Home » Money

Oil price up nearly 1% as Opec defers extending output cuts

24 September, 2017, 00:56 | Author: Samuel Sharp
  • Reuters

The trend toward lower storage should eventually help reverse bearishness on oil, Nine Points Partners portfolio manager Eric Nuttall said, adding that oil production growth in the USA has been flat for five months.

"The average is about 1.69 million bpd and it is getting better by the day", Nigerian oil minister Emmanuel Ibe Kachikwu told reporters in Vienna, where he attended a meeting of OPEC and non-OPEC ministers to review the deal.

Oil prices slipped on Thursday, giving up some recent gains before a meeting of oil producers that could extend production limits aimed at clearing a glut in supplies that has depressed the market for more than three years.

Members of the OPEC+ agreement on crude production cap note lower volatility on the oil market, he said, adding that oil prices are 30% higher versus the first half of past year.

He also said that although Nigeria was not a member of the five nation JMMC, the country was in support of and had confidence in the work of the committee to stabilise the market.

The JMMC was set up following OPEC's 171st Ministerial Conference on November 30, 2016.

In addition, rising crude prices have encouraged United States shale oil producers to ramp up output, a further reason why the drawdown on global inventories has taken longer than expected.

The initial production cut agreement, which came into effect January 1, 2017, was for six months.


Speaking at the opening of a meeting of some OPEC and non-OPEC ministers, he said oil market fundamentals were normalizing.

OPEC members and other key producers are meeting later today to discuss the production-curb agreement.

The OPEC/non-OPEC joint panel on monitoring the cuts, which consists of OPEC's Kuwait, Venezuela, and Algeria, as well as non-OPEC Russia and Oman, is expected to discuss on Friday in Vienna a recommendation for monitoring exports, Bloomberg reports, citing two delegates who spoke on the condition of anonymity. Compliance with the production cuts recently has been at or above 100% after a rocky start.

Marco Dunand, chief executive officer for Mercuria, said, "The market is selling inventories from everywhere".

"The decrease in Saudi oil exports along with these frequent meetings indicate that there is a strong desire to balance the market", said Anas Alhajji, an independent energy expert and former chief economist at NGP Energy Capital Management.

Russian Energy Minister Alexander Novak says deliveries of Iranian crude to his country under the "oil-for-goods" program can start shortly.

The report however noted that another 170 million barrels of stock overhang remained to be depleted.

Recommended:

  • American soul singer Charles Bradley dies aged 68

    American soul singer Charles Bradley dies aged 68

    The soul singer Charles Bradley , one of the most joyful and powerful contemporary vocalists in his genre, died Saturday morning. Bradley was diagnosed with stomach cancer a year ago and beat the cancer, but it came back recently and spread to his liver.
    Facebook will turn Russian ads over to congressional investigators

    Facebook will turn Russian ads over to congressional investigators

    Going forward - and perhaps the most important step we're taking - we're going to make political advertising more transparent. We are deeply committed to safeguarding user content, regardless of the user's nationality, and ads are user content.
    Watch America's Got Talent season 12 finale online

    Watch America's Got Talent season 12 finale online

    And your voice and your song and your presence here is that light at the end of the tunnel. "I don't know. Harvey then told host Tyra Banks , "There's really not much you can do if you stay on the ground".
  • Turkish parliament extends mandate for troops in Iraq, Syria

    Turkish parliament extends mandate for troops in Iraq, Syria

    A "yes" vote in the independence referendum would not spell immediate independence for the Kurdish region, since the referendum does not have legal force.
    Turn your Google Home into a portable speaker with LOFT

    Turn your Google Home into a portable speaker with LOFT

    For those wondering how LOFT attaches to the Google Home, it attaches to the magnetic base system on the smart speaker. The carbon color pre-orders will ship around mid-October while the snow and copper will ship later in the month.
    Taylor Swift Flipped Out After Meeting Her Clones from the

    Taylor Swift Flipped Out After Meeting Her Clones from the "LWYMMD" Video

    Considering Look What You Made Me Do has annihilated video streaming records, it was probably money well spent. I just wanted @taylorswift to see and know that her music has been a part of my life since 2006.
  • Sensex drops 232 points on rupee slipping to 4-month low

