Energy Preview: Crude Oil Futures Outlook Seen Flat For This Year

Energy Preview: Crude Oil Futures Outlook Seen Flat For This Year

Homes that use heating oil will spend an average of $215 or 17 percent more this year than last, and that's assuming a "normal" winter. While Brent averaged $54 per barrel in 2017, the December average was $64, up $2 per barrel from November, “the highest monthly average since November 2014, ” and only the fourth time in the past 36 months that Brent has averaged more than $60. An oversupplied market contributed to a sharp decline in crude oil prices, which dropped below $30 per barrel two years ago. The global supply of oil exceeded demand by as many as 2 million barrels per day and inventories swelled. And with the crude price up by more than 13 percent since early December, some analysts expect a downward price correction following the recent bull-run. As a result, pipeline capacity constraints should not be a major limiting factor in starting new production, he said. West Texas Intermediate, the USA benchmark, was up 0.66 percent to $62.14 per barrel.

On Tuesday, the EIA boosted output expectations, saying it now sees overall production at record highs, surpassing 11 million barrels per day (bpd) by 2019.

US production for 2017 averaged an estimated 9.3 million bpd, and is estimated to have averaged 9.9 million bpd in December, EIA said. In particular, US crude oil production is expected to increase more quickly than any other country. EIA expects OPEC crude oil production to increase by 0.2 million b/d in 2018 and by an additional 0.3 million b/d in 2019 as it slowly returns to pre-agreement levels.

USA output will be at an all-time high in 2019, surpassing 11 million bpd by the end of that year, a new high for national output, the EIA said in the report. The average production in 2019 will rise 580,000 bpd to 10.85 million bpd, the agency said in its first outlook for next year.

Energy Preview: Crude Oil Futures Outlook Seen Flat For This Year
Energy Preview: Crude Oil Futures Outlook Seen Flat For This Year

Eagle Ford production is expected to be from 1.2 million bpd to 1.3 million bpd this year and next, which EIA said is slightly above the 2017 level.

Oman Minister of Oil & Gas Mohammed Al Rumhy sees oil prices holding around $65-70/bbl for the next few weeks as the region reduces output by 45K b/d, while Russian Energy Minister Alexander Novak warns that ' the market hasn't rebalanced in full ' as Lukoil CEO Vagit Alekperov favors crude stabilizing around $70/bbl. "Supply disruptions and falling United States and global inventories have driven crude oil higher", said Ole Hansen, head of commodity strategy at Saxo Bank in a note.

Phil Flynn, the senior market analyst for the PRICE Futures Group in Chicago, said in an emailed market report that demand strains were offsetting some of the production trends.


Related News:

  • Trump says Russia probe is a 'Democrat hoax'

    Trump says Russia probe is a 'Democrat hoax'

    That's perhaps ridiculous, a lot of people looked on that as being a very serious breach and it really was, ' he said. The FBI released notes from that interview with Clinton in September of 2016.

    South African party leaders slam Trump statement as racist

    Trump tweeted this morning, "The language used by me at the DACA meeting was tough , but this was not the language used". I want a merit based system of immigration and people who will help take our country to the next level.
    Facebook makes friends a priority in the News Feed

    Facebook makes friends a priority in the News Feed

    Facebook says it will highlight posts you are most likely to engage with and make time spent on social media more "meaningful". But too often today, watching video, reading news or getting a page update is just a passive experience.
  • Bautista Agut beats Del Potro to win Auckland title

    Bautista Agut beats Del Potro to win Auckland title

    I knew it was going to be important, the beginning of the match. I've been fighting a lot on the court... I think the crowd enjoyed the game.
    'I don't need more Grand Slam titles

    'I don't need more Grand Slam titles

    Although she will play no part at Melbourne Park over the next two weeks, Williams' sparkling record can not be ignored. Williams ultimately needed to have a filter placed in a major vein to stop blood clots from going to her lungs.
    Winter storm expected January  12

    Winter storm expected January 12

    Temperatures will fall into the lower 30s and below freezing late Friday afternoon, with a transition from a wintry mix to snow. Around 3am on Thursday morning, the National Weather Service will invoke a Winter Storm Warning for the entire broadcast area.
  • Trump's slur on countries is 'racist'

    Overshadowing the event was mounting backlash from Trump's comments during a private meeting with lawmakers the day before. The president implied Friday morning on Twitter that maybe he should start recording meetings because there is no trust.
    European Union  proposes spending €1bn on supercomputers

    European Union proposes spending €1bn on supercomputers

    For example, auto production cycles can be reduced thanks to supercomputers from 60 months to 24 months. So keep a weathered eye on the horizon as the European machine lumbers towards a supercomputer.
    Vintage Ferrer stays on course in Auckland

    Vintage Ferrer stays on course in Auckland

    Defending champion Sock completely faltered against Gojowczyk and lasted only 61 minutes before being defeated 3-6, 3-6.
  • Chopper with 7 on board, including 5 ONGC employees, goes missing

    Chopper with 7 on board, including 5 ONGC employees, goes missing

    The helicopter (VT PWA ), with 2 Pawan Hans pilots and 5 passengers, all ONGC employees, took off at 10.14 am from Juhu airport . Ahelicopter carrying seven people, including five ONGC employees , crashed off Mumbai's coast on Saturday.
    Sam's Clubs in Wyoming will remain open amid national closures

    Sam's Clubs in Wyoming will remain open amid national closures

    Costco tells NewsChannel 9 it won't accept Sam's Club memberships. Sam's Club members can request a membership refund at any time.

