WORLD OIL TO RISE FASTER, US OUTPUT TO HIT A RECORD
The Energy Information Administration (EIA) said last week, US domestic output will climb to a record 9.96 million barrels a day in 2018, up from 9.9 million barrels projected last month. Production will average 9.31 million barrels a day in 2017, up from 9.22 million projected in April.
World oil production is projected to rise faster than demand this year and in 2018. The EIA increased its forecast for global production to 98.47 million barrels a day, from 98.03 million last month. Production is projected to rise to 100.4 million barrels a day in 2018.
US explorers have added rigs this year, partially undermining oil-production cuts that started in January by the Organization of Petroleum Exporting Countries and 11 other exporters. The nation’s active oil-rig count has more than doubled in the past year to 703 last week. The lag between drilling and reaching maximum production signals that output will climb further in coming months.
TEA PRODUCTION DECLINES IN Q1
Dry weather has cut tea production by 35 percent in first quarter of 2017 compared to the same period last year, setting farmers up for lower earnings and Kenya for reduced forex inflows. Kenya Tea Development Agency (KTDA) said deliveries had fallen 25 percent in nine months — indicates cumulatively production for the period was significantly lower at 90.09 million kilos against 139.60 million recorded during the corresponding period in 2016.
Lower production was largely attributed to dry and hot weather conditions experienced in all the tea growing areas. The most affected region was the East of Rift where production declined significantly from 20.38 million kilos to 9.85 million owing to delayed onset of the long rains season.
SOY AND CORN EASE, WHEAT FIRMS
Chicago soybean futures slid for a second session last Thursday under pressure from a key US government report forecasting higher supplies. Wheat was up for a second day on a lower US production outlook while corn eased, retreating from last session’s near one-week high reached on forecasts from the US Department of Agriculture (USDA) for smaller-than-expected global supplies.
The Chicago Board of Trade most-active soybean contract fell 0.3 percent to $9.67-3/4 a bushel by 0337 GMT, having closed down 0.4 percent on Wednesday.
Corn declined 0.1 percent to $3.73-1/4 a bushel, having climbed 2 percent in the previous session to its highest since May 4 and wheat gained 0.1 percent to $4.32-1/4 a bushel.
EDIBLE OILS REMAIN UP IN INDIA
Firm conditions continued to prevail at the wholesale oils and oilseeds market in India last week on increased offtake by millers amid rising demand from retailers and prices rose by up to Rs150 per quintal.
However, non-edible oils continued to trade in a narrow range on little doing and remained unchanged. Traders said persistent rise in select edible oil prices to increased offtake by vanaspati units and strong demand from retailers.
In the national capital, groundnut mill delivery (Gujarat) and mustard expeller (Dadri) traded higher by Rs30 each at Rs10,380 and Rs8,080 per quintal, respectively.
Soybean refined mill delivery (Indore) spurted by Rs 150 to Rs 6,600 per quintal, while palmolein (RBD) and palmolein (Kandla) oils advanced by Rs30 each to Rs5,600 and Rs5,650 per quintal, respectively.
HOW CHINA IS PLANNING AHEAD FOR LIFE AFTER COAL?
China’s remarkable growth over the past three decades has elevated it to global superpower status. But its economic miracle has also attracted attention for the wrong reasons: the country is now the world’s largest energy consumer, oil importer, and CO- emitter.
It led to the line that China builds a new coal-fired power station each week being faithfully and unquestioningly repeated. However, this is no longer a fair reflection of the country’s energy condition. It’s true that China consumes around a quarter of the world’s total primary energy and more than half its coal.
This was once a necessity. The open door policy to foreign investment that began in the late 1970s led to rapid economic growth and, in turn, a spectacular rise in energy demand. Electricity consumption in China rose from just 232 kilowatt hours (KWh) in 1978 to nearly 6,000 terawatt hours (TWh) presently – that is, six thousand billion kilowatt hours – and to keep up with demand, China needed coal.
SPOT URANIUM MARKET REMAINS QUIET
According to TradeTech, the spot uranium market remains quiet, with only four transactions taking place recently for a total sale of 500,000 lbs. U3O8 equivalent.
Over the week, TradeTech’s spot price indicator declined by 5 cents to reach $22.45 per lb. The spot price indicator remains close to its near-term peak of $24.50 per lb, it reached in early January as spot prices recovered after bottoming in 2016.
Even though uranium prices have stalled since their lift-off earlier in the year, companies and countries are continuing to advance their nuclear power and uranium mining activities.
The Ministry of Mines and Minerals Development said it has commenced the process of reviewing the regulations governing the mining of uranium. The country’s last update was back in 2008.