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Organisation of Petroleum Exporting Countries (OPEC)

  •  The Organisation of the Petroleum Exporting Countries OPEC and allied oil producers AOP on Thursday set to meet in Vienna to coordinate their production policies as global energy demand is expected to fall On Thursday oil ministers from the 14 OPEC countries are gathering at the cartel s headquarters to discuss possible output reductions On Friday colleagues from 10 additional countries including Russia are set to join them to draw up a common policy The Paris based International Energy Agency estimates that global demand for crude oil will drop for the first time in 10 years in 2020 OPEC s latest forecast noted that in February demand would increase in 2020 but at a slower rate than expected The cartel s analysts argued that the COVID 19 respiratory disease would especially reduce transport and manufacturing in China where the outbreak originated However an advisory committee of the 24 oil producers recommended ahead of the meeting that their joint output should be cut by 600 000 barrels per day bpd around 0 6 per cent of global production This would come on top of previous reductions that have been put in place in recent years to shore up prices it said However the European benchmark price had in recent time dropped sharply from nearly 69 per barrels in early January to around 50 Some analysts believe that the Vienna talks could result in a decision to curb output by significantly more than 600 000 bpd According to Commerzbank commodity expert Carsten Fritsch I assume that there will be a cut by another one million barrels per day Edited By Yahaya Isah Abdulfatah Babatunde NAN
    Oil producers debate production cuts as virus outbreak weaken demand
     The Organisation of the Petroleum Exporting Countries OPEC and allied oil producers AOP on Thursday set to meet in Vienna to coordinate their production policies as global energy demand is expected to fall On Thursday oil ministers from the 14 OPEC countries are gathering at the cartel s headquarters to discuss possible output reductions On Friday colleagues from 10 additional countries including Russia are set to join them to draw up a common policy The Paris based International Energy Agency estimates that global demand for crude oil will drop for the first time in 10 years in 2020 OPEC s latest forecast noted that in February demand would increase in 2020 but at a slower rate than expected The cartel s analysts argued that the COVID 19 respiratory disease would especially reduce transport and manufacturing in China where the outbreak originated However an advisory committee of the 24 oil producers recommended ahead of the meeting that their joint output should be cut by 600 000 barrels per day bpd around 0 6 per cent of global production This would come on top of previous reductions that have been put in place in recent years to shore up prices it said However the European benchmark price had in recent time dropped sharply from nearly 69 per barrels in early January to around 50 Some analysts believe that the Vienna talks could result in a decision to curb output by significantly more than 600 000 bpd According to Commerzbank commodity expert Carsten Fritsch I assume that there will be a cut by another one million barrels per day Edited By Yahaya Isah Abdulfatah Babatunde NAN
    Oil producers debate production cuts as virus outbreak weaken demand
    Foreign3 years ago

    Oil producers debate production cuts as virus outbreak weaken demand

    The Organisation of the Petroleum Exporting Countries (OPEC) and allied oil producers (AOP) on Thursday set to meet in Vienna to coordinate their production policies as global energy demand is expected to fall.

    On Thursday, oil ministers from the 14 OPEC countries are gathering at the cartel’s headquarters to discuss possible output reductions.

    On Friday, colleagues from 10 additional countries, including Russia, are set to join them to draw up a common policy.

    The Paris-based International Energy Agency estimates that global demand for crude oil will drop for the first time in 10 years in 2020.

    OPEC’s latest forecast noted that in February, demand would increase in 2020 but at a slower rate than expected.

    The cartel’s analysts argued that the COVID-19 respiratory disease would, especially reduce transport and manufacturing in China, where the outbreak originated.

    However, an advisory committee of the 24 oil producers recommended, ahead of the meeting, that their joint output should be cut by 600,000 barrels per day (bpd), around 0.6 per cent of global production.

    “This would come on top of previous reductions that have been put in place in recent years to shore up prices,’’ it said.

    However, the European benchmark price had, in recent time, dropped sharply from nearly $69 per barrels in early January to around $50.

    Some analysts believe that the Vienna talks could result in a decision to curb output by significantly more than 600,000 bpd.

    According to Commerzbank commodity expert, Carsten Fritsch, “I assume that there will be a cut by another one million barrels per day’’.


    Edited By: Yahaya Isah/Abdulfatah Babatunde (NAN)

  •   China ramped up efforts to blunt the potential economic impact of the coronavirus outbreak on Wednesday as Chinese President Xi Jinping pledged tax cuts and other forms of support for businesses The coronavirus outbreak in China has affected tens of thousands of people across the country triggering lockdowns travel bans and quarantines for entire regions that threaten to create supply chain bottlenecks and cripple factory operations Xi chaired a meeting of the Politburo Standing Committee China s top leadership group which called for tax cuts and the reduction of interest rates to reduce the virus impact on private and small businesses The committee also called for increased capital investment and the allocation of local funds for the prevention and control of the epidemic according to state broadcaster CCTV China s local governments have also been tasked with establishing ways to assist companies especially small and privately owned enterprises the committee said The announcement of the measures came after the Organisation of the Petroleum Exporting Countries OPEC downgraded its market forecast because of the outbreak The spread of the virus and the newly named Covid 19 illness it carries hurt demand for transportation fuel at China s peak travel season for the Lunar New Year and it affected the industrial sector in the world s second biggest economy OPEC analysts noted OPEC said global demand for oil will grow more slowly than expected this year expanding by 990 000 barrels per day bpd to average 100 73 million bpd this year which is 230 000 bpd fewer than the 14 country group had projected last month The outbreak of the coronavirus in China during the first half of 2020 is the major factor behind this downward revision the cartel s monthly market report said The virus which broke out at a food market in the central Chinese industrial hub of Wuhan in December is having an impact on the international sports world as well Formula One has cancelled the Chinese Grand Prix in Shanghai on April 19 because of the outbreak of the coronavirus with motorsport federation FIA saying a request from the promoter to postpone the race had been accepted Several other sports have been affected including the world indoor athletics championships in Nanjing World Cup alpine ski races in Yanqing and the international horse show in Hong Kong Football games including those in the Asian Champions League have been rescheduled Organisers of the 2020 Olympics in Tokyo from July 24 to August 9 have also expressed their concern The number of people infected with the new coronavirus reached 44 653 in China on Wednesday and Japan became the country with the highest number of cases outside China reporting 174 infections Ninety seven deaths and 2 015 new infections were reported over a 24 hour interval in mainland China according to the country s National Health Commission The total death toll in China climbed to 1 113 Two other patients have died in the Philippines and Hong Kong Europe has also been affected by the virus with nearly three dozen confirmed cases in Germany 16 France 11 and Britain 8 Edited By Halima Sheji Isaac Aregbesola
    China’s Xi offers tax cuts to blunt economic impact of coronavirus
      China ramped up efforts to blunt the potential economic impact of the coronavirus outbreak on Wednesday as Chinese President Xi Jinping pledged tax cuts and other forms of support for businesses The coronavirus outbreak in China has affected tens of thousands of people across the country triggering lockdowns travel bans and quarantines for entire regions that threaten to create supply chain bottlenecks and cripple factory operations Xi chaired a meeting of the Politburo Standing Committee China s top leadership group which called for tax cuts and the reduction of interest rates to reduce the virus impact on private and small businesses The committee also called for increased capital investment and the allocation of local funds for the prevention and control of the epidemic according to state broadcaster CCTV China s local governments have also been tasked with establishing ways to assist companies especially small and privately owned enterprises the committee said The announcement of the measures came after the Organisation of the Petroleum Exporting Countries OPEC downgraded its market forecast because of the outbreak The spread of the virus and the newly named Covid 19 illness it carries hurt demand for transportation fuel at China s peak travel season for the Lunar New Year and it affected the industrial sector in the world s second biggest economy OPEC analysts noted OPEC said global demand for oil will grow more slowly than expected this year expanding by 990 000 barrels per day bpd to average 100 73 million bpd this year which is 230 000 bpd fewer than the 14 country group had projected last month The outbreak of the coronavirus in China during the first half of 2020 is the major factor behind this downward revision the cartel s monthly market report said The virus which broke out at a food market in the central Chinese industrial hub of Wuhan in December is having an impact on the international sports world as well Formula One has cancelled the Chinese Grand Prix in Shanghai on April 19 because of the outbreak of the coronavirus with motorsport federation FIA saying a request from the promoter to postpone the race had been accepted Several other sports have been affected including the world indoor athletics championships in Nanjing World Cup alpine ski races in Yanqing and the international horse show in Hong Kong Football games including those in the Asian Champions League have been rescheduled Organisers of the 2020 Olympics in Tokyo from July 24 to August 9 have also expressed their concern The number of people infected with the new coronavirus reached 44 653 in China on Wednesday and Japan became the country with the highest number of cases outside China reporting 174 infections Ninety seven deaths and 2 015 new infections were reported over a 24 hour interval in mainland China according to the country s National Health Commission The total death toll in China climbed to 1 113 Two other patients have died in the Philippines and Hong Kong Europe has also been affected by the virus with nearly three dozen confirmed cases in Germany 16 France 11 and Britain 8 Edited By Halima Sheji Isaac Aregbesola
    China’s Xi offers tax cuts to blunt economic impact of coronavirus
    Foreign3 years ago

