Nigeria could put further downward pressure on crude oil prices, if its resurgent production is sustained and the country resumes exports at full capacity, with a 17-month record high exports expected in August.
Saudi Arabian King Salman promoted on Wednesday his 31-year-old son, Mohammed bin Salman, to become crown prince and second in line to the throne, giving him extraordinary powers to push through his vision to wean the economy off oil and exert his influence in regional conflicts.
Stubborn high crude stocks and even recent tensions in the Gulf and make today’s oil market very volatile, mounting pressure on oil prices. But, OPEC producers, Libya and Nigeria, could further threaten the speed of oil price recovery.
OPEC and non-OPEC vows to do “whatever it takes” doesn’t seem good enough to rebalance the global oil market before 2018, the International Energy Agency said on Wednesday in its monthly report disclosing for the first time an outlook into next year.
OPEC reported on Tuesday its largest production increase since November, an addition of 336,000 barrels per day (BPD) to a month average in May of 31.14 million barrels per day (MMBDP), Kallanish Energy learns.
Qatar’s energy minister, once president of OPEC, said on Sunday his country’s commitment to the oil output deal won’t be impacted by the severing of diplomatic relations with OPEC allies Saudi Arabia and the United Arab Emirates, Kallanish Energy learns.
Expected supply growth from the U.S., Brazil, and OPEC in 2018 will contribute to global oil inventories increasing by 0.1 million barrels per day (MMBPD) in 2018, the Energy Information Administration’s Short-Term Energy Outlook (STEO) projects.