Oil price TUMBLES: Crude falls as concern grows over weakening United States demand

Lease Operator Jon Pearson checks well pressure on a lease owned by Parsley Energy in the Permian Basin near Midland

Crude Oil price rebound in broad market as influence from US EIA crude oil inventory update faded away in the market.

The International Energy Agency maintained its outlook for an acceleration in global demand growth this year as lower prices offset the economic slowdown.

"While the other two giants voluntarily cut output, the United States, already the biggest liquids supplier, will reinforce its leadership as the world's number one crude producer", the agency said in its monthly report on global oil markets.

Brent crude LCOc1 was up 82 cents, or 1.3 percent, at $62 a barrel at 1200 GMT.

The Organization of the Petroleum Exporting Countries said in a monthly report that its oil output fell by 751,000 barrels per day (bpd) in December to 31.58 million bpd, the biggest month-on-month drop in nearly two years.

The US could soon overtake Saudi Arabia in the production of crude oil which is now at peak capacity. As of just before 04:00PM UK time, Brent Crude fell 1.01 percent to $60.60 per barrel. Venezuela risks a fresh plunge in oil output, Barclays analysts said in a note.

Output cuts planned by the Organization of Petroleum Exporting Countries and its partners should stabilize world markets, though the process will be slow, the IEA said.

More news: British Parliament votes against Brexit deal

The U.S. crude output could soon challenge the market share of Saudi Arabia and Russian Federation, the International Energy Agency (IEA) said. While a prolonged government shutdown in the USA and uncertainties over the health of the global economy have rattled broader financial markets, oil prices have responded to signs that the Organization of Petroleum Exporting Countries and its allies have started to clear a glut.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 78 cents, or 1.5 percent, at $52.85 per barrel. Longs rose 1.8 percent, while shorts fell 10 percent.

This marks an increase from the end of 2018, but overall it will remain lower than the 2018 average of $71 per barrel, the EIA said.

The IEA said the United States increased output by 2.1 mbd past year, the "highest ever" annual growth ever recorded.

Norbert Ruecker, Head of Commodity Research at Swiss bank Julius Baer, said "the United States is moving forward towards energy independence and is set to become a net petroleum exporter next year thanks to the rising shale output".

"By the middle of the year, USA crude output will probably be more than the capacity of either Saudi Arabia or Russia", CNBC cited the statement as saying.

Related News:



Most liked

Stop Violent Crackdown Against Protesters — UN to Zimbabwe
Several people have been killed and dozens more hurt as protestors and government security services stood-off against each other. According to the NGO children as young as 9 years old have reportedly been tortured as security forces entered private homes.

Legendary great white shark filmed swimming with divers off Hawaii
Ramsey and her fiancé Juan Oliphant, who documented the swim, hope the images can spur further protection of the creatures. The big animal, which measures at six meters (20 feet) and 2.5 tons, surprised the divers when it appeared on Tuesday.

Phil Mickelson continues to lead the Desert Classic
Rose can expect stiff competition from Spain's defending champion Jon Rahm while two-time former victor Phil Mickelson is also in the field.

Ronda Rousey Confirmed For Mortal Kombat 11 Role
We are then introduced to a sinister new female character, Kronika , who appears to have the ability to manipulate time. For the superfans, there's also a $99 Kollector's Edition with a steelbook case and Scorpion cowl-and-mask bust.

Caroline Wozniacki details her relationship with Maria Sharapova after Australian Open exit
Russia's Anastasia Pavlyuchenkova also advanced, crushing Aliaksandra Sasnovich for a showdown with fifth seed Sloane Stephens . However, her next opponent is the defending champion Caroline Wozniacki , which sets up an enticing third round affair.

Solskjaer: "I'll remember managing Manchester United for the rest of my life"
Despite some late pressure from the Seagulls, United managed to hold on to secure Solskjaer's flawless start to his United reign. The likes of Paul Pogba and Marcus Rashford are impressing again while also expressing themselves on the pitch.

House votes to maintain Russian sanctions
But critics of the agreement argued that Deripaska's shares were distributed in a way that he would maintain control of the companies.

Enes Kanter: Anyone against Erdogan is a target
In May 2017, Kanter was almost stranded overseas when Turkey's embassy cancelled his passport while he was in Romania. I don't even have a parking ticket in the US ( True ). "There's a chance that I can get killed out there".

Why Ariana Grande's new '7 Rings' video is a savage smash hit
According to Digital Music News , the top percentage of musicians also earn 77 percent of the income in the industry. The song draws on plenty of influences, from The Sound of Music to Notorious B.I.G.

Mariah Carey Sues Assistant For Blackmailing Over Embarrassing Videos
The case also says she reported Ms Bulochnikov's behaviour to Carey in October 2017, but was sacked the following month. Azarian did not immediately respond to requests for comment.

Netflix's 'Bird Box' Faces Backlash Over Train Derailment Footage
Producers of another Netflix show, however, announced they would be replacing the same footage used in an episode after outrage. The tragedy occurred when the brake system of a train failed, allowing the train to roll downhill into the town and derail.

PM’s European Union deal is ‘dead’
Speaking at a Leave Means Leave rally in Westminster on Thursday evening, Mr Farage said: "Let us prepare, let us organise". Their intervention comes after a group of 71 Labour MPs and 13 MEPs signed a letter backing a second referendum .

Canadian man sentenced to death in China following drug smuggling case
Schellenberg was detained in 2014 and sentenced to 15 years in prison in 2016 on charges of being an accessory to drug smuggling. Freeland said she had spoken to Schellenberg's father on Monday in what she described as a "very emotional conversation".

White House asked for options to strike Iran
In response, the USA announced it would effectively close its consulate in Basra and relocate diplomatic personnel assigned there. An unnamed "former senior USA administration official" said the request "definitely rattled people".

Blast near Syria US-led coalition patrol, casualties reported
One witness in Manbij said the blast had targeted a restaurant where U.S. personnel were meeting members of the local militia. The U.K. -based Syrian Observatory for Human Rights group says that a suicide bomber probably carried out the attack.