US Crude Production to Beat EIA's Outlook by 23 Years

US Crude Production to Beat EIA's Outlook by 23 Years

Western Canadian Select crude's discount to futures narrowed $1.75 to $9.25 a barrel on Wednesday amid the possible imposition of U.S. sanctions on Venezuelan crude, which is similar to heavy Canadian oil and competes with it on the U.S. Gulf Coast.

A year ago, the U.S. government saw American crude production averaging 11.95 million barrels per day (bpd) in 2042.

Brent crude oil futures were at $61.62 a barrel, 53 cents above their last close.

The driver of Friday's trading activity was said to be the USA signalling that it may impose sanctions on Venezuelan exports after recognizing opposition leader Juan Guaido as interim president this week, prompting president Nicholas Maduro to cut ties with Washington.

Venezuelan President, Nicolas Maduro, has struck back against his opponents, winning strong support from the country's armed forces and the solid backing of Russian Federation, which warned the United States not to intervene. The perception of oil's supply-demand imbalance likely worsened as world leaders voiced concerns over the slowing global economy in Davos, which could have contributed to the drop in oil prices early in the week.

Venezuelan oil is predominantly heavy crude, which requires extensive refining.

'Don't cry': Serena consoles Australian Open foe; Halep next
What I'm trying to do is to go to the level that people are going to talk about me the same, that I have something special". Simona Halep stepped out at the Sydney International earlier this month and couldn't make it through her first match.

The U.S. also threatened to impose sanctions on Venezuela's oil industry that could further hobble the country's exports. Prices have risen around 25% from a late December low.

Although, it is worth pointing out that if the US-China trade war talks do not make any headway, sentiment could quickly sour and cause fears over slowing economic growth to resurface.

Gasoline stocks rose for the eighth straight week to a record 259.7 million barrels, as demand for the fuel over the past four weeks fell 0.1% from a year ago. Even without such measures, Venezuelan production is expected to continue to fall as debt-burdened PDVSA is unable to reinvest in its oil fields or infrastructure and has lost many of its most experienced technical staff under its military management. Distillate stockpiles decreased by 0.62 million barrels, compared to estimates for a decline of 0.23 million.

Mr. Monaldi said the US imports account for 80 per cent of PDVSA's revenue.

However, the wealth and luck that should have been brought by Venezuela's huge oil reserves, has been affected by political unrest in recent years. Venezuela also imports 150,000 b/d of petroleum product from the United States, including 75,000 barrels of diluent - a light hydrocarbon that is used to dilute bitumen so it can be transported in pipelines.

Related Articles

  • China's Huawei books record sales in its smartphone business

    China's Huawei books record sales in its smartphone business

    Investors are watching the shifting winds affecting Huawei closely, too. "At Huawei, we never do these kinds of things", he said. The telecoms equipment market is dominated by three companies - Huawei, Finland's Nokia ( NOK ) and Sweden's Ericsson ( ERIC ).
    Deal struck to reopen government

    Deal struck to reopen government

    A senior White House official tells CNN's Jim Acosta that the President will announce "a way forward" on ending the shutdown . McConnell's calculation may be that if both bills fail, that could convince Republicans and Democrats to seek a compromise.
    China says doctor behind gene-edited babies acted on his own

    China says doctor behind gene-edited babies acted on his own

    He used gene-editing technology known as CRISPR (short for Clustered Regularly Interspaced Short Palindromic Repeats ). He Jiankui's announcement of the first gene-edited babies, at a conference in November a year ago , shocked the world.
  • Apple cuts 200 staff from Project Titan AV programme

    Apple cuts 200 staff from Project Titan AV programme

    Apple did not immediately respond to Gizmodo's request for comment but did provide a statement to CNBC about the layoffs . Self-driving vehicles have shown tremendous promise in the past decade, as more and more companies get in on the action.
    SA backs beleaguered Venezuelan President Nicholas Maduro

    SA backs beleaguered Venezuelan President Nicholas Maduro

    The European Union also moved closer Saturday to recognizing Guaido as the country's ruler, Bloomberg reported . Mr Guaido said mass protests were the only way to end Mr Maduro's "dictatorship".
    Fun has returned to Chelsea, says Sarri

    Fun has returned to Chelsea, says Sarri

    Gonzalo Higuain finally arrived at Stamford Bridge on Thursday night and Christian Pulisic is arriving in the summer. He has scored four goals in 30 outings this season, as many as he managed in the previous three seasons.
  • Australia seeks info on missing writer in China

    Australia seeks info on missing writer in China

    An Australia-China consular agreement requires either government be told within three days if one of their citizens is detained. Yang was detained shortly after he flew in to the southern Chinese city of Guangzhou from NY last week.
    Trump discussed Russian Federation  tower deal well into 2016, Giuliani says

    Trump discussed Russian Federation tower deal well into 2016, Giuliani says

    Trump officials had initially described the project as the province of Cohen and simply in the discussion phase. And Giuliani said Sunday of the project: 'The thing had petered out quite a bit.
    Kvitova makes Open semis, puts attack behind her

    Kvitova makes Open semis, puts attack behind her

    Striking the ball with incredible authority and timing, the dual Wimbledon champion allowed 15th seed Barty only fleeting chances. However, Barty will have the local support along with a great deal of confidence, courtesy of her impressive win over Sharapova .
  • Casey Hathaway found not far from Toler Road home

    Casey Hathaway found not far from Toler Road home

    The family of a 3-year-old boy from North Carolina claimed that he was protected by a bear while missing for three days. He was located by professional search and rescue crews off Toler and Aurora Roads on Thursday evening in Craven County.
    Records on line in Nadal-Djokovic final

    Records on line in Nadal-Djokovic final

    And he did that by breaking the French 28th seed's serve seven times in a victory which took just one hour and 23 minutes. Djokovic afterwards reflected on the match as being one of his best on the court, having made just five unforced errors.
    Dershowitz: Mueller Has Found 'Almost No Crimes' From Before Russia Probe Started

    Dershowitz: Mueller Has Found 'Almost No Crimes' From Before Russia Probe Started

    When Trump ultimately threw his hat in the race in the 2016 election cycle, Stone was by his side as a campaign adviser. STONE thereafter told the Trump Campaign about potential future releases of damaging material by Organization 1'.