OPEC cancels April meeting, leaving price-boosting oil output cuts in place through June

When they agreed to the new production cuts in December, the so-called OPEC+ alliance said it would assess the oil market in April, two months ahead of OPEC’s usual meeting in June. The latest round of cuts have helped boost oil prices from 18-month lows this year. Falih said Monday he does not expect OPEC to leave the oil market “unguided in the second half,” Dow Jones reported. Last month, the Saudi oil minister told CNBC he was leaning toward extending the production cuts through the end of t


When they agreed to the new production cuts in December, the so-called OPEC+ alliance said it would assess the oil market in April, two months ahead of OPEC’s usual meeting in June. The latest round of cuts have helped boost oil prices from 18-month lows this year. Falih said Monday he does not expect OPEC to leave the oil market “unguided in the second half,” Dow Jones reported. Last month, the Saudi oil minister told CNBC he was leaning toward extending the production cuts through the end of t
OPEC cancels April meeting, leaving price-boosting oil output cuts in place through June Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-18  Authors: tom dichristopher, faisal al nasser
Keywords: news, cnbc, companies, told, output, opec, priceboosting, saudi, place, group, meeting, oil, russia, production, leaving, cancels, cuts, prices, market


OPEC cancels April meeting, leaving price-boosting oil output cuts in place through June

When they agreed to the new production cuts in December, the so-called OPEC+ alliance said it would assess the oil market in April, two months ahead of OPEC’s usual meeting in June. But on Monday, a committee tasked with monitoring the deal said “market fundamentals are unlikely to materially change in the next two months.”

The Joint Ministerial Monitoring Committee said it will next meet in May, with the full group convening on June 25 to decide whether to extend the output cuts through the end of 2019.

The latest round of cuts have helped boost oil prices from 18-month lows this year. U.S. West Texas Intermediate crude has rallied 29 percent to more than $58 a barrel, while international benchmark Brent crude is up 25 percent to about $67 a barrel.

OPEC and its allies are aiming to keep 1.2 million barrels per day off the market, but some producers are still pumping above their quotas, including Russia, the world’s second biggest oil producer.

Russian Energy Minister Alexander Novak told CNBC on Sunday that Russia will hit its target in coming weeks. He said it is premature to to discuss whether the group should continue capping output beyond June.

Falih said Monday he does not expect OPEC to leave the oil market “unguided in the second half,” Dow Jones reported. Last month, the Saudi oil minister told CNBC he was leaning toward extending the production cuts through the end of the year.

Helima Croft, global head of commodity strategy at RBC Capital Markets, says the group is likely to continue cutting production throughout 2019. However, extending the cuts will highlight divisions between Russia, where partly private companies produce oil, and OPEC members like Saudi Arabia, where state-owned energy companies underwrite the nation’s budget.

“The Russian corporates hate shutting in production. They benefit from volume. The state takes the upside of higher prices, so for them, they don’t like the agreement,” she told CNBC’s “Worldwide Exchange” on Monday.

“But for Saudi Arabia and for the rest of the OPEC producers, current prices still remain below their fiscal breakevens, so they would like to see prices a bit higher from here.”


Company: cnbc, Activity: cnbc, Date: 2019-03-18  Authors: tom dichristopher, faisal al nasser
Keywords: news, cnbc, companies, told, output, opec, priceboosting, saudi, place, group, meeting, oil, russia, production, leaving, cancels, cuts, prices, market


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OPEC stresses need for 2019 oil supply cuts as rivals pump more

OPEC, Russia and other non-OPEC producers, an alliance known as OPEC+, agreed in December to reduce output by 1.2 million bpd from Jan. 1 to prevent excess supply building up. “While oil demand is expected to grow at a moderate pace in 2019, it is still well below the strong growth expected in the non-OPEC supply forecast for this year,” OPEC said in the report. OPEC sources have said an extension of the supply-cutting pact beyond June is the likely scenario. In the report, OPEC said its oil out


