With US oil and gas companies already stepping up activities in 2017, crude output climbed in May - the same month OPEC met to extend its production cuts - to a six-month high, since November 2016, according to OPEC's latest Monthly Oil Market Report.
Distillate inventories fell this week by 1.451 million barrels, while inventories at the Cushing, Oklahoma, site fell by 833,000 barrels after last week's dip of 1.56 million barrels.
"It's like the IEA report said, some members have been less than wholly diligent", Giovanni Staunovo, a Zurich-based commodity analyst at UBS Group AG, said of Iraq's early June shipments.
Meanwhile, the implied market deficit for 2Q2017 has narrowed from.7 mb/d to.5 mb/d due to reduced demand, primarily because of weaker Chinese and European data, and an increase in global supply, IEA stated.
In its first forecast for 2018, the International Energy Agency said Wednesday it expected countries outside the cartel to increase production by about 1.5 million barrels per day, outstripping the growth in global demand.
WTI was trading up 0.8% at $46.45 per barrel at 3:11pm EST-more than $1.50 per barrel lower than a week ago-with Brent trading at $48.74, compared to $50.05 per barrel last week.
And at a meeting at the end of May, both OPEC and non-OPEC countries chose to roll over the output cuts for a further nine months. In this article, we review the compliance among OPEC members. The Fed also announced it would begin cutting its holdings of bonds and other securities this year.
Qatar crisis will have a very little impact on global oil prices as the country is not a major producer of Oil.
The report also noted that oil stocks in industrialized nations fell in April but are still 251 million barrels above the five-year average.
BP PLC (BP.LN) (BP.LN) said its latest research report that global crude-oil production in 2016 (http://www.marketwatch.com/story/global-oil-output-in-2016-logged-slowest-growth-in-7-years-2017-06-13) saw its slowest percentage growth in seven years, as output from producers outside of OPEC marked its biggest drop in almost 25 years.
Total OPEC Members' proven crude oil reserves increased by 0.5 per cent to 1,217 bn b at the end of 2016, with a share of 81.5 per cent of total world crude oil reserves. In short, whenever oil demand rises and prices go up, it will be met by increased supply from the US.