Oil rises on expected OPEC cuts, but surging US supply drags

Oil prices rose on Friday amid expectations of supply cuts from OPEC, although record U.S. production dragged. Brent crude oil futures were up 48 cents, or 0.7 percent, at $67.10 per barrel. “OPEC production cuts are usually implemented by removing medium and heavier barrels from the market but that does not address the oversupply of light-sweet.” Crude inventories soared 10.3 million barrels in the week to Nov. 9 to 442.1 million barrels, the highest level since early December 2017. “We expect


Oil prices rose on Friday amid expectations of supply cuts from OPEC, although record U.S. production dragged. Brent crude oil futures were up 48 cents, or 0.7 percent, at $67.10 per barrel. “OPEC production cuts are usually implemented by removing medium and heavier barrels from the market but that does not address the oversupply of light-sweet.” Crude inventories soared 10.3 million barrels in the week to Nov. 9 to 442.1 million barrels, the highest level since early December 2017. “We expect
Oil rises on expected OPEC cuts, but surging US supply drags Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: andrew burton, getty images
Keywords: news, cnbc, companies, surging, production, crude, bpd, barrels, expected, rises, oil, opec, drags, cuts, supply, record, million


Oil rises on expected OPEC cuts, but surging US supply drags

Oil prices rose on Friday amid expectations of supply cuts from OPEC, although record U.S. production dragged.

U.S. West Texas Intermediate (WTI) crude oil futures were at $56.84 per barrel at 0353 GMT, up 38 cents, or 0.7 percent, from their last settlement.

Brent crude oil futures were up 48 cents, or 0.7 percent, at $67.10 per barrel.

Prices were mainly supported by expectations the Organization of the Petroleum Exporting Countries (OPEC) would start withholding supply soon, fearing a renewed rout such as in 2014 when prices crashed under the weight of oversupply.

OPEC’s de-facto leader Saudi Arabia wants the cartel and its allies to cut output by about 1.4 million barrels per day (bpd), around 1.5 percent of global supply, sources told Reuters this week.

However, Morgan Stanley warned a cut by the Middle East dominated producer cartel may not have the desired effect.

“The main oil price benchmarks – Brent and WTI – are both light-sweet crudes and reflect this glut,” the U.S. bank said.

“OPEC production cuts are usually implemented by removing medium and heavier barrels from the market but that does not address the oversupply of light-sweet.”

Due to the structural oversupply that has emerged in the market from record production by many countries, Morgan Stanley said that “OPEC cuts are inherently temporary (because) all they can do is shift production from one period to another”.

While OPEC considers withholding supply, U.S. crude oil production reached another record last week, at 11.7 million bpd, according to U.S. Energy Information Administration (EIA) data published on Thursday.

U.S. output has surged by almost a quarter since the start of the year.

The record output meant U.S. crude oil stocks posted the biggest weekly build in nearly two years.

Crude inventories soared 10.3 million barrels in the week to Nov. 9 to 442.1 million barrels, the highest level since early December 2017.

This surge contributed to oil prices falling by around a quarter since early October, taking many by surprise.

“Oil bulls, us included, have capitulated and we no longer see oil climbing to $95 per barrel next year,” Bank of America Merrill Lynch said in a note.

While sentiment has turned bearish, some analysts warn that 2019 could be tighter than expected.

“We expect 2019 oil demand to reach 101.1 million bpd,” natural resources research and investment firm Goehring & Rozencwajg said, up from just under 100 million bpd this year.

At the same time, the firm said production outside North America was set to disappoint.

Add OPEC’s expected supply cuts, and Goehring & Rozencwajg said “those investors who are able to adopt a contrarian stance … and stomach the volatility … are being presented with an excellent investment opportunity” to buy into oil after the recent slump.

Bank of America agreed, saying “we believe oil is oversold and will likely bounce up from the current levels, as OPEC+ dials back production in December”.


