Oil gains positions after decline in USA output

At the same time, gasoline reserves in the country decreased by 0.9 million barrels, or by 0.37 percent – to 241 million barrels.Crude oil futures on Friday were on track for their biggest weekly gain since mid-May, with USA crude up 0.8 per cent at $45.29 per barrel and Brent up 0.6 per cent at $47.70 as of 1017 GMT.The bank cut its average 2017 and 2018 West Texas Intermediate (WTI) crude oil price outlook to $47 per barrel and $50 per barrel, from $52 and $53 respectively.Mike van Dulken and Henry Croft, analysts at Accendo Markets, said in a morning note: “Crude Oil prices have rallied from yesterday evening’s lows at rising lows support, keeping alive 1-week rising channels”.The oil market shrugged off news that production from Libya, one of two OPEC members exempt from the group’s supply deal, had soared above 1 million barrels per day (bpd).Oil production in the USA for the week ended June 23, decreased by 1.07 percent, or 100,000 barrels per day, to 9.250 million barrels per day, according to the US Energy Information Administration (EIA).The volume of production varies mainly due to technical problems and problems with electricity generation.The source said that production should stabilize at the higher end of the range “very soon”.Omran al-Zwai, a spokesman for Arabian Gulf Oil Company (AGOCO), an NOC subsidiary, said output had been as high as 950,000 bpd in recent days, rising from about 885,000 bpd at the start of last week.It had produced more than 1.6 million bpd before a 2011 uprising, and average production has not exceeded 1 million bpd since July 2013.Bank of America Merrill Lynch analysts cut their forecasts on Friday, saying the rise in output from Libya, Nigeria and USA shale fields coupled with weaker demand growth, meant the market would be more oversupplied than previously expected.