    "Animaniacs" to be revived with two new seasons on Hulu

    They have been locked away in the Warner Bros. water tower for a very long time, but they have found a way to escape. USA streaming platform Hulu has teamed up with Amblin Entertainment and Warner Bros.to make two brand new seasons.


Most liked

18 dead, 5 missing in Southern California mudslides
The first slides ripped through Montecito about 3:30 a.m. and continued after the county cellphone alerts went out. John "Jack" Keating - 53 year old transient who often frequents the Montecito riverbed area.

Antonio Brown is questionable
This writer has been on the Jacksonville-train since the early part of the season. - Fournette, Ivory, they can run the football. Again, the Jaguars don't have to come up with bells and whistle to beat their opponent. "Their front four is an elite group".

Hillary Slams Trump's 'Ignorant, Racist Views' on Haiti, Africa
In his speech he said: "No matter what the colour of our skin, or the place of our birth, we are all created equal". The Trump administration moved in November to end that program for residents of the island nation.

Can G-III Apparel Gp I (GIII) Move Higher? Shares Tick 0.53
After a recent market scan, we have seen that the Ultimate Oscillator reading is above 60 on shares of Nexus Gold Corp (NXS.V). Mackenzie Financial Corp acquired a new position in shares of Yamana Gold during the second quarter worth about $26,393,000.

CDC: Severe flu season slams all but one state
Experts are saying this year's cold and flu season, which has been worse than usual, will peak in Canada in the weeks to come. People at higher risk are those with chronic medical conditions, pregnant women, children under age two and people over 65.

Dissidia Final Fantasy NT Open Beta Begins Today
Starting today, the first beta phase will run through January 15 for Dissidia Final Fantasy NT on PlayStation 4 . More details on the open beta for Dissidia Final Fantasy NT can be found through the beta web portal .

Seatown Holdings Pte. Ltd. Cuts Holdings in Amazon.com, Inc
The e-commerce giant reported $0.52 EPS for the quarter, missing the Thomson Reuters' consensus estimate of $1.09 by ($0.57). Artisan Partners Limited Partnership boosted its stake in shares of Amazon.com by 1,160.3% in the second quarter.

Intel rushes out "Spectre" and "Meltdown" updates
Microsoft said in a statement Thursday that it is not aware of any of these vulnerabilities being used against its customers. Apple will release a patch for the Safari web browser on its iPhones , iPads and Mac within days, it announced yesterday.

Cuba condemns Trump's "racist" statements on Haiti, El Salvador
Trump reportedly used a vulgarity to describe Haiti and African countries according to several reports. Trump has denied making the remark (kind of), but it certainly fits right in with his history.

Officials warn of flooding on Kennebec River after rain, snowmelt
According to the advisory, the local fire department reported an ice jam on the Rocky River in the city of Rocky River. That is close to the water level on January 4 of 579.45 feet when residents in East China Township reported flooding.

FDA Releases New Requirements For Prescription Opioid Cough And Cold Medicines
In any case, there's little that can or should be done to ease most children's cough and colds, the FDA said. Prescription opioid cough and cold medicines: Drug Safety Communication - FDA requires labeling changes.

Alabama coach had playbook stolen before title game
Police are looking for the suspect, and they have a photo of the suspect with the backpack. It had his cellphone, laptop, $1,300 cash, passport and game day playbook inside.

Colombia paralyzes dialogue with ELN after new guerrilla attacks
Peace talks with the smaller ELN , whose founders in the 1960s included radical Roman Catholic priests, began last February. The ceasefire did not continue as reports say the rebels want a new deal with the government.

Trump Private Lawyer Sues Buzzfeed Over Russian Dossier
Reuters/Aaron BernsteinTrump's private lawyer filed a defamation lawsuit against Buzzfeed over the Russian dossier. Cohen, like many of Trump's aides and allies, has been harshly critical of some national news outlets.

Chris Brown Monkey Business Could Get Him Prosecuted
TMZ says that the "Don't Judge Me" singer has a pet monkey named Fiji , that was reportedly obtained without a permit. Some folks think that the animal is a danger to the 3-year-old girl and really should be left in the wild.