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: andrew burton, getty images
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Oil prices slip on concerns of looming oversupply, economic downturn

Oil prices slipped on Thursday, weighed down by rising supply going into a market in which consumption is expected to slow down amid a glum economic outlook. Front-month Brent crude oil futures were trading at $65.88 per barrel at 0441 GMT, down 24 cents, or 0.4 percent, from their last close. Since early October, oil prices have lost around a quarter of their value as supply soars just as demand is expected to slow down along with an economic downturn. Meanwhile, data released this week showed


Oil prices slipped on Thursday, weighed down by rising supply going into a market in which consumption is expected to slow down amid a glum economic outlook. Front-month Brent crude oil futures were trading at $65.88 per barrel at 0441 GMT, down 24 cents, or 0.4 percent, from their last close. Since early October, oil prices have lost around a quarter of their value as supply soars just as demand is expected to slow down along with an economic downturn. Meanwhile, data released this week showed
Oil prices slip on concerns of looming oversupply, economic downturn Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-15
Keywords: news, cnbc, companies, economic, supply, oil, barrels, looming, million, demand, week, downturn, crude, slip, prices, oversupply, concerns, opec


Oil prices slip on concerns of looming oversupply, economic downturn

Oil prices slipped on Thursday, weighed down by rising supply going into a market in which consumption is expected to slow down amid a glum economic outlook.

Front-month Brent crude oil futures were trading at $65.88 per barrel at 0441 GMT, down 24 cents, or 0.4 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $55.96 a barrel, down 29 cents, or 0.5 percent.

Since early October, oil prices have lost around a quarter of their value as supply soars just as demand is expected to slow down along with an economic downturn.

“Asian refiners and consumers we speak with are mentioning initial concerns of slowing demand,” said Mike Corley, president of Mercatus Energy Advisors.

U.S. bank Morgan Stanley said in a note on Wednesday that China’s economic “conditions deteriorated materially” in the third quarter of 2018, while analysts at Capital Economics said China’s “near-term economic outlook still remains downbeat.”

China is the world’s biggest oil importer and the second-largest crude consumer.

Meanwhile, data released this week showed economic contraction in industrial powerhouses Japan and Germany in the third quarter.

At the same time, supply has been surging, especially due to a 22 percent rise in U.S. crude oil production this year to a record 11.6 million barrels per day (bpd).

“Producers…have more barrels than they can sell at the moment,” said Mercatus Energy Advisors’ Corley.

As a result, oil inventories are rising. The American Petroleum Institute said late on Wednesday that crude inventories rose by 8.8 million barrels in the week to Nov. 9 to 440.7 million, compared with analyst expectations for an increase of 3.2 million barrels.

Fearing a renewed glut like in 2014, when prices crashed under the weight of oversupply, the Organization of the Petroleum Exporting Countries (OPEC) is discussing supply cuts.

To do so successfully, OPEC – under the de-facto leadership of Saudi Arabia – will need Russia on its side, which is not an OPEC member.

A joint effort between OPEC and Russia to withhold supply from 2017 was a major contributor to crude price rises last year and in the first half of 2018.

“Russia and OPEC and Saudi Arabia – they are observing the market. If they see that there is dis-balance between supply and demand, (they) will of course take a joint action to reduce supply,” said Kirill Dmitriev, head of Russian Direct Investment Fund, the country’s sovereign wealth investment body.


Company: cnbc, Activity: cnbc, Date: 2018-11-15
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Oil has become a ‘very political tool’: Bank of Singapore

Oil has become a ‘very political tool’: Bank of Singapore10 Hours AgoGareth Nicholson of Bank of Singapore says “a lot of the blame” for movements in the oil market needs to be put on the U.S. because Washington put pressure on OPEC countries to keep production levels up.


Oil has become a ‘very political tool’: Bank of Singapore10 Hours AgoGareth Nicholson of Bank of Singapore says “a lot of the blame” for movements in the oil market needs to be put on the U.S. because Washington put pressure on OPEC countries to keep production levels up.
Oil has become a ‘very political tool’: Bank of Singapore Cached Page below :
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Oil has become a 'very political tool': Bank of Singapore

Oil has become a ‘very political tool’: Bank of Singapore

10 Hours Ago

Gareth Nicholson of Bank of Singapore says “a lot of the blame” for movements in the oil market needs to be put on the U.S. because Washington put pressure on OPEC countries to keep production levels up.