    China’s Xi offers tax cuts to blunt economic impact of coronavirus

      China ramped up efforts to blunt the potential economic impact of the coronavirus outbreak on Wednesday as Chinese President Xi Jinping pledged tax cuts and other forms of support for businesses.

    The coronavirus outbreak in China has affected tens of thousands of people across the country, triggering lockdowns, travel bans and quarantines for entire regions that threaten to create supply chain bottlenecks and cripple factory operations.

    Xi chaired a meeting of the Politburo Standing Committee, China’s top leadership group, which called for tax cuts and the reduction of interest rates to reduce the virus’ impact on private and small businesses.

    The committee also called for increased capital investment and the allocation of local funds for the prevention and control of the epidemic, according to state broadcaster CCTV.

    China’s local governments have also been tasked with establishing ways to assist companies, especially small and privately owned enterprises, the committee said.

    The announcement of the measures came after the Organisation of the Petroleum Exporting Countries (OPEC) downgraded its market forecast because of the outbreak.

    The spread of the virus and the newly-named Covid-19 illness it carries hurt demand for transportation fuel at China’s peak travel season for the Lunar New Year, and it affected the industrial sector in the world’s second biggest economy, OPEC analysts noted.

    OPEC said global demand for oil will grow more slowly than expected this year expanding by 990,000 barrels per day (bpd) to average 100.73 million bpd this year, which is 230,000 bpd fewer than the 14-country group had projected last month.

    “The outbreak of the coronavirus in China during the first half of 2020 is the major factor behind this downward revision,’’ the cartel’s monthly market report said.

    The virus, which broke out at a food market in the central Chinese industrial hub of Wuhan in December, is having an impact on the international sports world as well.

    Formula One has cancelled the Chinese Grand Prix in Shanghai on April 19 because of the outbreak of the coronavirus; with motorsport federation FIA saying a request from the promoter to postpone the race had been accepted.

    Several other sports have been affected, including the world indoor athletics championships in Nanjing, World Cup alpine ski races in Yanqing and the international horse show in Hong Kong.

    Football games including those in the Asian Champions League have been rescheduled.

    Organisers of the 2020 Olympics in Tokyo from July 24 to August 9 have also expressed their concern.

    The number of people infected with the new coronavirus reached 44,653 in China on Wednesday, and Japan became the country with the highest number of cases outside China, reporting 174 infections.

    Ninety-seven deaths and 2,015 new infections were reported over a 24-hour interval in mainland China, according to the country’s National Health Commission.

    The total death toll in China climbed to 1,113.

    Two other patients have died in the Philippines and Hong Kong.

    Europe has also been affected by the virus, with nearly three dozen confirmed cases in Germany (16), France (11) and Britain (8).


    Edited By: Halima Sheji/Isaac Aregbesola

  •  A group of major oil producing countries on Monday called for a further reduction to their output until June amid the coronavirus fears The oil producing countries while summing up their recent talks in Vienna agreed that the coronavirus is dampening global energy demand A committee that advises the 14 members of the Organisation of the Petroleum Exporting Countries OPEC and 10 additional countries including Russia made the recommendation A further adjustment in production until the end of the second quarter of 2020 on top of the production curbs that are already in place Algerian Energy Minister Mohamed Arkab who currently serves as OPEC president added that the coronavirus epidemic was having a negative impact on economic activities The coronavirus epidemic is having a negative impact on economic activities particularly on the transportation tourism and industry sectors particularly in China and also increasingly in the Asian region and gradually in the world he added Arkab said that he would consult with those among the 24 oil producers who are not part of the advisory committee that met last week in Vienna in order to reach consensus on the way forward The situation is clear It requires corrective action in the interest of all Arkab stated The next decision making meetings among OPEC and non OPEC oil ministers are scheduled on March 5 and 6 in Vienna Earlier the benchmark U S oil price fell below 50 dollars per barrel for the first time in around a year as markets were rattled by worries that the coronavirus could hurt global economic growth Edited By Hadiza Mohammed Emmanuel Yashim
    Oil producers recommend further output cut in reaction to coronavirus
     A group of major oil producing countries on Monday called for a further reduction to their output until June amid the coronavirus fears The oil producing countries while summing up their recent talks in Vienna agreed that the coronavirus is dampening global energy demand A committee that advises the 14 members of the Organisation of the Petroleum Exporting Countries OPEC and 10 additional countries including Russia made the recommendation A further adjustment in production until the end of the second quarter of 2020 on top of the production curbs that are already in place Algerian Energy Minister Mohamed Arkab who currently serves as OPEC president added that the coronavirus epidemic was having a negative impact on economic activities The coronavirus epidemic is having a negative impact on economic activities particularly on the transportation tourism and industry sectors particularly in China and also increasingly in the Asian region and gradually in the world he added Arkab said that he would consult with those among the 24 oil producers who are not part of the advisory committee that met last week in Vienna in order to reach consensus on the way forward The situation is clear It requires corrective action in the interest of all Arkab stated The next decision making meetings among OPEC and non OPEC oil ministers are scheduled on March 5 and 6 in Vienna Earlier the benchmark U S oil price fell below 50 dollars per barrel for the first time in around a year as markets were rattled by worries that the coronavirus could hurt global economic growth Edited By Hadiza Mohammed Emmanuel Yashim
    Oil producers recommend further output cut in reaction to coronavirus
    Foreign3 years ago

    Oil producers recommend further output cut in reaction to coronavirus

    A group of major oil-producing countries on Monday called for a further reduction to their output until June amid the coronavirus fears.

