Saudi Arabia is slashing oil shipments to US, a tactic that boosts prices and may rile Trump

Saudi Arabia is slashing shipments of crude to the United States, a move that appears calibrated to boost oil prices after a swift and punishing sell-off. The firm’s loading estimate suggests that U.S. imports of Saudi crude oil could soon fall toward the lowest levels on record. Sending fewer barrels to the United States means U.S. crude stockpiles are more likely to drop, and shrinking inventories tend to push up oil prices. The maneuver shows how Saudi Arabia’s efforts to manage the oil marke


Saudi Arabia is slashing shipments of crude to the United States, a move that appears calibrated to boost oil prices after a swift and punishing sell-off. The firm’s loading estimate suggests that U.S. imports of Saudi crude oil could soon fall toward the lowest levels on record. Sending fewer barrels to the United States means U.S. crude stockpiles are more likely to drop, and shrinking inventories tend to push up oil prices. The maneuver shows how Saudi Arabia’s efforts to manage the oil marke
Saudi Arabia is slashing oil shipments to US, a tactic that boosts prices and may rile Trump Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: tom dichristopher, heinz-peter bader
Keywords: news, cnbc, companies, shipments, slashing, market, states, united, saudis, saudi, boosts, crude, oil, output, arabia, tactic, rile, trump, prices


Saudi Arabia is slashing oil shipments to US, a tactic that boosts prices and may rile Trump

Saudi Arabia is slashing shipments of crude to the United States, a move that appears calibrated to boost oil prices after a swift and punishing sell-off.

The move could put the kingdom at loggerheads with President Donald Trump, who wants to drive down energy costs for Americans and frequently accuses the Saudi-led OPEC cartel of jacking up oil prices.

The Saudis are loading fewer barrels on ships bound for the United States this month, continuing a trend that began in September, according to an analysis by tanker-tracking firm ClipperData. The firm’s loading estimate suggests that U.S. imports of Saudi crude oil could soon fall toward the lowest levels on record.

Sending fewer barrels to the United States means U.S. crude stockpiles are more likely to drop, and shrinking inventories tend to push up oil prices. It’s a tactic the Saudis used last year to amplify their main strategy for draining a global crude glut and propping up the market: cutting output alongside fellow OPEC members, Russia and several other producers.

The maneuver shows how Saudi Arabia’s efforts to manage the oil market have evolved. During the 2014-2016 oil price crash, traders closely monitored weekly U.S. stockpile data to see whether oversupply was shrinking or growing. As the world’s biggest exporter, Saudi Arabia realized it could nudge the data in a direction that boosts the cost of crude.

“It worked so well in 2017 for [the Saudis] to cut flows to the U.S. because people could see the inventories dropping because U.S. data is so timely and transparent,” said Matt Smith, head of commodities research at ClipperData.

“The markets have become more transparent through tanker tracking,” Smith said. “You can see those changes being implemented more, and [the Saudis are] aware of that.”

November’s drop in Saudi barrels bound for the United States follows a six-week oil market rout that saw prices plunge 25 percent into bear market territory. It also comes after Saudi Energy Minister Khalid al-Falih warned on Monday that OPEC, Russia and several other producers may soon launch a fresh round of price-boosting output cuts.

Shortly after Falih issued the warning, Trump took to Twitter to voice his disapproval with that plan.

But Saudi Arabia may not be swayed by Trump’s pressure campaign. In recent days, Smith and other energy analysts have claimed that Trump essentially duped OPEC and its allies into raising output earlier this year.

The analysts say Trump’s threats to impose harsh sanctions on Iran, OPEC’s third-biggest producer, played a part in convincing the producers to stop capping output and start pumping more oil. But Trump ultimately allowed some of Iran’s biggest customers to keep importing its oil, which meant the oil squeeze the alliance feared never materialized.

Consequently, the producers put even more oil into a market that is swinging toward oversupply, giving traders another reason to sell off crude futures and push prices lower.


