IEA sees oil demand growth falling to lowest level in years as global economy stalls

The International Energy Agency (IEA) slashed its estimate for global oil demand growth for the second consecutive month on Friday, citing intensifying trade concerns amid fears of a global recession. On the demand side, the IEA followed OPEC by downwardly revising its global oil demand growth forecast for 2019 on Friday. The energy agency said it now expects oil demand growth to reach 1.2 million barrels per day (b/d) this year. Looking beyond the end of 2019, the IEA expects global oil demand


The International Energy Agency (IEA) slashed its estimate for global oil demand growth for the second consecutive month on Friday, citing intensifying trade concerns amid fears of a global recession. On the demand side, the IEA followed OPEC by downwardly revising its global oil demand growth forecast for 2019 on Friday. The energy agency said it now expects oil demand growth to reach 1.2 million barrels per day (b/d) this year. Looking beyond the end of 2019, the IEA expects global oil demand
IEA sees oil demand growth falling to lowest level in years as global economy stalls Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-14  Authors: sam meredith
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IEA sees oil demand growth falling to lowest level in years as global economy stalls

The International Energy Agency (IEA) slashed its estimate for global oil demand growth for the second consecutive month on Friday, citing intensifying trade concerns amid fears of a global recession. The energy agency’s closely-watched report comes as world oil markets have undertaken a dramatic shift in recent months, switching from supply-side risks like OPEC’s output cuts or U.S. sanctions against Iran and Venezuela to worries about deteriorating demand growth. Crude futures have turned a 45% price rally in the first four months of 2019 into a fall of more than 15% since the start of April. “The main focus I think we should be looking at here is that until very recently the geopolitical factors related to Iran and Venezuela and Libya… they were at the forefront of people’s minds,” Neil Atkinson, head of the oil industry and markets division at the IEA, told CNBC’s “Street Signs Europe” on Friday. “Now we are starting to see that confidence in demand is taking over and that is the main driving factor behind the current state of the oil market.” International benchmark Brent crude traded at around $61.25 Friday morning, down around 0.1%, while U.S. West Texas Intermediate (WTI) stood at $52.15, nearly 0.3% lower.

‘Cannot be complacent’

A recent slide in oil prices was temporarily reversed on Thursday, following attacks on two oil tankers in one of the world’s key shipping routes. The incident in the Gulf of Oman off the coast of Iran pushed crude futures up as much as 4.5% in the previous session. It was the second time in less than a month that tankers had been attacked in the world’s most important zone for oil supplies, with hundreds of millions of dollars’ worth of oil passing through the shipping lane every year. Washington quickly blamed Iran for the attacks, but Tehran has denied the allegation. “I think we are realizing that, although we cannot be complacent, the situation is not yet representing a major threat to the security of oil supplies to the very important Strait of Hormuz,” the IEA’s Neil Atkinson said. On the demand side, the IEA followed OPEC by downwardly revising its global oil demand growth forecast for 2019 on Friday. The energy agency said it now expects oil demand growth to reach 1.2 million barrels per day (b/d) this year. That’s a downward revision of 100,000 b/d from the IEA’s previous projection. Global oil demand is estimated to have risen by just 250,000 b/d year-on-year in the first quarter of 2019, the IEA said, reflecting the lowest annual growth since the fourth quarter of 2011 — when the price of Brent averaged $109. Looking beyond the end of 2019, the IEA expects global oil demand growth to rebound to around 1.4 million b/d in 2020. “A clear message from our first look at 2020 is that there is plenty of non-OPEC supply growth available to meet any likely level of demand, assuming no major geopolitical shock, and the OPEC countries are sitting on 3.2 million b/d of spare capacity,” the IEA said Friday. “This is welcome news for consumers and the wider health of the currently vulnerable global economy, as it will limit significant upward pressure on oil prices.”

Saudi Arabia’s Energy Minister Khalid al-Falih attends a press conference at the end of the 13th meeting of the Joint Ministerial Monitoring Committee (JMMC) of OPEC and non- OPEC countries in Baku on March 18, 2019. Mladen ANTONOV | AFP

The IEA cited various reasons for slowing global oil consumption, including: a warm winter in Japan, a slowdown in the petrochemicals industry in Europe, tepid gasoline and diesel demand in the United States and the worsening trade outlook. The U.S. and China have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment. Expectations that trade officials from world’s largest economies will clinch a deal on the side-lines of a G20 meeting in Osaka on June 28-29 have been fading in recent days. OPEC also cited persistent trade tensions between Washington and Beijing as a risk to economic growth and fuel demand.

