Oil surges as OPEC+ is said to agree on cuts

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Saudi Arabia doesn't wield the same level of power on the oil market - thanks in part to US shale oil production - as it did in 1973, when it triggered an oil embargo against Western countries for supporting Israel.

The final deal is a surprise, since discussions had earlier centered on a proposed output reduction from OPEC and its allies of about 1 million barrels a day, with OPEC cutting 650,000 barrels of the total, according to delegates.

Ann-Louise Hittle, a vice president at oil industry expert Wood Mackenzie, said the production cut "would tighten" the oil market by the third quarter next year and help lift Brent prices back above $70 per barrel. New York time. West Texas Intermediate for January delivery gained US$2.15 to US$53.64 a barrel on the New York Mercantile Exchange.

Saudi Arabia and other big oil producers, huddled in Vienna this week at their last big OPEC meeting of the year, are trying to walk a tightrope between fixing a glutted oil market that has hurt their own economies or keeping U.S. President Donald Trump happy. Given the lower prices and rebuilding inventories, we would also expect the U.S.to be aggressive in pressuring Iranian exports heading into the second quarter of 2019, when the current waivers are set to expire.

Arriving at the resolution did not come cheap, as negotiations among the non-OPEC members, driven by Russian Federation and USA, dragged, based on the national interest of each country.

The Organization of Petroleum Exporting Countries (OPEC) has reached a new deal to restrict global output. The Energy Information Administration said the U.S. exported 3.2 millions barrels of oil during the week, and more than 5.8 million barrels of other refined products.

"Yes", Zangeneh said before the OPEC-non-OPEC meeting, asked if Iran was exempt from the cuts under the deal, Sputnik reported. "I think the Saudis tried to walk a tightrope: they want to make sure they maintain their relationship with the US, but they also need to make some cuts because they need a higher oil price to balance their budget". "The World does not want to see, or need, higher oil prices!"

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The price of global benchmark Brent crude has plunged by a third since the start of October to about $60 a barrel due to fears that the market is oversupplied.

“When Iran's oil didn't get taken off the market, we had a tsunami of oil available, ” said Badiali.

It is known that the data manipulation associated with the signed deals between Russian Federation and OPEC on reducing oil production. Russia, on the other hand, has a more diversified economy, and can live with oil at $40 per barrel.

"Yesterday (Thursday) the Saudi Arabian Petroleum Minister mentioned about the view Prime Minister Narendra Modi has articulated before the OPEC meeting.by virtue of our consumer status he has become the leading voice of consuming nations", Pradhan said.

Both Cardinal Energy Ltd. and Granite Oil Corp. said they can't afford to wait and see if Alberta's production cuts will result in a sustained recovery in oil prices.

Analysts say that the details of any agreement will be key in determining what happens next to prices, particularly the size of any reduction and the question of whether Iran is included or not.

The index harnesses real-time intelligence on oil production from OPEC, Russia and the U.S., and sets this against The EIU's forecasts for global oil consumption, providing an early indicator of the adequacy of global oil supplies. It traded at US$62.87 a barrel by 9:07 a.m.