What's NOV's Correlation with Crude Oil as of April 17?
Apr 19 2017
On Monday, the Energy Information Agency (EIA) said US shale production in May was set for its biggest monthly increase in more than two years, adding to worries that these increases would undermine efforts of the world's top producers to rein in a glut. Futures gained 94 cents last week to close at $53.18 a barrel.
Oil prices may rise by 20 percent this year as energy producers outside the US keep a lid on how much crude they pump, said analysts at Citigroup.
Global benchmark Brent crude futures were down 34 cents at $55.02 a barrel at 1330 GMT.
Citigroup said OPEC output cuts will be able to offset the response of U.S. producers to higher prices.
Angola saw its oil output rise to 1.782 million bpd last month from 1.767 million bpd in February, based on direct communication, according to the OPEC report.
He further stressed that he expected oil prices to remain around $55 per barrel as a result of the implementation of the output cut plan.
Late April 13, prior to the Easter holiday period, oilfield services firm Barker Hughes reported that its weekly United States rig count rose by 11 to 683.
Investors have been concerned that increasing U.S. output would derail major oil producers' attempts to cut production. OPEC ministers are scheduled to gather in Vienna on May 25 to discuss whether to extend the curbs.
Oil had rallied above $53 a barrel after some producers voiced support for prolonging a six-month supply-cut deal by the Organisation of Petroleum Exporting Countries and its allies.
OPEC said crude oil supply from non-members this year would average 57.89 million bpd due to growing output in the US and modest declines in Colombia and China.
US West Texas Intermediate (WTI) crude futures were also down 4 cents at $52.61 a barrel.
Thus, Saudi Arabia plans to develop 30 projects in the field of solar and wind energy to increase electricity production and reduce oil consumption, according to the Minister of Energy, Industry and Mineral Resources of Khalid al-Falih.
A preliminary Reuters poll showed analysts expected data to show us crude stocks fell in the week to April 14, building on a surprise decline the previous week.
Oil prices fell on Tuesday, then slid more in post-settlement trade after an industry group reported that US crude stockpiles fell less than expected in the latest week while gasoline stockpiles grew unseasonably. Gross domestic product for the world's second-biggest oil user increased by 6.9 percent in the first three months.
"Surging crude imports in March was likely driven by higher imports by independent refineries as they raised refinery runs to a record high of 64.6% of capacity at a time when state-owned refiners reduced utilization due to planned maintenance", said Wang Zhuwei, senior analyst with S&P Global Platts China Oil Analytics.