Putin: Success in Oil Production Cuts Due to Saudi Arabia

01 December, 2018, 11:53 | Author: Sally Reid
  • Petrol prices in India slide further as crude gets into $50 range

However, global benchmark brent crude rose 60 cents, or 1.02 per cent, to $59.36 a barrel, having settling down 2.4 per cent on Wednesday at $58.76 a barrel.

Front-month Brent futures fell 75 cents, or 1.3 per cent, to $58.76 a barrel by 1:18 p.m. EST, ahead of expiry. US benchmark West Texas Intermediate oil was trading at $50.15 on Friday.

Meanwhile, rising supplies are keeping a lid on prices.

"Oil prices bounced back late in the day on Friday on reports that the OPEC committee had suggested a 1.3 million barrel per day cut from the October level", said Fawad Razaqzada, market analyst at futures brokerage Forex.com.

Brent crude futures were last up 51 cents on the day at $59.27 a barrel, off an earlier session low of $57.50, while US crude futures rose 68 cents to $50.97. "If no action is taken, oil prices could certainly drop further, while a production cut should lead to a sizable rebound for these severely oversold levels". Next week's OPEC meeting would follow a gathering by the group of 20 nations in Argentina from November 30 to December 1.

Saudi Arabia and Nigeria are confident that the Opec and its partners will succeed in stabilizing prices, energy ministers Khalid al-Falih and Emmanuel Ibe Kachikwu told reporters in Abuja. "The level decided on would need to be seen in the light of the increase in output that Saudi Arabia and Russian Federation implemented in June, as a smaller cutback would just be reversing that most recent increase".

Surging oil production in the US, Russia and by members of the Middle East-dominated Opec countries has helped fill global inventories and create a glut in some markets.

Darbar to be completed by Guru Nanak’s 550th birth anniversary: PM Imran
The past teaches us that we must move forward. "This corridor is full of promise, it will bring the two countries close", he said. He said the construction of the corridor will stand completed before the next birth anniversary of Baba Guru Nanak in November.

The report from TRT World said that much of the country's economy depends greatly on the global oil market. Production C-OUT-T-EIA remained at a record 11.7 million barrels per day (bpd).

"I'm surprised and yet not surprised about the move lower this morning", PVM Oil Associates analyst Tamas Varga said.

The weakness in sentiment is visible in the Brent forward price curve, which now has prices for future delivery above those for immediate dispatch, a structure known as "contango", which can make it attractive to put oil into storage.

Since early October, both crude benchmarks have lost nearly a third in value as an emerging supply glut weighs on markets, as production has surged in the United States, Russia and also by the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC). Russian Federation wants more predictability and "smooth price dynamics" in world crude markets, Deputy Foreign Minister Sergei Ryabkov said in Buenos Aires.

Global production has been increasing and stands at record levels in Saudi Arabia and the US, while demand has been slowing, says Tariq Zahir, managing member of investment-advisory firm Tyche Capital Advisors.

Part of the glut is swelling supply in the United States, where commercial crude oil inventories C-STK-T-EIA rose by 3.6 million barrels in the week to November 23 to 450.49 million barrels, according to the Energy Information Administration (EIA).

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