According to an OPEC (Organization of the Petroleum Exporting Countries) report, OECD (Organisation for Economic Co-operation and Development) commercial crude oil stockpiles reached 3.0 billion barrels in February 2016. In the month, US oil prices fell below the $30 level due to rising oil inventories and production.

Oil prices have been weak lately because of concerns about rising US oil production. The US oil rig count rose by 21 units to 652 in the week ended March 24, 2017. Rising rigs means higher oil production, which could have a negative impact on crude oil prices.

On March 27, 2017, active oil futures were trading at a discount of $2.18 to 12-month forward futures contracts, compared to $1.93 on March 24, 2017. The rise in the futures spread could point to investor concern about the crude oil demand-supply balance.

Wednesday’s US Production data, which recently showed stockpiles at record highs will continue to stoke worries about increasing oversupply alongside a lack of buying pressure. When combining those two components alongside sentiment, it’s my preference to favor a further drop in Crude Prices or at least a further drift sideways as the forwards curve show. Several factors appear to have contributed to the rise in U.S. crude oil exports in 2016. Increased crude oil imports in 2016 substituted for some domestic crude oil at U.S. refineries, allowing higher exports despite lower U.S. production and increased refinery runs. Low tanker rates for most of 2016 helped to narrow the price spread needed to allow for an economically attractive trade between the United States and overseas markets. With the average daily volume of crude imports more than 12 times the average daily volume of crude exports, many tankers were available for back-haul voyages at rates significantly below regular tanker rates, likely further reducing the cost of reaching export markets Crude Oil has shown volatility on Tuesday afternoon ahead of the DoE data on news that Libya’s largest Oil field confirmed Force Major and will bring production in Libya down to 560,000 barrel a day from its previous range of 700-800k. The closed pipeline accounts for ~20% of Libya’s output, and early reports are blaming fighting between armed forces as the reason for closure, but there has not been confirmation. The welcomed news will contend with Wednesday’s US production data, which is expected to further add to the fear that oversupply will weaken OPEC’s efforts. MCX FREE TIPS CRUDEOILTIPS, CRUDEOILEXPERT, EXPERTCRUDEOIL, CRUDEOILTIPS ,crude, oil, tips, experts, provider, adviser, CRUDEOIL TIPS, CRUDEOILTIPS, CRUDEOILTIPS, CRUDEOILTIPS, MCX FREE TIPS CRUDEOIL TIPS, MCX CRUDEOILTIPS, CRUDEOILTIPS, CRUDEOILTIPS, CRUDEOIL TIPS ,crude, oil, tips, experts, provider, adviser, CRUDEOILTIPS, CRUDEOILTIPS, CRUDEOILTIPS, CRUDE TIPS, MCX FREE TIPS CRUDEOIL TIPS, MCX FREE TIPS CRUDEOILTIPS, CRUDEOILTIPS, CRUDEOILTIPS, CRUDEOIL TIPS ,crude, oil, tips, experts, provider, adviser, CRUDE OIL TIPS, CRUDEOILTIPS, CRUDETIPS, CRUDEOILTIPS, MCX FREE TIPS, MCX CRUDEOILTIPS, CRUDEOILEXPERT, CRUDEOILTIPS, CRUDEOIL TIPS Crude oil varies greatly in appearance depending on its composition. It is usually black or dark brown (although it may be yellowish, reddish, crudeoil tips or even greenish). In the reservoir it is usually found in association with natural gas, which being lighter forms a “gas cap” over the petroleum, and saline water which, being heavier than most forms of crude oil, generally sinks beneath it. Crude oil may also be found in a semi-solid form mixed with sand and water, as in the Athabasca oil sands in Canada, where it is usually referred to as crude bitumen. crudeoil tips In Canada, bitumen is considered a sticky, black, tar-like form of crude oil which is so thick and heavy that it must be heated or diluted before it will flow Venezuela also has large amounts of oil in the Orinoco oil sands, although the hydrocarbons trapped in them are more fluid than in Canada and are usually called extra heavy oil. Crudeoiltips These oil sands resources are called unconventional oil to distinguish them from oil which can be extracted using traditional oil well methods. Between them, Canada and Venezuela contain an estimated 3.6 trillion barrels (570×109 m3) of bitumen and extra-heavy oil, about twice the volume of the world’s reserves of conventional oil.[45] crudeoiltips Following the removal of restrictions on U.S. crude oil exports in December 2015, the U.S. exported crude oil to 26 different countries in 2016, compared with 10 countries the previous year. In 2015, 92% of U.S. crude oil exports went to Canada, which was exempt from U.S. crude oil export restrictions. After restrictions were lifted, Canada remained the top destination but received only 58% of U.S. crude exports in 2016.