    The oil producing countries while summing up their recent talks in Vienna, agreed that the coronavirus “is dampening global energy demand”.

    A committee that advises the 14 members of the Organisation of the Petroleum Exporting Countries (OPEC) and 10 additional countries including Russia made the recommendation.

    “A further adjustment in production until the end of the second quarter of 2020 on top of the production curbs that are already in place.’’

    Algerian Energy Minister Mohamed Arkab, who currently serves as OPEC president added that the coronavirus epidemic was having a negative impact on economic activities.

    “The coronavirus epidemic is having a negative impact on economic activities, particularly on the transportation, tourism, and industry sectors, particularly in China, and also increasingly in the Asian region and gradually in the world,” he added.

    Arkab said that he would consult with those among the 24 oil producers who are not part of the advisory committee that met last week in Vienna, in order to reach consensus on the way forward.

    “The situation is clear. It requires corrective action in the interest of all,’’ Arkab stated.

    The next decision-making meetings among OPEC and non-OPEC oil ministers are scheduled on March 5 and 6 in Vienna.

    Earlier, the benchmark U.S. oil price fell below 50 dollars per barrel for the first time in around a year, as markets were rattled by worries that the coronavirus could hurt global economic growth.


    Edited By: Hadiza Mohammed/Emmanuel Yashim

  •  Saudi Arabia is closely monitoring developments in global oil markets resulting from gloomy expectations regarding the possible impact of the coronavirus on the Chinese and global economy its energy minister said on Monday OPEC and its allies can respond to any impact on the stability of the oil market if needed Prince Abdulaziz bin Salman said Salman added that he was confident the Chinese government and international community could contain the spread of the virus and fully eradicate it The minister said the current impact on global markets including oil and other commodities was primarily driven by psychological factors and extremely negative expectations adopted by some market participants in spite of its very limited impact on global oil demand Crude prices fell more than two per cent to multi month lows as the rising number of cases of the coronavirus in China and city lockdowns there deepened concerns over oil demand Brent crude fell by 1 36 dollars a barrel or 2 2 per cent to 59 33 dollars by 0425 GMT having earlier dropped to 58 68 dollars its lowest since late October U S crude was down by 1 30 dollars or 2 4 per cent to 52 89 dollars having earlier eased to 52 15 dollars its lowest since early October While most markets are being impacted by the spread of the coronavirus many are closed in Asia due to Lunar New Year holidays Such extreme pessimism occurred back in 2003 during the SARS outbreak though it did not cause a significant reduction in oil demand Prince Abdulaziz said in a statement He said he was confident the kingdom and other members of the Organisation of the Petroleum Exporting Countries OPEC along with other producers in a group known as OPEC have the capability and flexibility needed to respond to any developments They should take the necessary actions to support oil market stability if the situation so requires he noted Oman s oil minister told Reuters that he fully supported Saudi Arabia s readiness to react to any impact the new coronavirus could have on the market Oman is a member of the OPEC group OPEC which includes Russia has been reducing oil supply to support prices It has deepened its agreed output cuts by 500 000 barrels per day bpd to 1 7 million bpd through March The group meets in March to decide on its output policy On Friday Prince Abdulaziz said the aim of OPEC was to cut seasonal inventory builds that typically occur in the first half of the year All options were open when OPEC meets in Vienna in March he said adding that it was too early to make a call on the need for more cuts Health authorities around the world are racing to prevent a pandemic after over 2 000 people were infected with the virus in China and 56 died The virus has created alarm because much about it is still unknown such as how dangerous it is and how easily it spreads between people It can cause pneumonia which has been deadly in some cases Edited By Abiodun Oluleye Sadiya Hamza
    Saudi Arabia says watching oil market closely regarding “China virus”
     Saudi Arabia is closely monitoring developments in global oil markets resulting from gloomy expectations regarding the possible impact of the coronavirus on the Chinese and global economy its energy minister said on Monday OPEC and its allies can respond to any impact on the stability of the oil market if needed Prince Abdulaziz bin Salman said Salman added that he was confident the Chinese government and international community could contain the spread of the virus and fully eradicate it The minister said the current impact on global markets including oil and other commodities was primarily driven by psychological factors and extremely negative expectations adopted by some market participants in spite of its very limited impact on global oil demand Crude prices fell more than two per cent to multi month lows as the rising number of cases of the coronavirus in China and city lockdowns there deepened concerns over oil demand Brent crude fell by 1 36 dollars a barrel or 2 2 per cent to 59 33 dollars by 0425 GMT having earlier dropped to 58 68 dollars its lowest since late October U S crude was down by 1 30 dollars or 2 4 per cent to 52 89 dollars having earlier eased to 52 15 dollars its lowest since early October While most markets are being impacted by the spread of the coronavirus many are closed in Asia due to Lunar New Year holidays Such extreme pessimism occurred back in 2003 during the SARS outbreak though it did not cause a significant reduction in oil demand Prince Abdulaziz said in a statement He said he was confident the kingdom and other members of the Organisation of the Petroleum Exporting Countries OPEC along with other producers in a group known as OPEC have the capability and flexibility needed to respond to any developments They should take the necessary actions to support oil market stability if the situation so requires he noted Oman s oil minister told Reuters that he fully supported Saudi Arabia s readiness to react to any impact the new coronavirus could have on the market Oman is a member of the OPEC group OPEC which includes Russia has been reducing oil supply to support prices It has deepened its agreed output cuts by 500 000 barrels per day bpd to 1 7 million bpd through March The group meets in March to decide on its output policy On Friday Prince Abdulaziz said the aim of OPEC was to cut seasonal inventory builds that typically occur in the first half of the year All options were open when OPEC meets in Vienna in March he said adding that it was too early to make a call on the need for more cuts Health authorities around the world are racing to prevent a pandemic after over 2 000 people were infected with the virus in China and 56 died The virus has created alarm because much about it is still unknown such as how dangerous it is and how easily it spreads between people It can cause pneumonia which has been deadly in some cases Edited By Abiodun Oluleye Sadiya Hamza
    Saudi Arabia says watching oil market closely regarding “China virus”
    Foreign3 years ago

    Saudi Arabia says watching oil market closely regarding “China virus”

    Saudi Arabia is closely monitoring developments in global oil markets resulting from “gloomy expectations” regarding the possible impact of the coronavirus on the Chinese and global economy, its energy minister said on Monday.

    “OPEC and its allies can respond to any impact on the stability of the oil market if needed,’’ Prince Abdulaziz bin Salman said.

    Salman added that he was confident the Chinese government and international community could contain the spread of the virus and fully eradicate it.

    The minister said the current impact on global markets, including oil and other commodities, was “primarily driven by psychological factors and extremely negative expectations adopted by some market participants in spite of its very limited impact on global oil demand.”

    Crude prices fell more than two per cent to multi-month lows as the rising number of cases of the coronavirus in China and city lockdowns there deepened concerns over oil demand.

