Saudi Arabia And Russian Production Plans Are Expected To Have Little Impact On The Oil Boom
If the organization of petroleum exporting countries (OPEC) in June meeting agreed to only in order to make up for a market gap and production accident case, so supply will not increase too much, will be at about 600000 barrels a day.Moreover, strong demand and low inventories provide strong support for oil prices.
Anz said Saudi Arabia and Russia have long maintained a cooperative relationship that has curbed supply growth.Even if OPEC were to increase production in the second half of 2018, the bank believes the market would still be short of supply, with demand growing by about 1.5 million barrels a day.Anz forecasts an average supply gap of 650,000 b/d in the second half.
In addition, anz said any further involuntary production cuts in oil producers such as Iran and venezuela would be filled by additional OPEC production increases.
ING (ING) senior technical analyst Roelof - Jan van den Akker, said in a research report of brent bull market breakthrough after 2 years rising channel limit, to prepare for it's accelerating.
'there is almost no material resistance between the current price level and the horizontal resistance level of $89.30,' Akker said in the report.The long-term downtrend line is around $95 and a break from its recent high of $80.50 would confirm a rise.
Overnight U.S. oil fell nearly 2 percent, the biggest spread in three years
U.S. WTI futures fell nearly 2 percent on Thursday, June 1, while inventories fell more than expected, but brent crude, the global benchmark, was largely flat, widening the spread to its widest in more than three years.
The U.S. energy information administration (EIA), said the us crude oil inventories fell 3.6 million barrels last week, far more than reduce the expected 525000 barrels, gasoline and distillate stocks rose, but the crude oil inventories decline eased the recent U.S. crude oil prices fell.U.S. crude oil production has risen to record levels since the end of last year, jumping 215,000 barrels a day in March to a record 10.47 million barrels a day, the EIA said on Thursday.