Company: cnbc, Activity: cnbc, Date: 2018-11-16  Authors: tom dichristopher, heinz-peter bader
Keywords: news, cnbc, companies, shipments, slashing, market, states, united, saudis, saudi, boosts, crude, oil, output, arabia, tactic, rile, trump, prices


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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
Keywords: news, cnbc, companies, crude, million, output, extends, surge, slump, supply, later, slide, day, oil, outlook, prices, darkens, production, opec


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China industrial output, investment beat forecasts while retail sales miss expectations

China’s industrial output grew 5.9 percent in October from a year earlier and fixed-asset investment rose 5.7 percent in the first 10 months, both above forecasts, but retail sales rose less than expected last month, data showed on Wednesday. Analysts polled by Reuters had predicted industrial output growth would dip to 5.7 percent from 5.8 percent in September. Investment growth had been expected to pick up slightly to 5.5 percent in the first 10 months of the year, from 5.4 percent in January-


China’s industrial output grew 5.9 percent in October from a year earlier and fixed-asset investment rose 5.7 percent in the first 10 months, both above forecasts, but retail sales rose less than expected last month, data showed on Wednesday. Analysts polled by Reuters had predicted industrial output growth would dip to 5.7 percent from 5.8 percent in September. Investment growth had been expected to pick up slightly to 5.5 percent in the first 10 months of the year, from 5.4 percent in January-
China industrial output, investment beat forecasts while retail sales miss expectations Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: afp, getty images
Keywords: news, cnbc, companies, months, industrial, expected, output, slowing, growth, miss, rose, fixedasset, sales, expectations, beat, forecasts, china, retail, investment


China industrial output, investment beat forecasts while retail sales miss expectations

China’s industrial output grew 5.9 percent in October from a year earlier and fixed-asset investment rose 5.7 percent in the first 10 months, both above forecasts, but retail sales rose less than expected last month, data showed on Wednesday.

Analysts polled by Reuters had predicted industrial output growth would dip to 5.7 percent from 5.8 percent in September.

Investment growth had been expected to pick up slightly to 5.5 percent in the first 10 months of the year, from 5.4 percent in January-September.

Private-sector fixed-asset investment rose 8.8 percent in January-October, compared with an increase of 8.7 percent in the first three quarters, according to official data.

Private investment accounts for about 60 percent of overall investment in China.

Retail sales rose 8.6 percent in October from a year earlier. Analysts had expected them to rise 9.1 percent, slowing from 9.2 percent in September.

With U.S. trade duties threatening to ratchet up pressure on China’s already slowing economy, its policymakers have shifted focus in recent months to growth-boosting measures, from ramping up infrastructure spending to cutting taxes and fees. But analysts say it will take some time before the economy begins to steady.


Company: cnbc, Activity: cnbc, Date: 2018-11-14  Authors: afp, getty images
Keywords: news, cnbc, companies, months, industrial, expected, output, slowing, growth, miss, rose, fixedasset, sales, expectations, beat, forecasts, china, retail, investment


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Global oil market faces surplus throughout 2019 as demand growth slows

For the first half of 2019, based on its outlook for non-OPEC production and global demand, and assuming flat OPEC production, the IEA said the implied stock build is 2 million bpd. “While slower economic growth in some countries reduces the outlook for oil demand, a significant downward revision to our price assumption is supportive,” it added. The agency raised its forecast for oil output growth from countries outside the Organization of the Petroleum Exporting Countries to 2.4 million bpd thi


For the first half of 2019, based on its outlook for non-OPEC production and global demand, and assuming flat OPEC production, the IEA said the implied stock build is 2 million bpd. “While slower economic growth in some countries reduces the outlook for oil demand, a significant downward revision to our price assumption is supportive,” it added. The agency raised its forecast for oil output growth from countries outside the Organization of the Petroleum Exporting Countries to 2.4 million bpd thi
Global oil market faces surplus throughout 2019 as demand growth slows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-14
Keywords: news, cnbc, companies, united, slows, oil, iea, global, market, demand, growth, output, bpd, countries, surplus, 2019, million, faces


Global oil market faces surplus throughout 2019 as demand growth slows

For the first half of 2019, based on its outlook for non-OPEC production and global demand, and assuming flat OPEC production, the IEA said the implied stock build is 2 million bpd.