Company: cnbc, Activity: cnbc, Date: 2018-11-15
Keywords: news, cnbc, companies, tool, oil, opec, political, bank, singapore10, production, pressure, washington, singapore


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Oil prices whipsaw as OPEC allies ramp up talk of supply cuts at December meeting

OPEC Sec-Gen: We remain very focused on our principal objective 7 Hours Ago | 03:27OPEC officials quickly sought to reassure energy market participants on Wednesday, as oil prices fluctuated wildly ahead of a much-anticipated meeting between the influential oil cartel and its allied partners in early December. The growing prospect of OPEC and non-OPEC members cutting output next month helped Brent crude rebound toward $66 a barrel Wednesday morning. Speaking to CNBC at the ADIPEC oil summit in A


OPEC Sec-Gen: We remain very focused on our principal objective 7 Hours Ago | 03:27OPEC officials quickly sought to reassure energy market participants on Wednesday, as oil prices fluctuated wildly ahead of a much-anticipated meeting between the influential oil cartel and its allied partners in early December. The growing prospect of OPEC and non-OPEC members cutting output next month helped Brent crude rebound toward $66 a barrel Wednesday morning. Speaking to CNBC at the ADIPEC oil summit in A
Oil prices whipsaw as OPEC allies ramp up talk of supply cuts at December meeting Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: sam meredith, nick oxford
Keywords: news, cnbc, companies, wildly, cuts, energy, opec, oil, group, barkindo, allied, meeting, market, talk, prices, supply, ramp, partners, allies, focused, whipsaw


Oil prices whipsaw as OPEC allies ramp up talk of supply cuts at December meeting

OPEC Sec-Gen: We remain very focused on our principal objective 7 Hours Ago | 03:27

OPEC officials quickly sought to reassure energy market participants on Wednesday, as oil prices fluctuated wildly ahead of a much-anticipated meeting between the influential oil cartel and its allied partners in early December.

The growing prospect of OPEC and non-OPEC members cutting output next month helped Brent crude rebound toward $66 a barrel Wednesday morning.

It comes after OPEC President (and United Arab Emirates Energy Minister) Suhail al-Mazrouei and OPEC Secretary General Mohammed Barkindo said there was a consensus among the group to support a decision to balance the market in Vienna, Austria on December 6.

Speaking to CNBC at the ADIPEC oil summit in Abu Dhabi Wednesday, Barkindo said the Middle East-dominated group remains jointly focused with efforts to “restore stability” in energy markets.

Shortly thereafter, Mazrouei told CNBC’s Steve Sedgwick that OPEC would be careful not to “overreact” to this latest bout of oil market volatility. Instead, the 15-member group and its allied partners would “do what is necessary” over the coming weeks.


Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: sam meredith, nick oxford
Keywords: news, cnbc, companies, wildly, cuts, energy, opec, oil, group, barkindo, allied, meeting, market, talk, prices, supply, ramp, partners, allies, focused, whipsaw


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Oil extends slide from 7 percent slump the day before as outlook darkens

U.S. West Texas Intermediate (WTI) crude oil futures were at $55.50 per barrel at 0514 GMT, down 19 cents from their last settlement. International benchmark Brent crude oil futures were down 22 cents at $65.25 per barrel. The slump in spot prices has turned the entire forward curve for crude oil upside down. By mid-November, the curve had flipped into contango, when crude prices for immediate delivery are cheaper than those for later dispatch. “This will, in our view, cap any upside above $85 p


U.S. West Texas Intermediate (WTI) crude oil futures were at $55.50 per barrel at 0514 GMT, down 19 cents from their last settlement. International benchmark Brent crude oil futures were down 22 cents at $65.25 per barrel. The slump in spot prices has turned the entire forward curve for crude oil upside down. By mid-November, the curve had flipped into contango, when crude prices for immediate delivery are cheaper than those for later dispatch. “This will, in our view, cap any upside above $85 p
Oil extends slide from 7 percent slump the day before as outlook darkens Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14
Keywords: news, cnbc, companies, crude, million, output, extends, surge, slump, supply, later, slide, day, oil, outlook, prices, darkens, production, opec


Oil extends slide from 7 percent slump the day before as outlook darkens

Oil markets slipped again on Wednesday, extending losses from a 7 percent plunge the previous session as surging supply and the spectre of faltering demand scared off investors.

U.S. West Texas Intermediate (WTI) crude oil futures were at $55.50 per barrel at 0514 GMT, down 19 cents from their last settlement.

International benchmark Brent crude oil futures were down 22 cents at $65.25 per barrel.

