Saudi energy minister: Russia moving ‘slower than I’d like’ on oil cuts

Saudi Arabia’s energy minister said Sunday he’s positive OPEC and partnered nations will meet their production cut commitments to balance oil markets in 2019, despite what he described as a slower than anticipated pace by some. “We’ve already done it, we’ve done enough,” Saudi Energy Minister Khalid al-Falih told CNBC on Sunday in Abu Dhabi, when asked what OPEC’s largest producer would do to balance markets this year. Russia was more reluctant to cut its output, as its growth is heavily depende


Saudi Arabia’s energy minister said Sunday he’s positive OPEC and partnered nations will meet their production cut commitments to balance oil markets in 2019, despite what he described as a slower than anticipated pace by some. “We’ve already done it, we’ve done enough,” Saudi Energy Minister Khalid al-Falih told CNBC on Sunday in Abu Dhabi, when asked what OPEC’s largest producer would do to balance markets this year. Russia was more reluctant to cut its output, as its growth is heavily depende
Saudi energy minister: Russia moving ‘slower than I’d like’ on oil cuts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-13  Authors: natasha turak
Keywords: news, cnbc, companies, id, slower, moving, output, cut, theyve, energy, russia, barrels, told, oil, saudi, opec, cuts, weve, minister


Saudi energy minister: Russia moving 'slower than I'd like' on oil cuts

Saudi Arabia’s energy minister said Sunday he’s positive OPEC and partnered nations will meet their production cut commitments to balance oil markets in 2019, despite what he described as a slower than anticipated pace by some.

“We’ve already done it, we’ve done enough,” Saudi Energy Minister Khalid al-Falih told CNBC on Sunday in Abu Dhabi, when asked what OPEC’s largest producer would do to balance markets this year. “Not only the kingdom but other countries, we’ve heard from the Emirates, I’ve talked repeatedly to my colleagues in Iraq, they’ve already taken action,” he told CNBC’s Hadley Gamble.

He then mentioned the performance of the largest non-OPEC producer that’s partnered with the cartel on cuts: “Russia has started, slower than I’d like, but they’ve started, and I am sure as they did as in 2017 they’ll catch up and be a positive contributor to re-balancing the market.”

OPEC members, along with several other countries, in December agreed on output cuts totaling 1.2 million barrels per day in order to stem a sinking market and support their own export-dependent economies. “OPEC plus” refers to the group’s cooperation with the non-OPEC producers like Russia and other former Soviet states, as well as Mexico. Russia was more reluctant to cut its output, as its growth is heavily dependent on robust crude exports.

Russia has initially let the Saudis shoulder the bulk of output cuts. The top OPEC ally, which in late 2016 began a cooperation agreement with Riyadh to stabilize oil prices, has often said that $60 per barrel is enough to meet its economic needs. Moscow in December said it would cut production by 50,000 to 60,000 barrels a day in January, while Saudi pledged a cut of 900,000 barrels.


Company: cnbc, Activity: cnbc, Date: 2019-01-13  Authors: natasha turak
Keywords: news, cnbc, companies, id, slower, moving, output, cut, theyve, energy, russia, barrels, told, oil, saudi, opec, cuts, weve, minister


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OPEC is cutting more oil from the market than planned, says former Saudi Aramco executive

Market analysts could see OPEC production fall by about 1 million barrels per day from October levels this month, Husseini said. Last month, OPEC agreed to take 800,000 bpd off the market. If Husseini’s forecast is correct and OPEC pumps roughly 32.1 million bpd in January, it would equal a reduction of 876,000 bpd. Husseini is former executive vice president of exploration and production operations at Saudi Arabia’s state-owned oil company Aramco. Saudi Oil Minister Khalid al-Falih said last mo


