US Shale Producers To Gulp Saudi Market Share Of Oil

US Shale Producers To Gulp Saudi Market Share Of Oil – OpEd
Oil extends winning streak ahead of Opec production cut
Author

30 December, 2016

USA benchmark West Texas Intermediate (WTI) crude oil futures settled 16 cents higher at $54.06 a barrel, not far from the year's high of $54.51 reached on December 12. Prices are set to recover next year as production cuts help to re-balance an oversupplied market, Saudi Arabia's energy minister Khalid Al-Falih said last week. Nevertheless, this morning when I read a news article from Reuters about the increasing number of rig counts in the USA, it gave me a feeling that I was not mislead by the western media, but right in saying that with the hike in crude oil prices, the rig count in the United States would jump dramatically.

Oil has climbed since the Organization of Petroleum Exporting Countries agreed last month to curb production for the first time in eight years.

Even though The Schork Report is yet another venue to worry about the Organization of the Petroleum Exporting Countries' (OPEC) cutback deal being rendered ineffective (due to the prospect of a high USA dollar stifling demand for crude oil), the latest word in the analytical community is that oil may rise again to $100.

When OPEC announced that it had agreed to cut production by 1.2 million barrels per day and non-OPEC producers agreed to support that initiative by cutting an additional 558,000 barrels a day, the market responded rapidly and positively.

Woman Allegedly Raped In Car In South Delhi, 1 Arrested
Police added that experts from the Regional Forensic Science Laboratory (RFSL) conducted a thorough inspection of the vehicle . The accused was identified as Avneesh, a resident of Etah in Uttar Pradesh, was arrested on Thursday early morning.

Russian oil producer Gazprom Neft said it planned to boost oil output by 4.5 per cent to 5 per cent next year, less than it had intended before Russia, one of the non-OPEC member countries, joined a deal to cut supply.

West Texas Intermediate ticked up to $53.69 per barrel on Tuesday, up from a previous closing price of $53.02 per barrel. There was no trading Monday because of the Christmas holiday.

The "news stream is light and moves seem to be more about position adjustments rather than the emergence of new drivers", he said.

OPEC and non-OPEC countries have pledged to implement the reached deal from Jan.1, 2017. If it goes over that, it will spark a major surge in US shale drilling. The average national price was up 29.4 cents per gallon from a year ago to about $2.294 on Wednesday, according to GasBuddy. While WTI crude futures gained about 45% this year, the fund was only up about 6%.


More news


  • Russian military aircraft disappears off radar, 91 on board

    Russian military aircraft disappears off radar, 91 on board

    Gen Konashenkov said the plane was last serviced in September and had undergone more substantial repairs in December 2014. Russian doctor Yelizaveta Glinka, who received wide acclaim for her charity work in Ukraine and Syria, was also on board.
    Apple in talks with Government to manufacture iPhones in India

    Apple in talks with Government to manufacture iPhones in India

    Foxconn has been planning to build multiple iPhone manufacturing plants in India, but has not been confirmed by either company. Apple will probably sell off its inventory of older iPhones, mainly the 16 GB versions, by pricing the newer ones very high.
    Murdoch's Fox acquires Sky Network for $14.6B

    Murdoch's Fox acquires Sky Network for $14.6B

    James Murdoch , Sky's chairman, is not on the committee because he is chief executive of 21st Century Fox . Since then, Fox and the Murdoch newspaper business, rebranded as News UK, have been formally split.
  • Warner's 144 leads Australia's reply to Pakistan's 443-9

    Warner's 144 leads Australia's reply to Pakistan's 443-9

    And the visitors declared their innings at 443-9, with Ali remaining unbeaten on 205 from 364 deliveries out of which 20 were fours.
    Vikings have rough arrival at Appleton airport

    Vikings have rough arrival at Appleton airport

    In fact, they need to win their final two games and get a little help along the way to earn a Wild Card spot in the NFC playoffs. Lineman Jeremiah Sirles tweeted a picture of an ice-encrusted plane window and a view of the airport runway.
    Canada and US Announcement on Arctic Oil Drilling is a Win

    Canada and US Announcement on Arctic Oil Drilling is a Win

    Even if the Trump administration manages to reverse the move, petroleum industry interest in the area is not now high. Bush that lifted a temporary ban in certain offshore areas imposed by President Bill Clinton.
  • Government Requests for Facebook Data Up 27 Percent

    Government Requests for Facebook Data Up 27 Percent

    Facebook also detailed content restriction requests, which are made in response to posts that violate local laws. Around the world, governments submitted more requests for data on Facebook users in the first half of 2016.
    Southwest Airlines investigating website outage

    Southwest Airlines investigating website outage

    Just five days before Christmas as many are travelling for the holiday, the Southwest Airlines website crashed for several hours. We appreciate our customers' patience as we work behind the scenes to get full functionality back to our website".

    Emmy Rossum Wants Equal Pay To Come Back For 'Shameless' Season 8

    So I capitalized on it. "I'm curious when do you think the studios are going to get with it and understand", the reporter asks . House of Cards star Robin Wright threatened to go public if she didn't get parity with Kevin Spacey on the Netflix drama.
  • Trump tweet referred to preventing nuclear proliferation -spokesman

    Trump has repeatedly indicated, though, that he saw room for the nuclear arms race to heat back up - this time with more players. Trump, who sees foreign policy through the eyes of an ultimate deal maker, may have felt the need to respond to Putin's remarks.
    Cold Monday, but Warmer Temperatures Ahead

    Cold Monday, but Warmer Temperatures Ahead

    The temperatures won't be quite as cold where low clouds linger and the best chance for that sets up east of I-65. We expect mostly sunny skies and very comfortable temperatures with highs in the mid to upper 40s.

    Prudential Stops Distribution Of Policy Sold Through Wells Fargo

    Some state and local governments have also suspended business with Wells Fargo , including the Pennsylvania Treasury Department. The coverage was available through kiosks in Wells Fargo branches, or could be purchased online using the bank's accounts.