• 1 hour UK On Track To Approve Construction of “Mini” Nuclear Reactors
  • 5 hours LNG Glut To Continue Into 2020s, IEA Says
  • 7 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 10 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 12 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 14 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 4 days Shell Restarts Bonny Light Exports
  • 4 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 5 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 6 days Exxon Starts Production At New Refinery In Texas
  • 6 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 7 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 7 days OPEC Oil Deal Compliance Falls To 86%
How To Play The Next Wireless Revolution

How To Play The Next Wireless Revolution

The global communications boom has…

Brazil Sees Oil Exports Soar

Brazil Sees Oil Exports Soar

Latin America has seen significant…

OPEC Crude Oil Basket Hit Lowest Price Of The Year In May

Offshore

The OPEC Reference Basket (ORB) averaged US$49.20 per barrel in May, dropping by more than 4 percent over April, to its lowest level for 2017, as the market was range-bound and bearish for most of May despite OPEC/non-OPEC’s cuts extension, the cartel said in its Monthly Oil Market Report on Tuesday.

“Oil has been weighed down by the market’s impatience with the generally slow pace of the global inventory drawdown amid a significant recovery in global oil supplies, particularly from the US,” OPEC said.

The ICE Brent/NYMEX WTI spread widened by US$0.16 to US$2.86/barrel, despite successive weeks of U.S. crude stocks draws. “This prompted more US exports, augmenting light crude availabilities in the Asia-Pacific and Europe,” OPEC noted.

However, higher seasonal demand for crude and higher refinery runs helped the contango structure to ease in all markets, OPEC said.

One of the cartel’s goals with the cuts was to flip the market to backwardation to force inventories and oil stored in tankers draw down.

The May average OPEC Reference Basket (ORB) was below US$50 per barrel for the first time since November 2016, OPEC said.

Oil prices tumbled sharply despite the extension of the output cuts, and the decision was “greeted by a sell-off, with 25 May daily WTI volumes of 1.1 million contracts the highest since the 30 November 2016 session, when OPEC first announced its production adjustments.”

Pressure on prices further increased as producers outside the deal increased output, with the U.S. continuing its 2017 upward trend, and rising output from Nigeria, Libya, and the North Sea keeping the Atlantic basin well supplied with light sweet crude, weighing on crude prices. Nigeria’s production grew to the highest in more than a year, following the restart of Forcados loadings, OPEC said.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Naomi on June 13 2017 said:
    If OPEC cannot profit with oil at $45/bbl then get out of the oil business. Permian costs are down to $33/bbl. 36% markup is heaven on Earth. Costs can go lower when robots do the drilling.

Leave a comment

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