OPEC, Russia and other non-OPEC producers, an alliance known as OPEC+, agreed in December to reduce output by 1.2 million bpd from Jan. 1 to prevent excess supply building up. “While oil demand is expected to grow at a moderate pace in 2019, it is still well below the strong growth expected in the non-OPEC supply forecast for this year,” OPEC said in the report. OPEC sources have said an extension of the supply-cutting pact beyond June is the likely scenario. In the report, OPEC said its oil out
OPEC stresses need for 2019 oil supply cuts as rivals pump more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-14  Authors: omar marques, sopa images, lightrocket, getty images
Keywords: news, cnbc, companies, supplycutting, oil, opec, demand, million, pump, russia, need, stresses, report, supply, bpd, 2019, rivals, cuts, forecast


OPEC stresses need for 2019 oil supply cuts as rivals pump more

OPEC on Thursday cut the forecast of global demand for its crude this year as rivals boost production, building a case to extend a supply-cutting deal with Russia and other allies beyond the first half of 2019.

In a monthly report, the Organization of the Petroleum Exporting Countries said 2019 demand for its crude would average 30.46 million barrels per day, 130,000 bpd less than forecast last month and below what it is currently producing.

OPEC, Russia and other non-OPEC producers, an alliance known as OPEC+, agreed in December to reduce output by 1.2 million bpd from Jan. 1 to prevent excess supply building up. The cut lasts for six months initially.

“While oil demand is expected to grow at a moderate pace in 2019, it is still well below the strong growth expected in the non-OPEC supply forecast for this year,” OPEC said in the report.

“This highlights the continued shared responsibility of all participating producing countries to avoid a relapse of the imbalance and continue to support oil market stability in 2019.”

OPEC sources have said an extension of the supply-cutting pact beyond June is the likely scenario. The group and its allies are due to meet in April and June to discuss policy.

In the report, OPEC said its oil output fell by 221,000 bpd month-on-month to 30.55 million bpd in February. That amounts to 105 percent compliance with pledged cuts, according to a Reuters calculation, up from January’s rate.


Company: cnbc, Activity: cnbc, Date: 2019-03-14  Authors: omar marques, sopa images, lightrocket, getty images
Keywords: news, cnbc, companies, supplycutting, oil, opec, demand, million, pump, russia, need, stresses, report, supply, bpd, 2019, rivals, cuts, forecast


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OPEC, long a villain in America’s eyes, is now trying to flip the script

For many Americans, OPEC is the villain of the oil market, a secretive cabal whose members enrich themselves at the expense of the rest of the world by withholding petroleum and driving up the cost of the precious resource. “We have been operating in silos for too long, and this is not good practice in today’s globalized world,” OPEC Secretary Mohammed Barkindo told reporters gathered in Houston for CERAWeek by IHS Markit, one of the year’s biggest energy conferences. The admission was just one


For many Americans, OPEC is the villain of the oil market, a secretive cabal whose members enrich themselves at the expense of the rest of the world by withholding petroleum and driving up the cost of the precious resource. “We have been operating in silos for too long, and this is not good practice in today’s globalized world,” OPEC Secretary Mohammed Barkindo told reporters gathered in Houston for CERAWeek by IHS Markit, one of the year’s biggest energy conferences. The admission was just one
OPEC, long a villain in America’s eyes, is now trying to flip the script Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-13  Authors: tom dichristopher, mary catherine wellons, ali mohammadi, bloomberg, getty images, athanasios gioumpasis, nick oxford, mandel ngan, afp, nerijus adomaitis
Keywords: news, cnbc, companies, villain, trying, script, world, oil, think, americans, opec, long, week, flip, americas, market, withholding, eyes, supply, group


OPEC, long a villain in America's eyes, is now trying to flip the script

For many Americans, OPEC is the villain of the oil market, a secretive cabal whose members enrich themselves at the expense of the rest of the world by withholding petroleum and driving up the cost of the precious resource.

This week, the group’s chief representative suggested that OPEC itself bears some responsibility for that perception — if only because it has neglected to tell its own story.

“We have been operating in silos for too long, and this is not good practice in today’s globalized world,” OPEC Secretary Mohammed Barkindo told reporters gathered in Houston for CERAWeek by IHS Markit, one of the year’s biggest energy conferences.

