Oil prices edge up as US drilling declines

US West Texas Intermediate (WTI) crude futures were trading down $1.55, or 3.3 percent, at $45.35 a barrel.

Crude Oil: The federal government’s EIA report revealed that crude inventories fell by 2.10 million barrels for the week ending September 11, 2015, following a climb of 2.57 million barrels in the previous week.

Prices were lower as traders took profits after crude futures had soared Wednesday.

In another signal that crude oil market structure may not be as bearish as price action and the supply glut indicates, processing or crack spreads bounced on Friday from recent lows.

Oil prices crashed to less than US$50 per barrel.

“This would appear to prove OPEC’s strategy correct, namely that low oil prices would prompt shale oil producers to abandon production“. “Global demand by country is not very volatile, and is likely to grow slowly over time because … there’s a lag in response to lower prices”, he said.

“China is weighing on the demand side”. This includes losses of more than a quarter since June this year as a sharp slowdown in China has sparked concern over the health of the world economy. Companies that are involved in oil production & exploration are now more efficient. Let’s look at the implications of the Central Bank’s decision on the oil prices and the related industries. Federal Reserve Chairwoman Janet Yellen said that “heightened uncertainties abroad” convinced the board to wait before raising interest rates. “This is one of the most demanding technology projects aimed at improving oil recovery”. Venezuela sends a large share of its oil exports to the United States because of the proximity and the operation of sophisticated U.S. Gulf Coast refineries specifically designed to handle heavy Venezuelan crude. In neighboring Iran, the Islamic Republic is preparing for economic sanctions to be lifted as part of a deal with world powers in exchange for limiting its nuclear program.

The pullback on spending is already straining US oil production.

Crude futures are down by more than 50% from its peak above $100 a barrel last summer, after OPEC rattled global energy markets with a strategic decision to keep its production ceiling unchanged.

Referring to the start of talks between the National Iranian Oil Company and traditional customers of Iran’s oil, he asserted that, “part of the increase in production and exports of crude oil will be sent to these customers”.

Venezuelan President Nicolas Maduro and Saudi Arabia’s King Salman bin Abdulaziz said they will work together to restore stability in the oil market and strengthen OPEC, said the Latin American nation’s foreign minister, Rodriguez.