OPEC+


Company: cnbc, Activity: cnbc, Date: 2019-06-14  Authors: sam meredith
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OPEC’s oil output falls to 5-year low in May as group warns of weaker demand

Oil output from OPEC continued to fall in May, hitting a five-year low as the group warned that US-China trade tensions could lead to slower economic growth and weak fuel demand. Production from the 14-nation producer club fell by 236,000 barrels per day last month to 29.88 million bpd, according to independent sources cited by OPEC in its monthly report. In the monthly report, OPEC says it will carefully consider the economic outlook when it meets with Russia and other oil-exporting nations in


Oil output from OPEC continued to fall in May, hitting a five-year low as the group warned that US-China trade tensions could lead to slower economic growth and weak fuel demand. Production from the 14-nation producer club fell by 236,000 barrels per day last month to 29.88 million bpd, according to independent sources cited by OPEC in its monthly report. In the monthly report, OPEC says it will carefully consider the economic outlook when it meets with Russia and other oil-exporting nations in
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OPEC's oil output falls to 5-year low in May as group warns of weaker demand

Oil output from OPEC continued to fall in May, hitting a five-year low as the group warned that US-China trade tensions could lead to slower economic growth and weak fuel demand.

Production from the 14-nation producer club fell by 236,000 barrels per day last month to 29.88 million bpd, according to independent sources cited by OPEC in its monthly report. It was the first time OPEC pumped below 30 million bpd since June 2014.

The slump in production comes as OPEC is considering whether to extend a six-month deal to suppress output. In the monthly report, OPEC says it will carefully consider the economic outlook when it meets with Russia and other oil-exporting nations in the coming weeks.

“Throughout the first half of this year, ongoing global trade tensions have escalated, threatening to spill over, and geo-political risks remained in many key regions,” OPEC said. “This has resulted in a slowdown in global economic activities, and weaker growth in global oil demand, both compared to a year earlier.”


Company: cnbc, Activity: cnbc, Date: 2019-06-13  Authors: tom dichristopher
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US crude ticks up 1 cent to $53.27 as OPEC supply cuts counter growth concerns

Oil prices were little changed on Tuesday, weighed by concerns about a global economic slowdown that could dent crude demand, but supported by expectations that OPEC and its allies will extend their supply curbs. Concern about slowing demand and economic growth has had a large impact on sentiment amid a trade war between the United States and China. The U.S. Energy Information Administration cut its 2019 world oil demand growth forecast by 160,000 barrels per day to 1.22 million bpd. “The global


Oil prices were little changed on Tuesday, weighed by concerns about a global economic slowdown that could dent crude demand, but supported by expectations that OPEC and its allies will extend their supply curbs. Concern about slowing demand and economic growth has had a large impact on sentiment amid a trade war between the United States and China. The U.S. Energy Information Administration cut its 2019 world oil demand growth forecast by 160,000 barrels per day to 1.22 million bpd. “The global
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US crude ticks up 1 cent to $53.27 as OPEC supply cuts counter growth concerns

A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Gulf.

Oil prices were little changed on Tuesday, weighed by concerns about a global economic slowdown that could dent crude demand, but supported by expectations that OPEC and its allies will extend their supply curbs.

U.S. West Texas Intermediate settled just a penny higher at $53.27. Brent crude, the global benchmark, settled unchanged from Monday’s settlement at $62.29 a barrel.

Brent is down 17.5% from its 2019 peak reached in April, while WTI is down 20% over the same period.

Concern about slowing demand and economic growth has had a large impact on sentiment amid a trade war between the United States and China.

The U.S. Energy Information Administration cut its 2019 world oil demand growth forecast by 160,000 barrels per day to 1.22 million bpd.

“The demand outlook is central to the oil market these days,” said John Kilduff, an analyst at Again Capital. “The global economic data has been chock full of negative surprises, of late, attributable to the fallout from the U.S.-China trade war.”

However, Beijing said it will allow local governments to use proceeds from special bonds as capital for major investment projects, in a bid to support the slowing economy amid an escalating trade war with the United States.

