Look out, OPEC! US to become top 10 oil exporter by 2020

Oil under pressure from OPEC, US output

Oil under pressure from OPEC, US output

Oil steadied on Tuesday after nearly a week of sharp falls, but the outlook remained weak amid oversupply and several banks cut their price forecasts. USA crude inventories remain more than 100 million barrels above the five-year average. United States crude oil (SCO) (BNO) (IEZ) prices have fallen 21.7% year-to-date, which motivated major oil producers to cap their production.

The deal became effective from January 1, 2017 and by April this year, OPEC said the oil cut agreement was at 98 percent compliance level.

PetroChina was awarded the tender to sell the cargoes and is expected to load the oil off the US Gulf Coast, said a trading source with direct knowledge of the sale. Both countries were left out of the deal so they could steer oil revenue toward national security efforts, though increased output and improved stability over the last seven months has undermined the effort.

Light, sweet crude for August delivery settled up 17 cents, or 0.4%, at $44.40 a barrel on the New York Mercantile Exchange, its 10th gain in 12 sessions. They have invited Libya and Nigeria to the meeting in Russian Federation to discuss the stability of their production, said Issam Almarzooq, Kuwait's oil minister. The global benchmark crude traded at a premium of US$2.29 to September WTI.

UNM coach Weir, Canada to play United States of America in FIBA semis
US was upset by Canada 99-87 despite Wiley's 13 points and game-high 17 rebounds in the FIBA U19 World Cup semifinals on Saturday. The U.S. team, which had won the past two U19 World Cups, will play in the third-place game against Spain Sunday at 2:30 p.m.

The two countries' combined output is now some 380,000 barrels per day above October levels, the month which OPEC used as a benchmark to base its production cuts.

Nigeria and Libya have ramped up production since OPEC's meeting in November 2016. "Deepening the reductions under the current agreement is not on the agenda", Almarzooq said.

Opec production and exports increased in June, driven by ramped up output in Libya and Nigeria, which Opec has yet to address. Bank of America Merrill Lynch is now forecasting robust gasoline demand in the coming weeks, based on weekly data, which "compares favorably to the five-year average and miles driven also continue to grow year-on-year".

BNP Paribas cut its forecasts for Brent from $60 to $51 a barrel for 2017 and from $63 to $48 for 2018.

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