While the oil market continues to focus on supply/demand fundamentals, these are some key updates that you need to keep a tab on,
- U.S. oil rig count: The United States is continuing to see a surge in production. According to the latest report, the production rose to 10.381 million barrels per day. Despite fewer rigs operating compared to 2014/15, the production efficiency has pushed the overall production higher. As of latest report, the numbers of operating rigs declined from 796 to 800, the highest since April 2015. The numbers of operating rigs have increased more than 150 percent since bottoming in May 2016.
- Venezuela crisis: Crisis continues in Venezuela. The latest production report from OPEC suggests that the production declined to 1.548 million barrels per day. The production has been declining steadily since 2014 when production reached a peak of 2.9 million barrels per day.
- Profitable shale producers: U.S. shale companies are set to become profitable for the first time as more companies lock in prices using hedging.
- Russia- west collision: oil market is observing with anxiety as the western powers looking to increase their sanctions on Russia over the latest feud that has broken out between the UK and the Russian Federation where UK is accusing Russia of poisoning a former spy Sergey Skripal, who acted as a double agent and has been residing in the UK.
Key global oil benchmarks:
WTI - $62.1/barrel
Brent - $65.9/barrel
OPEC basket - $62.2/barrel
Urals - $63.2/barrel
Oman - $64.6/barrel
Dubai - $62.4/barrel
Western Canada Select - $37.5/barrel