Market analysts could see OPEC production fall by about 1 million barrels per day from October levels this month, Husseini said. Last month, OPEC agreed to take 800,000 bpd off the market. If Husseini’s forecast is correct and OPEC pumps roughly 32.1 million bpd in January, it would equal a reduction of 876,000 bpd. Husseini is former executive vice president of exploration and production operations at Saudi Arabia’s state-owned oil company Aramco. Saudi Oil Minister Khalid al-Falih said last mo
OPEC is cutting more oil from the market than planned, says former Saudi Aramco executive Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-03  Authors: tom dichristopher, reza, getty images
Keywords: news, cnbc, companies, aramco, cutting, production, executive, planned, oil, husseini, saudi, million, month, market, opec, output, bpd


OPEC is cutting more oil from the market than planned, says former Saudi Aramco executive

The oil market should prepare for a bullish surprise from OPEC in January, according to a former Saudi Aramco executive

The 14-member oil producer group will likely deliver a deeper output cut in January than it promised last month, said Sadad al-Husseini, founder of Husseini Energy. Market analysts could see OPEC production fall by about 1 million barrels per day from October levels this month, Husseini said.

Last month, OPEC agreed to take 800,000 bpd off the market. Pledges from 10 other producers aligned with OPEC, including Russia, brought total output cuts to 1.2 million bpd.

“It’s working very well,” Husseini told CNBC’s “Squawk on the Street” on Thursday. “There’s already been a significant drop in OPEC production and it’s continuing on target to come down to about 32 [million] and 100,000 barrels in January.”

OPEC pumped just under 33 million bpd in October, the month that serves as the benchmark for production cuts. If Husseini’s forecast is correct and OPEC pumps roughly 32.1 million bpd in January, it would equal a reduction of 876,000 bpd.

But Husseini said it’s possible that OPEC cuts more than 1 million bpd by the end of January, and the group could potentially throttle back output by nearly 1.2 million bpd, essentially doing the work of its allies for them.

Husseini is former executive vice president of exploration and production operations at Saudi Arabia’s state-owned oil company Aramco. Saudi Arabia is OPEC’s top oil producer and the world’s biggest crude exporter.

There are already signs that OPEC will over deliver in January, the month its production deal begins.

Saudi Oil Minister Khalid al-Falih said last month that Saudi Arabia will pump about 10.2 million bpd in January, down from nearly 11.1 million bpd in November, according to the kingdom’s figures.


Company: cnbc, Activity: cnbc, Date: 2019-01-03  Authors: tom dichristopher, reza, getty images
Keywords: news, cnbc, companies, aramco, cutting, production, executive, planned, oil, husseini, saudi, million, month, market, opec, output, bpd


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Oil prices jump, but oversupply worries persist

Oil prices fell to their lowest in more than a year on Thursday, a day after their biggest one-day rally in two years, pulled down by worries about the global economy and a supply glut. “For the time being, the stock market and the oil market will echo each other,” said Ahn Yea-Ha, commodity analyst at Kiwoom Securities in Seoul. “Global economic slowdown worries have been weighing on stock market movements, and oil prices are not free from those concerns.” Stephen Innes, head of trading for Asi


Oil prices fell to their lowest in more than a year on Thursday, a day after their biggest one-day rally in two years, pulled down by worries about the global economy and a supply glut. “For the time being, the stock market and the oil market will echo each other,” said Ahn Yea-Ha, commodity analyst at Kiwoom Securities in Seoul. “Global economic slowdown worries have been weighing on stock market movements, and oil prices are not free from those concerns.” Stephen Innes, head of trading for Asi
Oil prices jump, but oversupply worries persist Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-28
Keywords: news, cnbc, companies, crude, oversupply, day, worries, output, market, million, persist, oil, global, barrels, jump, prices


Oil prices jump, but oversupply worries persist

Oil prices jumped as much as 3 percent on Friday to win back a chunk of the ground they lost in the previous session, but growth in U.S. crude stockpiles and ongoing concerns about the global economy kept markets under pressure.

Brent crude was up $1.18, or 2.26 percent, at $53.34 a barrel at 0219 GMT, having earlier risen as much as 3.1 percent. It dropped 4.24 percent, or $2.31, the day before to settle at $52.16 per barrel.

