US crude oil inventories last week dropped the most in 10 months, falling more than expected as imports declined and refining rates rose, while gasoline stocks decreased although demand remained lackluster, the Energy Information Administration (EIA) said July 12.
In the monthly report, OPEC's output grew by 393,000bpd in June to 32.611 million bpd due to high production from Libya and Nigeria, as well as from Saudi Arabia and Iraq. Arab countries led an oil embargo in 1973 that had a major upward impact on the price of crude in the global markets, and the outbreak of the Iranian Revolution in 1979 also led to market concerns about crude supplies that led to higher prices.
Iran is pushing for an increase in production to 4 million barrels per day by the end of the year.
While U.S. production increased in the prior week by 59K barrels, U.S. crude oil refinery inputs averaged over 17.2 million barrels per day during the week ending July 7, 2017, 103,000 barrels per day more than the previous week's average.
China imported 36.11 million tonnes, or 8.79 million barrels per day (bpd) of crude oil in June, customs data showed on Thursday, again making the country the world's top buyer for the month.
Increased shale production will transform the USA into one of the world's top oil exporters in just a few years, according to a new forecast by the consultancy PIRA Energy Group.
Still, output of 9.9 million bpd would be a record for USA production.
He added that shale will experience "nowhere near as much growth" in 2018. This comes after last week's big drop that the market ignored because of a rise in USA oil production and the storm.
The group has estimated that by 2020, United States crude exports will rise to 2.25 million barrels a day.
Saudi Arabia plans to cut its August crude oil exports by 600,000 bpd, according to an industry source from the Kingdom who spoke to Reuters.
Under the supply deal, OPEC is curbing output by about 1.2 million barrels a day.
This news comes as the American Petroleum Institute reports a massive 8.133-million-barrel drop in USA crude supply.
Today's inventory report from US Energy Information Administration (EIA) will be released at 14:30 GMT.
The production cap would come into play when Nigeria can stably pump 1.8 million barrels a day, Kachikwu said.
USA production is expected to increase in 2018, albeit at a lower rate than previously estimated.
But on Tuesday, EIA cut its 2018 USA crude output forecast by 1% to 9.90 million BPD.
On the Ethanol front the August contract is now trading at 1.563 which is.002 of a cent higher. "That means Venezuela is producing 437,000 barrels per day less than it was 2 years ago, which at Venezuela's average 2017 oil price of $43.60 (so far), means that Venezuela is losing over half a billion dollars every month; $6.9 billion a year".