Oil World Turns Upside Down as US Sells Oil in Middle East

The cost of oil has plummeted after the Dow Jones fell 1,000 points

The cost of oil has plummeted after the Dow Jones fell 1,000 points

Although it exports more than two million barrels a day, the Middle Eastern country typically imports extra-light condensate to process in a unit known as a splitter.

The two-week long fall in crude oil prices began just after the commodity hit the $70-mark, with United States shale oil production recording a sharp rise and inventory levels rising.

The American Petroleum Institute (API) reported a draw of 1.050 million barrels of United States crude oil inventories for the week ending January 30, according to the API data.

"There are still three strong elements supporting prices right now, strong backwardation in both benchmark oil futures, USA dollar weakness and more generally speaking more positive sentiment around demand reinforced by the global economic outlook", he said. "Total liquids production in China averaged 4.8 million b/d in 2017, a year-over-year decline of 0.1 million b/d (2 percent) from 2016, and further declines in both 2018 and 2019 are forecasted in EIA's January 2018 Short-Term Energy Outlook (STEO)". Second, U.S. oil exports are at record levels, further draining supply from the U.S. Remember that exports were legalized in Obama's past year in office. However, we still import the remaining 10 million barrels per day that we consume. The Energy Information Administration raised its forecasts on 2018 and 2019 USA crude production in a monthly report released Tuesday.

India eye historic lead against injury-hit Proteas
Overall, the match turns out to be the biggest disaster for the South African Team and they all out in the score of 118 runs. Fifteen minutes earlier umpires had extended play to give India a chance of finishing the match before the interval.

The United States, meanwhile, is rivaling Saudi Arabia in terms of total USA crude oil production, exporting some of that to the open market. "Monthly average Brent prices have increased for seven consecutive months", EIA said.

U.S. production also continues to increase with output hitting a record 9.9 mbpd last week. IEA data shows that OECD stocks fell of 600,000 bpd in the last three quarters of 2017, the largest since 1984.

Finally, traders are looking for today's EIA report to show a 3.2 million barrel build. This is 1.74% below the closing level of the previous trading session. Over the past 12 months, Exxon stock has traded down about 3.5%. As of last night's close, Chevron shares are trading up about 12.5% over the past year.

The VanEck Vectors Oil Services ETF (NYSEAMERICAN: OIH) traded up about 0.1%, at $26.23 in a 52-week range of $21.70 to $33.74.

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