Crude oil has lost over a quarter of its value since early October in what has become one of the biggest declines since prices collapsed in 2014.

The slump in spot prices has turned the entire forward curve for crude oil upside down.

Spot prices in September were significantly higher than those for later delivery, a structure known as backwardation that implies a tight market as it is unattractive to put oil into storage.

By mid-November, the curve had flipped into contango, when crude prices for immediate delivery are cheaper than those for later dispatch. That implies an oversupplied market as it makes it attractive to store oil for later sale.

Oil markets are being pressured from two sides: a surge in supply and increasing concerns about an economic slowdown.

U.S. crude oil output from its seven major shale basins is expected to hit a record of 7.94 million barrels per day (bpd) in December, the U.S. Department of Energy’s Energy Information Administration (EIA) said on Tuesday.

That surge in onshore output has helped overall U.S. crude production hit a record 11.6 million bpd, making the United States the world’s biggest oil producer ahead of Russia and Saudi Arabia.

Most analysts expect U.S. output to climb above 12 million bpd within the first half of 2019.

“This will, in our view, cap any upside above $85 per barrel (for oil prices),” said Jon Andersson, head of commodities at Vontobel Asset Management.

The surge in U.S. production is contributing to rising stockpiles.

U.S. crude stocks climbed by 7.8 million barrels in the week ending Nov. 2 to 432 million as refineries cut output, data from industry group the American Petroleum Institute showed on Tuesday.

The producer cartel of the Organization of the Petroleum Exporting Countries (OPEC) has been watching the jump in supply and price slump with concern.

OPEC has been making increasingly frequent public statements that it would start withholding crude in 2019 to tighten supply and prop up prices.

“OPEC and Russia are under pressure to reduce current production levels, which is a decision that we expect to be taken at the next OPEC meeting on Dec. 6,” said Andersson.

That puts OPEC on a collision course with U.S. President Donald Trump, who publicly supports low oil prices and who has called on OPEC not to cut production.


Company: cnbc, Activity: cnbc, Date: 2018-11-14
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‘OPEC is not effective,’ says Malaysia’s prime minister

The Malaysian leader was asked whether the group should take further action to stabilize oil prices. “What is more important is the production of shale oil from America,” he added. Consequently, analysts at Fitch recently said a decline in oil prices will undermine the country’s effort to cut its debt given its dependence oil revenue. You see, we’re a small producer of oil, 600 barrels a day — nothing compared to countries like Saudi, which is entirely dependent upon oil revenue,” said the prime


The Malaysian leader was asked whether the group should take further action to stabilize oil prices. “What is more important is the production of shale oil from America,” he added. Consequently, analysts at Fitch recently said a decline in oil prices will undermine the country’s effort to cut its debt given its dependence oil revenue. You see, we’re a small producer of oil, 600 barrels a day — nothing compared to countries like Saudi, which is entirely dependent upon oil revenue,” said the prime
‘OPEC is not effective,’ says Malaysia’s prime minister Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: yen nee lee, justin solomon
Keywords: news, cnbc, companies, rating, opec, malaysia, prime, oil, mahathir, production, malaysias, revenue, prices, shale, effective, minister, fitch, dependent


'OPEC is not effective,' says Malaysia's prime minister

The Organization of the Petroleum Exporting Countries hasn’t been effective in stabilizing oil prices, which have been more dependent on U.S. shale production than the actions of the intergovernmental group, said MalaysianPrime Minister Mahathir Mohamad.

“OPEC is not effective. They are always at loggerheads with each other so they cannot make decision,” Mahathir told CNBC’s Sri Jegarajah in a Monday interview. The Malaysian leader was asked whether the group should take further action to stabilize oil prices.

“What is more important is the production of shale oil from America,” he added.

Those comments by the Malaysian leader came less than a month before OPEC and non-OPEC members are scheduled to meet in Vienna, Austria to vote on their next policy decision. Those major oil producers began cutting production in January 2017 to drain a global crude glut that sent oil prices from over $100 per barrel to under $30.

Oil prices did recover, but trade tensions between the U.S. and China, rising interest rates and currency weakness in emerging markets have raised concerns about a slowdown in global economic growth and oil demand.

