OPEC Sees Oil Markets Tighten Further Even As U.S. Shale Boost

The global oil stocks surplus is close to evaporating, OPEC said, citing healthy energy demand and its own supply cuts while revising up its forecast for production from rivals who have benefited from higher oil prices. As we know  U.S. shale oil output has been booming over the past year since OPEC reduced its own production in tandem with Russia to prop up global oil prices. The OPEC said in its monthly report oil stocks in the developed world reversed a rise in January to fall by 17.4 million barrels in February to 2.854 billion barrels, around 43 million barrels above the latest five-year average. After all, logical question is if shale is booming why is gas so expensive?

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Because OPEC is cutting production to drive up prices. Good news for US producers bad news for drivers. But, oil is still not so expensive... relatively.
 

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OPEC members don't get it. They hoping their monopoly days will last forever.  For any production cut they  undertake there is a corresponding increase by non-OPEC producers who eventually siphon profits their way.  Like ostrich they stuck their heads in the sand.

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Would like to thank all OPEC members... Drill baby Drill.

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One takeaway from OPEC's report today. There is only one tenth left of the oil glut OPEC sees oil markets tighten further even as U.S. shale booms.

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The OPEC has removed majority of glut from the oil market but still work to be done by end of year; in long term, oil demand growth 40% by 2040 - need more investment from all players incl.  shale

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Interesting fact. U.S. petroleum imports and exports in 10yrs (2007-2017):

Imports ⬇️25% (⬇️3,393k b/d)
Exports ⬆️343%(⬆️4,910k b/d)

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I think its more smoke, Russia always goes along with opec and the market rallies until 3 months later reports surface that they accidentally happen to be producing more than they said they would, US was producing roughly 9.5 mil in jan and is already up to roughly 10.4 to 11 and that's through not ideal weather and we are just now getting nice weather, I am 9 miles away from an ethanol plant and the ethanol industry is producing over 1 mil/day for a couple months now, ethanol stocks have grown from 20 mil in jan to 22.5 recently, opec always talks like we are out of oil because it is advantageous for them, kind of like sponsored content so I would read into more independent figures or reporting, we are right in line with the 5 year average at cushing so its really hard to make an overly bullish or bearish argument

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1 hour ago, damirUSBiH said:

The global oil stocks surplus is close to evaporating, OPEC said, citing healthy energy demand and its own supply cuts while revising up its forecast for production from rivals who have benefited from higher oil prices. As we know  U.S. shale oil output has been booming over the past year since OPEC reduced its own production in tandem with Russia to prop up global oil prices. The OPEC said in its monthly report oil stocks in the developed world reversed a rise in January to fall by 17.4 million barrels in February to 2.854 billion barrels, around 43 million barrels above the latest five-year average. After all, logical question is if shale is booming why is gas so expensive?

The U.S. is on track to become the largest producer of oil in the world. This means stiff trade competition for oil producing economies like Saudi Arabia and Nigeria. This effect will become even more pronounced if the oil price were to rise to $80 like the Saudis want. Production would explode in the US at those levels.

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Venezuela's oil production continues its fall. Below 1.5m barrels per day, according to secondary sources reporting to OPEC. Venezuela is struggling to breath.

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