Oil falls to $46, Nigerian cargoes face competition

Oil falls to $46, Nigerian cargoes face competition

"Our first outlook for 2018 makes for sobering reading for those producers looking to restrain supply", the Paris-based agency said in its report.

Saudi Arabia, which has voluntarily cut production below its OPEC target, told OPEC it lowered output further by about 66,000 bpd in May to 9.88 million bpd.

The U.S. oil boom will keep piling on the pain for OPEC well into next year.

The International Energy Agency said stored oil in industrialized nations-a proxy for global supply- grew by 18.6 million barrels in April. Adding to the glut is an ongoing rise in USA production driven by shale drillers, which has pushed US output up by 10 percent over the previous year to 9.3 million bpd, not far off top exporter Saudi Arabia. A rise in United States crude oil exports could have also contributed to the fall in inventories.

But inventories are near record highs in many parts of the world, and many traders expect further price falls.

Gasoline stocks rose by 2.1 million barrels, compared with analysts' expectations for a 457,000-barrel drop.

Global crude oil prices fell to the lowest in more than a month Wednesday after data from the Energy Information Administration said US crude stocks fell by a much less-than-expected amount, raising questions about overall demand into the peak of the summer driving season.

Germany in the Confederations Cup will support only 170 fans
Germany' will wear black-arm bands in Sochi to pay their respects to former German Chancellor Helmut Kohl, who died on Friday. The attacking midfielder has had a good six months with Paris Saint-Germain, but this will be a big test for the 23-year-old.

The EIA expects USA output to grow by 460,000 bpd in 2017, while OPEC forecasts US production to increase by 800,000 bpd in 2017.

Brent has dropped back below $50 since the OPEC meeting.

Shale producers, in particular, can react quickly to market developments, because they are less capital intensive than other ventures.

American producers have benefitted from the Opec and non-Opec efforts to push prices higher. The Standard & Poors Energy Sector Index showed a 2.1 drop, overall, with shares of Exxon Mobil falling by 1.4 percent, to hit $81.83; Chevron also fell by almost 2 percent, to hit $106.18.

"We've been running at historically high levels on the refinery side, which is pushing out more product".

He said he believed the price of global benchmark Brent crude would have to drop to $45 a barrel before USA rig growth slowed.

Crude futures fell sharply Wednesday on higher stockpiles in the US and other rich nations despite the OPEC production deal.

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