US crude exports continue to push higher

US crude stocks edged higher last week, less than 1m bbl, while there were declines across the rest of the barrel. As expected, oil production recovered strongly last week, more than 1m b/d, as the latest impact of hurricanes affecting production dissipates.

Exports continue to move higher

Source: EIKON, Emirates NBD Research

OPEC officials have grabbed hold off the market again with constructive commentary about extending their current production cuts until the end of the year and more explicit statement from Saudi Arabia’s energy minister, Khalid al Falih, to keep up the effort to get inventories down and not allow a disorderly end to the deal. All of which should be comforting to oil producers across the US who will look at the 2018 WTI calendar strip above USD 50/b with relish. We would expect to see an uptick in hedging activity as producers focus on securing profitability rather than all out growth. 

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