    Brent crude fell by 1.36 dollars a barrel, or 2.2 per cent, to 59.33 dollars by 0425 GMT, having earlier dropped to 58.68 dollars, its lowest since late October. U.S. crude was down by 1.30 dollars, or 2.4 per cent, to 52.89 dollars, having earlier eased to 52.15 dollars, its lowest since early October.

    While most markets are being impacted by the spread of the coronavirus, many are closed in Asia due to Lunar New Year holidays.

    “Such extreme pessimism occurred back in 2003 during the SARS outbreak, though it did not cause a significant reduction in oil demand,” Prince Abdulaziz said in a statement.

    He said he was confident the kingdom and other members of the Organisation of the Petroleum Exporting Countries (OPEC), along with other producers in a group known as OPEC+, have the capability and flexibility needed to respond to any developments.

    “They should take the necessary actions to support oil market stability, if the situation so requires,’’ he noted.

    Oman’s oil minister told Reuters that he fully supported Saudi Arabia’s readiness to react to any impact the new coronavirus could have on the market.

    Oman is a member of the OPEC+ group.

    OPEC+, which includes Russia, has been reducing oil supply to support prices.

    It has deepened its agreed output cuts by 500,000 barrels per day (bpd) to 1.7 million bpd through March.

    The group meets in March to decide on its output policy.

    On Friday, Prince Abdulaziz said the aim of OPEC+ was to cut seasonal inventory builds that typically occur in the first half of the year.

    “All options were open when OPEC+ meets in Vienna in March,’’ he said, adding that it was too early to make a call on the need for more cuts.

    Health authorities around the world are racing to prevent a pandemic after over 2,000 people were infected with the virus in China and 56 died.

    The virus has created alarm because much about it is still unknown, such as how dangerous it is and how easily it spreads between people.

    It can cause pneumonia, which has been deadly in some cases.


    Edited By: Abiodun Oluleye/Sadiya Hamza

  •  Brent crude futures jumped nearly three dollars on Friday after a U S air strike in Baghdad killed top Iranian and Iraqi military commanders sparking concerns of disruption to Middle East oil supplies Brent crude futures LCOc1 hit an intraday high of 69 16 dollars a barrel their highest since Sept 17 before easing to 68 42 dollars up 2 17 dollars or 3 28 per cent by 0806 GMT West Texas Intermediate WTI crude futures CLc1 were up 1 85 dollar or 3 04 per cent at 63 03 dollars a barrel having earlier spiked to 63 84 dollars a barrel their highest since May 1 2019 The supply side risks remain elevated in the Middle East and we could see tensions continue to elevate between the U S and Iran backed militia in Iraq said Edward Moya analyst at brokerage OANDA in an e mail to Reuters An air strike at the Baghdad International Airport early on Friday killed Iranian Major General Qassem Soleimani head of the Quds Force and Iraqi militia commander Abu Mahdi al Muhandis an Iraqi militia spokesman said The killings marked an escalation in the regional shadow war between Iran and the United States and sparked Iranian calls for revenge and preparation for further conflict in Iraq There is an ever present risk that Iraq would be the theater where the struggle between the U S and Iran would play out Helima Croft RBC Capital Markets global head of commodity strategy said in a note Iraq the second largest producer among the Organisation of the Petroleum Exporting Countries OPEC exports about 3 4 million barrels per day of crude In Europe Belarus on Friday also said Russia had halted oil supplies to its refineries Oil prices were also lifted by China s central bank saying on Wednesday it was cutting the amount of cash that banks must hold in reserve releasing around 800 billion yuan 115 billion dollars in funds to shore up the slowing economy This came shortly after data showed China s production continued to grow at a solid pace and business confidence shot up Oil prices still have room for further upside as many analysts are still having to upgrade their demand forecasts to include a rather calm period on the trade front Moya said referring to signs of a thaw in trade relations between China and the U S Edited By Abdullahi Mohammed Sadiya Hamza
    Brent jumps almost after U.S. air strike on Baghdad airport
     Brent crude futures jumped nearly three dollars on Friday after a U S air strike in Baghdad killed top Iranian and Iraqi military commanders sparking concerns of disruption to Middle East oil supplies Brent crude futures LCOc1 hit an intraday high of 69 16 dollars a barrel their highest since Sept 17 before easing to 68 42 dollars up 2 17 dollars or 3 28 per cent by 0806 GMT West Texas Intermediate WTI crude futures CLc1 were up 1 85 dollar or 3 04 per cent at 63 03 dollars a barrel having earlier spiked to 63 84 dollars a barrel their highest since May 1 2019 The supply side risks remain elevated in the Middle East and we could see tensions continue to elevate between the U S and Iran backed militia in Iraq said Edward Moya analyst at brokerage OANDA in an e mail to Reuters An air strike at the Baghdad International Airport early on Friday killed Iranian Major General Qassem Soleimani head of the Quds Force and Iraqi militia commander Abu Mahdi al Muhandis an Iraqi militia spokesman said The killings marked an escalation in the regional shadow war between Iran and the United States and sparked Iranian calls for revenge and preparation for further conflict in Iraq There is an ever present risk that Iraq would be the theater where the struggle between the U S and Iran would play out Helima Croft RBC Capital Markets global head of commodity strategy said in a note Iraq the second largest producer among the Organisation of the Petroleum Exporting Countries OPEC exports about 3 4 million barrels per day of crude In Europe Belarus on Friday also said Russia had halted oil supplies to its refineries Oil prices were also lifted by China s central bank saying on Wednesday it was cutting the amount of cash that banks must hold in reserve releasing around 800 billion yuan 115 billion dollars in funds to shore up the slowing economy This came shortly after data showed China s production continued to grow at a solid pace and business confidence shot up Oil prices still have room for further upside as many analysts are still having to upgrade their demand forecasts to include a rather calm period on the trade front Moya said referring to signs of a thaw in trade relations between China and the U S Edited By Abdullahi Mohammed Sadiya Hamza
    Brent jumps almost after U.S. air strike on Baghdad airport
    Economy3 years ago

    Brent jumps almost $3 after U.S. air strike on Baghdad airport

    Brent crude futures jumped nearly three dollars on Friday after a U.S. air strike in Baghdad killed top Iranian and Iraqi military commanders, sparking concerns of disruption to Middle East oil supplies.

    Brent crude futures LCOc1 hit an intraday high of 69.16 dollars a barrel, their highest since Sept. 17, before easing to 68.42 dollars, up 2.17 dollars or 3.28 per cent by 0806 GMT.

    West Texas Intermediate (WTI) crude futures CLc1 were up 1.85 dollar or 3.04 per cent at 63.03 dollars a barrel, having earlier spiked to 63.84 dollars a barrel, their highest since May 1, 2019.

    “The supply side risks remain elevated in the Middle East and we could see tensions continue to elevate between the U.S. and Iran-backed militia in Iraq,” said Edward Moya, analyst at brokerage OANDA, in an e-mail to Reuters.

    An air strike at the Baghdad International Airport early on Friday killed Iranian Major-General Qassem Soleimani, head of the Quds Force, and Iraqi militia commander Abu Mahdi al-Muhandis, an Iraqi militia spokesman said.

    The killings marked an escalation in the regional “shadow war” between Iran and the United States and sparked Iranian calls for revenge and preparation for further conflict in Iraq.