Output around the world has swelled since the middle of the year, while an escalating trade dispute between the United States and China threatens global economic growth.

On Wednesday, three sources familiar with the matter told Reuters that OPEC and its partners are discussing a proposal to cut oil output by up to 1.4 million bpd for 2019 to avert an oversupply that would weaken prices.

Since early October, the oil price has fallen by a quarter to below $70 a barrel, its lowest in eight months, which may protect demand to an extent, the IEA said.

“While slower economic growth in some countries reduces the outlook for oil demand, a significant downward revision to our price assumption is supportive,” it added.

The agency raised its forecast for oil output growth from countries outside the Organization of the Petroleum Exporting Countries to 2.4 million bpd this year and 1.9 million bpd next year, versus its previous estimate of 2.2 million bpd and 1.8 million bpd, respectively.

The United States will lead output growth. The IEA estimates total U.S. oil supply will rise by 2.1 million bpd this year and another 1.3 million bpd in 2019, from a current record of more than 11 million bpd.


Company: cnbc, Activity: cnbc, Date: 2018-11-14
Keywords: news, cnbc, companies, united, slows, oil, iea, global, market, demand, growth, output, bpd, countries, surplus, 2019, million, faces


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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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Saudi Arabia and Russia have a ‘long-term relationship’ despite output U-turn, Dan Yergin says

Yergin: This is a different oil world configured of Saudi Arabia, Russia and the US 1 Hour Ago | 04:22Saudi Arabia and Russia are the world’s most influential oil producers right now, along with the U.S., but the kingdom appears to be going its own way, announcing half a million barrel output cut from December. With a lot at stake for the oil producers, however, the relationship should remain close, according to oil market expert Daniel Yergin. On that note, Saudi Arabia pumped 10.7 million barr


Yergin: This is a different oil world configured of Saudi Arabia, Russia and the US 1 Hour Ago | 04:22Saudi Arabia and Russia are the world’s most influential oil producers right now, along with the U.S., but the kingdom appears to be going its own way, announcing half a million barrel output cut from December. With a lot at stake for the oil producers, however, the relationship should remain close, according to oil market expert Daniel Yergin. On that note, Saudi Arabia pumped 10.7 million barr
Saudi Arabia and Russia have a ‘long-term relationship’ despite output U-turn, Dan Yergin says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: holly ellyatt, simon dawson, bloomberg, getty images
Keywords: news, cnbc, companies, yergin, saudi, relationship, producers, output, uturn, russia, despite, dan, million, prices, day, market, longterm, arabia, oil


Saudi Arabia and Russia have a 'long-term relationship' despite output U-turn, Dan Yergin says

Yergin: This is a different oil world configured of Saudi Arabia, Russia and the US 1 Hour Ago | 04:22

Saudi Arabia and Russia are the world’s most influential oil producers right now, along with the U.S., but the kingdom appears to be going its own way, announcing half a million barrel output cut from December.

With a lot at stake for the oil producers, however, the relationship should remain close, according to oil market expert Daniel Yergin.

“I think it’s intended to be a long-term relationship and it started off about oil prices but you see it taking on other dimensions, for instance, Saudi investment in Russian LNG (liquefied natural gas) and Russian investment in Saudi Arabia and I think this is a strategic relationship because it’s useful to both countries,” IHS Markit vice chairman Dan Yergin told CNBC on Monday.

While Saudi Arabia and Russia are close, particularly given their pact in late 2016, along with other OPEC and non-OPEC producers to curb output by 1.8 million barrels per day in order to support prices, oil markets have changed since that deal – and largely thanks to that deal.

Oil prices have recovered almost too well with the U.S. criticizing OPEC (of which Saudi Arabia is the de facto leader) for higher prices and markets have been fluctuating on concerns over both a potential decline in supply (due to U.S. sanctions on Iran) and a potential oversupply – due to an increase in production from Saudi Arabia, Russia and the U.S. in recent weeks — that led prices to fall around 20 percent since early October.

On that note, Saudi Arabia pumped 10.7 million barrels per day in October, Russia pumped 11.4 million barrels per day and the U.S. also an estimated 11.4 million bpd.