Malaysia is an oil producing country. Consequently, analysts at Fitch recently said a decline in oil prices will undermine the country’s effort to cut its debt given its dependence oil revenue. But Mahathir said Malaysia’s economy is more diversified than what’s commonly thought.

“We’re not dependent on oil revenue. You see, we’re a small producer of oil, 600 barrels a day — nothing compared to countries like Saudi, which is entirely dependent upon oil revenue,” said the prime minister.

“We have other sources of revenue: We produce a lot of palm oil, which used to fetch quite good prices. We also have 82 percent of our exports made up of manufactured goods, so how can you say we’re dependent upon oil revenue? It’s not,” he added.

The comments by Fitch analysts were made after Malaysia said earlier this month it plans to cut its fiscal shortfall to 3.4 percent of gross domestic product in 2019 — down from the projected 3.7 percent this year. Fitch said the country is “at the mercy of the markets” given its oil businesses, and because of that, the agency is “cautious” that Malaysia would achieve its goal in cutting the budget deficit.

Despite that, economists said Malaysia doesn’t face threats of a sovereign rating downgrade in the near term.

“We don’t think the situation today is that worse and entails a rating downgrade, although signals of worsening public finances have had rating agencies sounding alarms days ahead of the budget,” Prakash Sakpal, Asia economist at ING, wrote in a report last week.

— CNBC’s Tom DiChristopher contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: yen nee lee, justin solomon
Keywords: news, cnbc, companies, rating, opec, malaysia, prime, oil, mahathir, production, malaysias, revenue, prices, shale, effective, minister, fitch, dependent


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Oil falls as Trump raps OPEC’s supply cut plan, global markets skid

U.S. West Texas Intermediate (WTI) crude oil futures were at $59.15 per barrel at 0214 GMT, down 78 cents, or 1.3 percent from their last settlement. International benchmark Brent crude oil futures were at $69.47 per barrel, down 65 cents, or 0.9 percent, from their last close. “Sky-high production in the U.S., coupled with incremental barrels coming from Saudi Arabia and Russia is starting to impact oil market balances. As such, crude oil inventories are starting to increase once again,” Bank o


U.S. West Texas Intermediate (WTI) crude oil futures were at $59.15 per barrel at 0214 GMT, down 78 cents, or 1.3 percent from their last settlement. International benchmark Brent crude oil futures were at $69.47 per barrel, down 65 cents, or 0.9 percent, from their last close. “Sky-high production in the U.S., coupled with incremental barrels coming from Saudi Arabia and Russia is starting to impact oil market balances. As such, crude oil inventories are starting to increase once again,” Bank o
Oil falls as Trump raps OPEC’s supply cut plan, global markets skid Cached Page below :
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Keywords: news, cnbc, companies, global, skid, plan, production, million, oil, falls, saudi, crude, opec, starting, market, raps, supply, markets, trump, opecs


Oil falls as Trump raps OPEC's supply cut plan, global markets skid

Oil prices fell by around 1 percent on Tuesday, with Brent crude sliding below $70 and WTI below $60 per barrel, after U.S. President Donald Trump put pressure on OPEC not to cut supply to prop up the market.

The fall came amid a broad market selloff in Asia and before that on Wall Street, while the U.S.-dollar hit a 16-month high on Tuesday, making oil imports more expensive for any country using other currencies at home.

U.S. West Texas Intermediate (WTI) crude oil futures were at $59.15 per barrel at 0214 GMT, down 78 cents, or 1.3 percent from their last settlement.

International benchmark Brent crude oil futures were at $69.47 per barrel, down 65 cents, or 0.9 percent, from their last close.

Both oil price benchmarks have shed more than 20 percent in value since early October.

“Sky-high production in the U.S., coupled with incremental barrels coming from Saudi Arabia and Russia is starting to impact oil market balances. As such, crude oil inventories are starting to increase once again,” Bank of America Merrill Lynch said in a note.

The bank added that it expected U.S. crude production, already at a record 11.6 million barrels per day (bpd), to break through 12 million bpd in 2019, making the United States “energy independent”.

Top crude exporter Saudi Arabia has watched with alarm how supply is starting to outpace consumption, fearing a repeat of 2014’s price crash.

Saudi Energy Minister Khalid al-Falih said on Monday the Organization of the Petroleum Exporting Countries (OPEC) agreed there was a need to cut oil supply next year by around 1 million bpd from October levels to prevent oversupply.

