Abhishek Kumar, senior energy analyst at Interfax Energy in London, said factors such as rising US production and its trade dispute with China would cap price gains, "negating much of the benefits from the OPEC+ pact". "There also seems to be a general belief that the agreed cut in OPEC+ production will be sufficient to balance the market", PVM Oil Associates said in a note. OPEC has published data on the levels of reduction in oil production by OPEC + countries as part of the agreement reached at the meeting on December 7 in Vienna.
As only the Saudis remain willing to hold back production capacity when there's too much oil on the market, the kingdom will retain its unique position as the so-called swing producer. Net imports are expected to continue to fall, to an average of 1.1 million bpd this year, and to less than 100,000 bpd in 2020.
"Now that we're three weeks into January and the production cuts are starting to bite, it's a strong signal for shorts to cover", said Chris Kettenmann, chief energy strategist at Macro Risk Advisors LLC.
Venezuelan President Nicolas Maduro was inaugurated for a second term on January 10.
The second-largest was an involuntary cut by Libya, where unrest led to the shutdown of the country's biggest oilfield.
Local Native American man heckled, teen says he sought to calm tension
However, Mr Phillips, who appeared upset in a video after that encounter , said he heard the students saying " build that wall ". The kids from Kentucky had been taunted by a small group of African American provocateurs known as the Black Hebrew Israelites .
In its latest market report, OPEC stated: "In 2019, world oil demand is forecast to rise by 1.29 mb/d, also in line with last month's projections".
We have an EIA report today at 15:30 (GMT). Wide Canadian price spreads have played a major role in justifying rampant refinery utilization in the United States, particularly in the mid-continent. Switching to low-sulfur crudes is one option for refiners globally to meet the new limits, but most Russian refineries are stuck with using Urals and won't have the option to switch to sweeter crude grades.
"By the middle of the year, USA crude output will probably be more than the capacity of either Saudi Arabia or Russian Federation", said the IEA, which kept its estimate of oil demand growth unchanged and close to 2018 levels at 1.4 million barrels bpd. This isn't going to happen overnight, but it certainly looks as if oil has found its bottom and I think if we can get above the $55 level, I think we will see a significant bullish run.