Oil Prices Drop 5% & OPEC Doesn't Increase Output Cuts

After all, a 4.2 million barrel decline is what the API had predicted the day before. But prices may rise to $60 if the decision meets market expectations.

Separately, data from the Energy Information Administration released Wednesday showed U.S. crude output jumped to 9.29 million barrels per day - the highest since August 2015.

However, OPEC officials generally believe the agreement is helping to bring the market closer to balance between supply and demand and that it should be extended into the second half of the year with the same numbers. Russian Federation is said to support prolonging the curbs, according to a government official. "I don't see any way you can spin this as bullish".

Hewson said gold prices had continued to come under pressure on the back of a stronger US dollar, after the US Federal Reserve left interest rates unchanged last night. However, gasoline demand slipped 2.7 percent over the last four weeks from the same period a year ago. Total volume traded was about 37% above the 100-day average.

The June crude contract was down $1.44 at US$46.38 per barrel and the June natural gas contract was down three cents at US$3.20 per mmBTU. Benchmark Brent crude LCOc1 was up 33 cents at $50.79. US crude stocks stood at 527.8 million barrels, only 7 million barrels from a record high. Crude production climbed for an 11th week, capping the longest stretch of gains since 2012. US production is at its highest since August 2015.

Traders pointed to soaring United States oil production, which has risen over 10 per cent since mid-2016 to 9.3 million bpd, levels not far off top producers Russian Federation and Saudi Arabia.

Correspondents' dinner lacks glitter without Trump
Trump is heading to Pennsylvania in the evening to visit a shovel factory and appear at a rally in Harrisburg, the state capital. That seemed to spur him on: "They are gathered together for the White House correspondents' dinner - without the president".

Mother of 3 killed by gunman at pool party
Police officers stand guard in front a La Jolla apartment building after a shooting Sunday, April 30, 2017, in San Diego . Though five of the victims shot at a birthday pool party at the complex on Judicial Drive just after 6 p.m.

Scattered showers and storms possible through tonight
Monday night: More clouds, a 40 percent chance of evening thunderstorms and showers overnight with a low of 40. Thursday: A chance of showers between 9 a.m. and 3 p.m., then showers and thunderstorms likely after 3 p.m.

Stephen Schork, president of Schork Group, a consulting company in Villanova, Pennsylvania, said in a Bloomberg Radio interview this morning that Saudi Arabia has failed to balance the global oil market with its oil production cuts, which OPEC could renew for another six months at a meeting later in May.

OPEC, Russia and other producers have agreed to curb production by 1.8 million barrels per day (bpd) until June 30.

Prices also fell as risks to crude production in Libya, which is not part of the OPEC deal, eased following news that two factions made progress toward a resolution of the nation's political crisis that has, at times, disrupted crude production.

"The market continues to hunt for a bottom", said Gene McGillian, manager of market research at Tradition Energy in Stamford, Connecticut.

Silencing critics who predicted OPEC would cheat its own quotas, the cartel has shown considerable restraint this time around by overwhelmingly complying with its supply cut agreement.

The turnaround at Petroleos Mexicanos appears to be bearing fruit, propelling the oil producer to its first profit since 2012.

Related news:

Hot News

isis-killer-beheading-video-story-top Baahubali 2: The Conclusion Grosses 860 Crores At The Worldwide Box Office
May 06, 2017 - 00:10
With all these huge amounts raking in, the total Baahubali 2 collections in four days comes to Rs 625 crore gross worldwide . The film is on its way to add one more feather to its hat by achieving the Rs 1000-crore mark in the global market.

Disney sets May 2019 release date for new 'Star Wars' film
May 05, 2017 - 14:52
Frozen 2 was actually announced a few years ago, but we haven't heard much about the planned follow-up since 2016. Ava DuVernay's A Wrinkle In Time has been pulled forward from April 6, 2018 release to March 9, 2018.