    “There is an ever present risk that Iraq would be the theater where the struggle between the U.S. and Iran would play out,” Helima Croft, RBC Capital Markets’ global head of commodity strategy said in a note.

    Iraq, the second largest producer among the Organisation of the Petroleum Exporting Countries (OPEC), exports about 3.4 million barrels per day of crude.

    In Europe, Belarus on Friday also said Russia had halted oil supplies to its refineries.

    Oil prices were also lifted by China’s central bank saying on Wednesday it was cutting the amount of cash that banks must hold in reserve, releasing around 800 billion yuan (115 billion dollars) in funds to shore up the slowing economy.

    This came shortly after data showed China’s production continued to grow at a solid pace and business confidence shot up.

    “Oil prices still have room for further upside as many analysts are still having to upgrade their demand forecasts to include a rather calm period on the trade front,” Moya said, referring to signs of a thaw in trade relations between China and the U.S.


    Edited By: Abdullahi Mohammed/Sadiya Hamza

  •   Brent crude futures jumped nearly three dollars on Friday after a U S air strike in Baghdad killed top Iranian and Iraqi military commanders sparking concerns of disruption to Middle East oil supplies Brent crude futures LCOc1 hit an intraday high of 69 16 dollars a barrel their highest since Sept 17 before easing to 68 42 dollars up 2 17 dollars or 3 28 per cent by 0806 GMT West Texas Intermediate WTI crude futures CLc1 were up 1 85 dollar or 3 04 per cent at 63 03 dollars a barrel having earlier spiked to 63 84 dollars a barrel their highest since May 1 2019 The supply side risks remain elevated in the Middle East and we could see tensions continue to elevate between the U S and Iran backed militia in Iraq said Edward Moya analyst at brokerage OANDA in an e mail to Reuters An air strike at the Baghdad International Airport early on Friday killed Iranian Major General Qassem Soleimani head of the Quds Force and Iraqi militia commander Abu Mahdi al Muhandis an Iraqi militia spokesman said The killings marked an escalation in the regional shadow war between Iran and the United States and sparked Iranian calls for revenge and preparation for further conflict in Iraq There is an ever present risk that Iraq would be the theater where the struggle between the U S and Iran would play out Helima Croft RBC Capital Markets global head of commodity strategy said in a note Iraq the second largest producer among the Organisation of the Petroleum Exporting Countries OPEC exports about 3 4 million barrels per day of crude In Europe Belarus on Friday also said Russia had halted oil supplies to its refineries Oil prices were also lifted by China s central bank saying on Wednesday it was cutting the amount of cash that banks must hold in reserve releasing around 800 billion yuan 115 billion dollars in funds to shore up the slowing economy This came shortly after data showed China s production continued to grow at a solid pace and business confidence shot up Oil prices still have room for further upside as many analysts are still having to upgrade their demand forecasts to include a rather calm period on the trade front Moya said referring to signs of a thaw in trade relations between China and the U S
    Brent jumps almost after U.S. air strike on Baghdad
      Brent crude futures jumped nearly three dollars on Friday after a U S air strike in Baghdad killed top Iranian and Iraqi military commanders sparking concerns of disruption to Middle East oil supplies Brent crude futures LCOc1 hit an intraday high of 69 16 dollars a barrel their highest since Sept 17 before easing to 68 42 dollars up 2 17 dollars or 3 28 per cent by 0806 GMT West Texas Intermediate WTI crude futures CLc1 were up 1 85 dollar or 3 04 per cent at 63 03 dollars a barrel having earlier spiked to 63 84 dollars a barrel their highest since May 1 2019 The supply side risks remain elevated in the Middle East and we could see tensions continue to elevate between the U S and Iran backed militia in Iraq said Edward Moya analyst at brokerage OANDA in an e mail to Reuters An air strike at the Baghdad International Airport early on Friday killed Iranian Major General Qassem Soleimani head of the Quds Force and Iraqi militia commander Abu Mahdi al Muhandis an Iraqi militia spokesman said The killings marked an escalation in the regional shadow war between Iran and the United States and sparked Iranian calls for revenge and preparation for further conflict in Iraq There is an ever present risk that Iraq would be the theater where the struggle between the U S and Iran would play out Helima Croft RBC Capital Markets global head of commodity strategy said in a note Iraq the second largest producer among the Organisation of the Petroleum Exporting Countries OPEC exports about 3 4 million barrels per day of crude In Europe Belarus on Friday also said Russia had halted oil supplies to its refineries Oil prices were also lifted by China s central bank saying on Wednesday it was cutting the amount of cash that banks must hold in reserve releasing around 800 billion yuan 115 billion dollars in funds to shore up the slowing economy This came shortly after data showed China s production continued to grow at a solid pace and business confidence shot up Oil prices still have room for further upside as many analysts are still having to upgrade their demand forecasts to include a rather calm period on the trade front Moya said referring to signs of a thaw in trade relations between China and the U S
    Brent jumps almost after U.S. air strike on Baghdad
    Economy3 years ago

    Brent jumps almost $3 after U.S. air strike on Baghdad

    Brent crude futures jumped nearly three dollars on Friday after a U.S. air strike in Baghdad killed top Iranian and Iraqi military commanders, sparking concerns of disruption to Middle East oil supplies.

    Brent crude futures LCOc1 hit an intraday high of 69.16 dollars a barrel, their highest since Sept. 17, before easing to 68.42 dollars, up 2.17 dollars or 3.28 per cent by 0806 GMT.

    West Texas Intermediate (WTI) crude futures CLc1 were up 1.85 dollar or 3.04 per cent at 63.03 dollars a barrel, having earlier spiked to 63.84 dollars a barrel, their highest since May 1, 2019.

    “The supply side risks remain elevated in the Middle East and we could see tensions continue to elevate between the U.S. and Iran-backed militia in Iraq,” said Edward Moya, analyst at brokerage OANDA, in an e-mail to Reuters.

    An air strike at the Baghdad International Airport early on Friday killed Iranian Major-General Qassem Soleimani, head of the Quds Force, and Iraqi militia commander Abu Mahdi al-Muhandis, an Iraqi militia spokesman said.

    The killings marked an escalation in the regional “shadow war” between Iran and the United States and sparked Iranian calls for revenge and preparation for further conflict in Iraq.

    “There is an ever present risk that Iraq would be the theater where the struggle between the U.S. and Iran would play out,” Helima Croft, RBC Capital Markets’ global head of commodity strategy said in a note.

    Iraq, the second largest producer among the Organisation of the Petroleum Exporting Countries (OPEC), exports about 3.4 million barrels per day of crude.

    In Europe, Belarus on Friday also said Russia had halted oil supplies to its refineries.

    Oil prices were also lifted by China’s central bank saying on Wednesday it was cutting the amount of cash that banks must hold in reserve, releasing around 800 billion yuan (115 billion dollars) in funds to shore up the slowing economy.

    This came shortly after data showed China’s production continued to grow at a solid pace and business confidence shot up.

    “Oil prices still have room for further upside as many analysts are still having to upgrade their demand forecasts to include a rather calm period on the trade front,” Moya said, referring to signs of a thaw in trade relations between China and the U.S.