The admission was just one example of how OPEC is seeking to take ownership of its reputation and change the way Americans think about the group. Under Barkindo’s stewardship the group is increasingly communicating with U.S. audiences at conferences, think tanks and other events.

The key message is that OPEC is a stabilizing force in a volatile oil market prone to a destructive cycle of boom and bust. By opening the taps or throttling back supply, OPEC can keep oil flows and crude prices at sustainable levels — not too high to hurt consumers, but not too low to choke off necessary investment in future supply.


Company: cnbc, Activity: cnbc, Date: 2019-03-13  Authors: tom dichristopher, mary catherine wellons, ali mohammadi, bloomberg, getty images, athanasios gioumpasis, nick oxford, mandel ngan, afp, nerijus adomaitis
Keywords: news, cnbc, companies, villain, trying, script, world, oil, think, americans, opec, long, week, flip, americas, market, withholding, eyes, supply, group


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Saudi oil minister Khalid al-Falih says no OPEC+ output policy change until June

Saudi oil minister Khalid al-Falih said on Sunday it would be too early to change OPEC+ output policy at the group’s meeting in April and that China and the U.S. would lead healthy global demand for oil this year. Falih said the group was unlikely to change its output policy in April and if required would make adjustments in June. “We will see where the market is by June and adjust appropriately,” Falih said after a meeting with Indian oil minister Dharmendra Pradhan in New Delhi. On Jan. 1, OPE


Saudi oil minister Khalid al-Falih said on Sunday it would be too early to change OPEC+ output policy at the group’s meeting in April and that China and the U.S. would lead healthy global demand for oil this year. Falih said the group was unlikely to change its output policy in April and if required would make adjustments in June. “We will see where the market is by June and adjust appropriately,” Falih said after a meeting with Indian oil minister Dharmendra Pradhan in New Delhi. On Jan. 1, OPE
Saudi oil minister Khalid al-Falih says no OPEC+ output policy change until June Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-10  Authors: heinz-peter bader
Keywords: news, cnbc, companies, minister, khalid, saudi, change, alfalih, supply, output, policy, falih, oil, cuts, opec, production


Saudi oil minister Khalid al-Falih says no OPEC+ output policy change until June

Saudi oil minister Khalid al-Falih said on Sunday it would be too early to change OPEC+ output policy at the group’s meeting in April and that China and the U.S. would lead healthy global demand for oil this year.

The Organization of the Petroleum Exporting Countries and its allies such as Russia — known as the OPEC+ alliance — will meet in Vienna on April 17-18, with another gathering scheduled for June 25-26.

Falih said the group was unlikely to change its output policy in April and if required would make adjustments in June.

“We will see what happens by April, if there is any unforeseen disruption somewhere else, but barring this I think we will just be kicking the can forward,” Falih said.

“We will see where the market is by June and adjust appropriately,” Falih said after a meeting with Indian oil minister Dharmendra Pradhan in New Delhi.

OPEC member United Arab Emirates (UAE) said on Sunday it would continue to meet its obligations to cut supply under the producer agreement.

“We will continue to deliver on the OPEC & Non-OPEC commitment for voluntary production adjustments until the global market is re-balanced,” Minister of Energy and Industry Suhail al-Mazrouei said on Twitter.

On Jan. 1, OPEC+ began new production cuts to avoid a supply glut that threatened to soften prices. The group agreed to reduce supply by 1.2 million barrels per day for six months.

Sources recently said the most likely scenario is that the current supply cuts will be extended in June but much depends on the extent of U.S. sanctions on OPEC members Iran and Venezuela.

OPEC’s share of the cuts is 800,000 bpd, to be delivered by 11 members — all except Iran, Libya and Venezuela, which are exempt. The baseline for the reduction was in most cases their output in October 2018.

For Saudi Arabia, the world’s top oil exporter, Falih said output in April was expected to remain at this month’s level of 9.8 million bpd.

“Aramco is finalizing their April allocations today or tomorrow so we will know more on Monday. But my expectation is that April is going to be pretty much like March.”