U.S. West Texas Intermediate (WTI) crude futures, were at $45.62 a barrel, up 2.26 percent, or $1.01, after earlier rising 3.6 percent. They ended Thursday down 3.48 percent, or $1.61, at $44.61 a barrel.

Oil prices fell to their lowest in more than a year on Thursday, a day after their biggest one-day rally in two years, pulled down by worries about the global economy and a supply glut.

“For the time being, the stock market and the oil market will echo each other,” said Ahn Yea-Ha, commodity analyst at Kiwoom Securities in Seoul.

“Global economic slowdown worries have been weighing on stock market movements, and oil prices are not free from those concerns.”

Asian stocks edged up on Friday after U.S. shares extended gains for a second straight day.

Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore, said crude prices had been pressured by slowing economic growth “coupled with the expectation of strong U.S. production in the new year”.

U.S. crude inventories for the week to Dec. 21 rose by 6.9 million barrels to 448.2 million barrels on increased refinery output, according to data released on Thursday by industry group the American Petroleum Institute. The U.S. Energy Information Agency (EIA) releases its official report on Friday.

“If the EIA’s data shows a rise in U.S. crude inventories, that would cap price gains,” Ahn said.

The United States has emerged as the world’s biggest crude producer, pumping 11.6 million barrels per day (bpd), more than both Saudi Arabia and Russia.

Meanwhile, Russian Energy Minister Alexander Novak said on Thursday that rising protectionism and the unpredictability of the U.S. administration had greatly contributed to global oil price volatility over the past two years.

Novak also said Russia would cut its crude output by between 3 and 5 million tonnes in the first half of 2019 as part of a deal between producers

Earlier this month, the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, agreed to curb output by 1.2 million bpd starting in January in a bid to clear a supply overhang and prop up prices.


Company: cnbc, Activity: cnbc, Date: 2018-12-28
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Russia says unpredictable US, protectionism behind oil price volatility

Rising protectionism and trade wars and the unpredictability of the U.S. administration have greatly contributed to global oil price volatility over the past two years, Russian Energy Minister Alexander Novak said on Thursday. Oil prices have been volatile, falling by more than a third this quarter. “All these uncertainties, which are now on the market: how China will behave, how India will behave… trade wars and unpredictability on the part of the U.S. administration… those are defining fac


Rising protectionism and trade wars and the unpredictability of the U.S. administration have greatly contributed to global oil price volatility over the past two years, Russian Energy Minister Alexander Novak said on Thursday. Oil prices have been volatile, falling by more than a third this quarter. “All these uncertainties, which are now on the market: how China will behave, how India will behave… trade wars and unpredictability on the part of the U.S. administration… those are defining fac
Russia says unpredictable US, protectionism behind oil price volatility Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-27  Authors: omar marques, anadolu agency, getty images
Keywords: news, cnbc, companies, novak, protectionism, oil, wars, cut, unpredictable, price, unpredictability, output, volatility, prices, trade, russia


Russia says unpredictable US, protectionism behind oil price volatility

Rising protectionism and trade wars and the unpredictability of the U.S. administration have greatly contributed to global oil price volatility over the past two years, Russian Energy Minister Alexander Novak said on Thursday.

Oil prices have been volatile, falling by more than a third this quarter.

“All these uncertainties, which are now on the market: how China will behave, how India will behave… trade wars and unpredictability on the part of the U.S. administration… those are defining factors for price volatility,” Novak said.

U.S. President Donald Trump has been a vociferous critic of OPEC, demanding the cartel act in order to cut prices of oil.

Russia’s Novak also told reporters that the U.S. decision to allow some countries to trade Iranian oil after putting Tehran under sanctions was one of the key factors behind this month’s global pact to cut oil output by 1.2 million barrels per day.

The Organization of the Petroleum Exporting Countries and other top oil producers led by Russia have agreed to cut their output beginning in January in order to prop up oil prices.


Company: cnbc, Activity: cnbc, Date: 2018-12-27  Authors: omar marques, anadolu agency, getty images
Keywords: news, cnbc, companies, novak, protectionism, oil, wars, cut, unpredictable, price, unpredictability, output, volatility, prices, trade, russia


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Oil rises on signs that low prices are restraining US output though economic worries weigh

Oil prices rose more than 1 percent on Monday on signs that the recent price plunge may start crimping supply from the U.S.,currently the world’s biggest oil producer, though concerns about global economy continues to weigh. International benchmark Brent crude futures rose 60 cents, or 1.1 percent, to $54.42 a barrel at 0408 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 37 cents, or 0.8 percent, to $45.96 a barrel after earlier climbing to as high as $46.24. The price plunge has


Oil prices rose more than 1 percent on Monday on signs that the recent price plunge may start crimping supply from the U.S.,currently the world’s biggest oil producer, though concerns about global economy continues to weigh. International benchmark Brent crude futures rose 60 cents, or 1.1 percent, to $54.42 a barrel at 0408 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 37 cents, or 0.8 percent, to $45.96 a barrel after earlier climbing to as high as $46.24. The price plunge has
Oil rises on signs that low prices are restraining US output though economic worries weigh Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-24  Authors: jean-paul pelissier
Keywords: news, cnbc, companies, wti, supply, prices, low, weigh, futures, economic, worries, output, week, shale, price, rose, oil, signs, rises, restraining, opec


Oil rises on signs that low prices are restraining US output though economic worries weigh

Oil prices rose more than 1 percent on Monday on signs that the recent price plunge may start crimping supply from the U.S.,currently the world’s biggest oil producer, though concerns about global economy continues to weigh.

International benchmark Brent crude futures rose 60 cents, or 1.1 percent, to $54.42 a barrel at 0408 GMT. Prices climbed to as high as $54.66.

U.S. West Texas Intermediate (WTI) crude futures were up 37 cents, or 0.8 percent, to $45.96 a barrel after earlier climbing to as high as $46.24.

Crude prices rebounded from a sharp declines last week. Brent fell 11 percent for the week, dropping to its lowest since September 2017 on Friday, while WTI also dropped 11 percent last week, its worst weekly performance since January 2016.

Both benchmarks down more than 35 percent from their recent peaks in early October.

The price plunge has caused U.S. shale oil producers to curtail drilling plans for next year.

The boom in U.S. shale output has boosted the country into the top producer spot over traditional suppliers Saudi Arabia and Russia. The industry is at the center of U.S. President Donald Trump’s calls to boost the country’s energy independence.

“In the short term, it doesn’t seem oil prices would drop further because WTI has broken the $50 resistance level and U.S. President Trump would not want to see WTI falling further to support U.S. shale industry,” said Kim Kwang-rae, a commodity analyst at Samsung Futures in Seoul.

Still, the macroeconomic picture and its impact on oil demand continue to pressure prices. Global equity markets have plunged amid concerns of slowing trade flows, especially with the trade war between the U.S. and China, the world’s two biggest economies.

Equity markets in Asia were moderately higher on Monday, though trading was limited because of the Christmas holiday on Dec. 25.

Furthermore, even with the signs of slowing U.S. supply, global production remains in excess of demand.

The Organization of Petroleum Exporting Countries (OPEC) and Russia agreed earlier this month to cut oil production by 1.2 million barrels per day (bpd) starting in January to address the supply issues.

Should they not be enough to balance the market, OPEC and its allies will hold an extraordinary meeting, the United Arab Emirate’s energy minister Suhail al-Mazrouei said on Sunday.

“Oil ministers are already taking to the airwaves with a ‘price stability at all cost’ mantra,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

Mazrouei said a joint OPEC and non-OPEC monitoring committee would meet in Baku in late February or early March.

Adding to concerns about oversupply, the number of active U.S. rigs for drilling oil rose by 10 in the week ended Dec. 21 to 883, according to a report by General Electric Co’s Baker Hughes energy services firm.


Company: cnbc, Activity: cnbc, Date: 2018-12-24  Authors: jean-paul pelissier
Keywords: news, cnbc, companies, wti, supply, prices, low, weigh, futures, economic, worries, output, week, shale, price, rose, oil, signs, rises, restraining, opec


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Oil prices rise as OPEC output cuts seen to be deeper than previously expected

Oil prices climbed on Friday after tumbling 5 percent in the previous session on signs OPEC’s production cuts that start next month will be deeper than expected. Benchmark Brent crude futures were up 27 cents, or 0.5 percent, at $54.62 per barrel at 0448 GMT, after dropping $2.89 in the previous session. U.S. West Texas Intermediate (WTI) crude futures rose 33 cents, or 0.7 percent, to $46.22 per barrel. Crude prices have fallen along with major equity markets as investors fret about the strengt


Oil prices climbed on Friday after tumbling 5 percent in the previous session on signs OPEC’s production cuts that start next month will be deeper than expected. Benchmark Brent crude futures were up 27 cents, or 0.5 percent, at $54.62 per barrel at 0448 GMT, after dropping $2.89 in the previous session. U.S. West Texas Intermediate (WTI) crude futures rose 33 cents, or 0.7 percent, to $46.22 per barrel. Crude prices have fallen along with major equity markets as investors fret about the strengt
Oil prices rise as OPEC output cuts seen to be deeper than previously expected Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-21  Authors: spencer platt, getty images
Keywords: news, cnbc, companies, seen, cuts, futures, crude, cut, prices, wang, expected, signs, rise, opec, brent, previously, deeper, oil, wti, output


Oil prices rise as OPEC output cuts seen to be deeper than previously expected

Oil prices climbed on Friday after tumbling 5 percent in the previous session on signs OPEC’s production cuts that start next month will be deeper than expected.

Benchmark Brent crude futures were up 27 cents, or 0.5 percent, at $54.62 per barrel at 0448 GMT, after dropping $2.89 in the previous session. Brent is set to drop 9.4 percent for the week.

U.S. West Texas Intermediate (WTI) crude futures rose 33 cents, or 0.7 percent, to $46.22 per barrel. WTI is set to decline about 9.5 percent for the week.

Crude prices have fallen along with major equity markets as investors fret about the strength of the global economy heading into next year. Further concerns were raised as the United States, the world’s biggest oil consumer, may have a government shutdown later on Friday.

The Organization of the Petroleum Exporting Countries (OPEC) plans to release a table detailing output cut quotas for its members and allies such as Russia in an effort to shore up the price of crude, OPEC’s secretary-general Mohammad Barkindo said in a letter reviewed by Reuters on Thursday.

Barkindo said to reach the proposed cut of 1.2 million barrels per day, the effective reduction for member countries was 3.02 percent.

That is higher than the initially discussed 2.5 percent as OPEC seeks to accommodate Iran, Libya and Venezuela, which are exempt from any requirement to cut.

“The current oil prices will force OPEC to increase compliance with the production cut deals, supporting Brent prices,” said Wang Xiao, head of crude research at Guotai Junan futures.

“The temporary recovery in prices has been driven by short- sellers buying back,” said Wang, referring to investors buying futures to close out positions that profit from falling oil prices.

WTI and Brent futures are down more than 30 percent from their peak in October on concerns of oil demand will drop because of a slowing global economy and signs of a supply glut.

Stephen Innes, head of trading for Asia-Pacific at OANDA said in a note that market volatility was “getting exaggerated by immensely thin liquidity conditions, risk sentiment, and holiday market participation”.


Company: cnbc, Activity: cnbc, Date: 2018-12-21  Authors: spencer platt, getty images
Keywords: news, cnbc, companies, seen, cuts, futures, crude, cut, prices, wang, expected, signs, rise, opec, brent, previously, deeper, oil, wti, output


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Saudi Arabia is reportedly cutting oil output by more than expected

OPEC is reportedly planning to release a table detailing voluntary supply cut quotas among its members and allies, Reuters reported Thursday, as the influential oil cartel steps up its efforts to put a halt to one of the biggest oil price falls in years. That is higher than the initially discussed 2.5 percent discussed earlier this month. “In the interests of openness and transparency, and to support market sentiment and confidence, it is vital to make these production adjustments publicly avail