Supporting oil prices on Tuesday was optimism that OPEC and other producers such as Russia would extend an output cut deal that has been in place since the beginning of the year to prop up prices.

The group, known as OPEC+, is due to meet in late June or early July to decide whether to extend the pact.


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Oil dips 11 cents, settling at $62.99, as US-China trade war offsets Middle East tension

Oil futures were little changed on Tuesday, supported by U.S.-Iran tensions and expectations of ongoing OPEC supply cuts but under pressure from concerns about a drawn-out trade war between Washington and Beijing. “The two powerful countervailing forces in the market right now are the Iran tensions versus the deteriorating U.S.-China trade war situation,” said John Kilduff, a partner at Again Capital in New York. The trade war “really hits the Asian economies and the demand outlook, and this sit


Oil futures were little changed on Tuesday, supported by U.S.-Iran tensions and expectations of ongoing OPEC supply cuts but under pressure from concerns about a drawn-out trade war between Washington and Beijing. “The two powerful countervailing forces in the market right now are the Iran tensions versus the deteriorating U.S.-China trade war situation,” said John Kilduff, a partner at Again Capital in New York. The trade war “really hits the Asian economies and the demand outlook, and this sit
Oil dips 11 cents, settling at $62.99, as US-China trade war offsets Middle East tension Cached Page below :
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Oil dips 11 cents, settling at $62.99, as US-China trade war offsets Middle East tension

A truck used to carry sand for fracking is washed in a truck stop in Odessa, Texas.

Oil futures were little changed on Tuesday, supported by U.S.-Iran tensions and expectations of ongoing OPEC supply cuts but under pressure from concerns about a drawn-out trade war between Washington and Beijing.

“The two powerful countervailing forces in the market right now are the Iran tensions versus the deteriorating U.S.-China trade war situation,” said John Kilduff, a partner at Again Capital in New York.

The trade war “really hits the Asian economies and the demand outlook, and this situation with Iran has the market on tenterhooks at the same time,” Kilduff said.

Brent crude futures, the international benchmark for oil prices, rose 6 cents to $72.03 per barrel around 2:35 p.m. ET (1835 GMT). U.S. West Texas Intermediate crude futures settled 11 cents lower at $62.99 per barrel.

The prolonged tariff fight between the United States and China raised concerns about a global economic slowdown and dampened market sentiment.

Signs that Asian economies were already getting hit by the trade conflict helped to boost the U.S. dollar, making crude more expensive.

On Monday, U.S. President Donald Trump threatened Iran with “great force” if it attacked U.S. interests in the Middle East. Washington suspects that militia with ties to Iran organized a rocket attack in Iraq’s capital Baghdad.

On Tuesday, Iran said it would resist U.S. pressure, declining further talks under current circumstances.

Iraq’s oil minister said growing tension in the Middle East poses a challenge to the stability of global crude oil markets and said OPEC must pave the way for a “new agreement” to help stability and support prices. He did not elaborate.

Tensions have mounted during an already tight market as the OPEC, Russia and other producers have with held supply to support prices. Saudi Arabia has signaled its willingness to continue curbing output until the end of the year.


Company: cnbc, Activity: cnbc, Date: 2019-05-21
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Oil prices jump as Saudi energy minister reports drone ‘terrorism’ against pipeline infrastructure

Saudi Arabia’s Energy Minister Khalid al-Falih attends a press conference at the end of the 13th meeting of the Joint Ministerial Monitoring Committee (JMMC) of OPEC and non- OPEC countries in Baku on March 18, 2019. DUBAI — Oil prices rose sharply Tuesday morning on reports of a drone attack at oil pumping stations in Saudi Arabia. The incident is an “act of terrorism,” Saudi Energy Minister Khalid al-Falih said according to the Saudi state news agency SPA, describing attacks on two oil pumping


Saudi Arabia’s Energy Minister Khalid al-Falih attends a press conference at the end of the 13th meeting of the Joint Ministerial Monitoring Committee (JMMC) of OPEC and non- OPEC countries in Baku on March 18, 2019. DUBAI — Oil prices rose sharply Tuesday morning on reports of a drone attack at oil pumping stations in Saudi Arabia. The incident is an “act of terrorism,” Saudi Energy Minister Khalid al-Falih said according to the Saudi state news agency SPA, describing attacks on two oil pumping
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Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: natasha turak
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Oil prices jump as Saudi energy minister reports drone 'terrorism' against pipeline infrastructure

Saudi Arabia’s Energy Minister Khalid al-Falih attends a press conference at the end of the 13th meeting of the Joint Ministerial Monitoring Committee (JMMC) of OPEC and non- OPEC countries in Baku on March 18, 2019.

