Top Oil News Brief/Roundup As Reported to 8th December 2016…..
The price of OPEC basket of fourteen crudes stood at $50.98 a barrel on Tuesday, 6 December 2016, compared with $51.25 the previous day, according to OPEC Secretariat calculations.
EIA forecasts Brent crude oil prices to average $43 per barrel (b) in 2016 and $52/b in 2017. West Texas Intermediate (WTI) crude oil prices are forecast to average about $1/b less than Brent prices in 2017. The values of futures and options contracts indicate significant uncertainty in the price outlook.
The NYMEX contract values for March 2017 delivery traded during the five-day period ending December 1 suggest that a range from $34/b to $71/b encompasses the market expectation of WTI prices in March 2017 at the 95% confidence level.
Global oil inventory builds are forecast to average 0.7 million b/d in 2016 and 0.4 million b/d in 2017.
EIA revised the U.S. crude oil production forecast upward from the November STEO, with average 2017 production expected to decline by less than 0.1 million b/d from 2016 levels. Total U.S. liquids production, which includes production of hydrocarbon gas liquids (HGL) and biofuels, is expected to increase by 0.2 million b/d in 2017.
Total non-OPEC liquids production is expected to grow by almost 0.4 million b/d in 2017 from 2016 levels. Outside the United States, non-OPEC total liquid fuels production is expected to increase by slightly more than 0.1 million b/d in 2017. Canada’s liquid fuels production is expected to grow by about 0.3 million b/d in 2017, making up for the low production growth in 2016, when wildfires during the summer resulted in large production shut-ins. Russia, Kazakhstan, and Brazil are also expected to see an increase in liquids output in 2017. Liquid fuels growth in these countries in 2017 is expected to be partially offset by declining production in the North Sea, China, and Mexico.
OPEC crude oil production is expected to average 33.2 million b/d in 2017.
The Nigerian oil sector continues to experience setbacks as militant attacks continue to target oil infrastructure, lowering the country’s production outlook. Libya’s crude oil production was almost 0.6 million b/d at the end of November, a slight increase compared with the previous month. Additional oil production increases from Libya in the near term are not likely to occur without an agreement with the Zintani militia, which controls the pipelines that transport crude oil from some of Libya’s largest fields, including the El Sharara and El Feel fields.
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