OPEC is reportedly planning to release a table detailing voluntary supply cut quotas among its members and allies, Reuters reported Thursday, as the influential oil cartel steps up its efforts to put a halt to one of the biggest oil price falls in years. That is higher than the initially discussed 2.5 percent discussed earlier this month. “In the interests of openness and transparency, and to support market sentiment and confidence, it is vital to make these production adjustments publicly avail
Saudi Arabia is reportedly cutting oil output by more than expected Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-20  Authors: sam meredith, omar marques, sopa images, lightrocket, getty images
Keywords: news, cnbc, companies, saudi, reportedly, opec, expected, oil, cutting, output, arabia, vital, discussed, members, decisions, cut, price, earlier


Saudi Arabia is reportedly cutting oil output by more than expected

OPEC is reportedly planning to release a table detailing voluntary supply cut quotas among its members and allies, Reuters reported Thursday, as the influential oil cartel steps up its efforts to put a halt to one of the biggest oil price falls in years.

OPEC Secretary General Mohammad Barkindo commended Saudi Arabia on Thursday, according to a letter seen by Reuters, saying the de facto leader of the group was going above and beyond the output deal agreed earlier this month.

Barkindo said to reach the proposed cut of 1.2 million barrels per day (bpd), the effective reduction for member countries would need to be 3.02 percent. That is higher than the initially discussed 2.5 percent discussed earlier this month.

“In the interests of openness and transparency, and to support market sentiment and confidence, it is vital to make these production adjustments publicly available,” Barindo reportedly told OPEC members in the letter.

“I would urge Your Excellencies to kindly make positive announcements reinstating your countries’ commitment to implementing the agreed decisions. This is also vital to underpin trust in our decisions and to buttress ourselves from any naysayers who may doubt our commitment.”

WATCH: Here’s what dictates the price of oil


Company: cnbc, Activity: cnbc, Date: 2018-12-20  Authors: sam meredith, omar marques, sopa images, lightrocket, getty images
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Oil prices drop 2% on oversupply concerns and a global equities sell-off

Oil prices fell more than 2 percent on Tuesday, dropping for a third consecutive session as reports of swelling inventories and forecasts of record U.S. and Russian output combined with a sharp sell-off in global stock markets. Brent crude oil futures fell $1.51, or 2.5 percent, to a low of $58.10 and last traded around $58.61, down $1.00. “Specifically for the oil market, there are no clear signs yet of the market tightening,” he added. Russian oil output hit a record 11.42 million bpd this mon


Oil prices fell more than 2 percent on Tuesday, dropping for a third consecutive session as reports of swelling inventories and forecasts of record U.S. and Russian output combined with a sharp sell-off in global stock markets. Brent crude oil futures fell $1.51, or 2.5 percent, to a low of $58.10 and last traded around $58.61, down $1.00. “Specifically for the oil market, there are no clear signs yet of the market tightening,” he added. Russian oil output hit a record 11.42 million bpd this mon
Oil prices drop 2% on oversupply concerns and a global equities sell-off Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-18  Authors: spencer platt, getty images
Keywords: news, cnbc, companies, prices, equities, global, market, output, shale, drop, month, concerns, selloff, oversupply, production, record, million, oil, futures


Oil prices drop 2% on oversupply concerns and a global equities sell-off

Oil prices fell more than 2 percent on Tuesday, dropping for a third consecutive session as reports of swelling inventories and forecasts of record U.S. and Russian output combined with a sharp sell-off in global stock markets.

U.S. West Texas Intermediate (WTI) crude futures dropped $1.36 or 2.7 percent to a low of $48.52, its weakest since September 2017, before recovering to around $49.00 by 0840 GMT.

Brent crude oil futures fell $1.51, or 2.5 percent, to a low of $58.10 and last traded around $58.61, down $1.00.

Both benchmarks have shed more than 30 percent since early October due to swelling global inventories.

