Published: Fri, March 15, 2019
Money | By Ralph Mccoy

IEA sees U.S. leading global oil supply by 2024

IEA sees U.S. leading global oil supply by 2024

A widespread power outage in Venezuela that has stalled crude exports from the OPEC-member nation, which has already seen reduced shipments from USA sanctions, helped to tighten the market.

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading higher early Wednesday, but inside yesterday's range, suggesting investor indecision and impending volatility.

Brent crude futures LCOc1 were at $66.82 per barrel, up 24 cents, or 0.4 percent.

According to an annual five-year outlook report by the International Energy Agency, the U.S. became the world's top oil producer in 2018, and is set to become the world's biggest oil exporter over the next five years.

The so-called OPEC+ alliance, including Russian Federation and other producers, agreed in December to reduce supply by 1.2 million bpd from 1 January for six months, which will help to boost oil prices after last year's downward trend.

The resolution was to be subject to a review to either extend the cut by June, or discontinue after the monitoring team has reviewed the impact. USA sanctions on Venezuela has further tightened markets.

"Downward revisions in global growth forecasts by OECD and European Central Bank have capped bullish gains", said Benjamin Lu of Singapore-based brokerage Phillip Futures. While technological advances will help improve the rates at which drillers recover oil, that growth will be offset by challenges with well spacing and the "degradation" of shale rock quality, said Papa, the chief executive officer of Centennial Resource Development Inc.

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Saudi's participation in the Indian Strategic Petroleum Reserve program was discussed at a meeting between the kingdom's Energy Minister Khalid Al-Falih and his Indian counterpart Dharmendra Pradhan in New Delhi on Saturday, according to a government statement on Sunday.

"We will see what happens by April".

Crude oil prices are higher, helped by a us government forecast showing slower than expected USA production, as drillers scale back in smaller shale plays and the Gulf of Mexico; WTI +1.7% to $57.85/bbl, Brent +0.8% to $67.23/bbl.

Saudi Arabia plans to cut its crude oil exports in April to below 7 million barrels per day (bpd), while keeping its output “well below” 10 million bpd, a Saudi official said on Monday.

The slowdown in drilling points to more timid output growth going forward, but because the overall drilling level remains relatively high despite the recent decline, many analysts still expect US crude output to rise above 13 million bpd soon.

The Bloomberg Dollar Spot Index declined for a third straight day, falling as much as 0.2%.

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