Dutch bank ING said given the abundance of global supply as well as the threat of an economic slowdown, “cuts over 2019 are unavoidable …(as) it is becoming clearer that as we move closer towards 2019, the market will see a sizeable surplus at least over the first half of 2019.”

U.S. President Donald Trump, however, did not like the rhetoric coming from his political ally in Saudi Arabia.

“Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!” Trump said in a Twitter post on Monday.


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OPEC knocks down oil demand forecast for the 4th consecutive month

OPEC continued to reduce its forecast for oil demand in its latest monthly report, issuing its fourth consecutive downward revision to consumption growth for 2019. The group has revised its outlook lower every month since July, when it initially forecast growth of 1.45 million bpd for next year. Meanwhile, the cartel now sees output from non-member nations increasing by 2.23 million bpd next year, up 120,000 bpd from its last forecast. “Although the oil market has reached a balance now, the fore


OPEC continued to reduce its forecast for oil demand in its latest monthly report, issuing its fourth consecutive downward revision to consumption growth for 2019. The group has revised its outlook lower every month since July, when it initially forecast growth of 1.45 million bpd for next year. Meanwhile, the cartel now sees output from non-member nations increasing by 2.23 million bpd next year, up 120,000 bpd from its last forecast. “Although the oil market has reached a balance now, the fore
OPEC knocks down oil demand forecast for the 4th consecutive month Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: tom dichristopher, essam al-sudani
Keywords: news, cnbc, companies, recent, forecast, knocks, supply, consecutive, revision, bpd, opec, 4th, oil, demand, million, month, growth


OPEC knocks down oil demand forecast for the 4th consecutive month

OPEC continued to reduce its forecast for oil demand in its latest monthly report, issuing its fourth consecutive downward revision to consumption growth for 2019.

The 15-member oil cartel forecasts the world’s appetite for crude will grow by 1.29 million barrels per day in 2019, down 70,000 bpd from its projection last month. The group has revised its outlook lower every month since July, when it initially forecast growth of 1.45 million bpd for next year.

Meanwhile, the cartel now sees output from non-member nations increasing by 2.23 million bpd next year, up 120,000 bpd from its last forecast.

“Although the oil market has reached a balance now, the forecasts for 2019 for non-OPEC supply growth indicate higher volumes outpacing the expansion in world oil demand, leading to widening excess supply in the market,” OPEC said. “The recent downward revision to the global economic growth forecast and associated uncertainties confirms the emerging pressure on oil demand observed in recent months.”


Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: tom dichristopher, essam al-sudani
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OPEC expects global energy demand to skyrocket through 2040, thanks to India and China

Global energy demand is set to skyrocket over the next two decades, OPEC said in its latest annual outlook, with India and China the most important contributors to this growth. In the influential oil cartel’s 2018 World Oil Outlook (WOO), the group said it expects total primary energy demand to surge around 33 percent from 2015 levels. Driven almost entirely by developing countries — most notably India and China — demand is expected to increase at an average annual growth rate of nearly 2 percen


Global energy demand is set to skyrocket over the next two decades, OPEC said in its latest annual outlook, with India and China the most important contributors to this growth. In the influential oil cartel’s 2018 World Oil Outlook (WOO), the group said it expects total primary energy demand to surge around 33 percent from 2015 levels. Driven almost entirely by developing countries — most notably India and China — demand is expected to increase at an average annual growth rate of nearly 2 percen
OPEC expects global energy demand to skyrocket through 2040, thanks to India and China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: sam meredith, vcg, getty images, omar marques, sopa images, lightrocket
Keywords: news, cnbc, companies, countries, global, world, 2040, energy, bpd, thanks, opec, skyrocket, oil, demand, china, million, outlook, india, expects


OPEC expects global energy demand to skyrocket through 2040, thanks to India and China

Global energy demand is set to skyrocket over the next two decades, OPEC said in its latest annual outlook, with India and China the most important contributors to this growth.

In the influential oil cartel’s 2018 World Oil Outlook (WOO), the group said it expects total primary energy demand to surge around 33 percent from 2015 levels.

Driven almost entirely by developing countries — most notably India and China — demand is expected to increase at an average annual growth rate of nearly 2 percent, reaching 365 million carrels per day (bpd) in 2040.