“A large part of the move (lower) is due to a broader market sell-off, with both U.S. and Asian equity markets coming under pressure,” said commodities strategist Warren Patterson at Dutch bank ING in Amsterdam.

“Specifically for the oil market, there are no clear signs yet of the market tightening,” he added.

The Organization of the Petroleum Exporting Countries and other oil producers agreed this month to curb production by 1.2 million barrels per day (bpd), equivalent to more than 1 percent of global demand, in an attempt to drain tanks and boost prices.

But the cuts won’t happen until next month and meanwhile production has been at or near record highs in the United States, Russia and Saudi Arabia, undermining spot prices.

Russian oil output hit a record 11.42 million bpd this month, an industry source familiar with the data told Reuters.

Oil production from seven major U.S. shale basins is by the year-end expected to climb to more than 8 million bpd for the first time, the U.S. Energy Information Administration said on Monday.

Inventories at the U.S. storage hub of Cushing, Oklahoma, delivery point for the oil futures contract, rose more than 1 million barrels from Dec. 11 to 14, traders said, citing data from market intelligence firm Genscape.

The United States has surpassed Russia and Saudi Arabia as the world’s biggest oil producer, with total crude output climbing to a record 11.7 million bpd.

With prices falling, unprofitable shale producers will eventually stop operating and cut supply, but that could take some time, and meanwhile inventories keep growing.

“Rising U.S. shale production levels along with a deceleration in global economic growth have threatened to offset OPEC+ efforts,” said Benjamin Lu Jiaxuan, at Singapore-based brokerage Phillip Futures. “Market confidence remains extremely delicate.”


Company: cnbc, Activity: cnbc, Date: 2018-12-18  Authors: spencer platt, getty images
Keywords: news, cnbc, companies, prices, equities, global, market, output, shale, drop, month, concerns, selloff, oversupply, production, record, million, oil, futures


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Libya’s biggest oil field is being held hostage, but even that won’t boost prices

The protest group, known as the Fezzan Rage Movement, shut down the El Sharara oil field in Libya’s impoverished southwest earlier this month with the help of security personnel the Petroleum Facilities Guard, a militia known for its clashes with the Islamic State. However, he noted, “any further unexpected outages could inject some much needed bullish impetus into the oil complex.” Oil prices have fallen some 30 percent since hitting year-highs in October on concerns of global oversupply and sl


The protest group, known as the Fezzan Rage Movement, shut down the El Sharara oil field in Libya’s impoverished southwest earlier this month with the help of security personnel the Petroleum Facilities Guard, a militia known for its clashes with the Islamic State. However, he noted, “any further unexpected outages could inject some much needed bullish impetus into the oil complex.” Oil prices have fallen some 30 percent since hitting year-highs in October on concerns of global oversupply and sl
Libya’s biggest oil field is being held hostage, but even that won’t boost prices Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-18  Authors: natasha turak, leon neal, afp, getty images
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Libya's biggest oil field is being held hostage, but even that won't boost prices

Libya’s state-owned National Oil Company (NOC) declared force majeure on operations at its biggest oilfield late Monday night amid a stand-off with armed protesters, expecting a loss of 315,000 barrels per day (bpd) for the OPEC member.

The protest group, known as the Fezzan Rage Movement, shut down the El Sharara oil field in Libya’s impoverished southwest earlier this month with the help of security personnel the Petroleum Facilities Guard, a militia known for its clashes with the Islamic State. The movement of tribesmen is demanding better services, health sector support, monetary stimulus for the southern region and better protection from the government, which it claims has marginalized those living in Libya’s south.

But while oil prices saw a slight rebound of about 2 percent one week ago on news of the shutdown, crude output from the U.S. is so high it’s practically drowned out what would otherwise be a notable disruption in the oil market. Brent crude was trading at 58.54 at 2 p.m. London time on Tuesday, down 1.8 percent on the previous day.

“In terms of the impact on prices, at present it is struggling to overturn the prevailing bearish bias,” Stephen Brennock of PVM Oil Associates told CNBC on Tuesday. However, he noted, “any further unexpected outages could inject some much needed bullish impetus into the oil complex.”