DUBAI — Oil prices rose sharply Tuesday morning on reports of a drone attack at oil pumping stations in Saudi Arabia.

The incident is an “act of terrorism,” Saudi Energy Minister Khalid al-Falih said according to the Saudi state news agency SPA, describing attacks on two oil pumping stations near Riyadh for the country’s East-West pipeline carried out with bomb-laden drones.

Brent crude futures were up 1.6% at $71.38 a barrel, up $1.15. U.S. West Texas Intermediate (WTI) crude futures were at $61.95 per barrel at 11:26 a.m. New York time, up 1.4% for the session.

The fire has since been contained, according to the SPA. Al-Falih asserted that oil production was not interrupted. State oil company Saudi Aramco said that its oil and gas supplies to Europe have not been affected, and that no one was injured.

“This act of terrorism and sabotage in addition to recent acts in the Arabian Gulf do not only target the Kingdom but also the security of world oil supplies and the global economy,” the SPA described al-Falih as saying.

No one has yet been directly accused of carrying out the attack, but a Yemeni Houthi-run TV channel announced on Tuesday morning it had launched drone attacks on several Saudi installations.


Company: cnbc, Activity: cnbc, Date: 2019-05-14  Authors: natasha turak
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Oil rises 41 cents, settling at $63.91, on Venezuela turmoil, Saudi support for OPEC cuts

Operations of Venezuela’s PDVSA were “normal” on Tuesday, the country’s oil minister Manuel Quevado said in a tweet. Brent crude futures hit a session high of $73.27 per barrel and settled 76 cents higher at $72.80. U.S. West Texas Intermediate crude rose 41 cents to $63.91 per barrel on Tuesday. U.S. crude production fell to 11.68 million barrels per day (bpd) in February, down from 11.87 million (bpd) January, the U.S. Energy Information Administration said on Tuesday. Earlier, crude prices dr


Operations of Venezuela’s PDVSA were “normal” on Tuesday, the country’s oil minister Manuel Quevado said in a tweet. Brent crude futures hit a session high of $73.27 per barrel and settled 76 cents higher at $72.80. U.S. West Texas Intermediate crude rose 41 cents to $63.91 per barrel on Tuesday. U.S. crude production fell to 11.68 million barrels per day (bpd) in February, down from 11.87 million (bpd) January, the U.S. Energy Information Administration said on Tuesday. Earlier, crude prices dr
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Oil rises 41 cents, settling at $63.91, on Venezuela turmoil, Saudi support for OPEC cuts

Brent crude oil rose on Tuesday above $73 a barrel but then eased off the session high as the market grew less worried that a rebellion against Venezuelan President Nicolas Maduro would hit the country’s crude exports.

Prices rose after opposition leader Juan Guaido called for military backing to end Maduro’s rule, but pared gains after the government said state-run oil company PDVSA’s operations were not disrupted and top military leaders remained loyal.

Violence had broken out at a protest outside a Caracas air base, but Reuters witnesses said the incident fizzled out.

“Acts of violence” by some members of the armed forces had been “partly defeated,” defense minister Vladimir Padrino said. Operations of Venezuela’s PDVSA were “normal” on Tuesday, the country’s oil minister Manuel Quevado said in a tweet.

“The possibility that Guaido will take control of the situation isn’t as strong as perceived this morning,” said Bob Yawger, director of energy futures at Mizuho in New York. “If Maduro hangs on, you’ll see the market stay lower.”

Brent crude futures hit a session high of $73.27 per barrel and settled 76 cents higher at $72.80. U.S. West Texas Intermediate crude rose 41 cents to $63.91 per barrel on Tuesday.

Last week, Brent hit a six-month high above $75.

OPEC member Venezuela’s oil exports have been hit by U.S. sanctions on PDVSA and an economic crisis, helping bring OPEC’s production to a four-year low, according to a Reuters survey.

U.S. crude production fell to 11.68 million barrels per day (bpd) in February, down from 11.87 million (bpd) January, the U.S. Energy Information Administration said on Tuesday.

