• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 2 hours Climate Change: A Summer of Storms and Smog Is Coming
  • 2 hours Itt looks like natural gas may be at its lowest price ever.
  • 2 hours Venezuela: Nicolas Maduro closes border with Brazil
  • 3 hours Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 34 mins Amazon’s Exit Could Scare Off Tech Companies From New York
  • 29 mins Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 21 hours North Korea's Kim To Travel To Vietnam By Train, Summit At Government Guesthouse
  • 15 hours students walk out of school in protest of climate change
  • 2 days Washington Eyes Crackdown On OPEC
  • 1 day Europe Adds Saudi Arabia to Dirty-Money Blacklist
  • 1 day Some Good News on Climate Change Maybe
  • 1 day America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash

Global Energy Advisory 25th May 2018

Refinery

OPEC has signaled it may decide to ease the oil production cuts it agreed to implement in late 2016 on the back of Venezuela’s catastrophic production decline and the pending U.S. sanctions against Iran, which combined to push Brent past the $80 mark for the first time in four years last week.

President Trump was the first to voice concern about too-high prices and, not long after, India’s oil minister followed with a complaint about unreasonably high prices. In response, Saudi Arabia said there was no fundamental reason for Brent to trade at $80 as there was sufficient supply to meet rising global demand.

Following this statement and reports that other OPEC members could be mulling over higher production, to be discussed at the next OPEC+ meeting in late June, oil prices began to slide down, helped by assurances from Europe, China, and India they will continue to buy Iranian crude despite U.S. sanctions.

This week, prices got additional pressure from a surprise build of 5.8 million barrels in U.S. crude oil inventories as estimated by the Energy Information Administration, as well as the latest weekly increase in production, to 10.725 million barrels daily.

While prices may fall in the immediate term, the longer-term outlook is still bullish because of the new emission standards that the International Maritime Organization will enforce from the start of 2020, which will see vessels switch to low-sulfur fuel. According to analysts, oil refiners…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News