Dubai PR Network, Online Press Release from Dubai and Middle East
 
Oil & Gas(Energy and Industry)
Filter PR by
  
Oil Prices Hover Around Annual Average as OPEC Experiences Robust Production Declines
 

Oil prices are hovering near the 50-week moving average which is a proxy for 1-year. While commodity trading prices have whipsawed throughout 2019, they are well above the $45 level low and the $66.5 highs. In early November, Saudi Aramco finally announced its initial public offering and is expected to go on a multi-week road show describing its long-term goals. Saudi Arabia also needs to contend with the United States which is a major global oil producer.

OPEC countries are expected to produce nearly 28.2 million barrels a day of crude oil according to the Energy Information Administration. This number is down 1.6 million barrels a day from August. Production has been on the decline making the September numbers the lowest level of OPEC production seen in 16-years.

Iran and Venezuela Lead Production Declines

The decline comes as a result of the disruptions in Saudi Arabia. The September figures from the EIA are down 4.0 million barrels a day year over year. Most of the decline in OPEC crude oil production during the past year was primarily the result of falling production in Iran and Venezuela as well as the recent disruption in Saudi Arabia. However, EIA estimates that Saudi Arabia’s crude oil production returned to pre-outage levels as of October 3.

US Crude Oil Production Eases

US oil production has been robust for most of 2019. The EIA pegs the average production in July at 11.8 million barrels a day slightly down from June. The weekly EIA numbers show production levels surpassing the 12.0 million barrel a day level

EIA reported that US crude oil production was unchanged during the first seven months of 2019 because of disruptions to Gulf of Mexico platforms. The slowing rate of growth in tight oil production reflects relatively flat crude oil price levels. Going forward the EIA forecasts U.S. crude oil production will average 12.3 million b/d in 2019, up 1.3 million from the 2018 level, and will rise by 0.9 million barrels a day in 2020 to an annual average of 13.2 million barrels a day.

Production will begin to be offset by strong demand for winter fuels in the United States. The EIA forecasts that average household expenditures for home heating fuels will decrease slightly but this is due to warmer expected winter temperatures compared with last winter. The heating season has just begun, and the weather is forecast to be colder than normal during the first 3-weeks of November.

Prices are Forecast to Remain Slide

The term structure of crude oil shows that traders believe that the price of crude oil will decline over the next year. The December 202 contract is lower than the December 2019 crude oil contract which is referred to as backwardation. This means that spot prices are higher than deferred prices. This occurs when current demand is higher than future demand.


Posted by : Dubai PR Network Editorial Team
Viewed 4288 times
PR Category : Energy and Industry
Posted on : Wednesday, November 13, 2019  12:35:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : New Service Enables Remote Performance Monitoring of Multiph...
Next Story : Emerson to feature ‘Insight through Digitalization' at ADIPE...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
Make Up for Ever Introduces for the First Time Its New Active Care-in-foundation to Revive... [5293-Views]
HONOR 2020 H1 Business Achievements in International Markets [3087-Views]
Save up to AED 25,000 on Pre-Owned Lexus Cars with Al-Futtaim Auto Fest [2858-Views]
Panasonic Jaguar Racing Head to Berlin for a Lockdown Showdown [2854-Views]
Here's Why A Silicone Cleansing Brush Champions Other Cleansing Tools and Techniques [2772-Views]
Safe Start-up of Unit 1 of Barakah Nuclear Energy Plant Successfully Achieved [2759-Views]
Samsung Launches Galaxy Watch3 and Galaxy Buds Live [2628-Views]
Schneider Electric Shows They Are Acting to Build a Green and Inclusive Future for All Thr... [2530-Views]
Sony Middle East & Africa Announces ‘Ready for PlayStation®5' for current BRAVIA™ TVs [2255-Views]
UAE Team Emirates Back to Winning Ways [2218-Views]
Lacoste Launches the Roland - Garros Eyewear Collection [2099-Views]
Jafza Sets a New Benchmark With ‘collaboration for Safe and Sustainable Growth' Webinar' [2062-Views]
Win Big at Dalma Mall with the ‘Eid Family Shopping Challenge' [2054-Views]
Introducing the New Omega Constellation Gents' Collection' [1935-Views]
Dubai Sports Council and Ski Dubai to Host One of the World's First Snow Sports Competitio... [1800-Views]
Pre-Orders for Samsung's Galaxy Note20 and Galaxy Note20 Ultra Now Open in the UAE [1792-Views]
The Last Few Weeks of Dubai Shopping Mall Group's Summer Promotion [1714-Views]
Cebu Pacific Advisory: Suspension of Domestic Passenger Flights to/from Manila – Aug 4 to ... [1706-Views]
No Premium Without Responsibility: BMW Group Makes Sustainability and Efficient Resource M... [1673-Views]
Post-COVID Travel is Set to Become Smarter. Here's How. [1628-Views]
DREI Organises Virtual Real Estate Conference With Saudi Partners [1628-Views]
Etihad Airways Introduces Microbebarrier™ Face Protection for Premium Passengers [1611-Views]
RAKEZ Welcomes 100% Foreign Ownership in Mainland with FDI Company Set-Up [1603-Views]
LG Announces Second-Q2020 Financial Results [1599-Views]
Sharjah Shopping Promotions Draws a Smile on Faces of 3 Lucky Winners of (BMW – X2) [1583-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories