Published: Fri, January 19, 2018
Worldwide | By Gretchen Simon

MABUX: Bunker prices wait for the new market catalysts

MABUX: Bunker prices wait for the new market catalysts

But the group's efforts at supply restraint have been undermined by the USA, according to the IEA, which said that a "remarkable" increase in US production a year ago offset roughly 60% of the cuts.

They include unprecedented high conformity levels among the 24 participating nations in terms of the production adjustments, strong oil demand growth, and slower than anticipated growth in USA tight oil supply.Barkindo said: "It is worth emphasizing the global importance and impact of the various historic decisions reached in 2016 that have led to the improving market conditions of today."The broad consensus is that the market would be in a much more hard situation without the "Declaration of Cooperation".

In its monthly oil market report, the Opec said there were "growing indications that the oil market is heading smoothly toward rebalancing".

Oil held steady above $63 a barrel on Thursday, supported by falling inventories of crude and threats of an attack on Nigeria's petroleum industry, although a reported rise in US fuel supplies weighed.

"Global crude oil markets saw an exceptionally tight 4Q17", the IEA said, adding that it saw a combined fall of 1 million bpd during that period on declining stocks in industrialised nations and a fall in Chinese balances. Russia's Energy Minister Alexander Novak said talks this weekend could include mechanisms for gradually exiting the supply cuts after the agreement concludes at the end of 2018, while also reaffirming its commitment to the agreement.

Oil's rally has faltered after two annual increases on speculation the surge in prices may have been overdone. "The market is still sensitive to geopolitical developments".

NK to send advance team for Olympic art performance in S. Korea
Japanese Foreign Minister Taro Kono said the world should not be naive about North Korea's "charm offensive" over the Olympics. But it's still not clear how many North Korean athletes will come to Pyeongchang because none are now qualified.

"It is costing more to rehire skilled workers owing to a tightened labor market and the availability of equipment", OPEC said. Refinery utilization rates fell by 2.3 percentage points.

The post optimistic forecasts see U.S. oil production at about 11m bbl/day by the end of the year, even if shale has been, on average, largely unprofitable in 2017. "Supply growth should outpace demand growth over the course of the year across all energy commodities".

Just in December, Venezuela's production sank by about 216,000 bpd from November to 1.621 million bpd, OPEC figures showed on Thursday.

Russia, which agreed to cut production to 10.95 million barrels from a post-Soviet high of 11.25 million barrels in October 2016, has less immediate firepower at its disposal. Besides, the USA is far from being energy independent and remains one of the world's largest importers of oil.

However, data that came directly from the Venezuelan government says that the country's output plunged by a massive 216,000 bpd in December, dropping to 1.621 mb/d.

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