“That’s modestly supportive of prices,” said John Kilduff, a partner at Again Capital in New York. “We saw a pullback in operations in reaction to lower prices from last year. It shows the march forward to ever-higher production isn’t limitless.”

Earlier, crude prices drew support when Saudi Arabia Energy Minister Khalid al-Falih said a deal between producers to cut output could be extended to the end of 2019.


Company: cnbc, Activity: cnbc, Date: 2019-04-30
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Oil traders eye Saudi Arabia’s response in a critical juncture for crude

A gas flame is seen in the desert near the Khurais oilfield, near Riyadh, Saudi Arabia. Global oil markets sit at a critical juncture, with risks to supply being balanced against rising prices and questions over whether major producers will now turn on the taps. “This is definitely something we have to monitor,” UBS APAC Chief Investment Officer Adrian Zuercher told CNBC’s “Squawk Box Asia.” The decision to end the waivers could remove 1.3 million barrels per day of Iranian exports, according to


A gas flame is seen in the desert near the Khurais oilfield, near Riyadh, Saudi Arabia. Global oil markets sit at a critical juncture, with risks to supply being balanced against rising prices and questions over whether major producers will now turn on the taps. “This is definitely something we have to monitor,” UBS APAC Chief Investment Officer Adrian Zuercher told CNBC’s “Squawk Box Asia.” The decision to end the waivers could remove 1.3 million barrels per day of Iranian exports, according to
Oil traders eye Saudi Arabia’s response in a critical juncture for crude Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: dan murphy
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Oil traders eye Saudi Arabia's response in a critical juncture for crude

A gas flame is seen in the desert near the Khurais oilfield, near Riyadh, Saudi Arabia.

Global oil markets sit at a critical juncture, with risks to supply being balanced against rising prices and questions over whether major producers will now turn on the taps.

Brent crude touched $75 per barrel last week for the first time this year, helping the benchmark to log a fifth positive week in a row and add to the year’s near 40% gain.

“This is definitely something we have to monitor,” UBS APAC Chief Investment Officer Adrian Zuercher told CNBC’s “Squawk Box Asia.”

“It will remain volatile,” he added. “We expect Brent to remain between 70 and 80 U.S. dollars at this point.”

WTI also moved above $65 a barrel, even as rising U.S stockpiles and surging U.S production slowed some of the recent price momentum.

Renewed U.S. efforts to curb Iranian output, escalating tensions in Libya, supply outages in Nigeria and the ongoing crisis in Venezuela have created a complex and uncertain outlook for crude.

The week ahead will be another major test, with Iranian sanction waivers officially expiring in early May, and the U.S decision to cancel all concessions raising new questions about how Saudi Arabia and other major producers will respond.

“We now know that OPEC has that spare capacity,” Goldman Sachs’ Head of Commodities Research Jeff Currie told CNBCs “Power Lunch,” reiterating his Brent forecast of $70-75 barrel for the second quarter of 2019.

“They ramped it up, they took it back down, and we think the (Iran) shock is roughly 900,000 barrels per day, and we just saw OPEC, at least core OPEC, taking 1.8 million barrels per day off the market,” Currie added.

The decision to end the waivers could remove 1.3 million barrels per day of Iranian exports, according to S&P Global Platts. OPEC has about 3.3 million barrels per day of spare production capacity, according to the International Energy Agency, of which about 2.2 million barrels per day is held by Saudi Arabia.


Company: cnbc, Activity: cnbc, Date: 2019-04-30  Authors: dan murphy
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US crude rises 20 cents, settling at $63.50, as market shakes off Trump’s OPEC remarks

Getty Images”No representative of OPEC or the Saudi government has come forward to acknowledge any discussion in this regard,” said Jim Ritterbusch, president of Ritterbusch and Associates. Trump’s remarks initially triggered a sell-off, putting a temporary ceiling on a 40 percent price rally since the start of the year. The slide was exacerbated by technical factors including an excessive speculative long position in U.S. crude, analysts said. The rally in oil prices had gained momentum in Apri


