A day after Donald Trump’s shock U.S. presidential election victory whipsawed prices on some of the heaviest trading volumes on record, U.S. futures hovered above $45 a barrel as other commodities rallied. Crude erased earlier gains after the International Energy Agency said prices may retreat amid “relentless global supply growth” unless the Organization of Petroleum Exporting Countries enacts significant output cuts. Traders are weighing the implications of the Republican presiding over a country that consumes more oil than any other and is one of the biggest producers too. Trump has promised independence from OPEC and some of his energy policies include opening federal lands for energy production and freeing up offshore areas to development. While investors took comfort from a conciliatory acceptance speech on Wednesday, a surge in U.S. crude stockpiles served as a reminder of the massive oversupply looming over the market. click Read More below for more of the story
U.S. crude output is accelerating, highlighting OPEC’s dilemma as the cartel reins in its own production to revive prices.
Crude supply will average 12.41 million barrels a day this year and 13.2 million in 2020, the U.S. Energy Information Administration said on Tuesday, up more than 300,000 barrels a day from the previous month’s estimates. The latest short-term energy outlook “puts the nation on track to set a new production record for a third consecutive year,” EIA Administrator Linda Capuano said in a statement.
more at source: https://www.bloomberg.com/news/articles/2019-02-12/soaring-u-s-crude-oil-production-highlights-opec-s-quandary