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.
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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%.