Getty Images”No representative of OPEC or the Saudi government has come forward to acknowledge any discussion in this regard,” said Jim Ritterbusch, president of Ritterbusch and Associates. Trump’s remarks initially triggered a sell-off, putting a temporary ceiling on a 40 percent price rally since the start of the year. The slide was exacerbated by technical factors including an excessive speculative long position in U.S. crude, analysts said. The rally in oil prices had gained momentum in Apri
US crude rises 20 cents, settling at $63.50, as market shakes off Trump’s OPEC remarks Cached Page below :
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US crude rises 20 cents, settling at $63.50, as market shakes off Trump's OPEC remarks

A Petrobras oil platform floats in the Atlantic Ocean near Guanabara Bay in Rio de Janeiro. Getty Images

“No representative of OPEC or the Saudi government has come forward to acknowledge any discussion in this regard,” said Jim Ritterbusch, president of Ritterbusch and Associates. “This obvious effort to push gasoline prices down has been attempted previously by Trump and while forcing an initial price decline, such pullbacks have been followed by fresh price highs, sometimes within a matter of days.” Trump’s remarks initially triggered a sell-off, putting a temporary ceiling on a 40 percent price rally since the start of the year. The slide was exacerbated by technical factors including an excessive speculative long position in U.S. crude, analysts said. Speculators raised their combined futures and options net long positions in New York and London by 24,078 contracts to 326,818 during the week to April 23, the highest level since early October. That was the ninth consecutive increase. The rally in oil prices had gained momentum in April after Trump tightened sanctions against Iran by ending all exemptions previously granted to that major buyers. U.S. sanctions on Venezuela are also working to tighten global supply as fighting in Libya threatens to curb output there as well. Oil output in OPEC member Libya has been repeatedly disrupted by factional conflict and blockades since the 2011 uprising that toppled veteran dictator Muammar Gaddafi. “We are dealing with a market that’s not actually short of supply but is short due to politically-motivated action, and we know how quickly that can be turned around if necessary,” Saxo Bank analyst Ole Hansen told Reuters.


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Saudi’s Falih sees no need for swift output action after Iran oil waivers end

“Inventories are actually continuing to rise despite what is happening in Venezuela and despite the tightening of sanctions on Iran. I don’t see the need to do anything immediately,” Falih said in Riyadh. “Our intent is to remain within our voluntary (OPEC) production limit,” Falih said, adding that Riyadh would “be responsive to our customers, especially those who have been under waivers and those whose waivers have been withdrawn.” He said Saudi Arabia’s oil production in May was pretty much s


“Inventories are actually continuing to rise despite what is happening in Venezuela and despite the tightening of sanctions on Iran. I don’t see the need to do anything immediately,” Falih said in Riyadh. “Our intent is to remain within our voluntary (OPEC) production limit,” Falih said, adding that Riyadh would “be responsive to our customers, especially those who have been under waivers and those whose waivers have been withdrawn.” He said Saudi Arabia’s oil production in May was pretty much s
Saudi’s Falih sees no need for swift output action after Iran oil waivers end Cached Page below :
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Saudi's Falih sees no need for swift output action after Iran oil waivers end

“Inventories are actually continuing to rise despite what is happening in Venezuela and despite the tightening of sanctions on Iran. I don’t see the need to do anything immediately,” Falih said in Riyadh.

The United States has decided not to renew exemptions from sanctions against Iran granted last year to buyers of Iranian oil, taking a tougher line than expected.

“Our intent is to remain within our voluntary (OPEC) production limit,” Falih said, adding that Riyadh would “be responsive to our customers, especially those who have been under waivers and those whose waivers have been withdrawn.”

“We think there will be an uptick in real demand but certainly we are not going to be pre-emptive and increase production,” the minister said.

He said Saudi Arabia’s oil production in May was pretty much set with very little variation from the last couple of months. June crude allocations would be decided early next month, he said.

The kingdom’s exports in April will be below 7 million barrels per day (bpd), while production is around 9.8 million bpd, Saudi officials have said.

Under the OPEC-led deal on supply cuts, Saudi Arabia can pump up to 10.3 million bpd.

Falih said there would most likely be “some level of production management beyond June” by OPEC and its allies, but it was too early to predict the output targets now.

Oil prices rallied to their highest level since November after Washington announced all waivers on imports of sanctions-hit Iranian oil would end next week, pressuring importers to stop buying from Tehran and further tightening global supply.

Eight countries, including China and India, were granted waivers for six months, and several had expected those exemptions to be renewed.


