EIA Sees The U.S. Becoming Net Oil Exporter In Q4 2020

EIA Sees The U.S. Becoming Net Oil Exporter In Q4 2020

Brent crude oil futures LCOc1 were up 12 cents at $62.83 a barrel by 3:23 p.m. EST (1727 GMT) versus Friday's settlement price, while US crude futures CLc1 were up 19 cents to $53.99 a barrel.

Oil prices fell about 2 percent on Thursday, extending recent weakness on concerns over surging USA crude production and slack global demand, particularly in light of the ongoing trade dispute between the United States and China.

Other oil-market news: OPEC compliance with crude-oil output cuts rose to 163 percent in December, according to Bloomberg calculations from the group's secondary-source data. The bank now expects Brent to average $61 a barrel this year, down from a previous estimate of $69, and USA crude to average $54, against a prior forecast of $60.

Most of the reduction came from Saudi Arabia (470,000 bpd), but there were also substantial cuts from Iran (160,000 bpd) and Libya (170,000 bpd) as a result of US sanctions and domestic unrest respectively.

U.S. crude oil refinery inputs decreased during the week ending January 11, the U.S. Energy Information Administration (EIA) said on Wednesday.

The narrowing discount on futures for early delivery in recent weeks indicates traders expect the market to be less oversupplied than before (tmsnrt.rs/2Hixl8t).




Ashton Whiteley analysts say prices have been negatively impacted by disappointing trade data out of China which revealed a decline in imports and exports as the trade tariffs imposed by the USA during the course of a year ago begin to take their toll.

Crude demand is on course to grow this year, supported by lower prices, the Paris-based IEA said on Friday.

Oil prices declined on Thursday as investors continued to worry about a global glut, which is fueled by rising USA crude output.

Also, the USA oil output could slowdown in the near future.

"It remains quite likely that the trade spat with the US has played a part in this latest slowdown", CMC Markets chief market analyst Michael Hewson said. In November, waivers were announced for eight major Iranian oil importers, among them China, India, Japan, South Korea, Turkey, Taiwan, Italy, and Greece.

China, as the world's second-largest economy and largest crude oil importer, took advantage of the low oil prices in late 2018 and imported a record 10.35 million bpd in December 2018, amid independent refiners lifting their import quotas. Refinery utilization rates fell by 1.5 percentage points.

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