“Energy demand in India and China in this period is forecast to increase by 22 million bpd and 21 million bpd, respectively, which is more than 50 percent of the energy demand growth in developing countries during this period,” OPEC said in the report.

At present, energy market participants are increasingly concerned about a slowdown in the global economy, escalating trade tensions, emerging market countries’ currency weakness and the potential fallout this could have on oil demand.

Last month, the International Monetary Fund (IMF) cut its outlook for the world economy in 2018-19 by 0.2 percentage points to 3.7 percent.


Company: cnbc, Activity: cnbc, Date: 2018-11-13  Authors: sam meredith, vcg, getty images, omar marques, sopa images, lightrocket
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Asia markets retrace some losses; oil prices closely watched after OPEC warns on output

Asia markets retraced some of their early losses Monday morning but investors remained wary about global risks that include a trade fight between the U.S. and China, growth outlook, as well as oil prices. Oil prices will also be closely watched on Monday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies warned about surging oil output that is set to leave the crude market oversupplied in 2019. That announcement came as rising supply and a weaker outlook for demand


Asia markets retraced some of their early losses Monday morning but investors remained wary about global risks that include a trade fight between the U.S. and China, growth outlook, as well as oil prices. Oil prices will also be closely watched on Monday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies warned about surging oil output that is set to leave the crude market oversupplied in 2019. That announcement came as rising supply and a weaker outlook for demand
Asia markets retrace some losses; oil prices closely watched after OPEC warns on output Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, opec, closely, retrace, market, shares, warns, output, markets, trade, traded, dollar, losses, watched, index, oil, prices


Asia markets retrace some losses; oil prices closely watched after OPEC warns on output

Asia markets retraced some of their early losses Monday morning but investors remained wary about global risks that include a trade fight between the U.S. and China, growth outlook, as well as oil prices.

Japan’s Nikkei 225 erased early losses of more than 0.7 percent to trade fractionally higher while the Topix index was near flat. In South Korea, the Kospi retraced losses of more than 0.6 percent to trade down 0.1 percent.

Markets in Greater China were mostly positive in early trade. Taiwan’s Taiex index was up 0.35 percent while Hong Kong’s Hang Seng Index added 0.14 percent. Major indexes in the mainland markets traded mostly flat: The Shanghai Composite at around 2,600 while the Shenzhen composite added nearly 0.2 percent.

In Australia, the ASX 200 erased earlier losses to trade marginally higher around 5,923. The heavily-weighted financial subindex fell 0.66 percent as shares of some major banks tumbled: ANZ shares were down 3.74 percent and the National Australia Bank declined 0.24 percent. Westpac shares were up 0.13 percent and Commowealth Bank rose 0.58 percent.

Oil prices will also be closely watched on Monday after the Organization of the Petroleum Exporting Countries (OPEC) and its allies warned about surging oil output that is set to leave the crude market oversupplied in 2019.

A committee of several OPEC members and other crude exporters said that a larger group of roughly two dozen nations may have to launch a fresh round of output cuts in order to keep the oil market balanced. That announcement came as rising supply and a weaker outlook for demand have contributed to a sharp pullback in oil prices.

“The fairly quick downward correction in oil prices has finally stirred OPEC members to broach the topic of more output cuts over the weekend,” Wei Liang Chang, a foreign-exchange strategist at Mizuho Bank, wrote in a morning note. “Even so, the correction in oil prices appears partly due to a pullback in global equities, and output management risks exaggerating price moves when market sentiment reverses.”

U.S. crude traded up 0.8 percent at $60.67 a barrel while global benchmark Brent was up 0.95 percent at $70.85.

In the currency market, the dollar index, which measures the U.S. dollar against a basket of its peer, traded at 96.984, up from levels below 96.000 in the previous week.

Analysts said that the dollar “reasserted itself” as sentiment fell in the stock market last Friday.

The Japanese yen traded at 113.95 to the dollar while the Australian dollar traded at $0.7229.

— CNBC’s Tom DiChristopher contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: saheli roy choudhury
Keywords: news, cnbc, companies, opec, closely, retrace, market, shares, warns, output, markets, trade, traded, dollar, losses, watched, index, oil, prices


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