Company: cnbc, Activity: cnbc, Date: 2019-04-24  Authors: mladen antonov
Keywords: news, cnbc, companies, oil, falih, opec, saudis, iran, months, sanctions, output, need, production, saudi, level, sees, end, waivers, swift, million, tightening


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Oil near 2019 highs after US ends all Iran sanction exemptions

Oil prices were near 2019 highs on Tuesday after Washington announced all Iran sanction waivers would end by May, pressuring importers to stop buying from Tehran. Brent crude futures were at $74.40 per barrel at 0239 GMT, up 0.5 percent from their last close and not far off a 2019 peak of $74.52 reached on Monday. U.S. West Texas Intermediate (WTI) crude futures hit their highest level since October 2018 at $65.95 per barrel before edging back to $65.89 by 0239 GMT, which was still up 0.5 percen


Oil prices were near 2019 highs on Tuesday after Washington announced all Iran sanction waivers would end by May, pressuring importers to stop buying from Tehran. Brent crude futures were at $74.40 per barrel at 0239 GMT, up 0.5 percent from their last close and not far off a 2019 peak of $74.52 reached on Monday. U.S. West Texas Intermediate (WTI) crude futures hit their highest level since October 2018 at $65.95 per barrel before edging back to $65.89 by 0239 GMT, which was still up 0.5 percen
Oil near 2019 highs after US ends all Iran sanction exemptions Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: essam al-sudani
Keywords: news, cnbc, companies, 2019, iranian, opec, highs, ends, sanctions, sanction, oil, united, near, going, futures, supply, crude, exemptions, iran


Oil near 2019 highs after US ends all Iran sanction exemptions

Oil prices were near 2019 highs on Tuesday after Washington announced all Iran sanction waivers would end by May, pressuring importers to stop buying from Tehran.

Brent crude futures were at $74.40 per barrel at 0239 GMT, up 0.5 percent from their last close and not far off a 2019 peak of $74.52 reached on Monday.

U.S. West Texas Intermediate (WTI) crude futures hit their highest level since October 2018 at $65.95 per barrel before edging back to $65.89 by 0239 GMT, which was still up 0.5 percent from their last settlement.

The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, ending six months of waivers which allowed Iran’s eight biggest buyers, most of them in Asia, to continue importing limited volumes.

Before the reimposition of sanctions last year, Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries (OPEC) at almost 3 million barrels per day (bpd), but April exports have shrunk well below 1 million bpd, according to ship tracking and analyst data in Refinitiv.

Barclay’s bank said in a note following the announcement that the decision took many market participants by surprise and that the move would “lead to a significant tightening of oil markets”.

The British bank added that Washington’s target to cut Iran oil exports to zero posed a “material upside risk to our current $70 per barrel average price forecast for Brent this year, compared with the year-to-date average of $65 per barrel”.

ANZ bank said in a note on Tuesday that “the decision is likely to worsen the ongoing supply woes being felt with Venezuelan sanctions, the OPEC supply cut, and intensifying conflict in Libya.”

The move to tighten Iran sanctions comes amid other sanctions Washington has placed on Venezuela’s oil exports and also as producer club OPEC has led supply cuts since the start of the year aimed at tightening global oil markets and propping up crude prices.

Ellen Wald, non-resident senior fellow at the Global Energy Center of the Atlantic Council, said the United States “seem to expect” Saudi Arabia and the United Arab Emirates to replace the Iranian oil, but she added “that this is not necessarily the way Saudi Arabia sees it.”

Saudi Arabia is the world’s biggest exporter of crude oil and OPEC’s de-facto leader. The group is set to meet in June to discuss its output policy.

“Should OPEC decide to end their supply cut program going into the second half of the year, this could limit oil’s upside in the coming months,” said Lukman Otunuga, analyst at futures brokerage FXTM.

Meanwhile, the Atlantic Council said the U.S. move would hurt Iranian citizens.

“We’re going to see their currency collapse more, more unemployment, more inflation,” said Barbara Slavin, director for the Future of Iran Initiative at the Atlantic Council, adding that the U.S. sanctions were “not going to bring Iran back to the (nuclear) negotiating table.”


Company: cnbc, Activity: cnbc, Date: 2019-04-23  Authors: essam al-sudani
Keywords: news, cnbc, companies, 2019, iranian, opec, highs, ends, sanctions, sanction, oil, united, near, going, futures, supply, crude, exemptions, iran


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