Company: cnbc, Activity: cnbc, Date: 2019-03-10  Authors: heinz-peter bader
Keywords: news, cnbc, companies, minister, khalid, saudi, change, alfalih, supply, output, policy, falih, oil, cuts, opec, production


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Goldman Sachs preaches caution on commodities: ‘They are no longer significantly undervalued’

Goldman Sachs is warning that this year’s commodity price rally may be running out of steam, so investors should tread carefully and monitor data before going long oil and metals. Commodities have bounced 12 percent this year after a steep sell-off in the final months of 2018. At this point, Goldman analysts say fundamental supply and demand will have to drive further gains — and they’re not yet sure whether the figures will underwrite a further rally. “The risk-reward of being outright long com


Goldman Sachs is warning that this year’s commodity price rally may be running out of steam, so investors should tread carefully and monitor data before going long oil and metals. Commodities have bounced 12 percent this year after a steep sell-off in the final months of 2018. At this point, Goldman analysts say fundamental supply and demand will have to drive further gains — and they’re not yet sure whether the figures will underwrite a further rally. “The risk-reward of being outright long com
Goldman Sachs preaches caution on commodities: ‘They are no longer significantly undervalued’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: tom dichristopher, kham
Keywords: news, cnbc, companies, oil, opec, supply, undervalued, months, market, long, goldman, commodities, preaches, longer, point, sachs, significantly, output, caution


Goldman Sachs preaches caution on commodities: 'They are no longer significantly undervalued'

Goldman Sachs is warning that this year’s commodity price rally may be running out of steam, so investors should tread carefully and monitor data before going long oil and metals.

Commodities have bounced 12 percent this year after a steep sell-off in the final months of 2018. At this point, Goldman analysts say fundamental supply and demand will have to drive further gains — and they’re not yet sure whether the figures will underwrite a further rally.

Goldman acknowledges that the market has moved past temporary drags like the longest-ever U.S. government shutdown, while China is embarking on a more expansionist policy. But the bank is still preaching caution.

“While this looks like it would point to even more upside for commodities, we believe that commodities have now reached a level where they are no longer significantly undervalued relative to their current fundamentals,” the investment bank’s commodity analysts said in a research note Monday.

“The risk-reward of being outright long commodities is therefore less compelling now compared to a few months ago, and we recommend a neutral portfolio position in commodities.”

In the oil market, Goldman believes demand is holding up despite gloomy forecasts. On the supply side, the bank says Saudi Arabia is taking a “shock and awe” approach to cutting output, while production in Venezuela and Iran is bound to fall further as the two OPEC members remain under U.S. sanctions.

That could push Brent crude oil futures toward $70-$75 in the near term, but Goldman sees prices slipping in the second half of 2019 on an anticipated increase in output from OPEC countries and U.S. drillers.


Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: tom dichristopher, kham
Keywords: news, cnbc, companies, oil, opec, supply, undervalued, months, market, long, goldman, commodities, preaches, longer, point, sachs, significantly, output, caution


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Saudi energy minister responds to Trump’s tweet that said OPEC should ‘relax’

We’ll see better OPEC compliance in 2019, Saudi energy minister says 1 Hour Ago | 03:49Saudi Energy Minister Khalid al-Falih said OPEC is taking a measured approach to supply cuts, directly responding to comments from President Donald Trump earlier in the week telling the oil producing body to “relax.” “We are taking it easy,” he told CNBC’s Dan Murphy while at an OPEC symposium in Riyadh, when asked about the U.S. president’s tweet. Just as the second half last year proved, we are interested in


We’ll see better OPEC compliance in 2019, Saudi energy minister says 1 Hour Ago | 03:49Saudi Energy Minister Khalid al-Falih said OPEC is taking a measured approach to supply cuts, directly responding to comments from President Donald Trump earlier in the week telling the oil producing body to “relax.” “We are taking it easy,” he told CNBC’s Dan Murphy while at an OPEC symposium in Riyadh, when asked about the U.S. president’s tweet. Just as the second half last year proved, we are interested in
Saudi energy minister responds to Trump’s tweet that said OPEC should ‘relax’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-27  Authors: natasha turak, faisal al nasser
Keywords: news, cnbc, companies, energy, oil, opec, relax, saudi, interests, trump, responds, prices, president, trumps, taking, measured, world, minister


