Oil production is flat, oil prices tend to neutral state

According to Reuters on Tuesday (July 18) reported that an oil official said Libya oil production reached 103 million barrels / day, compared with last month production did not change significantly.

Baker Hughes (Baker Hughes) on Friday (July 14) that since July 14, the United States drilling and the addition of two drilling equipment, the current total number of 765 units. The additional equipment model is RIG-OL-USA-BHI. The model has increased by an average of five units over the past four weeks, the slowest number ever since November 2016.

Similarly, US shale oil production is expected to continue for eight months, both in July to increase the production capacity of 112,000 barrels per day to August reached 5.58 million barrels per day.

“The higher oil production in the US, Libya and Nigeria should be adjusted for oil prices at this time,” said Gene McGillian, research manager for crude oil analysis firm Traditional Energy.

According to the US Energy Agency EIA and the International Energy Agency IEA report shows that the July 7 week of US crude oil inventories fell to raise last week’s oil prices, but the industrial oil stocks remain high, leading to rising oil prices were curbed.

Oil consultancy Petromatrix analyst Olivier Jakob commented that today’s market is no movement, it seems to be on the sidelines. Need to re-adjust the oil products, but the adjustment is quite large.

Traders said that since April 24, with the decline in oil demand and inventory levels, the US gasoline crack spread to the highest.

Although OPEC member countries, Russia and non-OPEC oil producers have been working to cut production since January, oil prices have fallen to a much lower position than in 2014 due to rising inventories.

Although OPEC cut to the oil prices must support, but the two exemptions Libya and Nigeria and the United States increased oil production, the market still has a significant impact on oil prices.

Kuwait said on Friday (July 14) that the market is struggling to recover due to rising demand. It is premature to limit production in Libya and Nigeria. OPEC member states will discuss the impact of this decision with non-OPEC producers in Russia on 24 July.

There are signs that oil demand is increasing. Monday (July 17) market data show that China’s refined oil demand for oil in June is the second highest in history. OPEC expressed the hope that the continued demand for oil in the second half of 2017 would reduce excess inventories.