Oil prices mixed after inventory-fueled spike

Here are the latest oil production numbers from the EIA. All data is in thousand barrels per day unless otherwise noted

Here are the latest oil production numbers from the EIA. All data is in thousand barrels per day unless otherwise noted

Saudi Arabia, Russia, Kuwait and the United Arab Emirates have increased production to help to compensate for an anticipated shortfall in Iranian crude supplies once planned USA sanctions take effect later this year.

US crude oil production for the month of May stood at 10.442 million bpd, compared to 10.472 million bpd in April.

USA nonfarm payrolls rose in July, but the US trade deficit recorded its biggest increase in more than 1-1/2 years in June as the boost to exports from soybean shipments faded and higher oil prices lifted the import bill.

Crude inventories at Cushing dropped 1.1 million barrels since Friday, July 27, traders said, citing a report issued by energy information provider Genscape. US crude rose $1.22 to $68.88 a barrel. He also noted USA monthly production figures fell in May.

Brent crude futures LCOc1 were down 13 cents, or 0.2 percent at $73.32 a barrel by 0052 GMT, after rising 1.5 percent on Thursday.

Meanwhile, according to EIA, U.S. crude oil production was 10.9 million barrels per day which was 100,000 barrels per day lower than the previous week.

"Oil is holding up reasonably well".

Scientists Discover Whale-Dolphin Hybrid Near Hawaii
Hybrids can be the effect of a population drop in one species and an individual experiences difficulty in finding a mate. The family covers sea dolphins and some whales, which is why inter-species breeding is possible.

Alongside Russia, OPEC kingpin Saudi Arabia and other members of the Middle-East dominated oil cartel agreed in late June to begin increasing production by up to 1 million barrels per day starting in August. But a complete halt to Iranian supplies looks unlikely with Bloomberg reporting on Friday that China, Iran's biggest customer, has rejected a United States request to cut imports from the oil cartel Opec member.

USA officials told Reuters on Wednesday that they believe Iran is preparing to carry out a major exercise in the Gulf, apparently moving up the timing due to heightened tensions. Iranian officials have warned the country would not easily yield to a renewed US campaign to strangle Iran's vital oil exports.

Worries about the possible loss of Iranian supply are being somewhat offset by concerns that global trade tensions could slow economic growth and crimp energy demand.

The price jump earlier this summer had come about in large part because of President Donald Trump 's decision to pull the USA out of an worldwide agreement to curb Iran's nuclear program.

"It is unclear that the higher tariffs proposed by the Trump Administration will ever be imposed and if they are that they will have a major detrimental impact on oil demand", Flynn said. "This could severely dent the competitiveness of US oil and derivatives in the Chinese market", said Abhishek Kumar, senior energy analyst at Interfax Energy.

With WTI crude barrels falling back beneath 68.00, buyers will be looking to halt any further declines into the last swing low at the 67.00 level in hopes of propping prices back over last week's high of 70.40 with eyes on the year's current highs of 75.35, while bears will be looking to drive the action further down into mid-June's lows at 63.50.

Recommended News

  • Trump claims tariffs will help pay down the massive USA  debt

    Trump claims tariffs will help pay down the massive USA debt

    Trump has imposed tariffs on certain goods imported from foreign countries, but the foreign countries do not pay those tariffs. Our market is stronger than ever , and will go up dramatically when these awful Trade Deals are successfully renegotiated.
    Pedro signs Chelsea contract extension until 2020

    Pedro signs Chelsea contract extension until 2020

    Maurizio Sarri seems impressed by Hudson-Odoi and has stated that the player will be a part of the side for the upcoming campaign. Thibaut Courtois is prepared to wait until next summer to leave Chelsea FC on a free transfer, according to a report in England.
    Kohli surpasses brilliance in England

    Kohli surpasses brilliance in England

    Anderson improved his length and troubled Kohli for the next two overs, before Rashid brought things to a close in this session. However, England slip fielder Dawid Malan dropped Kohli twice, on 21 and 51, with James Anderson and Stokes the unlucky bowlers.
  • How Trump acts during a deposition, according to lawyer who questioned him

    How Trump acts during a deposition, according to lawyer who questioned him

    Sekulow said the important thing was that Trump's legal team shared accurate information with the special counsel. This is another reason why Trump shouldn't meet with Mueller.
    Zimbabwe electoral body says vote was fair; first results due from 3pm

    Zimbabwe electoral body says vote was fair; first results due from 3pm

    "We are however seriously concerned about evidence of interference. there is a deliberate delay in announcing the results". As well as electing a president, Zimbabweans were voting for 210 members of parliament and more than 9,000 councillors.
    ‘Freedom Flotilla’ seeking to aid Hamas stopped by IDF

    ‘Freedom Flotilla’ seeking to aid Hamas stopped by IDF

    Treen was tasered repeatedly while in the wheelhouse of the boat Al Awda , then tightly handcuffed, Hehir said. Palestinians have been protesting every Friday since 30 March as part of the Great March of Return.
  • Trump says it 'doesn't matter' if Iran meets with him

    Trump says it 'doesn't matter' if Iran meets with him

    The exercise could shut down of the Strait of Hormuz, a crucial Gulf passage for shipments of numerous commodities. Experts see a number of possible outcomes for the current US policy toward Iran.

    Trump EPA to Roll Back Back Obama-Era Gas Mileage Standards

    Reforming Corporate Average Fuel Economy (CAFE) standards is a huge tax cut for American auto buyers, up to a $7,200 per vehicle. More than a dozen states follow California's standards, amounting to about 40 per cent of the country's new-vehicle market.
    Imran Khan decides to retain NA-95 Mianwali seat

    Imran Khan decides to retain NA-95 Mianwali seat

    Leaders from Imran Khan's party termed the phone call a positive sign to begin a new chapter between the two nations. Relations worsened after terror attacks by Pakistan-based groups on several military bases in India .
  • Was Death of George H.W. Bush's Doctor an Act of Revenge?

    Was Death of George H.W. Bush's Doctor an Act of Revenge?

    Art Acevedo, Houston police chief, commented on the attack, stating: "There was a lot of planning that went into this". The couple lived in an upscale neighborhood not far from the Texas Medical Center in southwest Houston .
    Samsung Elec Q2 profit up 5.7 pct on-year, buoyed by chips

    Samsung Elec Q2 profit up 5.7 pct on-year, buoyed by chips

    Overall, the company reported $13.3 billion in profit, up 6 percent from the same time a year ago , on $52.1 billion in revenue. The unit saw operating profit fall by 29 percent due to underwhelming sales of its latest flagship smartphone, the Galaxy S9 .
    Polar bear killed after attack on Arctic cruise ship guard

    Polar bear killed after attack on Arctic cruise ship guard

    No details were given on his identity or how the attack happened, but the rescue group tweeted that the polar bear was shot dead. A polar bear has been shot dead after injuring a cruise ship guard on Norway's Svalbard archipelago, inside the Arctic Circle.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.