Saudi energy minister responds to Trump's tweet that said OPEC should 'relax'

We’ll see better OPEC compliance in 2019, Saudi energy minister says 1 Hour Ago | 03:49

Saudi Energy Minister Khalid al-Falih said OPEC is taking a measured approach to supply cuts, directly responding to comments from President Donald Trump earlier in the week telling the oil producing body to “relax.”

“We are taking it easy,” he told CNBC’s Dan Murphy while at an OPEC symposium in Riyadh, when asked about the U.S. president’s tweet.

“The 25 countries are taking a very slow and measured approach. Just as the second half last year proved, we are interested in market stability first and foremost.”

On Monday, Trump lobbed the latest of a series of tweets aimed at OPEC’s planned production cuts, agreed upon between the cartel’s members and non-member allies in December of last year to counter a drop in oil prices and soaring inventories.

“Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike – fragile!” the president said.

“We listen to the honorable president, and hear his concern about consumers and assure everybody, whether it’s him or developing country leaders, that we are as focused on the interests of the global economy and consumers around the world as we are focused on the interests of producers,” al-Falih said. The U.S. became the world’s largest oil producer in late 2018.


Company: cnbc, Activity: cnbc, Date: 2019-02-27  Authors: natasha turak, faisal al nasser
Keywords: news, cnbc, companies, energy, oil, opec, relax, saudi, interests, trump, responds, prices, president, trumps, taking, measured, world, minister


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Oil sinks 3 percent after Trump tells OPEC prices are too high

Oil prices turned sharply lower on Monday, tumbling more than 3 percent, after President Donald Trump urged OPEC to lower the cost of crude. “Oil prices getting too high. The message comes two months into a fresh round of price-boosting production cuts from OPEC and other nations. Trump has not tweeted about OPEC since early December, right before the producer group and 10 allied nations led by Russia defied his calls to keep pumping at high volumes. The so-called OPEC+ alliance reached the deal


Oil prices turned sharply lower on Monday, tumbling more than 3 percent, after President Donald Trump urged OPEC to lower the cost of crude. “Oil prices getting too high. The message comes two months into a fresh round of price-boosting production cuts from OPEC and other nations. Trump has not tweeted about OPEC since early December, right before the producer group and 10 allied nations led by Russia defied his calls to keep pumping at high volumes. The so-called OPEC+ alliance reached the deal
Oil sinks 3 percent after Trump tells OPEC prices are too high Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-25  Authors: tom dichristopher, marilyn haigh, joe raedle, getty images
Keywords: news, cnbc, companies, million, output, trump, high, tells, hit, prices, opec, trumps, early, oil, sinks, group


Oil sinks 3 percent after Trump tells OPEC prices are too high

Oil prices turned sharply lower on Monday, tumbling more than 3 percent, after President Donald Trump urged OPEC to lower the cost of crude.

“Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike – fragile!” the president said in an early morning tweet.

The message comes two months into a fresh round of price-boosting production cuts from OPEC and other nations. The producers meet in mid-April to review the deal, which is scheduled to last through the first six months of 2019.

U.S. West Texas Intermediate crude futures fell $2.02 or 3.5 percent, to $55.24 around 1 p.m. ET. On Friday, WTI hit a more than three-month intraday high at $57.81 a barrel.

International benchmark Brent crude futures were down $2.40, or 3.6 percent, at $64.72 a barrel. Brent hit $67.73 a barrel on Friday, its highest intraday level since mid-November.

Monday’s tweet marks the return of Trump’s criticism of OPEC, a staple of his second year in office and his early political messaging before running for president.

Trump has not tweeted about OPEC since early December, right before the producer group and 10 allied nations led by Russia defied his calls to keep pumping at high volumes. The group instead agreed to cut 1.2 million barrels per day from the market.

