Sunday, 23 September, 2018

Oil prices slip on expectations of rising OPEC, Russian supplies

Saudi Arabia’s energy minister may face his toughest test when OPEC members meet. Bloomberg’s Heesu Lee reports Saudi Arabia’s energy minister may face his toughest test when OPEC members meet. Bloomberg’s Heesu Lee reports
Kenneth Drake | 22 June, 2018, 16:13

Yet any output increase agreement could be muted because other OPEC members including Iraq said last week that production cuts should be maintained because prices still need support.

But it's Iran and Venezuela-founding OPEC members and those most affected by USA sanctions and unable to boost production-that are most vehemently opposing an increase in the cartel's production.

"Looking ahead, I remain optimistic that we will fulfil our goal of delivering sustainable oil market stability, which is meant to serve the long term interests of producers, consumers and the global economy", Al Mazrouei said in a statement issued by the ministry ahead of 174th Meeting of the OPEC Conference next week in Vienna, Austria.

But that is easier said than done as increasing production would not be easy; even if Russian Federation is non-OPEC, it has tended to go with the bloc, which takes unanimous decisions on production cuts or increases. But oil price should not be out of reach. That crimped the country's ability to export crude, limiting supply and pushing up global prices. Both countries have spare production capacity and raising output even at lower prices would yield significant returns. The final decision needs to be unanimous for OPEC, however, and many analysts expect the meeting to be a disaster.

The oil ministers of the OPEC cartel are arriving in Vienna to discuss this week whether to increase production of crude oil and help ease the price of global energy.

World oil demand in 2018 is forecast to grow by 1.65 mb/d, broadly unchanged from previous month's assessment, to stand at 98.85 mb/d.


The Organization of the Petroleum Exporting Countries and allies, which have curbed supplies since 2017, meet on Friday in Vienna, where they had been expected to come to a decision as to whether to increase global oil production, and by how much.

It warned the United Kingdom economy was set to grow at its weakest level since 2009 due to the uncertainty surrounding the split from the European Union, rising oil prices and trade war fears.

In an escalating spat over the American trade deficit with most of its major trading partners, including China, US President Donald Trump last week pushed ahead with hefty tariffs on $50 billion of Chinese imports, starting on July 6.

"It's really a double whammy for Iran", Smith says, "from the perspective that because sanctions are being placed on them, they're not going to be able to export as much, because they probably won't be able to send crude into Europe".

This suggests that there has been a rebalancing after years of an overwhelming oversupply of the commodity; equally, it could also point to underlying concerns that have been evident for some time, that some members no longer wish to comply with OPEC's production cut deal. "We are trying to control the prices", he told.

While Iran said on Sunday it was opposed to any increase to current quotas, officials from a number of other countries are optimistic that an agreement can be won for a relatively modest hike at this week's meeting in Vienna, the people said, asking not to be named.

Recommended

European Union slaps retaliatory tariffs on USA as trade war rattles markets European Union  slaps retaliatory tariffs on USA  as trade war rattles markets The countries have hit each other with tariffs on $50 billion worth of goods; Trump has threatened to add another $200 billion . The rising tensions and the chaos surrounding the steel and aluminum tariffs are starting to generate pushback on Capitol Hill.

Time Magazine Cover Features Trump And Migrant Toddler Time Magazine Cover Features Trump And Migrant Toddler Time magazine's new cover places a crying immigrant girl at the feet of US President Donald Trump . And the separation from their parents is traumatic enough to be likened to torture .

Governor’s rule won’t affect ongoing military operations in J&K: Army Chief Governor’s rule won’t affect ongoing military operations in J&K: Army Chief He said the decision was not abrupt and was taken after three month long deliberations in the larger interest of the nation. Keeping it suspended has encouraged dalals", Omar said.

Sergio Ramos hits back at Diego Maradona with huge Lionel Messi claim Sergio Ramos hits back at Diego Maradona with huge Lionel Messi claim Fortunately people love him and transmit that to him and he values that a lot. "I still think we can improve in all aspects". Paulo Dybala believes he can play alongside "the best player in the world" Lionel Messi for Argentina .

Sara Netanyahu's lawyer: Fraud indictment is 'ridiculous and bizarre' Sara Netanyahu's lawyer: Fraud indictment is 'ridiculous and bizarre' He is also being investigated in a third case, and some of his close associates are being investigated in an additional case. The justice ministry announced that "the Jerusalem district prosecutor. filed charges against the prime minister's wife".

Turnbull congratulates New Zealand PM Jacinda Ardern on birth of baby girl Turnbull congratulates New Zealand PM Jacinda Ardern on birth of baby girl UK Prime Minister Theresa May and Australia's Labor Party leader Bill Shorten also congratulated the couple on the birth. An instagram of the baby captioned "Welcome to our village wee one", had reached 10,000 likes after just a few minutes.

Instagram competes with YouTube, launches long videos Instagram chief executive Kevin Systrom announced the milestone as he unveiled the new video application known as IGTV. Up until now, video uploads were limited to just one minute on Instagram, but IGTV extends that limit to an hour.

United Kingdom vows to vote against Palestine at UN Human Rights Council United Kingdom  vows to vote against Palestine at UN Human Rights Council Ambassador to the UN Nikki Haley plan to announce the withdrawal at the State Department in Washington at 5 p.m." today. Added Kenneth Roth, the executive director of Human Rights Watch: "All Trump seems to care about is defending Israel".

Trump, U.S. Republicans to meet amid furor over immigrant children Trump, U.S. Republicans to meet amid furor over immigrant children One reporter claimed that the separations began only after the administration launched it's zero-tolerance policy. There is TVs", Nielsen said at Monday's White House press briefing.

Republicans turn on Trump's 'cruel' border policy Republicans turn on Trump's 'cruel' border policy Under the Obama administration, such families were usually referred for civil deportation proceedings, not requiring separation. Earlier in the day, he issued a series of tweets and claimed that crime has risen in Germany as a result of migration.

Almost 2,000 children separated from adults at border: US - International Almost  2,000 children separated from adults at border: US - International The Obama administration also detained illegal immigrants at the border, but would detain parents and children together . The official tally of separations is now almost 4,000 children, not including March and the beginning of April 2018.

Chart-topping rapper XXXTentacion shot dead at 20 Cole had similarly kind words, calling him an "enormous talent" and saying he had a "strong desire to be a better person". Videos of what appeared to be Onfroy unresponsive in the driver seat of a vehicle circulated on social media Monday.

Stocks sink as new Trump tariff threat spooks investors Stocks sink as new Trump tariff threat spooks investors If Trump does impose these additional tariffs, the USA will have imposed tariffs on $450 billion in Chinese goods. The White House hasn't set a date for the imposition of any new tariffs beyond the initial list.

Strong M5.9 quake , lower 6 on Japana scale, rocks northern Osaka Strong M5.9 quake , lower 6 on Japana scale, rocks northern Osaka No abnormalities were reported at the Takahama, Mihama and Oi nuclear plants in central Japan, according to Kansai Electric. Daihatsu Motor Co, a unit of Toyota Motor Corp, stopped its factories in Osaka and Kyoto while it checked for damage.

Former Trump campaign chairman Manafort sent to jail Former Trump campaign chairman Manafort sent to jail Kilimnik, whom USA authorities suspect of having ties to Russian intelligence, served as Manafort's point man in Ukraine. The judge said that, although she had "struggled" with the decision, she couldn't "turn a blind eye" to his behavior.