12 June, 2017
The US benchmark, West Texas Intermediate (WTI), was down 0.81 per cent at $47.80 a barrel.
USA crude production will average more than 10 million barrels a day for the first time in 2018, breaking a record nearly five decades old and keeping prices from rising as much as previously estimated, government forecasts showed Tuesday.
Commercial crude oil inventories in the States grew by 3.3m barrels during the week ending on 2 June (consensus: -3.5m) to reach 513.2m barrels, according to the Energy Information Administration, the US Department of Energy's statistical arm.
Phil Flynn, a senior market analyst at the Price Futures Group, said earlier this year that US production could reach 10 million barrels per day in August.
Oil futures were down Wednesday over concerns over rising US production ahead of weekly stockpile and output data from the Energy Department.
Jeremy Corbyn enjoys kickabout as politics takes a backseat
May has confirmed five of her most senior ministers will remain in their pre-election roles. DUP leader Arlene Foster said "we have made good progress but the discussions continue".
Since OPEC announced the extension of production cuts, the market has continued to react bearishly with respect to the oil price.
In the next part of this series, we'll analyze gasoline demand.
Crude prices fell by more than $2 a barrel, or about 4 percent Wednesday morning with crude trading in NY at about $46 a barrel.
There are already doubts the effort to curb production by nearly 1.8 million bpd is seriously denting exports.
However, last night's data from the American Petroleum Institute (API) said U.S. inventories fell by 4.6m barrels last week, beating analysts' expectations.
The U.S. oil and gas industry, outside of OPEC's agreement, has increased production as 24 other oil producing countries have cut back. US light crude prices were at $46.12 USA per barrel, downward $2.07 cents, or 4.3%.
"The relentless increase in USA oil production appears to have the market anxious that the OPEC cuts will be completely nullified by the increased United States production", said William O'Loughlin, analyst at Rivkin Securities. He explained that the deterioration in relations between OPEC members Qatar and Saudi Arabia could disrupt the cartel-led agreement on production cuts.