The so-called OPEC+ alliance reached the deal after oil prices sank more than 40 percent in the final quarter of 2018. The group first began curbing output in 2017 to end a punishing downturn, but lifted the caps last June as oil prices hit 3½-year highs ahead of Trump’s sanctions on Iran, OPEC’s third biggest producer at the time.

The producers — and Saudi Arabia in particular — hiked output through November, when Trump surprised them by allowing some of Iran’s biggest customers to continue importing its oil as sanctions snapped back into place. The move contributed to the pullback in prices.

Saudi Arabia has now sharply reversed course. After its output surged to a record 11.1 million barrels per day in November, it has throttled back production to 10.2 million bpd. Saudi Energy Minister Khalid al-Falih says the Saudis will cut even further, pumping at 9.8 million bpd next month.


Company: cnbc, Activity: cnbc, Date: 2019-02-25  Authors: tom dichristopher, marilyn haigh, joe raedle, getty images
Keywords: news, cnbc, companies, million, output, trump, high, tells, hit, prices, opec, trumps, early, oil, sinks, group


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Saudi Arabia’s oil deal with Russia is now ‘more fragile than ever,’ analyst says

If achieved it would mean that since the December, Saudi Arabia has become responsible for 70 percent of the total OPEC+ target. The slow pace to cuts from Russian oil producers drew criticism from Saudi Arabia’s Energy Minister Khalid al-Falih, who told CNBC in January that Moscow had moved “slower than I’d like.” During 2018, oil prices were dragged lower by increasing U.S. shale supply and fears over global demand. Oil prices have steadily edged higher since the OPEC+ promise to cut supply an


If achieved it would mean that since the December, Saudi Arabia has become responsible for 70 percent of the total OPEC+ target. The slow pace to cuts from Russian oil producers drew criticism from Saudi Arabia’s Energy Minister Khalid al-Falih, who told CNBC in January that Moscow had moved “slower than I’d like.” During 2018, oil prices were dragged lower by increasing U.S. shale supply and fears over global demand. Oil prices have steadily edged higher since the OPEC+ promise to cut supply an
Saudi Arabia’s oil deal with Russia is now ‘more fragile than ever,’ analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: david reid, fayez nureldine, afp, getty images
Keywords: news, cnbc, companies, producers, arabias, arabia, cut, analyst, russia, russian, deal, saudi, opec, supply, fragile, oil, prices


Saudi Arabia's oil deal with Russia is now 'more fragile than ever,' analyst says

A rolling oil pact between Russia and Saudi Arabia which seeks to support prices by reducing output looks to be on shaky ground with only the Arab nation appearing to fulfil its promises.

Late last year, OPEC producing countries, and non-OPEC producers, led by Russia, agreed to cut supply by 1.2 million barrels per day(bpd), an arrangement known as OPEC+.

Saudi Arabia agreed to account for the bulk of OPEC nation cuts and has confirmed it will drop its crude oil production by a further 400,000 barrels per day to 9.8 million b/d in March. If achieved it would mean that since the December, Saudi Arabia has become responsible for 70 percent of the total OPEC+ target.

In turn, Russia was set to account for the greater share of non-OPEC cuts, but from October to the beginning of February had only decreased output by 47,000 barrels per day.

The slow pace to cuts from Russian oil producers drew criticism from Saudi Arabia’s Energy Minister Khalid al-Falih, who told CNBC in January that Moscow had moved “slower than I’d like.”

That barb led to a response from Russian Energy Minister Alexander Novak who said at the beginning of February that Russia was “completely fulfilling its obligations in line with earlier announced plans to gradually cut production by May this year.”

During 2018, oil prices were dragged lower by increasing U.S. shale supply and fears over global demand. President Donald Trump has repeatedly criticized OPEC on its decision making, claiming prices should be lower.

In November 2018 Trump tweeted that he hoped OPEC wouldnot cut oil output.

On Tuesday International benchmark Brent crude was trading at $66.39 a barrel at around 12 p.m. London time (7 a.m ET), down around 0.1 percent, while West Texas Intermediate (WTI) stood at $56.09, almost 1 percent higher.

