US WTI crude oil futures on Monday (May 15) closed up 1.01 US dollars, or 2.11 percent, reported 48.85 US dollars / barrel. Brent crude futures closed up $ 0.98 on Monday, or 1.93%, at $ 51.82 a barrel. Saudi Arabia and Russia, the two major oil-producing countries to support the extension of the agreement to extend the agreement in March 2018, crude oil bulls greatly encouraged, while the dollar weakened for oil prices to provide a strong support. US WTI crude oil futures hit a maximum of 49.66 US dollars / barrel, Brent crude oil futures hit a maximum of 52.60 US dollars / barrel. Benzalkonium chloride
Fundamentals positive factors:
US dollar on Monday defensive, before the release of the US economic data less than expected, and the DPRK weekend missile test also supported the safe-haven currency yen. The announcement of the New York Fed May manufacturing index unexpectedly fell to negative, to the dollar long “a blow”, the dollar fell more aggravated. Weak dollar for oil prices has brought some support.
Saudi Arabia and Russia, the world’s top crude oil producer on Monday (May 15) issued a joint statement, said the extension of the production agreement extended to March 2018, to help solve the problem of excess supply, so that oil prices rise. “Crude oil inventories have started to fall, but we have not yet reached the target of falling to the 5 – year moving average, and we have agreed to extend the agreement on the cut – off agreement,” he said in a statement issued in Beijing.
OPEC latest monthly report, including Nigeria and Libya, including April OPEC crude oil production fell 1.8 million barrels / day to 31.73 million barrels / day. Although Saudi Arabia production has rebounded, but the country’s production rate is still greater than the commitment target. 11 OPEC member countries that needed to cut production were reduced to 29.674 million barrels per day in April, below the target of 29,804,000 barrels per day. However, OPEC raised its non-OPEC crude oil production estimate in 2017 to an increase of 95 million barrels per day, an increase of 37 million barrels from the previous month and a previous value of 58 million barrels per day. Sodium polyacrylate
Non-OPEC oil Turkistan and Equatorial Guinea also expressed willingness to cooperate with the cut, although the two countries of crude oil production is not great, but help OPEC to expand the scope of production plans. Algeria and Iraq have recently expressed support for the extension of the agreement. At the same time sources said the OPEC oil-producing countries, which are dominated by Gulf member states, are discussing plans to extend production for nine months, which will cover the first quarter of 2018, when crude oil demand will appear Seasonal weakness, so the impact of oil-producing countries will not be too large financial revenue. However, analysts pointed out that even if the cut agreement is extended, is expected to not expand the existing scale of production.
Russian Ministry of Energy issued a statement saying that the country has been on May 1 since last October production on the basis of production cut 30.079 million barrels / day, more than the previous commitment to cut production targets. At the same time in April Russian crude oil production fell slightly to 11 million barrels / day. At the same time, Russia’s energy minister Alexander Novak pointed out that after talks with senior domestic crude oil companies, Russia has begun to support the extension of the cut-off agreement. HEDP
Fundamentals negative factors:
US oil company Baker Hughes (Baker Hughes) on Friday (May 12) released data show that as of May 12 the week, the US oil active drilling increased by 9 to 712, recorded for 17 consecutive weeks at the same time Continued since April 2015 a new high. Last year, the number of active oil drilling in the United States was only 318. More data show that as of May 12 the week the total number of US oil and gas active drilling increased by 8 to 885.
Libya crude oil production last week has more than 80 million barrels / day, for the first time since 2014, if not because Wintershall AG oil field due to internal problems and production losses, the country’s crude oil production will be higher than the current. Libyan National Oil Company (NOC) said that due to the company and the Libyan Presidential Committee failed to Wintershall AG oil field production agreement, if the oil production to restore Libya crude oil production will be close to 100 million barrels / day.
US Energy Information Administration (EIA) latest data show that as of May 5 the week, the US domestic crude oil production increased 2.1 million barrels to 931.4 million barrels / day, for 12 consecutive weeks to increase and continue to maintain the 900 million barrels / day mark above. In addition, refinery capacity utilization decreased by 1.8 percentage points to 91.5%, the daily refining capacity decreased by 41.8 million barrels.
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