OPEC says global oil glut almost gone as output ticks up slightly

OPEC says global oil glut almost gone as output ticks up slightly

Oil prices are moderately falling, as of Monday morning, May 14, amid intensifying drilling activities of USA and resistance of Europe and Asia to US sanctions on Iran.

According to OPEC's latest monthly report published on May 14, Iran's oil production, based on secondary sources, stood at 3.823 million barrels per day (bpd) in April, rising 10,000 bpd from that of March.

Futures in NY fell as much as 0.5 percent after sliding 0.9 percent Friday.

Earlier this month, oil had rallied to the highest level in more than three years as Trump's decision to walk away from the Iranian nuclear accord fueled tensions in the energy-rich Middle East. Investors are now weighing signals from OPEC and its allies to see whether they will end a deal to cut production aimed at shrinking a glut, or seek an extension to further prop up prices.

While Dhar admits that elevated oil prices will incentivise raised United States output, potentially capping further gains, he thinks pipeline constraints will likely limit any-near term response from United States producers.

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K Sathi Devi, the head of the National Weather Forecasting Centre, said two western disturbances had led to the inclement weather. Air travel in Delhi was also affected, with around 70 flights being diverted from the city's worldwide airport on Sunday night.

Even so, crude oil prices are inching higher, adding to multi-year highs; WTI now +0.1% at $70.79/bbl, Brent +0.4% at $77.42/bbl. The global benchmark crude traded at a $6.70 premium to July WTI.

The deal between OPEC, Russia and other non-OPEC producers has helped oil prices rise 40 percent since it took effect. The contract declined 0.5 percent to $77.12 on Friday.

Improving conditions for shale-derived oil and gas pushed total USA capacity past the 10m bbl/day mark in November last year, with the country expected to account for 1.5m bbl/day of the projected 1.7 m bbl/day supply growth from non-OPEC producers this year.

Before the Iran nuclear deal, the U.S. sanctioned Iran's oil production in 2012 which reduced the output from 2.5m barrels per day to just over 1m.