Most oil players losing confidence in the market, IEA says

US Crude Oil Production Near 2-Year High

Oil prices climb on stronger demand

This is reported by the American Petroleum Institute (API) on Tuesday.

"We remain very optimistic".

PublicInvest Research was concerned on OPEC's motives as the organisation's main-leader Saudi Arabia according to secondary sources saw its output jump 190,000 barrels per day to 10.07 million barrels per day above the 10.058 million barrels per day ceiling, thus above its quota. That raises a very big question about what OPEC plans on doing after March 2018 when its deal expires.

"The oil cartel must either choose between fighting for market share by raising production or stabilising prices by maintaining cuts".

Brent crude, the global benchmark, was up 0.02% at $48.43 a barrel, in London midmorning trading.

Overall compliance with the deal slumped to 78% in June, from 95% in May.

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Florida televangelist and Pastor Rodney Howard-Browne also posted the photo to his social media accounts. Howard-Browne's wife was also present in the White House where the prayer session took place.

Rising demand is helping to drain a global fuel glut but rebalancing of the market is taking longer than anticipated.

USA investment bank Jefferies was quoted by the news agency as saying: "OPEC compliance with production cuts slipped to 98% in June, but more importantly output from exempt (from cutting) members Libya and Nigeria is now about 700,000 bpd higher than at the time of the November OPEC agreement, offsetting about 60% of the OPEC cuts". "Demand is improving as we enter the driving season but the supply risks seem to be greater, which is keeping oil prices in a bear market". "We are glad these countries are recovering fast".

Nations that aren't participating in the cuts, such as Nigeria and Libya, also pumped more oil.

The growth of global liquids consumption is expected to be 1.5 million barrels a day this year and 1.6 million barrels a day next year. "I think that over the next one or two months, hopefully, we can get to that point where we can say the recovery has been tested, it is systemic and predictable".

Despite a slight revision downwards, the USA production is still ready to break the record of 9.61 million barrels a day in June 2015. Those gains, combined with the 80,000 bpd increase from Libya and a 60,000 bpd jump from Nigeria, plus some smaller contributions from Equatorial Guinea, put OPEC's June production 340,000 bpd higher than in May. "It will be a very hard six months for the oil industry", Fatih Birol, the IEA's executive director, said at a conference in Istanbul. It warned that while real-time data don't show this causing oil stockpiles to shrink, that may change as new data come in and it may turn out that in fact global inventories are shrinking.

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