Venezuela Iran issues led to highest rise in oil prices since 2014

Venezuela Iran issues led to highest rise in oil prices since 2014

An increase in oil production leads to lower prices. Looking at reactions in markets, crude oil prices weakened immediately following the EIA report.

Many countries are watching the elections closely and the United States may impose sanctions on the country's oil sector if the results are viewed as illegitimate.
Yet the oil production situation in Venezuela is not good whatever happens on election day.

In Europe, Brent crude, the global benchmark added $1.25, or 1.7%, to $74.87 a barrel. According to the US Department of Energy, Venezuela is the third-largest supplier of imported crude oil and petroleum products to the United States, though USA imports from Venezuela have been on an overall decline in recent years.

Another factor that could keep oil prices in check, particularly in the US, is the higher domestic shale production, predicted by the Energy Information Administration to reach close to 11 million barrels a day in the month of May.

However, it should also be noted that the Citi projection is for both crude and finished (refined) petroleum products, not only crude oil.

'If ConocoPhillips is successful, then it will limit the revenues PDVSA will have and give them even more problems paying their bills and producing their oil, ' said Gene McGillian, manager of market research at Tradition in Stamford.

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Production in Angola, where natural declines at some fields are weighing on output, slipped and the country is pumping over 260,000 bpd less than its OPEC target. Not coincidentally, oil production from the "OPEC 14" is down by approximately 750,000 barrels per day over this period. Prices generally rise and fall in the same increments. The 10-year Treasury note yield edged up to 2.952. Thus, Angolan oil exports will drop this month to the lowest in seven years according to loading programs.

In May 2017, OECD stocks hovered around 275 million barrels above the five-year average. The figures are the highest since March 2015. This is, in part, because supplies have appreciably tightened. Crude at $60 to $65 a barrel is "suitable", an official from the OPEC producer said on Sunday, signaling a split with fellow group member Saudi Arabia that's said to be aiming for $80 oil.

The 2015 accord eased sanctions on OPEC's third-largest member in exchange for curbs on its nuclear program, and renewed United States measures might stifle the Middle East nation's crude exports.

The pickup in oil prices helped lift energy company shares. Striking a balance between these two price ranges is not going to be an easy task.

Mining giant Glencore PLC and Qatar walked back plans to sell an nearly $9 billion stake in Russian state oil company PAO Rosneft to CEFC China Energy Co., a once-high-flying Chinese firm now embroiled in legal woes.

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