Surprise Crude Draw Fails To Send Oil Higher

Third Quarter is Key for 2019 Oil Balance

Third Quarter is Key for 2019 Oil Balance

Last year's increase in the USA was one of the largest absolute petroleum and natural gas production increases from a single country in history, according to EIA.

The West Texas Intermediate for September delivery rallied 1.34 USA dollars to settle at 56.21 dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery rose 1.10 dollars to close at 59.74 dollars a barrel on the London ICE Futures Exchange.

According to the EIA, for the United States and Russian Federation, petroleum and natural gas production is nearly evenly split.

Petroleum production is composed of crude and lease condensate, natural gas plant liquids (Ngpls), and bitumen.

Notwithstanding Tuesday's gains, concerns grew as to where last week's would be as industry group American Petroleum Institute prepared to issue a snapshot of what the U.S. Energy Information Administration will report as official on Wednesday.

Crude pipelines opening up in the United States, easing bottlenecks that weighed on the USA benchmark, supported WTI in particular.

Uncertainty over the global economic outlook amid the U.S. Overall, this didn't end up having an impact on production from state-run Saudi Aramco, but what it did do was further add to the growing tensions surrounding the Middle East.

Man with arsenal allegedly threatened hotel mass shooting
Montoya's arrest is the latest in a string of mass shooting threats after deadly shootings in El Paso, Texas , and Dayton, Ohio . On 8 August police in Nevada arrested Conor Climo, 23, and said he had bomb making materials at his Las Vegas home.

US energy firms this week increased the number of oil rigs operating for the first time in seven weeks in spite of plans by most producers to cut spending on new drilling this year. U.S. Ngpl production has more than doubled since 2008, when the market for Ngpls began to expand.

Russia's crude oil and natural gas production also reached record levels in 2018, encouraged by increasing global demand. Since 2016, almost 60% of Russia's crude oil exports have gone to European member countries in the Organization for Economic Cooperation and Development (OECD).

Concerns about a recession also limited crude price gains.

Ongoing growth in liquefied natural gas export capacity and the expanded ability to reach new markets have supported increases in US natural gas production. The US had already beaten Russian Federation as the globe's largest natural gas producer in 2011.

"The oil market seems to be pricing in again a geopolitical risk premium following the weekend drone attacks on Saudi Arabia, but the premium might not sustain if it does not result in any supply disruptions", said Giovanni Staunovo, oil analyst for UBS.

Crude oil exports account for about 60% of Saudi Arabia's total economic output. That leaves Saudi Arabia sending more crude "into the most opaque" market, China, making it hard to track market conditions, said Matt Smith, director of commodity research at commodities analytics firm ClipperData.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.