Crude oil prices dip in anticipation of inventory data release

Crude oil prices dip in anticipation of inventory data release

Crude oil prices dip in anticipation of inventory data release

Still, hedge funds and money managers lifted their bullish wagers on USA crude oil for the first time in four weeks, data showed on Friday. And U.S. oil production continues to soar and this is upending oil markets around the world. "$60 to 70 is the range we're seeing for this year".

The Louisiana Offshore Oil Port is starting up, increasing expectations of a flood of USA oil hitting the market. According to the EIA, the US will overtake Russian Federation as the world's biggest oil producer by 2019. "The United States will become the No.1 oil producer sometime very soon", International Energy Agency (IEA) Executive Director Fatih Birol said on Tuesday.

Fund positioning remains very stretched with longs outnumbering shorts by a ratio of nearly 10:1, but down from nearly 12:1 at the end of January.

The prestigious award, which is presented annually by the UK's Energy Institute and Gulf Intelligence, is also in recognition of the leadership displayed by Al Falih in guiding some 20 producing countries from around the world to find common goal in cooperation to reach over 100% compliance with cuts and extend the oil supply pact for a second year through to the end of 2018.

Prices were supported after Saudi Arabian oil minister Khalid al-Falih on Saturday said the country's crude production in January-March would be well below output caps, with exports averaging below 7 million barrels per day (bpd). This is higher than Saudi Arabia's current production of just below 10 million bpd.

"Production, while still up, has tailed off", he said.

Oil dipped yesterday with Brent trading at $67.44 per barrel and US West Texas Intermediate crude at $63.79 before weekly data that is forecast to show rising US crude inventories, although investor confidence in OPEC's ability to curb output helped stem the price slide.

PTI reported that India asked the world's largest oil producer Saudi Arabia for a "reasonable" oil pricing that balances the interest of producer and consuming nations.

Delaying the phase-out of the cuts could put more strain on the oil producers' alliance as Russian oil companies are eager to press on with new projects, while OPEC members such as Iraq, Iran and Libya want to restore or expand capacity they've lost.

The nations taking part in the supply curbs are now studying what a crude re-balancing will entail, and will announce their next steps once that's analyzed, according to Saudi Arabia's Al-Falih.

"We are studying this market prudently and once we know what the exact scenario is we will come up with an effective solution", Falih said.

OPEC and its non-OPEC partners are set to review the deal in June and take stock of the pace of the market rebalancing.

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