Oil prices have fallen some 30 percent since hitting year-highs in October on concerns of global oversupply and slowing demand growth. The Energy Information Agency (EIA) projects U.S. shale oil output to top 8 million bpd by the year’s end and average a record 12.06 million bpd in 2019.

While the crisis does heighten geopolitical risk, said Ehsan Khoman, head of Middle East and North Africa research at MUFG, “markets remained focused on the more structural concerns that U.S. oil production growth is well north of, and expected to stay, above global demand growth heading into 2019.”

Libya’s NOC said that production at El Sharara will only restart after “alternative security arrangements,” the Monday statement said, without elaborating.


Company: cnbc, Activity: cnbc, Date: 2018-12-18  Authors: natasha turak, leon neal, afp, getty images
Keywords: news, cnbc, companies, held, field, sharara, production, north, libyas, oil, hostage, biggest, security, wont, output, boost, bpd, prices, growth


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Brent crude dips on global economy worries, US oil prices steady

Brent crude prices slipped on Monday amid concerns over demand in the wake of weaker growth in major economies, while U.S. oil markets held steady after U.S. drilling activity fell to its lowest level in about two months. International Brent crude oil futures were at $60.16 per barrel at 0248 GMT, down 12 cents, or 0.2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.3 percent. But oil prices were supported after Genera


Brent crude prices slipped on Monday amid concerns over demand in the wake of weaker growth in major economies, while U.S. oil markets held steady after U.S. drilling activity fell to its lowest level in about two months. International Brent crude oil futures were at $60.16 per barrel at 0248 GMT, down 12 cents, or 0.2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.3 percent. But oil prices were supported after Genera
Brent crude dips on global economy worries, US oil prices steady Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: getty images
Keywords: news, cnbc, companies, global, output, week, brent, crude, oil, meeting, futures, saudi, rigs, economy, steady, markets, worries, dips, prices


Brent crude dips on global economy worries, US oil prices steady

Brent crude prices slipped on Monday amid concerns over demand in the wake of weaker growth in major economies, while U.S. oil markets held steady after U.S. drilling activity fell to its lowest level in about two months.

International Brent crude oil futures were at $60.16 per barrel at 0248 GMT, down 12 cents, or 0.2 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude futures were at $51.33 per barrel, up 13 cents, or 0.3 percent.

Chinese oil refinery throughput in November fell from October, suggesting an easing in oil demand, while the country’s industrial output rose the least in nearly three years as the economy continued to lose momentum.

French business activity plunged unexpectedly into contraction this month, retreating at the fastest pace in over four years, while Germany’s private sector expansion slowed to a four-year low in December.

But oil prices were supported after General Electric Co’s Baker Hughes energy services firm said on Friday that U.S. drillers cut four oil rigs in the week to Dec. 14, pulling the total count to the lowest since mid-October at 873.

“This, when combined with (expectations) Saudi Arabia is … to cut exports to the United States to draw down inventory builds (there) should provide a short-term base despite global slowdown fears, which continue to resonate,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage Oanda in Singapore.

However, the current U.S. rig count, which serves as an early indicator of future output, is higher than a year ago when 747 rigs were active.

The Organisation of the Petroleum Exporting Countries and its Russia-led allies have agreed to curb output from January, in a move to be reviewed at a meeting in April. Saudi Arabia is OPEC’s de facto leader.

“The potential for a significant movement in the U.S. dollar clearly has an impact on oil pricing with the Fed meeting (this week). We’re looking outside the oil markets for its next major move,” said Michael McCarthy, chief markets strategist at CMC markets.

The U.S. Federal Open Market Committee (FOMC) is set to start a two-day meeting on Tuesday.


Company: cnbc, Activity: cnbc, Date: 2018-12-17  Authors: getty images
Keywords: news, cnbc, companies, global, output, week, brent, crude, oil, meeting, futures, saudi, rigs, economy, steady, markets, worries, dips, prices


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