Yergin told CNBC’s these “big three” producers were changing the face of the global oil market. “It’s the big three, it’s Saudi Arabia, Russia and the U.S., this is a different configuration in the oil market than the traditional OPEC-non-OPEC (one) and so thinking is having to adjust so there’s that new relationship … and the world is having to adjust.”


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: holly ellyatt, simon dawson, bloomberg, getty images
Keywords: news, cnbc, companies, yergin, saudi, relationship, producers, output, uturn, russia, despite, dan, million, prices, day, market, longterm, arabia, oil


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OPEC analysis shows need for a production cut of 1 million bpd

Meanwhile, Russia has urged OPEC and its partners to proceed with caution, saying the group must be careful not to make any “hasty” policy decisions. The next full OPEC meeting, when any policy decision will be voted on, is scheduled to take place in Vienna, Austria on December 6. If that means trimming supplies by a million (bpd), we will,” Saudi Arabia’s al-Falih said Monday. About two dozen exporting nations began capping their output in 2017 in a bid to drain a global crude glut. The group a


Meanwhile, Russia has urged OPEC and its partners to proceed with caution, saying the group must be careful not to make any “hasty” policy decisions. The next full OPEC meeting, when any policy decision will be voted on, is scheduled to take place in Vienna, Austria on December 6. If that means trimming supplies by a million (bpd), we will,” Saudi Arabia’s al-Falih said Monday. About two dozen exporting nations began capping their output in 2017 in a bid to drain a global crude glut. The group a
OPEC analysis shows need for a production cut of 1 million bpd Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: sam meredith, akos stiller, bloomberg, getty images
Keywords: news, cnbc, companies, meeting, market, shows, analysis, group, saudi, opec, million, oil, pumping, production, need, output, policy, producers, bpd, cut


OPEC analysis shows need for a production cut of 1 million bpd

Saudi Arabia said shortly after the JMMC meeting that while it would not overreact to falling oil prices, it would be prepared to reduce crude output in the near-term if necessary.

This appeared to be an abrupt turnabout from OPEC’s September meeting, when some of the world’s leading oil producers were talking about pumping extra oil onto the market in order to help soothe intensifying supply shock fears.

Meanwhile, Russia has urged OPEC and its partners to proceed with caution, saying the group must be careful not to make any “hasty” policy decisions.

The next full OPEC meeting, when any policy decision will be voted on, is scheduled to take place in Vienna, Austria on December 6.

“The consensus is we are going to do whatever it takes to balance the market. If that means trimming supplies by a million (bpd), we will,” Saudi Arabia’s al-Falih said Monday.

About two dozen exporting nations began capping their output in 2017 in a bid to drain a global crude glut. The group agreed in June to restore some of that output, and producers with spare capacity have been pumping more oil since then.


Company: cnbc, Activity: cnbc, Date: 2018-11-12  Authors: sam meredith, akos stiller, bloomberg, getty images
Keywords: news, cnbc, companies, meeting, market, shows, analysis, group, saudi, opec, million, oil, pumping, production, need, output, policy, producers, bpd, cut


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Russia warns OPEC against ‘hasty’ policy changes, says oil market volatility could be here to stay

OPEC and non-OPEC exporters must stick to a consistent message if they are to avoid exacerbating wild swings in the oil market, Russian Energy Minister Alexander Novak said Sunday. And what’s more this volatility could remain,” Novak told CNBC’s Steve Sedgwick, according to a translation. The group said Sunday it would “continue closely monitoring” oil market conditions, before adding that “new strategies” could be implemented to balance the market in 2019. The next full OPEC meeting, when any p


OPEC and non-OPEC exporters must stick to a consistent message if they are to avoid exacerbating wild swings in the oil market, Russian Energy Minister Alexander Novak said Sunday. And what’s more this volatility could remain,” Novak told CNBC’s Steve Sedgwick, according to a translation. The group said Sunday it would “continue closely monitoring” oil market conditions, before adding that “new strategies” could be implemented to balance the market in 2019. The next full OPEC meeting, when any p
Russia warns OPEC against ‘hasty’ policy changes, says oil market volatility could be here to stay Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-11  Authors: sam meredith, omar marques, anadolu agency, getty images
Keywords: news, cnbc, companies, volatility, meeting, novak, hasty, warns, pumping, producers, policy, changes, nonopec, russia, market, output, stay, oil, opec


Russia warns OPEC against 'hasty' policy changes, says oil market volatility could be here to stay

OPEC and non-OPEC exporters must stick to a consistent message if they are to avoid exacerbating wild swings in the oil market, Russian Energy Minister Alexander Novak said Sunday.

