Crude oil prices extended losses Monday as Saudi Arabia and Russia said they might increase supplies to the international market, while United States production gains show no signs of slowing.

There are signs that output from the three top crude oil producers – Russia, the US and Saudi Arabia, would climb to meet concerns about supply amid strong demand.

Global benchmark, Brent crude futures stood at $75.35 per barrel, down $1.09 from the previous close and after touching a three-week low of $74.49 earlier in the session.


US West Texas Intermediate (WTI) crude futures were at $66.69, down $1.19, after hitting a six-week low of $65.80.
Brent and WTI have respectively fallen by 5.5 per cent and 7.5 per cent from peaks reached earlier this month.

The Organisation of the Petroleum Exporting Countries (OPEC) and other producers led by Russia began withholding 1.8 million barrels per day (bpd) of supplies in 2017 to tighten the market and prop up prices that in 2016 fell to their lowest in more than a decade at less than $30 a barrel.

Prices have soared since the start of the cuts last year, with Brent breaking through $80 this month, triggering concerns that high prices could crimp economic growth and stoke inflation.
To address potential supply shortfalls Saudi Arabia, de-facto leader of producer cartel OPEC, and top producer Russia, have been in talks about easing the cuts and raising oil production by 1 million bpd.

Meanwhile, surging US crude oil production showed no sign of abating as drillers continue to expand their search for new oilfields to exploit.

US energy companies added 15 rigs looking for new oil in the week ending May 25, bringing the rig count to 859, its highest since 2015, in a strong indication that American crude oil production will continue to rise.
US crude oil output has already surged by more than 27 per cent in the past two years, to 10.73 million bpd, ever closer to Russia’s 11 million bpd.

However, increased US crude oil exports to Asia, supported by a wide WTI-Brent spread, are reportedly eating into Asian market shares of OPEC and Russia, the cartel’s ally in the production cut pact.
The United States is expected to export 2.3 million bpd of crude oil in June, including 1.3 million bpd bound for Asia, according to estimates by a senior executive at a US oil exporter who spoke to Reuters.

US crude oil exports hit a record high 2.566 million barrels per day in the second week of May, according to EIA data.
The record-high US oil production and the emerging constraints in the takeaway capacity has pushed WTI crude oil to the widest discount to Brent Crude in three years—at around $9 a barrel, while Brent prices have been supported by geopolitical concerns of possible supply disruptions from the Middle East and plunging production in Venezuela.

Asian refiners have seized the opportunity to boost the cheaper US crude oil imports and are cutting some pricier imports from the Middle East, particularly after Saudi Arabia’s recent pricing policies that raised prices for the Asian markets.

http://www.akelicious.net/2018/05/oil-price-falls-to-three-week-low-on.html

Another reason to blame

JUNE/JULY OIL PRICE PREDICTIONS IN NIGERIA , Will Shock you .. Read Here https://shareng.com/oil-predictions-july

Blame OPEC now

Pls convert it to Naira.
Bubu doesn't know what $ means

Oil prices are bound to increase. With the sanctions against Iran coming eh, it must rise. This is initial market shaje

Makes no difference cause even if it hit $200 per barrel, this dulllard and his gang will never let Nigerians feel it but continue on their "blaming spree".

Happy birthday to me

Nigeria should diversify to Agriculture and stop speculating on the gains of crude oil price rise.

That is why us sansaction Russia and Iran to limit their makect and replace them.

The blamer general of the federation will now blame OPEC for reduced income

HonSuQMaDIQ:

Makes no difference cause even if it hit $200 per barrel, this dulllard and his gang will never let Nigerians feel it but continue on their "blaming spree".

yeah .. you willnever feel it when it rises, but let is fall further, then will start blaming shagari and oil price for their failure.

It's better to pray it doesn't fall further.

Its better to rise than to fall. Every single Nigerians can ostensibly testified what happened in 2016 when Nigeria and Nigerians almost crippled and died as a result of low oil prize and bombings of Niger Delter militants because of recalcitrant nature of Buhari with no reasoning.

The monkey will start blaming OBJ, Jonathan Yar-adua

Only Fx trader will understand most of the write up, see as people no wan comment lol..