Trump to embark on maiden visit to Vatican, Israel, Saudi Arabia
May 05, 2017 - 14:48
Despite this and a so-called "Muslim ban" being put in place by Trump, Gulf states appear to have warmed to the new president. The US leader will meet the pope in the morning and later see the Vatican's prime minister, Cardinal Secretary of State...

isis-killer-beheading-video-story-top Recent Research Analysts' Ratings Changes for Alphabet (GOOGL)
May 05, 2017 - 14:46
The company said its net income rose to $5.43 billion, or $7.73 per share, from $4.21 billion, or $6.02 per share, a year earlier. He was hired for a record salary with stock option from Google as well as its parent company Alphabet which was formed then.

isis-killer-beheading-video-story-top US troops killed, 1 injured in eastern Afghanistan
May 04, 2017 - 05:17
U.S. officials have said they believe the movement has only 700 fighters but Afghan officials estimate it has about 1,500. John Nicholson, the commander of USA forces in Afghanistan, has pledged to eliminate ISIS-K from Afghanistan this year.

Scottish Conservative leader Ruth Davidson said the SNP had been in chaos
May 04, 2017 - 05:14
Mr Corbyn will appeal for people to register to vote so their voice is heard in an election that "will define our times". Theresa May is to make her first campaign visit to Scotland ahead of June's snap general election.

New Hamas program softens language, but some goals remain
May 03, 2017 - 04:10
Hamas' attempts to become more moderate by ending ties with the Muslim Brotherhood is not "the real Hamas", the spokesman claimed. Abbas has been in power since 2005, and new elections were blocked partly because of a rivalry with the Hamas militant group.

isis-killer-beheading-video-story-top Madhya Pradesh Becomes First State With January to December Fiscal Year
May 03, 2017 - 04:08
The cabinet decision was made public by the minister for public relations and government's official spokesperson, Dr Narottam Mishra.

Magical Can goal boosts Liverpool's top-four push
May 03, 2017 - 04:05
He said: "There was that, but Liverpool are a team that if you allow them space, they can be extremely risky ". Emre Can scored a candidate for goal of the season in Liverpool's 1-0 victory over Watford on Monday night.

isis-killer-beheading-video-story-top North Korean official vows frequent missile tests as tensions escalate
May 02, 2017 - 00:50
But officials at Pentagon are believed to be unsure how North Korea would respond if USA the shoots down a test missile. Pence's visit, full of Cold War symbolism, came amid increasing tensions and heated rhetoric on the Korean Peninsula.

isis-killer-beheading-video-story-top Syracuse Lacrosse Gears Up For Another ACC Tournament
May 02, 2017 - 00:33
This occurrence (or lack of) has lead to the notion that the University of North Carolina does not produce good quarterbacks. The game then turned when North Carolina began to dominate the face-off, taking home 10 of 11 in the fourth quarter.

isis-killer-beheading-video-story-top India aiming for an improved show against Australia
May 02, 2017 - 00:26
S.V Sunil came close to scoring in the 12th minute for India when he was assisted by Harmanpreet Singh. After a couple of early attempts on goal Craig gave the Kookaburras the edge in the 11 minute.

Chelsea manager Antonio Conte hails Cesc Fabregas contribution
May 02, 2017 - 00:26
With a more hard end to the season, it's hard to see Tottenham winning all 5 to push Chelsea to the last day of the season. Conte said: I didn't speak with the doctor about his injury but I don't think it is a serious injury for him.

isis-killer-beheading-video-story-top Liverpool star Coutinho limps off at Watford
May 02, 2017 - 00:24
Watford were also forced into an early change when Christian Kabasele came on for the injured Miguel Britos in the 19th minute. A win for the Reds will strengthen their hold on third and improve their chances of a top four finish.

French voters in Switzerland reject Le Pen
May 01, 2017 - 03:25
Le Pen, visiting the Rungis wholesale market outside Paris on Tuesday, said the French government must promote meat from France. Le Pen has toned down the extreme anti-Semitism and xenophobia associated with her party, the National Front.