Oil Falls as Shale Increases US Stockpiles

Brent Crude

Brent Crude

USA producers are pumping more oil after cuts by major producers, a weak dollar and geopolitical threats to supply sent crude prices roughly 50% higher in the second half of 2017. But they are already cutting into a market dominated by the likes of Saudi Arabia and Russian Federation - with the threat of much more competition to come. At the same time, "you've seen a general strengthening in the US dollar".

Further weighing on crude prices was a strengthening US currency, which reduced the appeal of dollar-denominated raw materials as investments.

At 10.25 million bpd, USA output is now higher than the previous 10.044 million bpd record from back in 1970, topping Saudi Arabia and within reach of Russia's. Including exports to Japan, South Korea and Taiwan, the figure doubles.

To address that, one of the biggest facilities in the Gulf of Mexico, the Louisiana Offshore Oil Port Services (LOOP), is expanding in order to handle VLCCs soon. "That's a bit of a drag on oil prices as well"'.

Wall Street Set For Worst Week Since 2011
Eight stocks fell for every one that rose on the New York Stock Exchange and 490 of the companies in the S&P 500 took a loss. On Friday, benchmark 10-year notes last rose 10/32 in price to yield 2.8149 percent, from 2.849 percent late on Thursday.

The Energy Information Administration forecasted a production of around 1.6 million barrels per day this year in the United States and is expected to go up by as much as 11.2 million barrels per day next year which is higher than Russia's current production.

US and Brent crude futures have slid more than 9 percent from this year's peak in late January. As a result, the diesel and petrol price today were cut by 2 paise and 4 paise respectively.

Oil prices eased on Thursday, taking Brent crude to a 2018 low, as soaring USA output undermined OPEC's efforts to tighten markets and prop up prices.

The flood of USA oil may even change the way crude is priced.

Time Warner INC (TWX) Position Has Boosted by S Muoio & Company
Finally, Morgan Stanley reiterated an "overweight" rating on shares of Time Warner in a research report on Thursday, July 6th. Robeco Institutional Asset Mngmt Bv has 0.04% invested in Time Warner Inc . 57,483 were accumulated by Cumberland Limited.

While that has not pushed investors to dump so-called riskier assets wholesale, oil has suffered as more speculative investors sell out of bets that crude prices will continue to edge up.

U.S. West Texas Intermediate futures CLc1 for March delivery dipped 76 cents, or 1.18 percent, to settle at $63.39 a barrel, the lowest since January 22. "Everybody is itching to produce more oil", said John Kilduff, partner at energy hedge fund Again Capital LLC in NY.

Despite all these challenges to the traditional oil order, established producers are putting on a fearless face. "Overnight, China imports surged and oil imports hit a record high, but it wasn't enough to balance out the concerns about excess supply", Madden said.

The Bristol-Myers Squibb Company (BMY) Position Reduced by Carl Domino Inc
Carlton Hofferkamp & Jenks Wealth Management LLC grew its holdings in Bristol-Myers Squibb by 12.7% during the second quarter. The rating was upgraded by SunTrust to "Buy" on Monday, October 30. (NYSE:HBI) on Monday, December 12 to "Buy" rating.

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