Corona Virus
Stay Safe, FollowGuidance
Fetching Location Data…
Vladimir Zernov
Crude Oil

Oil Video 01.10.20.


OPEC Production Increased By 160,000 Barrels Per Day In September

WTI oil declined below the $39 level and is testing the $38 level after Reuters reported that OPEC production increased by 160,000 barrels per day (bpd) in September.

The main sources of this increase were Libya and Iran. Both countries are exempt from the obligations under the production cut deal. Libya is torn by a civil war while Iran is under severe U.S. sanctions.

Recently, the sides of the Libyan civil war managed to agree to a deal that lifted the blockade from the country’s ports. Now, the market is trying to evaluate whether Libya will be able to quickly increase its oil production.

The recent inventory reports were positive for the oil market but the potential increase in Libya’s oil exports could present a problem for the market which remains worried about the second wave of coronavirus.

Traders will continue to closely monitor the progress in Libya since the country has the theoretical potential to increase its oil production from the current 250,000 bpd to 1.2 million bpd which was the norm before the blockade.

U.S. Gasoline Demand Recovery Stalls

Yesterday, EIA reported that gasoline inventories increased by 0.7 million barrels, but the market cheered the continued decrease of crude inventories which declined by 2 million barrels.

Meanwhile, EIA data indicated that U.S. gasoline demand increased from 8.515 million bpd to 8.529 million bpd. This is a step forward, but demand is still far below 9.137 million bpd which were recorded a year ago.

The main problem is that the pace of demand recovery is slowing down at levels that are significantly below normal levels, indicating that additional demand recovery may require more economic catalysts.

At this point, the U.S. domestic oil production has not managed to get back above the 11 million bpd mark after the hurricanes so crude inventories continue to fall. However, a potential increase of U.S. oil production at a time when gasoline demand recovery stalls may present a risk for oil prices.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.