  •   Oil prices rose on Thursday buoyed by a potential breakthrough in the Sino U S trade war and OPEC led efforts to constrain supply although trading was quiet as many markets were in holiday mode Brent crude LCOc1 was up 28 cents or 0 4 per cent at 67 48 dollars a barrel by 0651 GMT West Texas Intermediate CLc1 was up 25 cents also a 0 4 per cent gain at 61 36 dollars a barrel Oil prices continue to show year end strength supported by a combination of definitive progress on the U S China trade deal the December OPEC and OPEC agreement and slowing shale activity said Stephen Innes chief Asia market strategist at AxiTrader All of which is pointing to a stronger performance for oil prices in Q1 than anyone had thought only two months ago U S President Donald Trump said on Tuesday he and Chinese President Xi Jinping will have a signing ceremony for the so called Phase 1 agreement to end their trade dispute that was put together earlier this month The roughly 17 month trade war hit global economic growth and demand for oil leaving prices range bound for the most of the year Lower demand also rendered supply cuts by the Organisation of Petroleum Exporting Countries OPEC and allies including Russia less effective in supporting the market The so called OPEC grouping agreed earlier in December to extend and deepen production cuts that would take as much as 2 1 million barrels per day bpd of supply off the market or roughly two per cent of global demand U S producers not party to the OPEC agreement have been pumping record amounts of oil especially shale crude to fill any supply gaps Growth in production in the U S is forecast by many to slow however Still more supply is coming in the new year with Saudi Arabia and Kuwait earlier this week agreeing to end a dispute over their Neutral Zone which can supply as much as 500 000 barrels per day of oil or about 0 5 of global demand Edited by Abdullahi Mohammed Sadiya Hamza NAN
    Oil climbs, lifted by U.S.-China trade deal hopes, OPEC cuts
      Oil prices rose on Thursday buoyed by a potential breakthrough in the Sino U S trade war and OPEC led efforts to constrain supply although trading was quiet as many markets were in holiday mode Brent crude LCOc1 was up 28 cents or 0 4 per cent at 67 48 dollars a barrel by 0651 GMT West Texas Intermediate CLc1 was up 25 cents also a 0 4 per cent gain at 61 36 dollars a barrel Oil prices continue to show year end strength supported by a combination of definitive progress on the U S China trade deal the December OPEC and OPEC agreement and slowing shale activity said Stephen Innes chief Asia market strategist at AxiTrader All of which is pointing to a stronger performance for oil prices in Q1 than anyone had thought only two months ago U S President Donald Trump said on Tuesday he and Chinese President Xi Jinping will have a signing ceremony for the so called Phase 1 agreement to end their trade dispute that was put together earlier this month The roughly 17 month trade war hit global economic growth and demand for oil leaving prices range bound for the most of the year Lower demand also rendered supply cuts by the Organisation of Petroleum Exporting Countries OPEC and allies including Russia less effective in supporting the market The so called OPEC grouping agreed earlier in December to extend and deepen production cuts that would take as much as 2 1 million barrels per day bpd of supply off the market or roughly two per cent of global demand U S producers not party to the OPEC agreement have been pumping record amounts of oil especially shale crude to fill any supply gaps Growth in production in the U S is forecast by many to slow however Still more supply is coming in the new year with Saudi Arabia and Kuwait earlier this week agreeing to end a dispute over their Neutral Zone which can supply as much as 500 000 barrels per day of oil or about 0 5 of global demand Edited by Abdullahi Mohammed Sadiya Hamza NAN
    Oil climbs, lifted by U.S.-China trade deal hopes, OPEC cuts
    Economy3 years ago

    Oil climbs, lifted by U.S.-China trade deal hopes, OPEC cuts

    Oil prices rose on Thursday, buoyed by a potential breakthrough in the Sino-U.S. trade war and OPEC-led efforts to constrain supply, although trading was quiet as many markets were in holiday mode.

    Brent crude LCOc1 was up 28 cents, or 0.4 per cent, at 67.48 dollars a barrel by 0651 GMT.

    West Texas Intermediate CLc1 was up 25 cents, also a 0.4 per cent gain, at 61.36 dollars a barrel.

    “Oil prices continue to show year-end strength supported by a combination of definitive progress on the U.S.-China trade deal, the December OPEC and OPEC+ agreement, and slowing shale activity,” said Stephen Innes, chief Asia market strategist at AxiTrader.

    “All of which is pointing to a stronger performance for oil prices in Q1 than anyone had thought only two months ago.”

    U.S. President Donald Trump said on Tuesday he and Chinese President Xi Jinping will have a signing ceremony for the so-called Phase 1 agreement to end their trade dispute that was put together earlier this month.

    The roughly 17-month trade war hit global economic growth and demand for oil, leaving prices range-bound for the most of the year.

    Lower demand also rendered supply cuts by the Organisation of Petroleum Exporting Countries (OPEC) and allies including Russia less effective in supporting the market.

    The so-called OPEC+ grouping agreed earlier in December to extend and deepen production cuts that would take as much as 2.1 million barrels per day (bpd) of supply off the market, or roughly two per cent of global demand.

    U.S. producers, not party to the OPEC+ agreement, have been pumping record amounts of oil, especially shale crude, to fill any supply gaps. Growth in production in the U.S. is forecast by many to slow, however.

    Still, more supply is coming in the new year with Saudi Arabia and Kuwait earlier this week agreeing to end a dispute over their Neutral Zone, which can supply as much as 500,000 barrels per day of oil, or about 0.5% of global demand.

    Edited by: Abdullahi Mohammed/Sadiya Hamza
    (NAN)

  •   Secretary General of OPEC Mohammed Barkindo attends the Energy Week International Forum in Moscow Russia October 2 2019 OPEC s Barkindo says too early to discuss deeper output cuts TASSMoscow Oct 7 2019 It is too early for the Organisation of Petroleum Exporting Countries OPEC to discuss deeper oil output cuts in spite of the decline in oil prices OPEC Secretary General Mohammed Barkindo was quoted as saying by Russian News Agency TASS on Monday OPEC is counting on Russia to help sooth tensions between Iran and Saudi Arabia in order to help the global oil market stabilise Barkindo was quoted by TASS as saying Edited By Abdullahi Mohammed Ali Baba Inuwa
    OPEC’s Barkindo says too early to discuss deeper output cuts – TASS
      Secretary General of OPEC Mohammed Barkindo attends the Energy Week International Forum in Moscow Russia October 2 2019 OPEC s Barkindo says too early to discuss deeper output cuts TASSMoscow Oct 7 2019 It is too early for the Organisation of Petroleum Exporting Countries OPEC to discuss deeper oil output cuts in spite of the decline in oil prices OPEC Secretary General Mohammed Barkindo was quoted as saying by Russian News Agency TASS on Monday OPEC is counting on Russia to help sooth tensions between Iran and Saudi Arabia in order to help the global oil market stabilise Barkindo was quoted by TASS as saying Edited By Abdullahi Mohammed Ali Baba Inuwa
    OPEC’s Barkindo says too early to discuss deeper output cuts – TASS
    Economy3 years ago

    OPEC’s Barkindo says too early to discuss deeper output cuts – TASS

     

    Secretary General of OPEC Mohammed Barkindo attends the Energy Week International Forum in Moscow, Russia October 2, 2019.

