Saturday, 17 November, 2018

OPEC likely to extend output cuts into next year

Orlando Vargas | 26 May, 2017, 10:08

Oil rose on Tuesday as expectations of an extension to OPEC-led supply cuts supported prices, reversing losses earlier in the session after a White House proposal suggested selling off half the country's huge oil stockpile.

The Organization of the Petroleum Exporting Countries is to discuss in Vienna whether to prolong an accord reached in December in which it and 11 non-members agreed to cut oil output by about 1.8 million barrels per day in the first half of 2017.

Thursday marks the first meeting of the year for Opec in Vienna, Austria.

The goal of OPEC's production cuts is to reduce the glut of excess inventory on the market, and achieve a level of price stability somewhere above $50 a barrel.

Naeem Aslam, chief market analyst at ThinkMarkets, said the markets had pretty much priced the extension in but whether all members are willing to play along for another nine months is anything but certain and that is what investors will be focusing on.

Iraq's Oil Minister Jabbar Al-Luaibi said almost all countries participating in the cut had agreed to extend it, though there was no consensus yet on how long the extension should be.

Releasing reserves would add supplies to already high and rising USA production C-OUT-T-EIA of 9.3 million bpd, not far off levels of top suppliers Saudi Arabia and Russian Federation.

As such, OPEC no longer holds the power to control oil prices but what the group can do is create a shift in the term structure of oil, which will create a backwardation scenario where spot prices above forward prices.

The price of a barrel of Azeri Light crude oil increased $0.47 to stand at $54.72 on the world markets.

Hong Kong stocks hit 22-month high despite Moody's China downgrade
Li Fan, senior dealer with Bank of China, dismissed Moody's downgrade as one-sided views. However it did fret about slowing growth ahead and a likely rise in state debt.


Antoine Griezmann: 'I want to win trophies with Atletico Madrid'
Griezmann said: "It has been a attractive year and hopefully I can improve in every year and win trophies with this team. The French attacker continued his push to the exit door at Atletico Madrid by saying he is willing to leave this summer.


Montana voters cast ballots day after candidate cited for assault
Montana's secretary of state's office says 37 percent of registered voters had returned absentee ballots as of Wednesday. If you can't handle reporters asking questions, Congress isn't the place for you, because that happens here every day.


The Organization of Petroleum Exporting Countries and 11 non-members agreed a year ago to cut output by as much as 1.8 million barrels a day.

The deal, lasting for six months, is due to expire on June 30.

Asked whether deeper cuts were being considered, Marzouq said: "No".

Some analyst question whether the US will be legally able to sell more of its crude reserves due to a stipulation by the International Energy Agency that obligates its members to hold at least 90 days worth of supply in strategic reserve.

Iraq's oil minister promised to meet the nation's full commitment in May, Saudi Minister Al-Falih said in an interview on Arabiya television on Tuesday.

"OPEC were saying they want to bring down inventories and it hasn't happened yet which is why we expect an extension", said Giovanni Staunovo, analyst at UBS.

Before, OPEC's strategy was to keep pumping at full tilt in order to push the oil price lower and make life hard for the Americans, who need a higher price to make money. More U.S. oil hitting the market, even if staggered over time, would just add more barrels to an already overloaded market, potentially making life tougher for big oil producers.

Market analysts say although Kuwait's proposal of a 12-month extension or a deepening of cuts was not the market's base-case scenario, a rolling over of cuts could cause oil prices to rise dramatically in the short-term.

Recommended

  • Lue: Cavs' Irving feeling 'good' after Game 4 ankle injury

    That next level for Kyrie resulted in a third quarter for the ages, where he dropped 21 points and only missed one shot. The point guard scored 42 points in Cleveland's 112-99 victory, making 15 of his 22 field goal attempts.

    The debut for Hughes: Canada rookie tied for lead at Players

    He made it sound simple, even though the Players Stadium Course can be anything but that. "I was really patient", he said. It was one shot better than Shane Lowry, who finished well after picking up shots on 16 and 17.
    Trump travel ban blocked; fight headed for Supreme Court

    Trump travel ban blocked; fight headed for Supreme Court

    Just hours after the ruling , the Department of Justice announced it would seek a review of the case in the Supreme Court . The Richmond , Va. -based 4th Circuit is the first appeals court to rule on the revised travel ban unveiled in March.
  • Will Joseph Kosinski Direct Top Gun 2?

    Will Joseph Kosinski Direct Top Gun 2?

    Tron Legacy Director Joseph Kosinski is the current frontrunner to direct the sequel taking over from the late Tony Scott. In January 2016, Bruckheimer also met Tom Cruise in New Orleans to discuss the film.

    They said we had a bad season but we have three trophies

    The Europa League became the club's third piece of silverware this season after they claimed the Community Shield and EFL Cup. We played for England, we played for Manchester and we played for them - the people who died.
    Mass Effect Andromeda Patch Fixes Nomad Shiled Crafting Quest

    Mass Effect Andromeda Patch Fixes Nomad Shiled Crafting Quest

    Reportedly, parent company EA Games has moved over a number of Bioware employees to its EA Motive, Montreal studio. Hopefully one day EA and BioWare will be able to revive Mass Effect , and bring it back to its former glory.
  • USA probe finds over 100 civilians killed in Mosul air strike

    Civil defense personnel search for bodies in the rubble of a building in the Mosul al Jadidah neighborhood of Mosul . Washington says Iraq requested the strike after Islamic State fighters began shooting at Iraqi forces .
    UAE minister sees chance for Iran to reset

