Oil in Global Economy Series: Key oil market updates

While the oil market continues to focus on supply/demand fundamentals, these are some key updates that you need to keep a tab on,

• U.S. oil rig count: The United States has already proved to be a major influencing factor in the global oil market as production reached 9.54 million barrels per day before declining sharply over the impacts of Hurricane Nate. However, the production has recovered equally fast and is currently at a record high of 9.66 million barrels per day. To keep a tab on U.S. oil supplies, one needs to keep oneself updated on the numbers of oil rigs operating in the United States. As of latest report, the numbers of operating rigs have risen to 747, the highest level since October. The numbers of operating rigs have increased 137 percent since bottoming in May last year.
   
• Saudi Arabia’s and the Middle East: The tensions in the Middle East continue to rise as Saudi Arabia’s crown prince Mohammad bin-Salman has declared war on terrorism along with Islamic Military Alliance (IMA) after a meeting with 40 member countries of the IMA. Many political analysts are calling it a proxy war against terrorism.
   
• Venezuela: Venezuelan oil production and supplies could get affected this week as the country is on the verge of a default. The country is yet to finalize the course of action to tackle country’s debt.
   
• OPEC meeting: This week OPEC and participating N-OPEC producers will meet in the OPEC headquarter in Vienna to decide on the future of the agreement that aims to reduce production by 1.76 million barrels per day compared to November 2015 level. Insiders say that the deal would be extended with both Russia and Saudi Arabia’s blessing.

Key global oil benchmarks:

WTI - $58.5/barrel

Brent - $63.7/barrel

OPEC basket - $61.6/barrel

Urals - $62.7/barrel

Oman - $62.3/barrel

Dubai - $61.7/barrel

Western Canada Select - $40.8/barrel