The oil drama continues as Repsol and Statoil move to pull oil workers from Venezuela as the country becomes less stable and may be on a path toward civil war. Saudi Arabia’s Saudi Aramco said it is cutting supply to its customers by at least 520,000 barrels per day in September raising expectations that OPEC will get its compliance issues under control and start to rein in Libya and Nigerian production.
Crude oil is lower as the market has a lot to watch as the seasonal summer peak demand time is here. Seasonal wekness in August seems to be overshadowing a jammed packed oil news day. OPEC meets about compliance as the U.S. oil rig count slows. Storms in the Atlantic could impact shipping and Mexican oil production. Gas Buddy reports retail gas prices hit an eight-week high as the Venezuelan military puts down a coup.
Crude oil prices cap off their best monthly gain since April of 2016 as geopolitical risk is rising in Venezuela and a report from the Energy Information Administration(EIA) is saying that we are not producing as much oil as we thought we were.
Crude oil prices must find new balance as global oil stock piles are falling against surging global demand and an increasing amount of geopolitical risk. Russia and Venezuela are the hot issues, with Iran and North Korea lurking in the background.
Crude oil prices are getting trumped up on a dose of economic optimism and signs that OPEC is serious about production cuts. Trump is making Americans feel great again as consumer confidence came in at a 15-year high, the highest reading since before the terrorist attacks on the world trade center back in 2001.
The price of crude oil has been caught in one of its most volatile couple of weeks in months after Oragnization of the Petroleum Exporting Countries (OPEC) and rival Russia hinted they may discuss a possible output freeze, as demand slows and a global surplus becomes more entrenched.