US Weekly Energy Report - 13 July 2017

Market Commentary

The International Energy Agency (IEA) released on Thursday its latest Monthly Oil Market Reporting, noting weaker compliance by members of the Organization of Petroleum Exporting Countries (OPEC) with the group’s stated production cuts. Compliance fell from 95% in May to 78% in June, the lowest since the agreement took effect at the beginning of the year. The IEA also reported increased non-OPEC supplies, which contributed to total gains of 720,000 barrels per day in global oil output last month.

Speaking at a joint press conference in Mexico City this week, Energy Secretaries Rick Perry of the U.S. and Pedro Joaquin Coldwell of Mexico said the neighboring countries would be working to boost energy cooperation. Efforts will include the promotion of cross-border electricity trade and the use of nuclear energy, as well as expanded energy infrastructure between the two nations.

The U.S. Court of Appeals for the District of Columbia Circuit ruled on Thursday that the U.S. Environmental Protection Agency (EPA) can temporarily delay a policy limiting methane emissions from new oil and natural gas wells. The order comes in response to a July 3 ruling by the appeals court that said the EPA cannot suspend the rule entirely, and allows the EPA 14 days to determine its next course of action.

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