OPEC, including Iran, does not have that feel good feeling to help out Wall Street and the USA petroleum industry. The chart below shows the emotional roller coaster that Wall Street rides rather than doing their homework to know the facts.
The facts are this, OPEC is cutting back on production because the demand is falling.
Global Liquid Fuels (click here)
U.S. crude oil production averaged 9.4 million barrels per day (b/d) in 2015, and it is forecast to average 8.8 million b/d in 2016 and 8.7 million b/d in 2017. Forecast production in 2017 is more than 0.1 million b/d higher than in last month's STEO.
EIA expects Brent crude oil prices will average close to $48/ barrel (b) in the fourth quarter of 2016 and in the first quarter of 2017. Forecast Brent prices average $43/b in 2016 and $51/b in 2017. West Texas Intermediate (WTI) crude oil prices are forecast to average about $1/b less than Brent prices in 2017. The values of futures and options contracts indicate significant uncertainty in the price outlook, with NYMEX contract values for February 2017 delivery traded during the five-day period ending November 3 suggesting that a range from $35/b to $66/b encompasses the market expectation of WTI prices in February 2017 at the 95% confidence level.
Higher crude oil prices contributed to U.S. average retail regular gasoline prices in October increasing by 3 cents/gallon (gal) from September to an average of $2.25/gal. With the switch to less-expensive winter gasoline blends and the typical seasonal decline in gasoline consumption, EIA expects gasoline prices to fall to an average of $1.97/gal in January. Retail gasoline prices are forecast to average $2.13/gal in 2016 and $2.27/gal in 2017.
Global oil inventory builds are forecast to average 0.8 million b/d in 2016 and 0.5 million b/d in 2017.
The USA Energy Department has already published estimated prices for the COMMODITY oil and it matches what is being realized now.
This graph is also the "production vs demand."
November 30, 2016
By Reuters
The facts are this, OPEC is cutting back on production because the demand is falling.
Global Liquid Fuels (click here)
U.S. crude oil production averaged 9.4 million barrels per day (b/d) in 2015, and it is forecast to average 8.8 million b/d in 2016 and 8.7 million b/d in 2017. Forecast production in 2017 is more than 0.1 million b/d higher than in last month's STEO.
EIA expects Brent crude oil prices will average close to $48/ barrel (b) in the fourth quarter of 2016 and in the first quarter of 2017. Forecast Brent prices average $43/b in 2016 and $51/b in 2017. West Texas Intermediate (WTI) crude oil prices are forecast to average about $1/b less than Brent prices in 2017. The values of futures and options contracts indicate significant uncertainty in the price outlook, with NYMEX contract values for February 2017 delivery traded during the five-day period ending November 3 suggesting that a range from $35/b to $66/b encompasses the market expectation of WTI prices in February 2017 at the 95% confidence level.
Higher crude oil prices contributed to U.S. average retail regular gasoline prices in October increasing by 3 cents/gallon (gal) from September to an average of $2.25/gal. With the switch to less-expensive winter gasoline blends and the typical seasonal decline in gasoline consumption, EIA expects gasoline prices to fall to an average of $1.97/gal in January. Retail gasoline prices are forecast to average $2.13/gal in 2016 and $2.27/gal in 2017.
Global oil inventory builds are forecast to average 0.8 million b/d in 2016 and 0.5 million b/d in 2017.
The USA Energy Department has already published estimated prices for the COMMODITY oil and it matches what is being realized now.This graph is also the "production vs demand."
By Reuters
Oil prices jumped (click here) as much as 8 percent on Wednesday to a five-week high as some of the world's largest oil producers agreed to curb oil output for the first time since 2008 in a last-ditch bid to support prices.
Brent crude futures for delivery in January were up $3.67, or 7.9 percent, at $50.05 a barrel by 11:38 a.m. ET (1638 GMT), recovering from a drop of nearly 4 percent on Tuesday and on course for their biggest one-day move in nine months. Brent crude for delivery in February was up $3.63 at $50.95 a barrel.
U.S. West Texas Intermediate (WTI) crude futures rose $3.50, or 7.7 percent, to $48.73 a barrel, a one-week high.
The Organization of the Petroleum Exporting Countries has agreed its first output limiting deal in eight years, OPEC said on Wednesday.
