|Brent oil price remains around $71-72 on mixed news|
|By A/S Global Risk Management.
|Michael Poulson, Global Risk Management. Image credit: Global Risk Management|
|Updated on 16 Apr 2018 09:22 GMT
|In the U.S., fundamentals are becoming more bearish as production and number of rigs reach record highs. Last week, the U.S. production reportedly reached 10.525 mbpd, which is the highest level ever and more than 1 mbpd more compared to the start of the year.
Furthermore, the number of rigs drilling for oil is at the highest level in 3 years at 815. But the difference from then is that the current rigs are much more productive.
News from the Louisiana Offshore Oil Port, LOOP, is that they plan on beginning to export US crude oil by VLCC's on commercial basis from Q4 2018. If they are able to, the U.S. is closer to becoming a net exporter of crude oil in the future.
Over the weekend, a US-led missile strike on 3 targets in Syria was conducted on top of an alleged chemical attack earlier this month. An attack such as this is not considered being able to consistently shock the oil market as Syria has not been exporting barrels for several years now. The real concern for shocks to the oil market should arise if the US were to re-impose sanctions on Iran and Russia.
Turning to economic data, today sees U.S. Retail Sales data along with a couple of central bank speeches. Later this week, Chinese GDP and industrial production is published. . .
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