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IEA: Crude Production to Fall Behind Demand

The world’s production of crude oil is falling behind demand, the International Energy Agency said Thursday.

From July through September, global production of crude oil is likely to lag behind demand by almost one million barrels a day, said the IEA, a Paris agency that monitors energy trends for oil-consuming nations. The current glut of crude is clearing out even as OPEC producers pump at record or near-record levels.

Wall Street banking on oil recovery in flurry of shale stock deals

HOUSTON – Stock-market investors have poured nearly $13 billion into U.S. oil companies trying to profit from the surge in crude prices, in a sign the market is convinced the worst of the oil bust is over.

After 29 energy stock sales this year, Wall Street’s bet is paying off. Share prices for U.S. shale drillers including Houston’s Marathon Oil Corp. and Newfield Exploration have climbed by an average 45 percent, as a shrinking global oversupply has pushed oil prices above $47 a barrel.

Goldman Surprised by Sudden Oil-Market Turn as Glut Vanishes

The global oil market has flipped to a deficit sooner than Goldman Sachs Group Inc. had expected.

A decline in production driven by unexpected supply disruptions, as well as sustained demand, have resulted in a “sudden halt” to the output surplus, Goldman analysts Damien Courvalin and Jeffrey Currie wrote in a report dated May 15. Other banks such as Morgan Stanley, Barclays Plc and Bank of America Corp. also noted that supply losses are leading markets to rebalance.

Saudi Oil Stockpiles Hit 18-Month Low in March as Output Capped

Saudi Arabia’s crude oil stockpiles fell in March for the fifth month in a row reaching the lowest level in 18 months as the kingdom kept shipping crude to meet customer demand while keeping a lid on production.

Stockpiles dropped to 296.7 million barrels in March from 305.6 million barrels in February, according to data published on the website of the Riyadh-based Joint Organisations Data Initiative. Stockpiles peaked at 329.4 million barrels in October and have been in decline since then, the data showed.

Oil Set for Biggest Monthly Gain in Year Amid U.S. Output Drop

Oil is poised for the biggest monthly advance in a year as U.S. production slumped to the lowest level since October 2014.

Futures are up about 21 percent this month in New York, set for a third monthly gain and the largest increase since April 2015. U.S. crude output declined for a seventh week, according to data Wednesday from the Energy Information Administration. Brent futures climbed to a five-month high in London.

What’s Driving the Crude Oil Market?

WTI (West Texas Intermediate) and Brent crude oil look stable this morning ahead of the US inventory levels report. It will be released by the American Petroleum Institute later today. This report will be followed by the EIA’s (U.S. Energy Information Administration) crude oil inventories report. It’s scheduled to release at 10:30 AM EST on April 27. At 8:04 AM EST on April 26, WTI crude was trading at $43.19—a gain of 1.3%. Brent crude is trading at $44.95 per barrel—a surge of 1.4%.

Oil market should stabilize next year after record production cut: energy chief

International Energy Agency (IEA) chief Fatih Birol said on Thursday he expects the oil market to come back into balance from oversupply by next year, providing there is no major economic downturn.

Birol said low oil prices have cut oil investment by about 40 percent in the past two years, with sharp falls in the United States, Canada, Latin America and Russia, and the world's reliance on Middle East oil will accelerate substantially in the next few years.

ConocoPhillips and Shell Make Big Moves, I mean News

Interesting change in business strategy, as CononcoPhillips looks to increase company production by way of unconventional shale plays. As companies continue to re-structure their business models to compensate for low oil prices, global oil exploration leader ConocoPhillips will cut capital expenditures over 3 years to $11.5 billion, which is down 28%, but will increase spending in unconventional plays by 50%. What is more interesting than their change in strategy is how the results will be perceived in the next three years.