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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Goose94 who wrote (24468)	1/13/2017 2:59:48 PM
From: Goose94	Read Replies (1) \| Respond to of 203382

Crude oil: *OPEC admits compliance with cuts won’t be 100%.* "Compliance won't be 100 percent, it never is," an OPEC source told Reuters. The source went on to add that a compliance rate of 50 to 60 percent would be good enough to do the job, and as high as 80 percent would be a very positive result. The comments come after Saudi Arabia and Kuwait announced this week that they have cut more than they had promised to, reductions that will help make up for some non-compliance elsewhere. Saudi output is down below 10 million barrels per day and Saudi officials said it could fall further in February. *U.S. oil data bearish.* OPEC is doing its best to tighten the market but the U.S. is not cooperating. Crude stockpiles in the U.S. rose last week by 4.1 million barrels, leaving inventories stubbornly high. Gasoline stocks also saw a strong jump. And there are early signs of an uptick in production. EIA weekly data showed an increase in output by about 176,000 bpd last week, a shocking increase in production. It should be noted that weekly data is not as accurate as the monthly data that EIA publishes on a lag. However, the data suggests that production could be on the rise in the U.S., offsetting some of the cuts from OPEC. *Industry to approve new large oil projects, discoveries to follow.* Wood Mackenzie issued some interesting projections for 2017, expecting the global oil industry to more than double the final investment decisions on large oil projects of at least 50 million barrels of oil reserves. They also expect new oil discoveries to bounce off of the seven-decade lows exhibited in 2016. Overall, 2017 will see more spending, more drilling and more discoveries.