Oil prices climbed during the first three trading sessions this week on a weaker dollar, expectations of a drawdown in US crude stocks, and reports that the oil markets are balancing. Brent closed Wednesday at $47.98 and WTI at $46.97.
Saudi Arabia and Russia agreed on Monday to cooperate in world oil markets, saying they will not act immediately but could limit output in the future, sending prices higher on hopes the two top oil producers would work together to tackle a global glut. Analysts skeptical that meaningful freeze deal can be reached Iran’s Rouhani says ‘vital’ to restore pre-sanctions output An international agreement to cap crude-oil output in a way that would restrict actual supply and support prices looks no nearer after the two largest producers pledged to cooperate.
Iran is ready to raise its oil production to 4 million b/d in a couple of months depending on market demand, a senior official from the National Iranian Oil Company (NIOC) said on Monday. “We can increase crude production based on market requirement. Some see this statement as an indication that Tehran might be willing to agree to a freeze.
The U.S. Energy Information Administration now forecasts that US crude production for 2016 and 2017 would fall by less than previously expected, according to a report issued on Wednesday, adding to growing fears that drillers are returning to the wellhead and increasing production. The agency said 2016 crude production would fall by 650,000 b/d to 8.77 million, while in 2017 crude output will fall by 260,000 b/d to 8.51 million.
Apache Corp. announced that it has discovered the equivalent of at least two billion barrels of oil in a new west Texas field that has the promise to become one of the biggest energy finds of the past decade. The discovery, which Apache is calling “Alpine High,” is in an area near the Davis Mountains that had been overlooked by geologists and engineers, who believed it would be a poor fit for hydraulic fracturing.
In the Niger Delta militants warned residents living near oil and gas facilities to vacate the area to ensure their own safety. The Niger Delta Greenland Justice Mandate says that it has planted explosives in several marked oil facilities, with detonation being delayed due to civilians still being present in the area. Nigerian oil exports are set to come back online after Royal Dutch Shell lifted its force majeure on Bonny Light crude exports. The Nembe Creek Trunk Line was repaired and reopened, allowing Shell to resume exports of its oil, nearly a month after declaring force majeure.
