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 is continuing to see a surge in production. According to the latest report, the production rose to 10.46 million barrels per day. Despite fewer rigs operating compared to 2014/15, the production efficiency has pushed the overall production higher.  As of latest report, the numbers of operating rigs declined from 797 to 808, the highest since March 2015. The numbers of operating rigs have increased more than 150 percent since bottoming in May 2016.
   
• Venezuela crisis: Crisis continues in Venezuela. The latest production report from OPEC suggests that the production declined to 1.548 million barrels per day. The production has been declining steadily since 2014 when production reached a peak of 2.9 million barrels per day. However, the country’s leaders remain hopeful of the impact of Petro-the oil backed cryptocurrency used for funding a few months back.
   
• China set to buy oil in Yuan: Rumors suggest that China might abandon U.S. dollar payments for oil imports and may force the sellers to accept payment in Yuan.    
   
• Geopolitical tension drives the price higher: oil price has been edging higher over the past few weeks as the market speculates that President Trump is likely to move the United States out of the Iran nuclear agreement by May 12th.

Key global oil benchmarks:

WTI - $62.3/barrel

Brent - $67.4/barrel

OPEC basket - $64.8/barrel

Urals - $64.8/barrel

Oman - $66.1/barrel

Dubai - $64.8/barrel

Western Canada Select - $38.9/barrel