“There is a lot of volatility in the market. And what’s more this volatility could remain,” Novak told CNBC’s Steve Sedgwick, according to a translation.

“Therefore, right now we shouldn’t be making any hasty decisions. We need to look at the situation very carefully to see how it will develop so that we don’t end up changing our course by 180 degrees every month.”

His comments come shortly after top exporters at the Joint Ministerial Monitoring Committee (JMMC) meeting in Abu Dhabi said they would not shy away from another round of production cuts.

This appeared to an abrupt turnabout from OPEC’s September meeting, when some of the world’s leading oil producers were talking about pumping extra oil onto the market in order to help soothe intensifying supply shock fears.

The group said Sunday it would “continue closely monitoring” oil market conditions, before adding that “new strategies” could be implemented to balance the market in 2019.

Saudi Arabia’s Energy Minister Khalid al-Falih said Sunday that the OPEC and non-OPEC alliance would collectively decide whether reducing global output would be necessary over the coming weeks.

The next full OPEC meeting, when any policy decision will be voted on, is scheduled to take place in Vienna, Austria on December 6.

About two dozen exporting nations began capping their output in 2017 in a bid to drain a global crude glut. The group agreed in June to restore some of that output, and producers with spare capacity have been pumping more oil since then.


Company: cnbc, Activity: cnbc, Date: 2018-11-11  Authors: sam meredith, omar marques, anadolu agency, getty images
Keywords: news, cnbc, companies, volatility, meeting, novak, hasty, warns, pumping, producers, policy, changes, nonopec, russia, market, output, stay, oil, opec


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Saudi Arabia in talks to cut oil output after US waivers hit prices

Riyadh was surprised by the waivers granted to customers such as China and India, a move which hit oil prices, at least three industry and OPEC sources told Reuters. Now Saudi Arabia wants to act to prevent a further slide in prices which fell below $70 a barrel on Friday, and is leading discussions on cutting oil output next year, the sources said. Saudi Arabia wants to at least put a floor under oil prices. This group takes as much as three-quarters of Iran’s seaborne oil exports, trade data s


Riyadh was surprised by the waivers granted to customers such as China and India, a move which hit oil prices, at least three industry and OPEC sources told Reuters. Now Saudi Arabia wants to act to prevent a further slide in prices which fell below $70 a barrel on Friday, and is leading discussions on cutting oil output next year, the sources said. Saudi Arabia wants to at least put a floor under oil prices. This group takes as much as three-quarters of Iran’s seaborne oil exports, trade data s
Saudi Arabia in talks to cut oil output after US waivers hit prices Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-11  Authors: bilal qabalan, afp, getty images
Keywords: news, cnbc, companies, million, oil, arabia, waivers, cut, producers, prices, exports, hit, output, talks, saudi, sources


Saudi Arabia in talks to cut oil output after US waivers hit prices

Saudi Arabia is discussing a proposal that could see OPEC and non-OPEC oil producers cut output by up to 1 million barrels per day, two sources told Reuters on Sunday, as the world’s top oil exporter grapples with a drop in crude prices.

The sources said any such deal would depend on factors including the level of Iranian exports after the United States imposed sanctions on Tehran but granted Iran’s top oil buyers waivers to continue buying oil.

Riyadh was surprised by the waivers granted to customers such as China and India, a move which hit oil prices, at least three industry and OPEC sources told Reuters.

Now Saudi Arabia wants to act to prevent a further slide in prices which fell below $70 a barrel on Friday, and is leading discussions on cutting oil output next year, the sources said.

Under a deal set to expire at the end of the year, OPEC and non-OPEC producers agreed to curb output by around 1.8 million bpd.