    Sensex drops 232 points on rupee slipping to 4-month low

    The Nifty started the week at 10,133.10 and marked new life highs at 10,178.95 and a low of 9,952.80. Nifty Metal index melted up to 3 per cent, with Jindal Steel & Power plunging over 6 per cent.
    Morata hat trick keeps Chelsea near top of EPL

    Morata hat trick keeps Chelsea near top of EPL

    Romelu Lukaku scored the only goal as Manchester United clinched a hard-fought 1-0 win over Southampton at St Mary's Stadium. While we're assuming that Christensen has that job, that means that one of Cahill or Rudiger would have to miss out.
    US Considering Shooting Down Any Missiles From North Korea, Reports Claim

    US Considering Shooting Down Any Missiles From North Korea, Reports Claim

    The US is "disseminating the fraudulent claim that the sanctions and pressure are geared to the so-called peaceful solution". Trump is expected to announce additional sanctions about North Korea on Thursday over its nuclear weapons program.
  • Bose Updates Its Most-Loved Headphones

    Bose Updates Its Most-Loved Headphones

    Then again, for most people, that's likely also the point when they stop using their headphones, period. The two companies worked closely to "create a great Assistant experience", one that will cost you $350.
    Ex-NFL star Hernandez had 'severe' CTE brain disease: lawyer

    Ex-NFL star Hernandez had 'severe' CTE brain disease: lawyer

    Researchers at Boston University, the leading center studying CTE, found pronounced signs the disease in Hernandez's brain. The center released a statement saying Hernandez had Stage 3 CTE; the scale runs from one to four.
    USA  to dispatch carrier strike group to Korean Peninsula again

    USA to dispatch carrier strike group to Korean Peninsula again

    Mattis explained the recent threats by North Korea and how the U.S. will deal with the alleged threats to them and their allies. "We have to look at that capability of North Korea as a matter of when, not if", Hyten, commander of U.S.


Popular

North Korea Threatens Hydrogen Bomb Test Over Pacific Ocean
Tensions have continued to rise since North Korea carried out its last test, prompting a new round of United Nations sanctions . Trump said that the United States may ultimately left with no choice but to " totally destroy " North Korea.

U.S. study argues for tougher rules of origin under NAFTA
It has been credited with booming trade between the three nations. Mexico and Canada are particularly important export markets. Most were optimistic about the negotiations.

Updates from La Liga trip to Alaves for Cristiano Ronaldo and co
Ceballos received a pass from Marco Asensio , fought through a tackle, and shot just inside the post for the opener. Father and son will be reunited, albeit on opposite sides of the ball, when Madrid visits the Basque Country club.

Tax official's kidnapped son found murdered near Bengaluru
Six men arrested by the police for the kidnapping reportedly led the police to the place where they had buried the 19-year-old. Ten days after a 19-year-old Bengaluru youth was kidnapped, his body was recovered from near a Bengaluru lake on Friday.

China rejects threats as solution for North Korea nuclear crisis
Nikki Haley said the sanctions need time to work and maintained hope that Pyongyang would return to the negotiating table. China's foreign ministry said Monday that military threats being made by North Korea and the US were counterproductive.

Kylie Jenner pregnant, expecting first child with boyfriend Travis Scott, reports say
Jenner , 20, began dating 25-year-old Scott, a rapper and producer affiliated with brother-in-law Kanye West's GOOD Music label, only back in April.

Japan Open: Prannoy, Srikanth storm into quarters, Sindhu ousted
For the first time in a match against Okuhara, Sindhu failed to make it to the double digits, surrendering the game 21-8. This was the ninth career meeting between the two and Nozomi now has a 5-4 advantage with this win.

SEC says it was hacked, possibly resulting in illegal profits
Such attacks undermine confidence in financial markets and can create risks for investors and consumers, the SEC said. It was also discovered that staff have used private, unsecured email accounts to transfer confidential information.

India, China will reshape world, says Rahul Gandhi
It is a deeper problem, so we have to first accept it as a problem and then we have to unite at solving it. However, he stressed that despite " Make In India " being a good idea, it's targeting is not quite right.

Toshiba flips back to favoring Western Digital group for chip unit sale
The transaction includes Toshiba's $3.1 billion investment in the unit, as well as stakes from Apple Inc . It's not clear exactly how much capital Apple will ultimately contribute to the offer.