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 9.51 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 increased for the first time four weeks to 737, which is the lowest numbers of operating rigs since early June. The number of rigs declined by more than 4 percent since August.
   
• OPEC and Shale producers: OPEC is looking for cooperation from U.S. shale producers to make the OPEC/N-OPEC agreement to reduce global supplies by 1.76 million barrels per day, more effective. Saudi Arabia’s powerful crown prince Mohammad bin-Salman has thrown his weight behind the extension of the agreement. With his and Moscow’s support, the deal is likely to get an extension of nine months.
   
• Petro-yuan: Oil market is buzzing with Petro-yuan possibilities as China is set to launch yuan-bases oil benchmark by the end of the year. While yuan would still be far away from challenging Dollar’s dominance, the acceptance of petro-yuan could mark the beginning of yuan’s journey to topple the dollar.
   
• Iraq has toppled Saudi Arabia to become the biggest oil supplier to the United States from the Middle East.