Just after North Dakota celebrated its billionth barrel of oil out of the Bakken oil formation the U.S. Energy Information Administration (EIA) reported a record amount of oil in storage. Stockpiles rose 1.7 million barrels putting commercial crude inventories to 399.4 million barrels.
Should $100 oil be forgot and never brought to mind? Oil made one last attempt to go above $100 a barrel but backed off as we end the year. It was a year that saw a surge in U.S. oil production and record natural gas production.
Energy ministers from Iraq, Kuwait, Angola and Algeria expect OPEC to keep its crude production target unchanged tomorrow after Saudi Arabian Oil Minister Ali al-Naimi said the market is “in equilibrium.”
Even with OPEC forecast to keep its output quota unchanged at a meeting this week, falling oil demand and prospects for increased supply from some member states mean the group’s leader, Saudi Arabia, will have to cut production anyway.
Japan growth misses the mark as its GDP came in at a disappointing 2.6%. This comes after oil rejected breaking out to the downside on the heels of terror threats to oil out of Yemen and embassy closings as well as strong data out of China.
As if you need another reminder about how the explosion in U.S. shale oil and gas production is rocking OPEC's world, you only have to go as far as the International Energy Agency’s most recent report.