Only Fx trader will understand most of the write up, see as people no wan comment lol..

Yeeyo:
The monkey will start blaming OBJ, Jonathan Yar-adua

WHEN oil was @ $100 per Barrel, $1=150

Now 1 barrel $70 + yet $1=360
Do the calculation.. Buhari just dey deceive us oo

Oil prices will continue to fall as new technology makes inaccessible oil to be accessible. Also new tech is making internal combustion engines obsolete. I'm the future good will be a more viable business than oil.

Also what has Nigeria got to show in terms of the quality of life for all the years of oil sales. Only brutality from the govt

And to make matters worse our thevious and corrupt NASS just passed a budget that benchmarked oil at 71dollar per barrel.
I wonder why our leadership are so cursed with oil price, we could just followed our initial benchmark at 60 to 65dollar per dollar per barrel so that we can atleast put some dollars to our ECA and Sovereign Wealth Fund for future purposes. But Buhari being the petroleum minister doesn't have mental capacity to plan for the future. All he thinks about is rant about how our youths are lazy on international stage. Foolish Govt.

Daniel058:


WHEN oil was @ $100 per Barrel, $1=150

Now 1 barrel $70 + yet $1=360
Do the calculation.. Buhari just dey deceive us oo

Just my thoughts too. I owe you 1 origin with suya!
Can the economists here kindly explain?

Oops!

bendike:

Just my thoughts too. I owe you 1 origin with suya!
Can the economists here kindly explain?

[
oil chart

Daniel058:
[
oil chart

Bros i say make economist explain you come kukuma confuse me more.
Arnt those forex trading chats?

America holding the world ransom for decades

For past two months oil prices was above $70 yet BMC never made it headline now it surfaces just because the price drop.

Flye:
That is why us sansaction Russia and Iran to limit their makect and replace them.

Do you think the sanctions where about oil?

If it was why wasn't Saudi Arabia sanctioned as well.
It's simple a political power struggle.

yannis:

Do you think the sanctions where about oil?

If it was why wasn't Saudi Arabia sanctioned as well.
It's simple a political power struggle.

It is political and economical, Us can't sansaction nor sabotage Saudi economically because Saudi created petrol dollar. If you listen to Putin's in just concluded Sochi economic summit, you will realised that CATS policy of Trump is all about blocking other gas/oil supplier through sanction to pave way for America's expensive oil and gas. In fact German vice chancellor, chancellor and economic minister slam America over this. They sold tell America that they will support America's ambition to supply oil and gas to Europe but they can't block Russia off totally but they are ready to help America's oil and gas market. Putin slam America in Sochi on this same issue when he was addressing french president. Imagine America had to include oil and gas in the deal with China. America is looking for a way to sell it oil and gas by all means and they have adopted different strategy against existing seller and existing consumer, for instance they had to put tarrif and trade embargo on Chinese product to lure to China into negotiations while they quickly included their oil and gas as part of what China must purchase in US while they simply placed sanction on Russia to allow sell their expensive gas to Europe.

Flye:


It is political and economical, Us can't sansaction nor sabotage Saudi economically because Saudi created petrol dollar. If you listen to Putin's in just concluded Sochi economic summit, you will realised that CATS policy of Trump is all about blocking other gas/oil supplier through sanction to pave way for America's expensive oil and gas. In fact German vice chancellor, chancellor and economic minister slam America over this. They sold tell America that they will support America's ambition to supply oil and gas to Europe but they can't block Russia off totally but they are ready to help America's oil and gas market. Putin slam America in Sochi on this same issue when he was addressing french president. Imagine America had to include oil and gas in the deal with China. America is looking for a way to sell it oil and gas by all means and they have adopted different strategy against existing seller and existing consumer, for instance they had to put tarrif and trade embargo on Chinese product to lure to China into negotiations while they quickly included their oil and gas as part of what China must purchase in US while they simply placed sanction on Russia to allow sell their expensive gas to Europe.

Am yet to see it this way.
The sanctions are political and economical rather than the ethical they keep telling us.
You right in your analysis.