Published: Wed, February 22, 2017
Economy | By Melissa Porter

This Is the World's New Top Producer of Crude Oil

"Since then, oil prices haven't really gone anywhere but crucially the pullbacks have been very shallow". There's a supply glut in oil caused by U.S shale oil and the return of some producers such as Iran and Libya to the oil market.

The more active USA crude for April delivery closed the session up 1 per cent at $54.33.

Iraq too is preparing for a busy future, and last week its oil minister Jabar al-Luaibi announced plans to acquire a fleet of oil tankers to transport crude to global markets: "The ministry is keen to building and buying a large fleet of tankers".

According to BofA, while OPEC countries have the resources to grow production, its previous work shows that OPEC revenue would likely be higher if no additional investments are made compared to scenarios where increased OPEC production leads to lower prices (Chart 6).

About $294 billion of oil, gas and petrochemicals projects are in the pre-execution phase across the Mena region even as concerns about global oversupply continue to suppress oil prices, according to Meed Insight's Mena Oil and Gas Report 2017.

Similarly, Saudi Arabia has increased oil shipments to Canada from 73,000 bpd in 2014, to 84,000 bpd in 2015 and close to 87,000 bpd in 2016. And that's exactly what they did.

Fund managers now have the most bullish view on oil since the first half of 2014, when Libya's exports were almost halted by civil war and Islamic State fighters were racing across northern Iraq. Naturally, this would mean that the price is taking a break from its prior advance higher in a bull market (lower in a bear market) before advancing again.

This may be true, unless of course just like US shale, production breakeven costs are sliding across the world.

Crude futures rose for a second day on Tuesday, with data showing hedge funds are betting big across oil markets following OPEC production cuts agreed past year.

The growth in USA production mostly came from the Texas' Permian Basin and Eagle Ford regions, which have better quality oil.

Hewson continued that this commentary had seen speculative long positions in oil climb to record highs as traders bet on further upside to prices in the coming weeks. On Nov. 30, OPEC and 11 other countries signed the agreement.

The U.S. March crude contract expired 66 cents, or 1.2 per cent, higher at $54.06, after peaking at $54.68, its highest since January 3. "What we are seeing is the efforts they are making in achieving their targets". Here are our best oil stocks of 2017...

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