    OPEC’s Barkindo says too early to discuss deeper output cuts – TASS

    Moscow, Oct. 7, 2019 It is too early for the Organisation of Petroleum Exporting Countries (OPEC) to discuss deeper oil output cuts in spite of the decline in oil prices, OPEC Secretary-General Mohammed Barkindo was quoted as saying by Russian News Agency TASS on Monday.

    OPEC is counting on Russia to help sooth tensions between Iran and Saudi Arabia in order to help the global oil market stabilise, Barkindo was quoted by TASS as saying.


    Edited By: Abdullahi Mohammed/Ali Baba-Inuwa

     

  •   Global oil supply dropped in March as U S sanctions and power outages pushed Venezuela s crude output to a long term low of 870 000 barrels per day bpd The International Energy Agency IEA said on Thursday that Thia was even lower than OPEC reported the day before The blackouts are an additional challenge for Venezuela s oil sector already set back by economic collapse corruption mismanagement and more recently by U S sanctions Paris based IEA said in its monthly report The IEA which coordinates the energy policies of industrialised nations said that the output decline of 270 000 bpd was Venezuela s second largest month on month drop And this had put the country s production at 600 000 bpd less than a year earlier Venezuela told the Organisation of Petroleum Exporting Countries OPEC that the nation pumped 960 000 bpd in March a drop of almost 500 000 bpd from February OPEC said on Wednesday OPEC Russia and other non member oil producers agreed to cut output by 1 2 million bpd from Jan 1 for six months and are set to meet on June 25 and 26 to decide whether to extend the pact The IEA said that the voluntary curbs of that deal and reduced output by Venezuela had caused OPEC production to fall by 550 000 bpd in March The IEA also maintained its forecast of growth in global oil demand for 2019 at 1 4 million bpd Tightness in the oil market is not just a supply story In recent months the resilience of demand has received less attention the agency said Although it is still early days the major centres of oil demand growth are performing strongly In China the economy seems to be reacting to the government s stimulus measures it said also noting strong demand in India Meanwhile it said that oil stocks in industrialized countries fell in February by 21 7 million barrels but remained above their five year average Global refining throughput fell by 2 5 million bpd in March on unplanned outages especially in the United States Although the main sources of growth are doing well there are mixed signals from elsewhere the IEA stated Edited by Fatima Sule and Olisa Ifeajika NAN
    Venezuela oil output plummets to 870,000 bpd on outages, sanctions
      Global oil supply dropped in March as U S sanctions and power outages pushed Venezuela s crude output to a long term low of 870 000 barrels per day bpd The International Energy Agency IEA said on Thursday that Thia was even lower than OPEC reported the day before The blackouts are an additional challenge for Venezuela s oil sector already set back by economic collapse corruption mismanagement and more recently by U S sanctions Paris based IEA said in its monthly report The IEA which coordinates the energy policies of industrialised nations said that the output decline of 270 000 bpd was Venezuela s second largest month on month drop And this had put the country s production at 600 000 bpd less than a year earlier Venezuela told the Organisation of Petroleum Exporting Countries OPEC that the nation pumped 960 000 bpd in March a drop of almost 500 000 bpd from February OPEC said on Wednesday OPEC Russia and other non member oil producers agreed to cut output by 1 2 million bpd from Jan 1 for six months and are set to meet on June 25 and 26 to decide whether to extend the pact The IEA said that the voluntary curbs of that deal and reduced output by Venezuela had caused OPEC production to fall by 550 000 bpd in March The IEA also maintained its forecast of growth in global oil demand for 2019 at 1 4 million bpd Tightness in the oil market is not just a supply story In recent months the resilience of demand has received less attention the agency said Although it is still early days the major centres of oil demand growth are performing strongly In China the economy seems to be reacting to the government s stimulus measures it said also noting strong demand in India Meanwhile it said that oil stocks in industrialized countries fell in February by 21 7 million barrels but remained above their five year average Global refining throughput fell by 2 5 million bpd in March on unplanned outages especially in the United States Although the main sources of growth are doing well there are mixed signals from elsewhere the IEA stated Edited by Fatima Sule and Olisa Ifeajika NAN
    Venezuela oil output plummets to 870,000 bpd on outages, sanctions
    Foreign4 years ago

    Venezuela oil output plummets to 870,000 bpd on outages, sanctions

    Global oil supply dropped in March as U.S. sanctions and power outages pushed Venezuela’s crude output to a long-term low of 870,000 barrels per day (bpd).

    The International Energy Agency (IEA) said on Thursday that Thia was even lower than OPEC reported the day before.

    “The blackouts are an additional challenge for Venezuela’s oil sector, already set back by economic collapse, corruption, mismanagement and, more recently, by U.S. sanctions,” Paris-based IEA said in its monthly report.

    The IEA, which coordinates the energy policies of industrialised nations, said that the output decline of 270,000 bpd was Venezuela’s second largest month-on-month drop.

    And this had put the country’s production at 600,000 bpd less than a year earlier.

    “Venezuela told the Organisation of Petroleum Exporting Countries (OPEC) that the nation pumped 960,000 bpd in March, a drop of almost 500,000 bpd from February,’’ OPEC said on Wednesday.

    OPEC, Russia and other non-member oil producers agreed to cut output by 1.2 million bpd from Jan. 1 for six months and are set to meet on June 25 and 26 to decide whether to extend the pact.

    The IEA said that the voluntary curbs of that deal and reduced output by Venezuela had caused OPEC production to fall by 550,000 bpd in March.

    The IEA also maintained its forecast of growth in global oil demand for 2019 at 1.4 million bpd.

    “Tightness in the oil market is not just a supply story. In recent months, the resilience of demand has received less attention,” the agency said.

    “Although it is still early days, the major centres of oil demand growth are performing strongly. In China, the economy seems to be reacting to the government’s stimulus measures,” it said, also noting strong demand in India.

    Meanwhile, it said that oil stocks in industrialized countries fell in February by 21.7 million barrels but remained above their five-year average.

    Global refining throughput fell by 2.5 million bpd in March on unplanned outages, especially in the United States.

    “Although the main sources of growth are doing well, there are mixed signals from elsewhere,” the IEA stated.

    Edited by: Fatima Sule and Olisa Ifeajika
    (NAN)

     

