In June, Members of the Organization of Petroleum Exporting Countries increased their cumulative crude oil production by 393,500 barrels per day compared to the month of May, to a total of 32.61 million bpd. A bigger number should be bullish for oil prices.
Global oil prices extended gains Wednesday following data that suggested US production may not rise as quickly as expected next year and a a larger-than-expected decline in commercial crude stocks.
WTI crude was trading up 22 cents at $45.26 by 10:04 a.m. CST (16:04 GMT).
NOC Chairman Mustafa Sanalla added Libya could assist with efforts to stabilize the market by informing OPEC about its plans to restore production.
". Venezuela's rig count had fallen to 49 in July 2016".More news: Smith' Facebook 'Hacker' Message Is Latest Social Media Hoax
US oil production is booming.
After the close and the supportive API data, Benchmark Brent LCOc1 futures rose $1.25, or 2.7 percent, to $48.12 a barrel. That's up from a low this year below $45 a barrel at the end of last month, but down from the mid-to-high $50s earlier in the year, and almost back to the level before the deal last November.
Libya will increase production to 1 million barrels per day by the end of July.
State oil giant Saudi Aramco will meet customers' full crude oil requirement in India and southeast Asia in August, two sources with knowledge of the matter said on Tuesday. The restrictions had been introduced in 1975, two years after OPEC banned oil sales to the USA, a move that sent gas prices skyrocketing. Royal Dutch Shell (RDSA) gained 1.5%.
Both countries have boosted production since they were exempted from an OPEC-led deal to cut output, weighing on global prices LCOc1.More news: Your Friendly Neighborhood 'Spider-Man: Homecoming' Dominates the Box Office
Gasoline inventories for the same week also fell moderately, by 801,000 barrels, after falling 5.7 million barrels the previous week.
Distillate stockpiles, which include diesel and heating oil, rose 3.1 million bbl, vs. expectations for a 1.1 million bbl increase, the EIA data showed. Crude oil is used to generate electricity for air conditioners during the summer.
Gasoline demand tends to increase in the northern hemisphere summer as US drivers take to the road and this has helped support prices in the short term.
"A revised oil price forecast that is $2 to $4 per barrel lower for late 2017 and during 2018 than the prior forecast will make it less profitable for some US producers to drill for oil", he said. He has 12 years of experience in financial markets.More news: New Jersey Transit Train Derails in NY at Penn Station