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What to Expect from OPEC’s Crude Oil Production in August 2017

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Nov. 20 2020, Updated 10:33 p.m. ET

Crude oil prices  

October WTI (or West Texas Intermediate) crude oil (USO) (UCO) futures contracts rose 0.4% and were trading at $47.73 per barrel in electronic trade at 2:00 AM EST on August 22, 2017. Prices are near a two-week high.

Higher crude oil (VDE) (SCO) prices have a positive impact on oil and gas producers. The top energy companies’ returns as of August 21, 2017, sorted by the largest volume (or shares traded), are as follows:

  • ExxonMobil (XOM) fell 0.3% to $76.38.
  • Chevron (CVX) fell 0.6% to $105.78.
  • Schlumberger (SLB) fell 0.5% to $63.
  • Pioneer Natural Resources (PXD) fell 3% to $127.9.
  • ConocoPhillips (COP) fell 1.4% to $42.50.
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OPEC’s crude oil production in August 2017 

Petro-Logistics estimates that OPEC‘s (Organization of the Petroleum Exporting Countries) crude oil production fell by 419,000 bpd (barrels per day) to 32.8 MMbpd (million barrels per day) in August 2017 compared to July 2017. However, OPEC’s crude oil production hit a 2017 high in July 2017. OPEC’s crude oil exports rose by 370,000 bpd (barrels per day) to 26.11 MMbpd (million barrels per day) in July 2017.

Petro-Logistics also estimates that OPEC‘s crude oil exports fell by 750,000 bpd in the first 15 days of August 2017. The fall in OPEC’s crude oil production and exports is bullish for crude oil (DIG) (OIH) prices. OPEC has increased its compliance with the production cut deal after the July 24 technical committee meeting.

OPEC meeting

On August 21, 2017, Kuwait’s oil minister said that OPEC will decide whether to extend or end the production cut deal in its November 2017 meeting.

In the next part, we’ll look at how Saudi Arabia’s crude oil production and exports impact crude oil prices.

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