Oil price outlook grows more gloomy despite OPEC cut extension

Oil prices under pressure from rising OPEC supplies

"We will continue to see crude inventories falling because of the seasonal impact and that will help support the outlook for oil", said Ric Spooner, an analyst at CMC Markets in Sydney.

Oil rebounded from the lowest close in more than two weeks after industry data showed US crude stockpiles extended declines, easing an inventory overhang.

On Wednesday, they fell $1.53, or 3%, to settle at $50.31 a barrel on their last day as the front-month contract.

"In "red" market s a heavy oil price and a somewhat stronger EUR have returned EUR/NOK to the mid 9.40s". August Brent crude on London's ICE Futures exchange rose $0.09 to $50.04 a barrel.

Benchmark Brent crude futures were off by 1.8 per cent at $49.73 per barrel at 1415 GMT, down 90 cents from the previous close.

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Last December, Russia and 10 other non-OPEC nations agreed to join OPEC's output cuts for the first time in 15 years.

Crude futures tumbled more than 1%, as President Donald Trump's decision to withdraw from the 2015 Paris climate agreement sparked concerns that US oil production could expand rapidly in the absence of a stringent focus on curbing the use of fossil fuels. It estimated that large operators such as Anadarko Petroleum Corp. and Marathon Oil Corp. are expected to increase output by 400,000 barrels a day, with smaller independent producers projected to add a further 100,000 barrels.

Production cuts by OPEC and its partners are taking longer than expected to eliminate the surplus as US shale drillers boost production with surprising speed.

Growing worry over crude oversupply after Libya increased output has sent Global oil prices lower, which is likely to result in a price cut of NT$0.5 (US$0.017) per liter for gasoline and diesel at CPC Corp.

During the reporting period, the Organization of Petroleum Exporting Countries and its partners extended their existing cuts by nine months.

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OPEC last week discussed reducing output by a further 1% to 1.5%, and could revisit the proposal should inventories remain high, sources told Reuters. Pressuring the market through $47.44 will put the market in a bearish position.

When contacted, the spokesperson for the SPDC, Mr. Bamidele Odugbesan, said, "The force majeure on Forcados is still very much in place and any update will be duly communicated".

The price of oil has continued its downward move despite an agreement between the OPEC and participating N-OPEC producers to extend the current supply cut agreement that aims to reduce global oil supply by 1.76 million barrels per day.

He questioned the efficiency of the output cuts, saying oil producers were losing market share to USA firms, which are not part of the deal.

Libya's oil production has risen to 827,000 bpd, climbing above a three-year peak of 800,000 bpd reached earlier in May, the National Oil Corporation said, after a technical issue that hit Sharara oilfield was resolved.

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