But producers ended up cutting more — partly due to unexpected outages in Venezuela, Libya and Angola — and so agreed in June to limit cuts to the agreed level, meaning restoring about 1 million bpd in output.

OPEC and its allies will meet in Vienna on Dec. 6-7 to decide on output policy for 2019.

There is a general discussion about this (cut). But the question is how much is needed to be reduced by the market, one of the sources said ahead of a meeting by a monitoring committee in Abu Dhabi on Sunday attended by top producers Saudi Arabia and Russia.

“No one expected the waivers. Saudi Arabia wants to at least put a floor under oil prices. No one wants a free fall in prices,” the source added.

Kazakh deputy energy minister Magzum Mirzagaliyev told reporters in Abu Dhabi that he understood Saudi Arabia was suggesting using August-October output levels as a baseline for determining cuts.

Brent crude on Friday fell 47 cents, or 0.7 percent, to settle at $70.18 a barrel. It lost about 3.6 percent on the week and has shed more than 15 percent this quarter.

Washington gave 180-day waivers to eight Iranian oil buyers – China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey. This group takes as much as three-quarters of Iran’s seaborne oil exports, trade data shows.

The U.S. administration has vowed to reduce Iranian oil exports to zero and U.S. President Donald Trump has put pressure on Saudi Arabia to raise output to cool the market.

Iran’s crude exports could fall to little more than 1 million bpd in November, roughly a third of their mid-2018 peak. But traders and analysts say that figure could rise from December as importers use their waivers.

Saudi Energy Minister Khalid al-Falih said last month the kingdom would pump 11 million bpd in November, up from 10.7 million bpd in October.

He also said there could be a need for intervention to reduce oil stockpiles after increases in recent months.

U.S. sanctions on Iran are aimed at curbing Tehran’s nuclear and missile programs as well as its support for proxy forces in Yemen, Syria, Lebanon and other parts of the Middle East.


Company: cnbc, Activity: cnbc, Date: 2018-11-11  Authors: bilal qabalan, afp, getty images
Keywords: news, cnbc, companies, million, oil, arabia, waivers, cut, producers, prices, exports, hit, output, talks, saudi, sources


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OPEC and allies warn surging oil output may create oversupply in 2019

The oil market looks poised to swing into oversupply next year as growing global crude output swamps shaky demand, a committee of allied producer nations said on Sunday. The committee of several OPEC members and other crude exporters says 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. The announcement comes as rising supply and a weaker outlook for demand have contributed to a sharp pullback in oil prices that


The oil market looks poised to swing into oversupply next year as growing global crude output swamps shaky demand, a committee of allied producer nations said on Sunday. The committee of several OPEC members and other crude exporters says 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. The announcement comes as rising supply and a weaker outlook for demand have contributed to a sharp pullback in oil prices that
OPEC and allies warn surging oil output may create oversupply in 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-11-11  Authors: tom dichristopher, akos stiller, bloomberg, getty images
Keywords: news, cnbc, companies, members, oversupply, order, crude, create, prices, nations, global, market, output, warn, group, allies, surging, oil, 2019, opec


OPEC and allies warn surging oil output may create oversupply in 2019

The oil market looks poised to swing into oversupply next year as growing global crude output swamps shaky demand, a committee of allied producer nations said on Sunday.

The committee of several OPEC members and other crude exporters says 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. The announcement comes as rising supply and a weaker outlook for demand have contributed to a sharp pullback in oil prices that has plunged U.S. crude into a bear market.

The committee’s communique sets up a potential agreement to throttle back production when the entire group meets next month.

OPEC and a group of oil producers including Russia began cutting their output in January 2017 in order to drain a global crude glut that sent oil prices from over $100 a barrel to under $30. In June, the group agreed to restore some of that output after its members cut more deeply than they intended and as oil prices hit 3-½-year highs.


Company: cnbc, Activity: cnbc, Date: 2018-11-11  Authors: tom dichristopher, akos stiller, bloomberg, getty images
Keywords: news, cnbc, companies, members, oversupply, order, crude, create, prices, nations, global, market, output, warn, group, allies, surging, oil, 2019, opec


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