There was a closed door meeting between Saudi officials and executives from top shale producers including ConocoPhillips (COP), EOG Resources (EOG) and Occidental Petroleum (OXY) warning producers that they shouldn't assume the cartel will extend the output cuts. Prior to the Vienna agreement production from OPEC countries was increasing. A weaker dollar supports crude prices, but its impact is muted in the current environment, where a troika of fundamentals - OPEC/non-OPEC production cuts, changes in inventory levels and the revival of the USA shale industry - are a far more dominant force.
Crude from Saudi Arabia and other countries around the Middle East Gulf, on the other hand, is mostly denser and contains much more sulfur (giving it an acrid odor).
Non-Opec compliance has been a concern with some estimates suggesting only 60 per cent compliance so far. Higher interest rates would likely improve the greenback, but again as it was already announced publicly by FED's Janet Yellen, the hike of the interest rates is reaching nearly 100% as valued in, according to reports. Eastern, he said. "Rig counts have been on a steady rise in recent weeks as USA drilling picks up speed, though there are indications that trend may soon begin to slow". OPEC members had agreed to cut their collective production to no more than 32.5 million barrels a day for six months starting in January. Brazil's oil exports also have been climbing with February exports at a record 1.63 mbpd.
"Cuts are not enough to re-absorb the world's excess supply". The data is current through Tuesday, and captures the entirety of last week's selloff.
The EIA estimates that United States crude oil production will average 9,210,000 bpd and 9,730,000 bpd in 2017 and 2018, respectively.
You want Nexit, Dutch prime minister Rutte tells anti-migrant rival Wilders
He previously said that the "patriotic revolution" would continue to take place, and "the genie will not go back into the bottle". As Dutch newspaper Volkskrant put it: "The prime minister is now expecting a defeat which can be celebrated as a victory".
"Nevertheless, prices have undoubtedly been provided a floor by the production accords".
As prices have risen, Americans have cut back on driving, reducing consumption 1.7% so far this year from 2016, according to Energy Information Administration data Wednesday. If Saudi Arabia returns to higher production levels in order to regain market share, crude will be moving well below $50 per barrel for quite a while. As a result, the investment bank stuck to its belief that "the oil market rebalancing is still progressing, with continued evidence of strong demand over the past weeks comforting us in our forecast that oil demand is finally set to overtake supply in 2Q2017, helped by the cuts and despite the expected rise in USA shale output". Analysts had forecast an increase of 3.7 million barrels. According to OPEC's release, in the month of January (more recent data is not available), total stocks in OECD nations, excluding oil on water, rose to 3.006 billion barrels.
"This week's stats were bullish across the board, with crude drawing for the first time this year and product stocks continuing their seasonal decline", said analysts at Societe Generale. It also reported Cushing stocks jumped 2.1 million barrels in the week to March 10.
On Thursday, OPEC member Kuwait said this week that it was ready to prolong the deal to reduce supply.