  •  Organisation of Petroleum Exporting Countries OPEC and its allies are working toward a deal this week to reduce oil output by no less than 1 3 million barrels per day four sources said It added that Russia s resistance to a major cut was so far the main stumbling block OPEC would meet on Thursday in Vienna followed by talks with allies such as Russia on Friday amid a drop in crude prices caused by global economic weakness and fears of an oil glut due largely to a rise in U S production The producer group s de facto leader Saudi Arabia has indicated a need for steep reductions in output from January but has come under pressure from U S President Donald Trump to help support the world economy with lower oil prices Possibly complicating any OPEC decision is the crisis around the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October Trump has backed Saudi Crown Prince Mohammed bin Salman in spite calls from many U S politicians to impose stiff sanctions on Riyadh The sources three from OPEC and one from a non OPEC producer said the meetings were taking place in a difficult environment and that Russia s position would be key in reaching a deal Russia is playing tough one of the OPEC sources said Another OPEC source said the Saudis are working hard on the cut But if Russia says no cut then we OPEC won t cut Russian sources have indicated Moscow could contribute some 140 000 bpd to a reduction but Middle East dominated OPEC insisted Russia cut by 250 000 300 000 bpd Two sources said talks were focusing on a pro rata cut of 3 3 5 per cent from October output levels with no exemptions for any member Sources also said OPEC could delay a decision to cut if the main criteria such as Russia s involvement were not met even though doing so would mean a further fall in prices OPEC can always meet again in February for example and decide on a cut then Those who were not able or willing to cooperate will want to cut then one source said Saudi Arabia previously insisted on a need to reduce production It was unclear whether the apparent shift in position was caused by OPEC using negotiation tactics to bring Russia on board or by pressure from Trump to refrain from cutting output Iraq s oil minister said OPEC must come up with a medium to long term strategy to achieve crude price stability and minimise damage to oil markets caused by geopolitics Ghadhban said Iraq would work to help balance markets and bolster prices Iraq is OPEC s second biggest producer after Saudi Arabia Solutions to low oil prices should not be limited to decreasing output Ghadhban said in a statement adding that any agreement reached this week should avoid damage to the interests of OPEC and non OPEC oil producers Similarly United Arab Emirates Energy Minister Suhail bin Mohammed al Mazroui on Tuesday said an adjustment in global oil output is required and all producers must be on board What is that adjustment and what is the level from what level that is what will be discussed An adjustment means a decrease in production it s important that everyone is on board Mazroui said OPEC is an intergovernmental organisation of 15 nations founded in 1960 in Baghdad by the first five members and headquartered since 1965 in Vienna Austria Edited by Abiodun Oluleye Ese E Ekama NAN
    OPEC works on deal to cut output, still needs Russia on board
     Organisation of Petroleum Exporting Countries OPEC and its allies are working toward a deal this week to reduce oil output by no less than 1 3 million barrels per day four sources said It added that Russia s resistance to a major cut was so far the main stumbling block OPEC would meet on Thursday in Vienna followed by talks with allies such as Russia on Friday amid a drop in crude prices caused by global economic weakness and fears of an oil glut due largely to a rise in U S production The producer group s de facto leader Saudi Arabia has indicated a need for steep reductions in output from January but has come under pressure from U S President Donald Trump to help support the world economy with lower oil prices Possibly complicating any OPEC decision is the crisis around the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October Trump has backed Saudi Crown Prince Mohammed bin Salman in spite calls from many U S politicians to impose stiff sanctions on Riyadh The sources three from OPEC and one from a non OPEC producer said the meetings were taking place in a difficult environment and that Russia s position would be key in reaching a deal Russia is playing tough one of the OPEC sources said Another OPEC source said the Saudis are working hard on the cut But if Russia says no cut then we OPEC won t cut Russian sources have indicated Moscow could contribute some 140 000 bpd to a reduction but Middle East dominated OPEC insisted Russia cut by 250 000 300 000 bpd Two sources said talks were focusing on a pro rata cut of 3 3 5 per cent from October output levels with no exemptions for any member Sources also said OPEC could delay a decision to cut if the main criteria such as Russia s involvement were not met even though doing so would mean a further fall in prices OPEC can always meet again in February for example and decide on a cut then Those who were not able or willing to cooperate will want to cut then one source said Saudi Arabia previously insisted on a need to reduce production It was unclear whether the apparent shift in position was caused by OPEC using negotiation tactics to bring Russia on board or by pressure from Trump to refrain from cutting output Iraq s oil minister said OPEC must come up with a medium to long term strategy to achieve crude price stability and minimise damage to oil markets caused by geopolitics Ghadhban said Iraq would work to help balance markets and bolster prices Iraq is OPEC s second biggest producer after Saudi Arabia Solutions to low oil prices should not be limited to decreasing output Ghadhban said in a statement adding that any agreement reached this week should avoid damage to the interests of OPEC and non OPEC oil producers Similarly United Arab Emirates Energy Minister Suhail bin Mohammed al Mazroui on Tuesday said an adjustment in global oil output is required and all producers must be on board What is that adjustment and what is the level from what level that is what will be discussed An adjustment means a decrease in production it s important that everyone is on board Mazroui said OPEC is an intergovernmental organisation of 15 nations founded in 1960 in Baghdad by the first five members and headquartered since 1965 in Vienna Austria Edited by Abiodun Oluleye Ese E Ekama NAN
    OPEC works on deal to cut output, still needs Russia on board
    Foreign4 years ago

    OPEC works on deal to cut output, still needs Russia on board

    Organisation of Petroleum Exporting Countries (OPEC) and its allies are working toward a deal this week to reduce oil output by no less than 1.3 million barrels per day, four sources said.

    It added that Russia’s resistance to a major cut was so far the main stumbling block.

    OPEC would meet on Thursday in Vienna, followed by talks with allies such as Russia on Friday, amid a drop in crude prices caused by global economic weakness and fears of an oil glut due largely to a rise in U.S. production.

    The producer group’s de facto leader, Saudi Arabia, has indicated a need for steep reductions in output from January but has come under pressure from U.S. President Donald Trump to help support the world economy with lower oil prices.

    Possibly complicating any OPEC decision is the crisis around the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October.

    Trump has backed Saudi Crown Prince Mohammed bin Salman in spite calls from many U.S. politicians to impose stiff sanctions on Riyadh.

    The sources, three from OPEC and one from a non-OPEC producer, said the meetings were taking place in a difficult environment and that Russia’s position would be key in reaching a deal.

    “Russia is playing tough,” one of the OPEC sources said.

    Another OPEC source said: “the Saudis are working hard on the cut. But if Russia says no cut, then we (OPEC) won’t cut.”

    Russian sources have indicated Moscow could contribute some 140,000 bpd to a reduction, but Middle East-dominated OPEC insisted Russia cut by 250,000-300,000 bpd.

    Two sources said talks were focusing on a pro-rata cut of 3-3.5 per cent from October output levels, with no exemptions for any member.

    Sources also said OPEC could delay a decision to cut if the main criteria such as Russia’s involvement were not met, even though doing so would mean a further fall in prices.

    “OPEC can always meet again in February, for example, and decide on a cut then. Those who were not able or willing to cooperate will want to cut then,” one source said.

    Saudi Arabia previously insisted on a need to reduce production.

    It was unclear whether the apparent shift in position was caused by OPEC using negotiation tactics to bring Russia on board or by pressure from Trump to refrain from cutting output.

    Iraq’s oil minister said OPEC must come up with a medium- to long-term strategy to achieve crude price stability and minimise damage to oil markets caused by geopolitics.

    Ghadhban said Iraq would work to help balance markets and bolster prices.

    Iraq is OPEC’s second-biggest producer after Saudi Arabia.

    “Solutions to low oil prices should not be limited to decreasing output,’’ Ghadhban said in a statement, adding that any agreement reached this week should avoid damage to the interests of OPEC and non-OPEC oil producers.

    Similarly, United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui on Tuesday said an adjustment in global oil output is required and all producers must be on board.

    “What is that adjustment, and what is the level, from what level, that is what will be discussed.

    “An adjustment means a decrease in production, it’s important that everyone is on board,” Mazroui said.

    OPEC is an intergovernmental organisation of 15 nations, founded in 1960 in Baghdad by the first five members, and headquartered since 1965 in Vienna, Austria.

    Edited by: Abiodun Oluleye/Ese E. Ekama
    (NAN)

     

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