TapForMobile

OPEC set to prolong oil cuts as delegates predict smooth meeting


Saudi Arabia is calling for an extension of the current agreement on global oil supply cuts.

Oil prices rose Friday, posting a second week of gains on growing expectations OPEC and other producing countries will agree at a meeting this week to extend crude output cuts.

Pradhan also discussed the effects of the production cut of 1.8 million barrels per day by OPEC and non-OPEC countries on the global oil scenario.

Despite this, James Woods, investment analyst at Australia's Rivkin Securities, said "the potential for deepening cuts remains limited".

Pradhan acknowledged that OPEC's production cuts are an attempt to stem the crude price slide, but said he was anxious that it could result in under-investment in the energy sector and push prices up in the long run.

“We think we have everybody on board, ” Al-Falih said in an interview with Bloomberg television in Riyadh. However, in a press conference held shortly after 12 p.m. ET, Luaibi said he agreed it was necessary to carry over the deal for another nine months.

And that means total United States crude production is likely to hit a record high this year, a scenario that may not only see the USA take market share away from other crude producers but also keep a lid on prices.

Saudi Arabia and Russian Federation, the biggest of the 24 producers in the accord - and which don't get on in other areas either - agreed last week that it should be extended until March.


The latest COT data recorded a small decline in the number of long, non-commercial crude positions on NYMEX, the fourth successive decline, although overall positioning was little changed on the week.

Price of the Brent crude oil at the London ICE (InterContinental Exchange Futures) rose $0.42 to trade at $54.03.

Late past year, the Organization of the Petroleum Exporting Countries and non-OPEC members reached a deal to cut production by 1.8 million barrels a day for six months, staring from January 2017.

OPEC and other producers, including Russian Federation, meet in Vienna on May 25.

The IEA, a Paris-based energy watchdog for consumer countries, warned this month that even with better oil demand and continued supply restraint, absorbing the enormous glut of oil will be slow going this year.

He said he saw the oil Industry at a "delicate crossroad" and higher crude prices would, according to him, give a further push to renewables.

Papa, who helped create the shale industry more than a decade ago, estimated that average USA output would be 450,000 barrels a day higher this year, the delegates said.

Last November, major oil producers agreed to cut output as a response to the global supply glut that had been pushing down prices for nearly two years.

Related Articles

  • Kildare South TD Martin Heydon pays tribute to retiring Taoiseach Enda Kenny

    Kenny tweeted a statement as that meeting began, confirming his plans, ahead of the news being leaked in other ways. Kenny was due to step down at midnight to become acting party leader until a successor is chosen.
    BMW and Toyota among four carmakers to pay $553m Takata settlement

    BMW and Toyota among four carmakers to pay $553m Takata settlement

    Automakers have recalled 46 million Takata air bag inflators in 29 million USA vehicles as of Dec 2016. The problem touched off the largest automotive recall in USA history involving 42 million vehicles.
    Free Agent DB McCourty Signs 2-year Deal With Browns

    Free Agent DB McCourty Signs 2-year Deal With Browns

    Heading into the upcoming season, it appears as though McCourty will be an immediate starter on the opposite side of Haden. Jason McCourty did his homework on the Browns , and it started well before he knew they'd even be an option for him.
  • Stanley Cup playoffs: Aberg's goal carries Predators past Ducks in Game 5

    Stanley Cup playoffs: Aberg's goal carries Predators past Ducks in Game 5

    Anaheim also played its ninth consecutive game without Eaves, who scored a combined 32 goals this season for Dallas and the Ducks. The Predators can close out the series Monday night at Bridgestone Arena when they host Game 6 of the Western Conference Final.
    Foot Locker Stock Plunges on Sales Miss Amid Retail Headwinds

    Foot Locker Stock Plunges on Sales Miss Amid Retail Headwinds

    As of April 29, 2017, the company operated 3,354 stores in 23 countries in North America, Europe, Australia, and New Zealand. COPYRIGHT VIOLATION NOTICE: "State Treasurer State of Michigan Cuts Position in Foot Locker, Inc ".
    Real Madrid to pay Malaga €1 million if they win La Liga

    Real Madrid to pay Malaga €1 million if they win La Liga

    Real Madrid just need one point in their last league game against Malaga after winning their outstanding game against Celta Vigo. Real Madrid would be deserving LaLiga champions if they can finish the job against Malaga , according to midfielder Casemiro.
  • Assange expresses readiness for dialogue with UK, US

    Assange expresses readiness for dialogue with UK, US

    The London Metropolitan Police , however, made it clear in a statement that there was an outstanding arrest warrant for Assange. Assange's lawyer, Per E Samuelsson, told Swedish Radio the decision was "a total victory" for his client.
    Cricket Legend Meets PM Modi Ahead Of Movie Release

    Cricket Legend Meets PM Modi Ahead Of Movie Release

    The film has already been declared tax-free in Kerala and Chhattisgarh. Produced by Ravi Bhagchandka of 200NotOut and Dr.
    Ford SYNC 3 Wireless Update Brings Apple CarPlay to 2016 Models

    Ford SYNC 3 Wireless Update Brings Apple CarPlay to 2016 Models

    Android Auto and Apple CarPlay allow users to control many of their smartphone features and apps by using the vehicle's controls. Though Ford has been issuing SYNC upgrades since 2009, this is the first time the company is offering an update via Wi-Fi.
  • Third cast member to depart after this season

    Third cast member to depart after this season

    Rumors started circulating late Saturday night of a third departure, but producers hadn't confirmed the news as of this writing. Sasheer Zamata is leaving "Saturday Night Live". " Saturday Night Live " is saying goodbye to yet another cast member.
    'Twin Peaks' is BACK to confuse and confound

    'Twin Peaks' is BACK to confuse and confound

    The show captured the minds of viewers over two (tbh uneven) series and one dastardly prequel film in the early 1990s. Check into the Twin Peaks refresher ahead of Sunday's premiere to get caught up on all the important details.

    Mortgage rates retreat amid political turmoil in Washington

    Only small changes have been noted to 10-year Treasury yields , which often mirror mortgage rate trends. The 5/1 ARM interest rates at PHH Mortgage are available starting at 3.310% and an April of 3.853%.

Comments