    UAE minister sees chance for Iran to reset "troubled" ties with neighbours

    Elected for a second term, Iran's president says people "interaction with the world" over violence and extremism . Rohani handily beat his main challenger, the conservative ex-prosecutor Ebrahim Raisi in Saturday's elections .
    Govt scraps FIPB to further liberalise FDI regime

    Govt scraps FIPB to further liberalise FDI regime

    The FDI proposals above Rs 5,000 crore would continue to be cleared by the Cabinet Committee on Economic Affairs . FIPB was constituted under the Prime Minister's Office following economic liberalisation in the early 1990s.
  • Iran's Rouhani says missile tests will continue 'if necessary'

    Be proactive - Use the "Flag as Inappropriate" link at the upper right corner of each comment to let us know of abusive posts . Share with Us - We'd love to hear eyewitness accounts, the history behind an article, and smart, constructive criticism.
    Soldiers try to restore order in besieged Philippine city

    Soldiers try to restore order in besieged Philippine city

    The armed forces said they were on top of the situation but residents who fled told a different story. He says they must be stopped before it is too late.
    Siena Poll: Trump Deeply Unpopular in NY

    Siena Poll: Trump Deeply Unpopular in NY

    President Donald Trump's popularity in his home state continues to fall, according to a new poll out this morning. Among independents, Trump's approval rating fell from 42 percent in April to 34 percent now.

Andy Rubin's Essential may be unveiling its bezelless smartphone on May 30 Andy Rubin's Essential may be unveiling its bezelless smartphone on May 30 Furthermore, the iPhone 8 is expected to have an edgeless display as well, so Essential had better have more tricks up its sleeve. He's the father of Android, after all, which is why all eyes are going to be on him and his new company Essential on May 30.

United States to Increase Sanctions on N. Korea United States  to Increase Sanctions on N. Korea Iran and the world powers - the US, Britain, Russia, Germany, china and France - reached a nuclear deal in Vienna in July 2015. It covers plans for Aseman to buy 30 aircraft with options for a further 30, it added.

Dynamic duo? Agassi and Djokovic prepping for Paris Dynamic duo? Agassi and Djokovic prepping for Paris For the moment Djokovic's brother, Marko, and his spiritual guru, Pepe Imaz, have been helping out in recent weeks. Djokovic, who just turned 30, is the defending champion and seeking his second Roland Garros crown.

Derek Jeter, a dream fulfilled Jeter never won an MVP award, and it can be argued that he was rarely, if ever, the most valuable player on his team. While the New York Yankees reflected on Derek Jeter's past Sunday, The Captain wasn't eager to rush into the future.

British Land Company PLC (BLND) Insider Acquires £14674 in Stock The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. Shore Capital reaffirmed a "hold" rating on shares of Intermediate Capital Group plc in a research report on Thursday.

Trump in handshake showdown: Macron just won't let go Trump in handshake showdown: Macron just won't let go In that shake, Trump simply clamped down and refused to let go. World leaders, including French President Emmanu. Final tally: Trump 3, World 3.

Pablo Zabaleta to leave Manchester City in the summer I thought if they call us the noisy neighbours then let's make more noise in the city. At the clubs I worked at before, I am not here, but here we have a second chance".

Raids, arrests as on-edge United Kingdom seeks 'network' of attackers Raids, arrests as on-edge United Kingdom  seeks 'network' of attackers Grande cancelled concerts that were to take place Thursday and Friday in London, and in several other sites in Europe. The statement went on to say the damage is greater when information is leaked in the middle of a major investigation.

LeBron James overtakes Michael Jordan for most playoff points in National Basketball Association history LeBron James surpassed Michael Jordan for the top spot on the NBA's all-time playoff scoring list on Thursday night. Jordan required 179 games and 7,474 minutes over 15 seasons to score his 5,987 playoff points.

Manchester attack: Images of bomb released as police tighten net Manchester attack: Images of bomb released as police tighten net She said he had been known to security forces "up to a point". Onyanga-Omara reported from London , Bacon from McLean, Va. He said they pose a "grave threat" to national security.

Assassin's Creed: Origins Image Leaked Assassin's Creed: Origins Image Leaked The main storyline, on the other hand, follows the original Assassin's guild and we may be playing as an ancestor to Altair . Eurogamer also claims that the game will be a prequel, and will launch later this year for PC, Xbox One, and PlayStation 4.

Trump Told Russians Firing 'Nut Job' Comey Relieved Pressure on Him Trump has said that he thinks Flynn is a "good man" and regrets dismissing him and is apparently "obsessed" with defending him. But the Flynn situation has been different, several officials and advisers said.

'We can use peace': Trump and Pope Francis meet The move contradicted President Donald Trump's old criticism of former First Lady Michelle Obama for making a similar decision. The pope had presented Trump with a medallion engraved with an olive tree, the worldwide symbol of peace.

Hoffman shines in Colorado's win over slumping Phillies Hoffman shines in Colorado's win over slumping Phillies Nolan Arenado hit a two-run homer and the Rockies scored four runs off Phillies starter Jerad Eickhoff (0-5). Klentak said there was no thought of moving scuffling starter Vince Velasquez into the bullpen.

Dana White Announces "We're Moving on", Michael Bisping - GSP is Off Dana White Announces Why can't he get the title shot? St-Pierre recently inked a four-fight deal with the UFC. Then he's saying he doesn't want to fight Yoel, he wants to fight [Robert] Whittaker .