Oil prices have steadily edged higher since the OPEC+ promise to cut supply and are now sitting at levels not seen since November 2018.

But Torbjorn Soltvedt, principal MENA politics analyst at Verisk Maplecroft, said in a note Tuesday that any end to Russian-Saudi coordination would likely add significant downward pressure on prices.

“Although our base case is still that Riyadh and Moscow find a compromise to extend the agreement, the pact is now looking more fragile than ever,” said Soltvedt.

The political analyst added that to save the pact he expected Saudi Arabia may even have to settle for “low levels of (Russian) compliance to save the pact.”

Verisk Maplecroft estimate that Riyadh needs $80 a barrel in order to fund its 2019 budget while in turn, Russian President Vladimir Putin has claimed that $60 is enough to satisfy Moscow’s needs.

The next meeting of OPEC and non-OPEC oil producers takes place in mid-April.


Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: david reid, fayez nureldine, afp, getty images
Keywords: news, cnbc, companies, producers, arabias, arabia, cut, analyst, russia, russian, deal, saudi, opec, supply, fragile, oil, prices


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Saudi Arabia’s oil deal with Russia is now ‘more fragile than ever,’ analyst says

If achieved it would mean that since the December, Saudi Arabia has become responsible for 70 percent of the total OPEC+ target. The slow pace to cuts from Russian oil producers drew criticism from Saudi Arabia’s Energy Minister Khalid al-Falih, who told CNBC in January that Moscow had moved “slower than I’d like.” During 2018, oil prices were dragged lower by increasing U.S. shale supply and fears over global demand. Oil prices have steadily edged higher since the OPEC+ promise to cut supply an


If achieved it would mean that since the December, Saudi Arabia has become responsible for 70 percent of the total OPEC+ target. The slow pace to cuts from Russian oil producers drew criticism from Saudi Arabia’s Energy Minister Khalid al-Falih, who told CNBC in January that Moscow had moved “slower than I’d like.” During 2018, oil prices were dragged lower by increasing U.S. shale supply and fears over global demand. Oil prices have steadily edged higher since the OPEC+ promise to cut supply an
Saudi Arabia’s oil deal with Russia is now ‘more fragile than ever,’ analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: david reid, fayez nureldine, afp, getty images
Keywords: news, cnbc, companies, supply, opec, prices, oil, russian, russia, fragile, producers, deal, analyst, cut, arabias, saudi, arabia


Saudi Arabia's oil deal with Russia is now 'more fragile than ever,' analyst says

A rolling oil pact between Russia and Saudi Arabia which seeks to support prices by reducing output looks to be on shaky ground with only the Arab nation appearing to fulfil its promises.

Late last year, OPEC producing countries, and non-OPEC producers, led by Russia, agreed to cut supply by 1.2 million barrels per day(bpd), an arrangement known as OPEC+.

Saudi Arabia agreed to account for the bulk of OPEC nation cuts and has confirmed it will drop its crude oil production by a further 400,000 barrels per day to 9.8 million b/d in March. If achieved it would mean that since the December, Saudi Arabia has become responsible for 70 percent of the total OPEC+ target.

In turn, Russia was set to account for the greater share of non-OPEC cuts, but from October to the beginning of February had only decreased output by 47,000 barrels per day.

The slow pace to cuts from Russian oil producers drew criticism from Saudi Arabia’s Energy Minister Khalid al-Falih, who told CNBC in January that Moscow had moved “slower than I’d like.”

That barb led to a response from Russian Energy Minister Alexander Novak who said at the beginning of February that Russia was “completely fulfilling its obligations in line with earlier announced plans to gradually cut production by May this year.”

During 2018, oil prices were dragged lower by increasing U.S. shale supply and fears over global demand. President Donald Trump has repeatedly criticized OPEC on its decision making, claiming prices should be lower.

In November 2018 Trump tweeted that he hoped OPEC wouldnot cut oil output.

On Tuesday International benchmark Brent crude was trading at $66.39 a barrel at around 12 p.m. London time (7 a.m ET), down around 0.1 percent, while West Texas Intermediate (WTI) stood at $56.09, almost 1 percent higher.

