
- 15.09.2017SOCAR reduces oil output by 9%
- 14.09.2017SOCAR, Statoil discuss development of "Karabakh" oilfield and "Ashrafi" and "Dan Ulduzu" structures
- 14.09.2017President Ilham Aliyev receives Statoil Executive Vice President - UPDATED
- 14.09.2017President Ilham Aliyev meets with UK Minister of State
- 14.09.2017Ambassador: US is pleased to continue cooperation with Azerbaijan within extension of agreement on ACG development
- 14.09.2017UK PM: I’m sure the new contract will further develop our coop with Azerbaijan
- 14.09.2017Turkish presidents sends message to participants of signing ceremony of new ACG contract
- 14.09.2017Georgian PM: Signing of new ACG contract ‘a historic event’
- 14.09.2017BP: Over $40B to be invested in ACG development
- 14.09.2017Turkey says will continue to be important partner of Azerbaijan
- 14.09.2017New ACG participating interests announced
- 14.09.2017President: We established very profitable cooperation with BP during 23 years
- 14.09.2017Ilham Aliyev: Azerbaijan lives at its own expense
- 14.09.2017Azerbaijani goverment and co-venturers sign amended and restated Azeri-Chirag-Deepwater Guneshli PSA
- 14.09.2017President: Azerbaijan’s currency reserves will increase more
- 14.09.2017President: New contract on ACG development is signed with more favorable and better conditions for Azerbaijan
- 12.09.2017Azerbaijan quadruples revenues from energy export
- 12.09.2017Oil prices dip as traders assess U.S. hurricane impact
- 11.09.2017SOCAR increases budget transfers by 15%
- 08.09.2017Georgia reduces gasoline and diesel import from Azerbaijan
- 08.09.2017Oil transportation via BTC declines 10%
- 08.09.2017Volume of Azerbaijani oil transported through Ceyhan port announced
- 08.09.2017Turkmenistan sharply increases oil transportation via BTC
- 07.09.2017More than 50% of TAP completed
- 07.09.2017Baker Hughes ready to continue cooperation with TANAP
- 07.09.2017Ambassador: Italian government interested in completion of TAP in time
- 07.09.2017Oil steady as U.S. refining demand rises but ample crude supplies weigh
- 06.09.2017Ilham Aliyev: New contract on ACG field to be signed in a few days
- 06.09.2017Ilham Aliyev: Historical achievements made in Azerbaijan’s oil and gas sector thanks to BP-SOCAR co-op
- 06.09.2017New subsea construction vessel launched to support Shah Deniz Stage 2
- 05.09.2017Oil export through Ceyhan port increases: SOCAR
- 05.09.2017SOCAR increases oil export from Novorossiysk port
- 05.09.2017SOCAR suspends export of crude oil from Supsa port
- 05.09.2017AI-98 gasoline price increases in Azerbaijan
- 05.09.2017SOCAR reduces gas output by over 5%
- 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