Iran says supports extending oil output cuts

Though US oil production declined by a half million barrels per day in 2016 (the first decline in 8 years) due to lower drilling activity, with current prices relatively stable in the high $40's and low $50's, US production is again expected to begin a gradual rise and could soon approach the levels of 2015...and likely higher, should prices hold through 2017. Brent was down 28 cents, trading at $55.08 a barrel by 3:24 p.m. EDT.

Crude prices have notched three straight weeks of gains to recover from the slump in March, when prices fell to a four-month low of $47.01 on the back of concerns that a ramp-up in US oil production would dampen OPEC's efforts to drain the glut in supply.

Global benchmark Brent crude futures settled down 47 cents at $54.89 a barrel.

"The soft U.S. CPI (consumer price index) on Friday will ease yields further, also undermining the reflationist markets such as oil and precious metals", he said.

Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 bpd starting from January 1, 2017 for six months, extendable for another six months, taking into account prevailing market conditions and prospects.

"Production rose for an eighth week and the EIA has said we will be pumping 9.9 million barrels a day in 2018". Before the weekend, gas prices rose an average of 12 cents in 19 days nationwide and by 13 cents in 18 days in Georgia. Iran fed hopes that OPEC and non-OPEC producers would extend the cuts, but Saudi Arabia's energy minister said it was too early to discuss an extension.

US West Texas Intermediate (WTI) crude futures were also down 4c at $52,61 a barrel.

The agency's data shows that demand is growing at a constant and regular pace in the oil market.


USA drillers last week added rigs for a 13th straight week.

But if the extension is secured, USA shale-oil will continue to expand, he said.

The energy minister of OPEC member the United Arab Emirates predicted healthy oil demand growth this year and said inventories would fall, but it would take time. It stated that the global oil market could be very close to balancing supply and demand.

Oil prices fell on Tuesday, then slid more in post-settlement trade after an industry group reported that US crude stockpiles fell less than expected in the latest week while gasoline stockpiles grew unseasonably.

"Oil output will increase by 350,000 bpd this year, which will offset the 300,000 bpd loss in production", Kardor added.

"Output is expected to increase by 123,000bpd to 5.19 million bpd next month".

"There was also considerable re-stocking in anticipation of future price rises", investment bank NSBO said in a report released on Thursday, adding that while domestic crude oil production declined by 7.3% year on year to 198 million mt in 2016, processed oil production increased 7.8% year on year to 324 million mt.


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