Beware Of Supply Risks When The Whole World Is Bearish

15 Jul 2017   Oil Supply

– WTI traded in a $44-$47 range this week lifted by a 7.6m bbl US inventory draw and positive demand data in Europe and China. On the upside production gains from the US and OPEC members kept rallies in check. – The most damning bearish force in the market continues to be unexpected supply strength in Canada, the US, Libya and Nigeria. This week US production printed 9.397m bpd (20-month high) cooling the reaction to an otherwise strong EIA report. Overseas, OPEC’s June data added a chill to the market as Bloomberg estimated Nigeria output at 1.75m bpd (16-month high) and Libyan output at 840k bpd (32-month high.) Overall group production was estimated at 32.55m bpd representing a 260k bpd m/m increase with help from a 90k bpd increase in Saudi Arabia. Libya and Nigeria will attend the OPEC + Russia meeting on July 24th but Kuwaiti leadership commented […]

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