SINGAPORE (Reuters) – U.S. oil prices dipped from three-and-a-half year highs on Thursday as physical markets remained well supplied despite record demand and ongoing disruptions.
U.S. West Texas Intermediate (WTI) crude futures were at $72.55 a barrel at 0114 GMT, down 21 cents, or 0.3 percent from their last settlement. WTI hit its highest since November 2014 at $73.06 per barrel in the previous session.
Crude - Futures - Barrel - Close - May
Brent crude futures were at $77.63 per barrel, virtually unchanged from their last close and still below recent May highs.
Oil prices have been rallying for much of 2018 on tightening market conditions due to record demand and voluntary supply cuts led by the Middle East dominated producer cartel of the Organization of the Petroleum Exporting Countries (OPEC).
Supply - Disruptions - Canada - Libya - Venezuela
Unplanned supply disruptions from Canada to Libya and Venezuela have added to those cuts.
Yet not all indicators point towards an ever-tightening market.
Output - Growth - US - Crude - Production
Although output growth is slowing, U.S. crude production is approaching 11 million barrels per day (bpd).
With Russia and Saudi Arabia at similar levels, and output expected to rise as OPEC and Russia ease their supply restrictions, there will soon be three countries pumping out 11 million barrels of crude each and every day.
Output - Means - Countries - Third - World
This unprecedented output means just three countries are meeting a third of world consumption.
“The physical oil market is well...
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