Oil prices have steadily edged higher since the OPEC+ promise to cut supply and are now sitting at levels not seen since November 2018.

But Torbjorn Soltvedt, principal MENA politics analyst at Verisk Maplecroft, said in a note Tuesday that any end to Russian-Saudi coordination would likely add significant downward pressure on prices.

“Although our base case is still that Riyadh and Moscow find a compromise to extend the agreement, the pact is now looking more fragile than ever,” said Soltvedt.

The political analyst added that to save the pact he expected Saudi Arabia may even have to settle for “low levels of (Russian) compliance to save the pact.”

Verisk Maplecroft estimate that Riyadh needs $80 a barrel in order to fund its 2019 budget while in turn, Russian President Vladimir Putin has claimed that $60 is enough to satisfy Moscow’s needs.

The next meeting of OPEC and non-OPEC oil producers takes place in mid-April.


Company: cnbc, Activity: cnbc, Date: 2019-02-19  Authors: david reid, fayez nureldine, afp, getty images
Keywords: news, cnbc, companies, supply, opec, prices, oil, russian, russia, fragile, producers, deal, analyst, cut, arabias, saudi, arabia


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BP CEO Bob Dudley warns oil market uncertainty could lead to a ‘real crunch’

A flurry of intensifying risks could trigger an energy market “crunch” over the coming months, according to the chief executive of BP. His comments come at a time when energy market participants expect U.S. sanctions on crisis-stricken Venezuela, as well as OPEC-led production cuts, to offset a potential supply glut this year. When asked whether production cuts from the so-called OPEC+ coalition were likely to help stabilize oil prices, Dudley replied: “Well, there’s a lot of variables here and


A flurry of intensifying risks could trigger an energy market “crunch” over the coming months, according to the chief executive of BP. His comments come at a time when energy market participants expect U.S. sanctions on crisis-stricken Venezuela, as well as OPEC-led production cuts, to offset a potential supply glut this year. When asked whether production cuts from the so-called OPEC+ coalition were likely to help stabilize oil prices, Dudley replied: “Well, there’s a lot of variables here and
BP CEO Bob Dudley warns oil market uncertainty could lead to a ‘real crunch’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: sam meredith
Keywords: news, cnbc, companies, oil, production, opec, uncertainty, prices, ceo, lead, venezuela, warns, dudley, real, bp, energy, theres, market, sanctions, crunch


BP CEO Bob Dudley warns oil market uncertainty could lead to a 'real crunch'

A flurry of intensifying risks could trigger an energy market “crunch” over the coming months, according to the chief executive of BP.

His comments come at a time when energy market participants expect U.S. sanctions on crisis-stricken Venezuela, as well as OPEC-led production cuts, to offset a potential supply glut this year.

When asked whether production cuts from the so-called OPEC+ coalition were likely to help stabilize oil prices, Dudley replied: “Well, there’s a lot of variables here and there’s a lot of things that could lead to a real crunch.”

Speaking to CNBC’s Dan Murphy at an energy forum in Cairo, Egypt, Dudley cited “tragic circumstances” in Venezuela, uncertainty in Libya, rising production levels from the Permian Basin and the impact of U.S. sanctions on Iran.

“So, the OPEC+ countries agreed to reduce production in the first quarter, we don’t even really have data from it. We will have to see what the data looks like but the markets feel tight to me.”

“We plan BP on a sort of fairway, which I think is good for the world, between $50 a barrel and $65. That’s good for producers and consumers,” Dudley said.

Brent crude, the international benchmark for oil prices, was trading at $61.90 a barrel Tuesday morning, up 0.6 percent, while West Texas Intermediate (WTI) stood at $52.68, 0.5 percent higher.


Company: cnbc, Activity: cnbc, Date: 2019-02-12  Authors: sam meredith
Keywords: news, cnbc, companies, oil, production, opec, uncertainty, prices, ceo, lead, venezuela, warns, dudley, real, bp, energy, theres, market, sanctions, crunch


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